ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended | June 30, 2015 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from | to |
Corporate Office Properties Trust | Maryland | 23-2947217 | ||
(State or other jurisdiction of | (IRS Employer | |||
incorporation or organization) | Identification No.) | |||
Corporate Office Properties, L.P. | Delaware | 23-2930022 | ||
(State or other jurisdiction of | (IRS Employer | |||
incorporation or organization) | Identification No.) |
6711 Columbia Gateway Drive, Suite 300, Columbia, MD | 21046 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer ý | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o | |||
(Do not check if a smaller reporting company) |
Large accelerated filer o | Accelerated filer o | Non-accelerated filer ý | Smaller reporting company o | |||
(Do not check if a smaller reporting company) |
• | combined reports better reflect how management and the analyst community view the business as a single operating unit; |
• | 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; |
• | combined reports are more efficient for the Company and the Operating Partnership and result in savings in time, effort and expense; and |
• | combined reports are more efficient for investors by reducing duplicative disclosure and providing a single document for their review. |
• | consolidated financial statements; |
• | the following notes to the consolidated financial statements: |
• | Note 3, Fair Value Measurements of COPT and subsidiaries and COPLP and subsidiaries; and |
• | Note 16, Earnings per Share of COPT and subsidiaries and Earnings per Unit of COPLP and subsidiaries; |
• | “Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources of COPT”; and |
• | “Item 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations - Liquidity and Capital Resources of COPLP.” |
PAGE | ||
Consolidated Financial Statements of Corporate Office Properties Trust | ||
Consolidated Financial Statements of Corporate Office Properties, L.P. | ||
June 30, 2015 | December 31, 2014 | ||||||
Assets | |||||||
Properties, net: | |||||||
Operating properties, net | $ | 2,896,809 | $ | 2,751,488 | |||
Projects in development or held for future development | 521,991 | 545,426 | |||||
Total properties, net | 3,418,800 | 3,296,914 | |||||
Assets held for sale, net | 77,013 | 14,339 | |||||
Cash and cash equivalents | 37,074 | 6,077 | |||||
Restricted cash and marketable securities | 10,121 | 9,069 | |||||
Accounts receivable (net of allowance for doubtful accounts of $1,135 and $717, respectively) | 16,181 | 26,901 | |||||
Deferred rent receivable (net of allowance of $2,203 and $1,418, respectively) | 101,488 | 95,910 | |||||
Intangible assets on real estate acquisitions, net | 81,728 | 43,854 | |||||
Deferred leasing and financing costs, net | 67,613 | 64,797 | |||||
Investing receivables | 45,766 | 52,147 | |||||
Prepaid expenses and other assets, net | 55,137 | 60,249 | |||||
Total assets | $ | 3,910,921 | $ | 3,670,257 | |||
Liabilities and equity | |||||||
Liabilities: | |||||||
Debt, net | $ | 2,130,170 | $ | 1,920,057 | |||
Accounts payable and accrued expenses | 155,989 | 123,035 | |||||
Rents received in advance and security deposits | 27,371 | 31,011 | |||||
Dividends and distributions payable | 30,178 | 29,862 | |||||
Deferred revenue associated with operating leases | 15,179 | 13,031 | |||||
Interest rate derivatives | 3,121 | 1,855 | |||||
Other liabilities | 11,866 | 12,105 | |||||
Total liabilities | 2,373,874 | 2,130,956 | |||||
Commitments and contingencies (Note 17) | |||||||
Redeemable noncontrolling interest | 19,414 | 18,417 | |||||
Equity: | |||||||
Corporate Office Properties Trust’s shareholders’ equity: | |||||||
Preferred Shares of beneficial interest at liquidation preference ($0.01 par value; 25,000,000 shares authorized; issued and outstanding of 7,431,667 at June 30, 2015 and December 31, 2014) | 199,083 | 199,083 | |||||
Common Shares of beneficial interest ($0.01 par value; 125,000,000 shares authorized, shares issued and outstanding of 94,529,618 at June 30, 2015 and 93,255,284 at December 31, 2014) | 946 | 933 | |||||
Additional paid-in capital | 2,000,775 | 1,969,968 | |||||
Cumulative distributions in excess of net income | (747,234 | ) | (717,264 | ) | |||
Accumulated other comprehensive loss | (3,141 | ) | (1,297 | ) | |||
Total Corporate Office Properties Trust’s shareholders’ equity | 1,450,429 | 1,451,423 | |||||
Noncontrolling interests in subsidiaries: | |||||||
Common units in COPLP | 48,707 | 51,534 | |||||
Preferred units in COPLP | 8,800 | 8,800 | |||||
Other consolidated entities | 9,697 | 9,127 | |||||
Noncontrolling interests in subsidiaries | 67,204 | 69,461 | |||||
Total equity | 1,517,633 | 1,520,884 | |||||
Total liabilities, redeemable noncontrolling interest and equity | $ | 3,910,921 | $ | 3,670,257 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues | |||||||||||||||
Rental revenue | $ | 105,508 | $ | 94,332 | $ | 203,746 | $ | 192,367 | |||||||
Tenant recoveries and other real estate operations revenue | 22,683 | 21,627 | 47,155 | 48,469 | |||||||||||
Construction contract and other service revenues | 42,172 | 23,861 | 80,496 | 45,651 | |||||||||||
Total revenues | 170,363 | 139,820 | 331,397 | 286,487 | |||||||||||
Expenses | |||||||||||||||
Property operating expenses | 46,418 | 43,772 | 97,099 | 93,544 | |||||||||||
Depreciation and amortization associated with real estate operations | 33,786 | 30,895 | 65,385 | 74,491 | |||||||||||
Construction contract and other service expenses | 41,293 | 23,136 | 78,791 | 41,760 | |||||||||||
Impairment losses | 1,238 | 1,302 | 1,238 | 1,302 | |||||||||||
General, administrative and leasing expenses | 7,534 | 7,528 | 15,425 | 15,671 | |||||||||||
Business development expenses and land carry costs | 2,623 | 1,351 | 5,413 | 2,677 | |||||||||||
Total operating expenses | 132,892 | 107,984 | 263,351 | 229,445 | |||||||||||
Operating income | 37,471 | 31,836 | 68,046 | 57,042 | |||||||||||
Interest expense | (21,768 | ) | (23,478 | ) | (42,606 | ) | (44,305 | ) | |||||||
Interest and other income | 1,242 | 1,299 | 2,525 | 2,584 | |||||||||||
Loss on early extinguishment of debt | (65 | ) | (270 | ) | (68 | ) | (270 | ) | |||||||
Income from continuing operations before equity in income (loss) of unconsolidated entities and income taxes | 16,880 | 9,387 | 27,897 | 15,051 | |||||||||||
Equity in income (loss) of unconsolidated entities | 9 | (47 | ) | 34 | 13 | ||||||||||
Income tax expense | (50 | ) | (92 | ) | (105 | ) | (156 | ) | |||||||
Income from continuing operations | 16,839 | 9,248 | 27,826 | 14,908 | |||||||||||
Discontinued operations | 394 | (198 | ) | 156 | (187 | ) | |||||||||
Income before gain on sales of real estate | 17,233 | 9,050 | 27,982 | 14,721 | |||||||||||
Gain on sales of real estate | (1 | ) | — | 3,985 | — | ||||||||||
Net income | 17,232 | 9,050 | 31,967 | 14,721 | |||||||||||
Net income attributable to noncontrolling interests: | |||||||||||||||
Common units in COPLP | (476 | ) | (158 | ) | (874 | ) | (174 | ) | |||||||
Preferred units in COPLP | (165 | ) | (165 | ) | (330 | ) | (330 | ) | |||||||
Other consolidated entities | (810 | ) | (837 | ) | (1,627 | ) | (1,586 | ) | |||||||
Net income attributable to COPT | 15,781 | 7,890 | 29,136 | 12,631 | |||||||||||
Preferred share dividends | (3,553 | ) | (4,344 | ) | (7,105 | ) | (8,834 | ) | |||||||
Issuance costs associated with redeemed preferred shares | — | (1,769 | ) | — | (1,769 | ) | |||||||||
Net income attributable to COPT common shareholders | $ | 12,228 | $ | 1,777 | $ | 22,031 | $ | 2,028 | |||||||
Net income attributable to COPT: | |||||||||||||||
Income from continuing operations | $ | 15,402 | $ | 8,077 | $ | 28,983 | $ | 12,805 | |||||||
Discontinued operations, net | 379 | (187 | ) | 153 | (174 | ) | |||||||||
Net income attributable to COPT | $ | 15,781 | $ | 7,890 | $ | 29,136 | $ | 12,631 | |||||||
Basic earnings per common share (1) | |||||||||||||||
Income from continuing operations | $ | 0.13 | $ | 0.02 | $ | 0.23 | $ | 0.02 | |||||||
Discontinued operations | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||
Net income attributable to COPT common shareholders | $ | 0.13 | $ | 0.02 | $ | 0.23 | $ | 0.02 | |||||||
Diluted earnings per common share (1) | |||||||||||||||
Income from continuing operations | $ | 0.13 | $ | 0.02 | $ | 0.23 | $ | 0.02 | |||||||
Discontinued operations | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||
Net income attributable to COPT common shareholders | $ | 0.13 | $ | 0.02 | $ | 0.23 | $ | 0.02 | |||||||
Dividends declared per common share | $ | 0.275 | $ | 0.275 | $ | 0.550 | $ | 0.550 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net income | $ | 17,232 | $ | 9,050 | $ | 31,967 | $ | 14,721 | |||||||
Other comprehensive income (loss) | |||||||||||||||
Unrealized gain (loss) on interest rate derivatives | 392 | (3,630 | ) | (3,082 | ) | (5,753 | ) | ||||||||
Losses on interest rate derivatives included in interest expense | 769 | 719 | 1,542 | 1,414 | |||||||||||
Equity in other comprehensive loss of equity method investee | (264 | ) | — | (264 | ) | — | |||||||||
Other comprehensive income (loss) | 897 | (2,911 | ) | (1,804 | ) | (4,339 | ) | ||||||||
Comprehensive income | 18,129 | 6,139 | 30,163 | 10,382 | |||||||||||
Comprehensive income attributable to noncontrolling interests | (1,542 | ) | (1,081 | ) | (2,871 | ) | (1,992 | ) | |||||||
Comprehensive income attributable to COPT | $ | 16,587 | $ | 5,058 | $ | 27,292 | $ | 8,390 |
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, 2013 (87,394,512 common shares outstanding) | $ | 249,083 | $ | 874 | $ | 1,814,015 | $ | (641,868 | ) | $ | 3,480 | $ | 71,665 | $ | 1,497,249 | ||||||||||||
Redemption of preferred shares (2,000,000 shares) | (50,000 | ) | — | 1,769 | (1,769 | ) | — | — | (50,000 | ) | |||||||||||||||||
Conversion of common units to common shares (78,498 shares) | — | — | 1,047 | — | — | (1,047 | ) | — | |||||||||||||||||||
Costs associated with common shares issued to the public | — | — | (7 | ) | — | — | — | (7 | ) | ||||||||||||||||||
Exercise of share options (51,289 shares) | — | — | 1,185 | — | — | — | 1,185 | ||||||||||||||||||||
Share-based compensation (144,009 shares issued, net of redemptions) | — | 3 | 3,542 | — | — | — | 3,545 | ||||||||||||||||||||
Redemption of vested equity awards | — | — | (1,326 | ) | — | — | — | (1,326 | ) | ||||||||||||||||||
Adjustments to noncontrolling interests resulting from changes in ownership of COPLP | — | — | (72 | ) | — | — | 72 | — | |||||||||||||||||||
Comprehensive income | — | — | — | 12,631 | (4,241 | ) | 976 | 9,366 | |||||||||||||||||||
Dividends | — | — | — | (57,027 | ) | — | — | (57,027 | ) | ||||||||||||||||||
Distributions to owners of common and preferred units in COPLP | — | — | — | — | — | (2,483 | ) | (2,483 | ) | ||||||||||||||||||
Contributions from noncontrolling interests in other consolidated entities | — | — | — | — | — | 3 | 3 | ||||||||||||||||||||
Distributions to noncontrolling interests in other consolidated entities | — | — | — | — | — | (8 | ) | (8 | ) | ||||||||||||||||||
Adjustment to arrive at fair value of redeemable noncontrolling interest | — | — | (717 | ) | — | — | — | (717 | ) | ||||||||||||||||||
Balance at June 30, 2014 (87,668,308 common shares outstanding) | $ | 199,083 | $ | 877 | $ | 1,819,436 | $ | (688,033 | ) | $ | (761 | ) | $ | 69,178 | $ | 1,399,780 | |||||||||||
Balance at December 31, 2014 (93,255,284 common shares outstanding) | $ | 199,083 | $ | 933 | $ | 1,969,968 | $ | (717,264 | ) | $ | (1,297 | ) | $ | 69,461 | $ | 1,520,884 | |||||||||||
Conversion of common units to common shares (158,000 shares) | — | 2 | 2,120 | — | — | (2,122 | ) | — | |||||||||||||||||||
Common shares issued under at-the-market program (890,241 shares) | — | 9 | 26,526 | — | — | — | 26,535 | ||||||||||||||||||||
Exercise of share options (76,474 shares) | — | — | 2,008 | — | — | — | 2,008 | ||||||||||||||||||||
Share-based compensation (149,619 shares issued, net of redemptions) | — | 2 | 3,656 | — | — | — | 3,658 | ||||||||||||||||||||
Redemption of vested equity awards | — | — | (2,245 | ) | — | — | — | (2,245 | ) | ||||||||||||||||||
Adjustments to noncontrolling interests resulting from changes in ownership of COPLP | — | — | (519 | ) | — | — | 519 | — | |||||||||||||||||||
Comprehensive income | — | — | — | 29,136 | (1,844 | ) | 1,728 | 29,020 | |||||||||||||||||||
Dividends | — | — | — | (59,106 | ) | — | — | (59,106 | ) | ||||||||||||||||||
Distributions to owners of common and preferred units in COPLP | — | — | — | — | — | (2,354 | ) | (2,354 | ) | ||||||||||||||||||
Distributions to noncontrolling interests in other consolidated entities | — | — | — | — | — | (28 | ) | (28 | ) | ||||||||||||||||||
Adjustment to arrive at fair value of redeemable noncontrolling interest | — | — | (739 | ) | — | — | — | (739 | ) | ||||||||||||||||||
Balance at June 30, 2015 (94,529,618 common shares outstanding) | $ | 199,083 | $ | 946 | $ | 2,000,775 | $ | (747,234 | ) | $ | (3,141 | ) | $ | 67,204 | $ | 1,517,633 |
For the Six Months Ended June 30, | |||||||
2015 | 2014 | ||||||
Cash flows from operating activities | |||||||
Revenues from real estate operations received | $ | 240,538 | $ | 232,877 | |||
Construction contract and other service revenues received | 86,790 | 35,105 | |||||
Property operating expenses paid | (79,667 | ) | (78,621 | ) | |||
Construction contract and other service expenses paid | (76,355 | ) | (34,588 | ) | |||
General, administrative, leasing, business development and land carry costs paid | (20,121 | ) | (16,904 | ) | |||
Interest expense paid | (32,375 | ) | (35,365 | ) | |||
Payments in connection with early extinguishment of debt | (18 | ) | (104 | ) | |||
Interest and other income received | 4,055 | 346 | |||||
Income taxes (paid) refunded | (8 | ) | 204 | ||||
Net cash provided by operating activities | 122,839 | 102,950 | |||||
Cash flows from investing activities | |||||||
Acquisitions of operating properties and related intangible assets | (137,125 | ) | — | ||||
Construction, development and redevelopment | (117,498 | ) | (105,459 | ) | |||
Tenant improvements on operating properties | (10,314 | ) | (10,842 | ) | |||
Other capital improvements on operating properties | (8,372 | ) | (16,482 | ) | |||
Proceeds from dispositions of properties | 17,424 | 1,971 | |||||
Investing receivables payments received | 5,114 | 151 | |||||
Leasing costs paid | (6,732 | ) | (7,772 | ) | |||
Increase in prepaid expenses and other assets associated with investing activities | (3,249 | ) | (1,158 | ) | |||
Other | (289 | ) | (450 | ) | |||
Net cash used in investing activities | (261,041 | ) | (140,041 | ) | |||
Cash flows from financing activities | |||||||
Proceeds from debt | |||||||
Revolving Credit Facility | 294,000 | 115,000 | |||||
Unsecured senior notes | 296,580 | 297,342 | |||||
Other debt proceeds | 50,000 | 9,931 | |||||
Repayments of debt | |||||||
Revolving Credit Facility | (377,000 | ) | (115,000 | ) | |||
Scheduled principal amortization | (3,319 | ) | (3,437 | ) | |||
Other debt repayments | (50,630 | ) | (133,010 | ) | |||
Deferred financing costs paid | (4,693 | ) | (653 | ) | |||
Net proceeds from issuance of common shares | 28,567 | 1,178 | |||||
Redemption of preferred shares | — | (50,000 | ) | ||||
Common share dividends paid | (51,642 | ) | (48,118 | ) | |||
Preferred share dividends paid | (7,105 | ) | (9,626 | ) | |||
Distributions paid to noncontrolling interests in COPLP | (2,461 | ) | (2,641 | ) | |||
Redemption of vested equity awards | (2,245 | ) | (1,326 | ) | |||
Other | (853 | ) | (706 | ) | |||
Net cash provided by financing activities | 169,199 | 58,934 | |||||
Net increase in cash and cash equivalents | 30,997 | 21,843 | |||||
Cash and cash equivalents | |||||||
Beginning of period | 6,077 | 54,373 | |||||
End of period | $ | 37,074 | $ | 76,216 |
For the Six Months Ended June 30, | |||||||
2015 | 2014 | ||||||
Reconciliation of net income to net cash provided by operating activities: | |||||||
Net income | $ | 31,967 | $ | 14,721 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and other amortization | 66,404 | 75,839 | |||||
Impairment losses | 1,472 | 1,329 | |||||
Amortization of deferred financing costs | 2,136 | 2,289 | |||||
Increase in deferred rent receivable | (5,956 | ) | (1,754 | ) | |||
Amortization of net debt discounts | 482 | 400 | |||||
(Gain) loss on sales of real estate | (3,985 | ) | 4 | ||||
Share-based compensation | 3,210 | 3,056 | |||||
(Gain) loss on early extinguishment of debt | (330 | ) | 282 | ||||
Other | 2,084 | (1,664 | ) | ||||
Operating changes in assets and liabilities: | |||||||
Decrease (increase) in accounts receivable | 10,655 | (3,916 | ) | ||||
Increase in restricted cash and marketable securities | (735 | ) | (113 | ) | |||
Decrease in prepaid expenses and other assets, net | 6,518 | 3,213 | |||||
Increase in accounts payable, accrued expenses and other liabilities | 12,557 | 13,236 | |||||
Decrease in rents received in advance and security deposits | (3,640 | ) | (3,972 | ) | |||
Net cash provided by operating activities | $ | 122,839 | $ | 102,950 | |||
Supplemental schedule of non-cash investing and financing activities: | |||||||
Increase (decrease) in accrued capital improvements, leasing and other investing activity costs | $ | 15,927 | $ | (7,153 | ) | ||
Liabilities assumed on acquisition of operating properties | $ | 5,265 | $ | — | |||
Decrease in fair value of derivatives applied to accumulated other comprehensive loss and noncontrolling interests | $ | (1,540 | ) | $ | (4,369 | ) | |
Equity in other comprehensive loss of an equity method investee | $ | (264 | ) | $ | — | ||
Dividends/distribution payable | $ | 30,178 | $ | 28,342 | |||
Decrease in noncontrolling interests and increase in shareholders’ equity in connection with the conversion of common units into common shares | $ | 2,122 | $ | 1,047 | |||
Adjustments to noncontrolling interests resulting from changes in COPLP ownership | $ | 519 | $ | 72 | |||
Increase in redeemable noncontrolling interest and decrease in equity to carry redeemable noncontrolling interest at fair value | $ | 739 | $ | 717 |
June 30, 2015 | December 31, 2014 | ||||||
Assets | |||||||
Properties, net: | |||||||
Operating properties, net | $ | 2,896,809 | $ | 2,751,488 | |||
Projects in development or held for future development | 521,991 | 545,426 | |||||
Total properties, net | 3,418,800 | 3,296,914 | |||||
Assets held for sale, net | 77,013 | 14,339 | |||||
Cash and cash equivalents | 37,074 | 6,077 | |||||
Restricted cash and marketable securities | 4,248 | 3,187 | |||||
Accounts receivable (net of allowance for doubtful accounts of $1,135 and $717, respectively) | 16,181 | 26,901 | |||||
Deferred rent receivable (net of allowance of $2,203 and $1,418, respectively) | 101,488 | 95,910 | |||||
Intangible assets on real estate acquisitions, net | 81,728 | 43,854 | |||||
Deferred leasing and financing costs, net | 67,613 | 64,797 | |||||
Investing receivables | 45,766 | 52,147 | |||||
Prepaid expenses and other assets, net | 55,137 | 60,249 | |||||
Total assets | $ | 3,905,048 | $ | 3,664,375 | |||
Liabilities and equity | |||||||
Liabilities: | |||||||
Debt, net | $ | 2,130,170 | $ | 1,920,057 | |||
Accounts payable and accrued expenses | 155,989 | 123,035 | |||||
Rents received in advance and security deposits | 27,371 | 31,011 | |||||
Distributions payable | 30,178 | 29,862 | |||||
Deferred revenue associated with operating leases | 15,179 | 13,031 | |||||
Interest rate derivatives | 3,121 | 1,855 | |||||
Other liabilities | 5,993 | 6,223 | |||||
Total liabilities | 2,368,001 | 2,125,074 | |||||
Commitments and contingencies (Note 17) | |||||||
Redeemable noncontrolling interest | 19,414 | 18,417 | |||||
Equity: | |||||||
Corporate Office Properties, L.P.’s equity: | |||||||
Preferred units | |||||||
General partner, preferred units outstanding of 7,431,667 at June 30, 2015 and December 31, 2014 | 199,083 | 199,083 | |||||
Limited partner, 352,000 preferred units outstanding at June 30, 2015 and December 31, 2014 | 8,800 | 8,800 | |||||
Common units, 94,529,618 and 93,255,284 held by the general partner and 3,679,551 and 3,837,551 held by limited partners at June 30, 2015 and December 31, 2014, respectively | 1,303,313 | 1,305,219 | |||||
Accumulated other comprehensive loss | (3,300 | ) | (1,381 | ) | |||
Total Corporate Office Properties, L.P.’s equity | 1,507,896 | 1,511,721 | |||||
Noncontrolling interests in subsidiaries | 9,737 | 9,163 | |||||
Total equity | 1,517,633 | 1,520,884 | |||||
Total liabilities, redeemable noncontrolling interest and equity | $ | 3,905,048 | $ | 3,664,375 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenues | |||||||||||||||
Rental revenue | $ | 105,508 | $ | 94,332 | $ | 203,746 | $ | 192,367 | |||||||
Tenant recoveries and other real estate operations revenue | 22,683 | 21,627 | 47,155 | 48,469 | |||||||||||
Construction contract and other service revenues | 42,172 | 23,861 | 80,496 | 45,651 | |||||||||||
Total revenues | 170,363 | 139,820 | 331,397 | 286,487 | |||||||||||
Expenses | |||||||||||||||
Property operating expenses | 46,418 | 43,772 | 97,099 | 93,544 | |||||||||||
Depreciation and amortization associated with real estate operations | 33,786 | 30,895 | 65,385 | 74,491 | |||||||||||
Construction contract and other service expenses | 41,293 | 23,136 | 78,791 | 41,760 | |||||||||||
Impairment losses | 1,238 | 1,302 | 1,238 | 1,302 | |||||||||||
General, administrative and leasing expenses | 7,534 | 7,528 | 15,425 | 15,671 | |||||||||||
Business development expenses and land carry costs | 2,623 | 1,351 | 5,413 | 2,677 | |||||||||||
Total operating expenses | 132,892 | 107,984 | 263,351 | 229,445 | |||||||||||
Operating income | 37,471 | 31,836 | 68,046 | 57,042 | |||||||||||
Interest expense | (21,768 | ) | (23,478 | ) | (42,606 | ) | (44,305 | ) | |||||||
Interest and other income | 1,242 | 1,299 | 2,525 | 2,584 | |||||||||||
Loss on early extinguishment of debt | (65 | ) | (270 | ) | (68 | ) | (270 | ) | |||||||
Income from continuing operations before equity in income (loss) of unconsolidated entities and income taxes | 16,880 | 9,387 | 27,897 | 15,051 | |||||||||||
Equity in income (loss) of unconsolidated entities | 9 | (47 | ) | 34 | 13 | ||||||||||
Income tax expense | (50 | ) | (92 | ) | (105 | ) | (156 | ) | |||||||
Income from continuing operations | 16,839 | 9,248 | 27,826 | 14,908 | |||||||||||
Discontinued operations | 394 | (198 | ) | 156 | (187 | ) | |||||||||
Income before gain on sales of real estate | 17,233 | 9,050 | 27,982 | 14,721 | |||||||||||
Gain on sales of real estate | (1 | ) | — | 3,985 | — | ||||||||||
Net income | 17,232 | 9,050 | 31,967 | 14,721 | |||||||||||
Net income attributable to noncontrolling interests in consolidated entities | (812 | ) | (837 | ) | (1,630 | ) | (1,574 | ) | |||||||
Net income attributable to COPLP | 16,420 | 8,213 | 30,337 | 13,147 | |||||||||||
Preferred unit distributions | (3,718 | ) | (4,509 | ) | (7,435 | ) | (9,164 | ) | |||||||
Issuance costs associated with redeemed preferred units | — | (1,769 | ) | — | (1,769 | ) | |||||||||
Net income attributable to COPLP common unitholders | $ | 12,702 | $ | 1,935 | $ | 22,902 | $ | 2,214 | |||||||
Net income attributable to COPLP: | |||||||||||||||
Income from continuing operations | $ | 16,026 | $ | 8,408 | $ | 30,178 | $ | 13,329 | |||||||
Discontinued operations, net | 394 | (195 | ) | 159 | (182 | ) | |||||||||
Net income attributable to COPLP | $ | 16,420 | $ | 8,213 | $ | 30,337 | $ | 13,147 | |||||||
Basic earnings per common unit (1) | |||||||||||||||
Income from continuing operations | $ | 0.13 | $ | 0.02 | $ | 0.23 | $ | 0.02 | |||||||
Discontinued operations | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||
Net income attributable to COPLP common unitholders | $ | 0.13 | $ | 0.02 | $ | 0.23 | $ | 0.02 | |||||||
Diluted earnings per common unit (1) | |||||||||||||||
Income from continuing operations | $ | 0.13 | $ | 0.02 | $ | 0.23 | $ | 0.02 | |||||||
Discontinued operations | 0.00 | 0.00 | 0.00 | 0.00 | |||||||||||
Net income attributable to COPLP common unitholders | $ | 0.13 | $ | 0.02 | $ | 0.23 | $ | 0.02 | |||||||
Distributions declared per common unit | $ | 0.275 | $ | 0.275 | $ | 0.550 | $ | 0.550 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Net income | $ | 17,232 | $ | 9,050 | $ | 31,967 | $ | 14,721 | |||||||
Other comprehensive income (loss) | |||||||||||||||
Unrealized gain (loss) on interest rate derivatives | 392 | (3,630 | ) | (3,082 | ) | (5,753 | ) | ||||||||
Losses on interest rate derivatives included in interest expense | 769 | 719 | 1,542 | 1,414 | |||||||||||
Equity in other comprehensive loss of equity method investee | (264 | ) | — | (264 | ) | — | |||||||||
Other comprehensive income (loss) | 897 | (2,911 | ) | (1,804 | ) | (4,339 | ) | ||||||||
Comprehensive income | 18,129 | 6,139 | 30,163 | 10,382 | |||||||||||
Comprehensive income attributable to noncontrolling interests | (872 | ) | (884 | ) | (1,745 | ) | (1,666 | ) | |||||||
Comprehensive income attributable to COPLP | $ | 17,257 | $ | 5,255 | $ | 28,418 | $ | 8,716 |
Limited Partner Preferred Units | General Partner Preferred Units | Common Units | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests in Subsidiaries | ||||||||||||||||||||||||||||
Units | Amount | Units | Amount | Units | Amount | Total Equity | ||||||||||||||||||||||||||
Balance at December 31, 2013 | 352,000 | $ | 8,800 | 9,431,667 | $ | 249,083 | 91,372,212 | $ | 1,226,318 | $ | 3,605 | $ | 9,443 | $ | 1,497,249 | |||||||||||||||||
Redemption of preferred units resulting from redemption of preferred shares | — | — | (2,000,000 | ) | (50,000 | ) | — | — | — | — | (50,000 | ) | ||||||||||||||||||||
Costs associated with common shares issued to the public | — | — | — | — | — | (7 | ) | — | — | (7 | ) | |||||||||||||||||||||
Issuance of common units resulting from exercise of share options | — | — | — | — | 51,289 | 1,185 | — | — | 1,185 | |||||||||||||||||||||||
Share-based compensation (units net of redemption) | — | — | — | — | 144,009 | 3,545 | — | — | 3,545 | |||||||||||||||||||||||
Redemptions of vested equity awards | — | — | — | — | — | (1,326 | ) | — | — | (1,326 | ) | |||||||||||||||||||||
Comprehensive income | — | 330 | — | 8,834 | — | 3,983 | (4,430 | ) | 649 | 9,366 | ||||||||||||||||||||||
Distributions to owners of common and preferred units | — | (330 | ) | — | (8,834 | ) | — | (50,346 | ) | — | — | (59,510 | ) | |||||||||||||||||||
Distributions to noncontrolling interests in subsidiaries | — | — | — | — | — | — | — | (8 | ) | (8 | ) | |||||||||||||||||||||
Contributions from noncontrolling interests in subsidiaries | — | — | — | — | — | — | — | 3 | 3 | |||||||||||||||||||||||
Adjustment to arrive at fair value of redeemable noncontrolling interest | — | — | — | — | — | (717 | ) | — | — | (717 | ) | |||||||||||||||||||||
Balance at June 30, 2014 | 352,000 | $ | 8,800 | 7,431,667 | $ | 199,083 | 91,567,510 | $ | 1,182,635 | $ | (825 | ) | $ | 10,087 | $ | 1,399,780 | ||||||||||||||||
Balance at December 31, 2014 | 352,000 | $ | 8,800 | 7,431,667 | $ | 199,083 | 97,092,835 | $ | 1,305,219 | $ | (1,381 | ) | $ | 9,163 | $ | 1,520,884 | ||||||||||||||||
Issuance of common units resulting from common shares issued under at-the-market program | — | — | — | — | 890,241 | 26,535 | — | — | 26,535 | |||||||||||||||||||||||
Issuance of common units resulting from exercise of share options | — | — | — | — | 76,474 | 2,008 | — | — | 2,008 | |||||||||||||||||||||||
Share-based compensation (units net of redemption) | — | — | — | — | 149,619 | 3,658 | — | — | 3,658 | |||||||||||||||||||||||
Redemptions of vested equity awards | — | — | — | — | — | (2,245 | ) | — | — | (2,245 | ) | |||||||||||||||||||||
Comprehensive income | — | 330 | — | 7,105 | — | 22,902 | (1,919 | ) | 602 | 29,020 | ||||||||||||||||||||||
Distributions to owners of common and preferred units | — | (330 | ) | — | (7,105 | ) | — | (54,025 | ) | — | — | (61,460 | ) | |||||||||||||||||||
Distributions to noncontrolling interests in subsidiaries | — | — | — | — | — | — | — | (28 | ) | (28 | ) | |||||||||||||||||||||
Adjustment to arrive at fair value of redeemable noncontrolling interest | — | — | — | — | — | (739 | ) | — | — | (739 | ) | |||||||||||||||||||||
Balance at June 30, 2015 | 352,000 | $ | 8,800 | 7,431,667 | $ | 199,083 | 98,209,169 | $ | 1,303,313 | $ | (3,300 | ) | $ | 9,737 | $ | 1,517,633 |
For the Six Months Ended June 30, | |||||||
2015 | 2014 | ||||||
Cash flows from operating activities | |||||||
Revenues from real estate operations received | $ | 240,538 | $ | 232,877 | |||
Construction contract and other service revenues received | 86,790 | 35,105 | |||||
Property operating expenses paid | (79,667 | ) | (78,621 | ) | |||
Construction contract and other service expenses paid | (76,355 | ) | (34,588 | ) | |||
General, administrative, leasing, business development and land carry costs paid | (20,121 | ) | (16,904 | ) | |||
Interest expense paid | (32,375 | ) | (35,365 | ) | |||
Payments in connection with early extinguishment of debt | (18 | ) | (104 | ) | |||
Interest and other income received | 4,055 | 346 | |||||
Income taxes (paid) refunded | (8 | ) | 204 | ||||
Net cash provided by operating activities | 122,839 | 102,950 | |||||
Cash flows from investing activities | |||||||
Acquisitions of operating properties and related intangible assets | (137,125 | ) | — | ||||
Construction, development and redevelopment | (117,498 | ) | (105,459 | ) | |||
Tenant improvements on operating properties | (10,314 | ) | (10,842 | ) | |||
Other capital improvements on operating properties | (8,372 | ) | (16,482 | ) | |||
Proceeds from dispositions of properties | 17,424 | 1,971 | |||||
Investing receivables payments received | 5,114 | 151 | |||||
Leasing costs paid | (6,732 | ) | (7,772 | ) | |||
Increase in prepaid expenses and other assets associated with investing activities | (3,249 | ) | (1,158 | ) | |||
Other | (289 | ) | (450 | ) | |||
Net cash used in investing activities | (261,041 | ) | (140,041 | ) | |||
Cash flows from financing activities | |||||||
Proceeds from debt | |||||||
Revolving Credit Facility | 294,000 | 115,000 | |||||
Unsecured senior notes | 296,580 | 297,342 | |||||
Other debt proceeds | 50,000 | 9,931 | |||||
Repayments of debt | |||||||
Revolving Credit Facility | (377,000 | ) | (115,000 | ) | |||
Scheduled principal amortization | (3,319 | ) | (3,437 | ) | |||
Other debt repayments | (50,630 | ) | (133,010 | ) | |||
Deferred financing costs paid | (4,693 | ) | (653 | ) | |||
Net proceeds from issuance of common units | 28,567 | 1,178 | |||||
Redemption of preferred units | — | (50,000 | ) | ||||
Common unit distributions paid | (53,773 | ) | (50,429 | ) | |||
Preferred unit distributions paid | (7,435 | ) | (9,956 | ) | |||
Redemption of vested equity awards | (2,245 | ) | (1,326 | ) | |||
Other | (853 | ) | (706 | ) | |||
Net cash provided by financing activities | 169,199 | 58,934 | |||||
Net increase in cash and cash equivalents | 30,997 | 21,843 | |||||
Cash and cash equivalents | |||||||
Beginning of period | 6,077 | 54,373 | |||||
End of period | $ | 37,074 | $ | 76,216 |
For the Six Months Ended June 30, | |||||||
2015 | 2014 | ||||||
Reconciliation of net income to net cash provided by operating activities: | |||||||
Net income | $ | 31,967 | $ | 14,721 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and other amortization | 66,404 | 75,839 | |||||
Impairment losses | 1,472 | 1,329 | |||||
Amortization of deferred financing costs | 2,136 | 2,289 | |||||
Increase in deferred rent receivable | (5,956 | ) | (1,754 | ) | |||
Amortization of net debt discounts | 482 | 400 | |||||
(Gain) loss on sales of real estate | (3,985 | ) | 4 | ||||
Share-based compensation | 3,210 | 3,056 | |||||
(Gain) loss on early extinguishment of debt | (330 | ) | 282 | ||||
Other | 2,084 | (1,664 | ) | ||||
Operating changes in assets and liabilities: | |||||||
Decrease (increase) in accounts receivable | 10,655 | (3,916 | ) | ||||
(Increase) decrease in restricted cash and marketable securities | (744 | ) | 40 | ||||
Decrease in prepaid expenses and other assets, net | 6,518 | 3,213 | |||||
Increase in accounts payable, accrued expenses and other liabilities | 12,566 | 13,083 | |||||
Decrease in rents received in advance and security deposits | (3,640 | ) | (3,972 | ) | |||
Net cash provided by operating activities | $ | 122,839 | $ | 102,950 | |||
Supplemental schedule of non-cash investing and financing activities: | |||||||
Increase (decrease) in accrued capital improvements, leasing and other investing activity costs | $ | 15,927 | $ | (7,153 | ) | ||
Liabilities assumed on acquisition of operating properties | $ | 5,265 | $ | — | |||
Decrease in fair value of derivatives applied to accumulated other comprehensive loss and noncontrolling interests | $ | (1,540 | ) | $ | (4,369 | ) | |
Equity in other comprehensive loss of an equity method investee | $ | (264 | ) | $ | — | ||
Distributions payable | $ | 30,178 | $ | 28,342 | |||
Increase in redeemable noncontrolling interest and decrease in equity to carry redeemable noncontrolling interest at fair value | $ | 739 |