Exhibit 99.1
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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 September 30, 2020, we derived 88% of our core portfolio annualized rental revenue from Defense/IT Locations and 12% from Regional Office Properties. As of September 30, 2020, our core portfolio of 174 office and data center shell properties, including 15 owned through unconsolidated joint ventures, encompassed 20.2 million square feet and was 94.6% 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
Anthony Mifsud, EVP & CFO
443-285-5453, stephanie.kelly@copt.com
Michelle 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, 2019 and subsequent Quarterly Reports on Form 10-Q. 
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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. Jonathan Petersen 212-284-1705 jpetersen@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
SunTrust Robinson Humphrey, Inc. Michael Lewis 212-319-5659 michael.lewis@suntrust.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.
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Corporate Office Properties Trust
Selected Financial Summary Data
(in thousands, except per share data)
 PageThree Months EndedNine Months Ended
SUMMARY OF RESULTS Refer.9/30/206/30/203/31/2012/31/199/30/199/30/209/30/19
Net (loss) income6$(31,342)$25,121 $25,550 $44,877 $23,246 $19,329 $155,127 
NOI from real estate operations13$84,643 $84,059 $83,830 $82,504 $82,621 $252,532 $252,521 
Same Properties NOI16$73,770 $74,644 $74,950 $75,241 $74,949 $223,364 $222,750 
Same Properties cash NOI17$73,910 $75,837 $74,962 $76,454 $74,071 $224,709 $220,063 
Adjusted EBITDA10$80,062 $78,582 $77,989 $76,024 $77,523 $236,633 $235,253 
Diluted AFFO avail. to common share and unit holders
9$50,340 $46,690 $41,495 $40,270 $42,794 $138,525 $136,055 
Dividend per common shareN/A$0.275 $0.275 $0.275 $0.275 $0.275 $0.825 $0.825 
Per share - diluted:      
EPS8$(0.29)$0.21 $0.21 $0.38 $0.19 $0.14 $1.33 
FFO - Nareit8$0.04 $0.51 $0.41 $0.49 $0.51 $0.97 $1.53 
FFO - as adjusted for comparability8$0.54 $0.51 $0.51 $0.50 $0.51 $1.56 $1.53 
Numerators for diluted per share amounts:
Diluted EPS6$(31,990)$23,388 $23,957 $42,664 $21,139 $15,347 $148,538 
Diluted FFO available to common share and unit holders
7$5,069 $57,809 $46,706 $56,032 $57,255 $109,658 $172,560 
Diluted FFO available to common share and unit holders, as adjusted for comparability
7$61,485 $57,817 $57,866 $56,330 $57,430 $177,168 $173,092 
Payout ratios:      
Diluted FFON/A613.6%53.9%66.6%55.6%54.2%85.1%54.0%
Diluted FFO - as adjusted for comparabilityN/A50.7%53.9%53.9%55.3%54.1%52.8%53.8%
Diluted AFFO
N/A61.9%66.8%75.1%77.3%72.6%67.5%68.5%
CAPITALIZATION     
Total Market Capitalization27$4,898,459 $4,908,346 $4,609,280 $5,182,065 $5,259,182 
Total Equity Market Capitalization27$2,701,186 $2,885,245 $2,520,400 $3,339,258 $3,384,363 
Gross debt28$2,247,523 $2,073,351 $2,139,130 $1,893,057 $1,920,179 
Net debt to adjusted book3041.0%38.6%38.2%36.8%37.3%N/AN/A
Net debt plus preferred equity to adjusted book3041.1%38.8%38.3%37.0%37.5%N/AN/A
Adjusted EBITDA fixed charge coverage ratio303.9x3.8x3.8x3.7x3.7x3.8x3.7x
Net debt to in-place adjusted EBITDA ratio306.8x6.4x6.3x6.1x6.1xN/AN/A
Net debt plus pref. equity to in-place adj. EBITDA ratio306.8x6.4x6.3x6.1x6.1xN/AN/A


3

Corporate Office Properties Trust
Selected Portfolio Data (1)
 9/30/206/30/203/31/2012/31/199/30/19
Operating Office and Data Center Shell Properties
# of Properties
Total Portfolio176 174 171170 169 
Consolidated Portfolio161 159 156155 156 
Core Portfolio174 172 169168 167 
Same Properties152 152 152152 152 
% Occupied
Total Portfolio93.8 %93.4 %93.7 %92.9 %92.7 %
Consolidated Portfolio93.0 %92.5 %92.8 %91.9 %91.7 %
Core Portfolio 94.0 %93.6 %94.0 %93.1 %92.8 %
Same Properties92.5 %92.3 %92.7 %91.8 %91.6 %
% Leased
Total Portfolio94.4 %94.5 %94.9 %94.4 %94.3 %
Consolidated Portfolio93.6 %93.7 %94.2 %93.6 %93.6 %
Core Portfolio 94.6 %94.7 %95.2 %94.6 %94.5 %
Same Properties93.2 %93.5 %94.1 %93.5 %93.5 %
Square Feet (in thousands)
Total Portfolio20,389 19,781 19,378 19,173 18,956 
Consolidated Portfolio17,940 17,346 16,943 16,739 16,818 
Core Portfolio20,232 19,624 19,221 19,016 18,799 
Same Properties16,584 16,569 16,569 16,569 16,569 
Wholesale Data Center
Megawatts Operational19.25 19.25 19.25 19.25 19.25 
% Leased 86.7 %90.6 %76.9 %76.9 %82.1 %

(1)Total and core portfolio and same properties include properties owned through unconsolidated real estate joint ventures (see page 32).
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Corporate Office Properties Trust
Consolidated Balance Sheets
(dollars in thousands)
 9/30/206/30/203/31/2012/31/199/30/19
Assets     
Properties, net:     
Operating properties, net$2,999,892 $2,888,817 $2,813,949 $2,772,647 $2,713,900 
Development and redevelopment in progress, including land (1)302,158 315,243 300,836 274,639 259,489 
Land held (1)284,888 309,039 304,843 293,600 285,434 
Total properties, net3,586,938 3,513,099 3,419,628 3,340,886 3,258,823 
Property - operating right-of-use assets 36,442 31,009 27,793 27,864 27,325 
Property - finance right-of-use assets 40,432 40,441 40,450 40,458 40,467 
Assets held for sale, net— — — — 61,728 
Cash and cash equivalents11,458 21,596 159,061 14,733 34,005 
Investment in unconsolidated real estate joint ventures49,662 50,457 51,220 51,949 49,408 
Accounts receivable, net36,151 30,404 30,317 35,444 37,623 
Deferred rent receivable 92,853 90,493 89,690 87,736 88,001 
Intangible assets on real estate acquisitions, net22,433 24,768 26,078 27,392 29,454 
Deferred leasing costs, net 59,392 58,666 58,608 58,392 55,839 
Investing receivables, net74,136 72,333 71,197 73,523 72,114 
Prepaid expenses and other assets, net110,292 78,059 80,415 96,076 100,582 
Total assets$4,120,189 $4,011,325 $4,054,457 $3,854,453 $3,855,369 
Liabilities and equity     
Liabilities:     
Debt $2,181,551 $2,012,019 $2,076,839 $1,831,139 $1,862,301 
Accounts payable and accrued expenses140,921 149,836 128,441 148,746 141,242 
Rents received in advance and security deposits30,276 30,459 33,323 33,620 27,975 
Dividends and distributions payable31,307 31,302 31,301 31,263 31,345 
Deferred revenue associated with operating leases8,579 8,821 6,972 7,361 7,665 
Property - operating lease liabilities26,382 20,796 17,365 17,317 16,686 
Interest rate derivatives10,977 65,612 63,232 25,682 34,825 
Other liabilities17,038 12,408 8,886 10,649 8,706 
Total liabilities2,447,031 2,331,253 2,366,359 2,105,777 2,130,745 
Redeemable noncontrolling interests23,522 23,148 22,912 29,431 28,677 
Equity:   
COPT’s shareholders’ equity:   
Common shares1,122 1,122 1,122 1,121 1,121 
Additional paid-in capital2,479,321 2,477,977 2,476,677 2,481,558 2,480,083 
Cumulative distributions in excess of net income(860,647)(797,959)(790,600)(778,275)(790,235)
Accumulated other comprehensive loss(10,548)(64,513)(62,201)(25,444)(34,580)
Total COPT’s shareholders’ equity1,609,248 1,616,627 1,624,998 1,678,960 1,656,389 
Noncontrolling interests in subsidiaries:     
Common units in the Operating Partnership19,522 19,611 19,600 19,597 19,365 
Preferred units in the Operating Partnership8,800 8,800 8,800 8,800 8,800 
Other consolidated entities12,066 11,886 11,788 11,888 11,393 
Total noncontrolling interests in subsidiaries40,388 40,297 40,188 40,285 39,558 
Total equity1,649,636 1,656,924 1,665,186 1,719,245 1,695,947 
Total liabilities, redeemable noncontrolling interests and equity$4,120,189 $4,011,325 $4,054,457 $3,854,453 $3,855,369 
(1)Refer to pages 24 and 26 for detail.
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Corporate Office Properties Trust
Consolidated Statements of Operations
(in thousands, except per share data)
 Three Months EndedNine Months Ended
 9/30/206/30/203/31/2012/31/199/30/199/30/209/30/19
Revenues     
Lease revenue$133,875 $132,147 $131,012 $130,693 $129,461 $397,034 $391,779 
Other property revenue568 391 1,104 1,275 1,273 2,063 3,716 
Construction contract and other service revenues20,323 12,236 13,681 25,817 28,697 46,240 87,946 
Total revenues154,766 144,774 145,797 157,785 159,431 445,337 483,441 
Operating expenses     
Property operating expenses51,552 50,204 49,999 51,098 49,714 151,755 147,045 
Depreciation and amortization associated with real estate operations35,332 33,612 32,596 32,779 34,692 101,540 104,290 
Construction contract and other service expenses19,220 11,711 13,121 24,832 27,802 44,052 85,130 
Impairment losses1,530 — — 327 1,530 327 
General and administrative expenses5,558 6,511 5,303 7,043 6,105 17,372 20,474 
Leasing expenses1,909 1,647 2,183 2,293 1,824 5,739 5,592 
Business development expenses and land carry costs1,094 1,262 1,118 1,292 964 3,474 2,947 
Total operating expenses116,195 104,947 104,320 119,339 121,428 325,462 365,805 
Interest expense(17,152)(16,797)(16,840)(16,777)(17,126)(50,789)(54,275)
Interest and other income1,746 2,282 1,205 1,917 1,842 5,233 5,977 
Credit loss recoveries (expense) (1)1,465 (615)(689)— — 161 — 
Gain on sales of real estate— — 20,761 — 84,469 
Loss on early extinguishment of debt(3,237)— — — — (3,237)— 
Loss on interest rate derivatives (2)(53,196)— — — — (53,196)— 
(Loss) income before equity in income of unconsolidated entities and income taxes(31,803)24,697 25,158 44,347 22,719 18,052 153,807 
Equity in income of unconsolidated entities477 454 441 426 396 1,372 1,207 
Income tax (expense) benefit(16)(30)(49)104 131 (95)113 
Net (loss) income(31,342)25,121 25,550 44,877 23,246 19,329 155,127 
Net loss (income) attributable to noncontrolling interests:     
Common units in the Operating Partnership386 (284)(287)(500)(267)(185)(1,863)
Preferred units in the Operating Partnership(77)(77)(77)(77)(157)(231)(487)
Other consolidated entities(812)(1,263)(1,132)(1,515)(1,565)(3,207)(3,870)
Net (loss) income attributable to COPT common shareholders$(31,845)$23,497 $24,054 $42,785 $21,257 $15,706 $148,907 
Redeemable noncontrolling interests— — — 33 — — 100 
Amount allocable to share-based compensation awards(145)(109)(97)(154)(118)(359)(469)
Numerator for diluted EPS$(31,990)$23,388 $23,957 $42,664 $21,139 $15,347 $148,538 

(1)Excludes credit losses on lease revenue, which are included in lease revenue.
(2)Represents losses on certain derivative financial instruments previously designated as cash flow hedges of interest expense on forecasted future borrowings that we determined would probably not occur.
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Corporate Office Properties Trust
Funds from Operations
(in thousands)
 Three Months EndedNine Months Ended
 9/30/206/30/203/31/2012/31/199/30/199/30/209/30/19
Net (loss) income$(31,342)$25,121 $25,550 $44,877 $23,246 $19,329 $155,127 
Real estate-related depreciation and amortization35,332 33,612 32,596 32,779 34,692 101,540 104,290 
Impairment losses on real estate
1,530 — — 327 1,530 327 
Gain on sales of real estate— — (5)(20,761)— (5)(84,469)
Depreciation and amortization on unconsolidated real estate JVs (1)819 818 818 781 790 2,455 1,922 
FFO - per Nareit (2)(3)6,339 59,551 58,959 57,678 59,055 124,849 177,197 
Noncontrolling interests - preferred units in the Operating Partnership(77)(77)(77)(77)(157)(231)(487)
FFO allocable to other noncontrolling interests (4)(5)(1,074)(1,525)(12,015)(1,436)(1,429)(14,614)(3,588)
Basic FFO allocable to share-based compensation awards(119)(254)(193)(243)(248)(449)(662)
Basic FFO available to common share and common unit holders (3)5,069 57,695 46,674 55,922 57,221 109,555 172,460 
Dilutive preferred units in the Operating Partnership— 77 — 77 — — — 
Redeemable noncontrolling interests— 37 32 33 34 103 100 
Diluted FFO available to common share and common unit holders - per Nareit (3)
5,069 57,809 46,706 56,032 57,255 109,658 172,560 
Loss on early extinguishment of debt3,237 — — — — 3,237 — 
Loss on interest rate derivatives53,196 — — — — 53,196 — 
Demolition costs on redevelopment and nonrecurring improvements11 43 104 — 63 44 
Executive transition costs— — — — — — 
Non-comparable professional and legal expenses— — — 195 175 — 486 
Dilutive preferred units in the Operating Partnership77 — 77 — — 231 — 
FFO allocation to other noncontrolling interests resulting from capital event (4)(5)— — 11,090 — — 11,090 — 
Diluted FFO comparability adjustments for redeemable noncontrolling interests34 — — — — — — 
Diluted FFO comparability adjustments allocable to share-based compensation awards
(139)(1)(50)(1)— (307)(2)
Diluted FFO available to common share and common unit holders, as adjusted for comparability (3)
$61,485 $57,817 $57,866 $56,330 $57,430 $177,168 $173,092 

(1)FFO adjustment pertaining to COPT’s share of unconsolidated real estate joint ventures reported on page 32.
(2)See reconciliation on page 33 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 31.
(5)FFO allocations to other noncontrolling interests for the quarter ended 3/31/20 included an additional allocation resulting from a special distribution of loan proceeds to our partner in a JV resulting from the JV closing on a loan coupled with an amendment to the JV agreement that changed the allocation of cash flows between us and our partner; this additional allocation was excluded from diluted FFO available to common share and common unit holders, as adjusted for comparability.
7

Corporate Office Properties Trust
Diluted Share and Unit Computations
(in thousands)

 Three Months EndedNine Months Ended
 9/30/206/30/203/31/2012/31/199/30/199/30/209/30/19
EPS Denominator:     
Weighted average common shares - basic111,811 111,800 111,724 111,670 111,582 111,778 111,036 
Dilutive effect of share-based compensation awards
— 321 239 293 361 278 313 
Dilutive effect of redeemable noncontrolling interests
— — — 108 — — 123 
Weighted average common shares - diluted111,811 112,121 111,963 112,071 111,943 112,056 111,472 
Diluted EPS$(0.29)$0.21 $0.21 $0.38 $0.19 $0.14 $1.33 
Weighted Average Shares for period ended:       
Common shares111,811 111,800 111,724 111,670 111,582 111,778 111,036 
Dilutive effect of share-based compensation awards
274 321 239 293 361 278 313 
Common units
1,240 1,237 1,226 1,228 1,312 1,235 1,323 
Redeemable noncontrolling interests— 157 110 108 109 125 123 
Dilutive convertible preferred units— 176 — 176 — — — 
Denominator for diluted FFO per share
113,325 113,691 113,299 113,475 113,364 113,416 112,795 
Dilutive convertible preferred units176 — 176 — — 176 — 
Redeemable noncontrolling interests109 — — — — — — 
Denominator for diluted FFO per share, as adjusted for comparability113,610 113,691 113,475 113,475 113,364 113,592 112,795 
Weighted average common units(1,240)(1,237)(1,226)(1,228)(1,312)(1,235)(1,323)
Redeemable noncontrolling interests(109)(157)(110)— (109)(125)— 
Anti-dilutive EPS effect of share-based compensation awards(274)— — — — — — 
Dilutive convertible preferred units(176)(176)(176)(176)— (176)— 
Denominator for diluted EPS111,811 112,121 111,963 112,071 111,943 112,056 111,472 
Diluted FFO per share - Nareit$0.04 $0.51 $0.41 $0.49 $0.51 $0.97 $1.53 
Diluted FFO per share - as adjusted for comparability$0.54 $0.51 $0.51 $0.50 $0.51 $1.56 $1.53 




8

Corporate Office Properties Trust
Adjusted Funds from Operations
(in thousands)
 Three Months EndedNine Months Ended
 9/30/206/30/203/31/2012/31/199/30/199/30/209/30/19
Diluted FFO available to common share and common unit holders, as adjusted for comparability
$61,485 $57,817 $57,866 $56,330 $57,430 $177,168 $173,092 
Straight line rent adjustments and lease incentive amortization(1,009)2,523 (852)1,386 (515)662 (1,131)
Amortization of intangibles and other assets included in NOI(39)(73)(74)(174)(59)(186)(47)
Share-based compensation, net of amounts capitalized1,727 1,638 1,389 1,735 1,697 4,754 4,993 
Amortization of deferred financing costs658 642 575 541 538 1,875 1,595 
Amortization of net debt discounts, net of amounts capitalized453 390 386 382 377 1,229 1,121 
Accum. other comprehensive loss on derivatives amortized to expense— — — — 12 — 79 
Replacement capital expenditures (1)(13,085)(16,132)(17,754)(19,862)(16,752)(46,971)(43,927)
Other diluted AFFO adjustments associated with real estate JVs (2)
150 (115)(41)(68)66 (6)280 
Diluted AFFO available to common share and common unit holders (“diluted AFFO”)
$50,340 $46,690 $41,495 $40,270 $42,794 $138,525 $136,055 
Replacement capital expenditures (1)     
Tenant improvements and incentives$6,950 $8,870 $11,357 $11,447 $10,880 $27,177 $26,600 
Building improvements10,400 13,662 2,475 8,826 8,908 26,537 17,772 
Leasing costs1,934 2,222 2,762 2,998 2,722 6,918 8,665 
Net additions to (exclusions from) tenant improvements and incentives
(943)329 2,026 (426)(2,156)1,412 (1,866)
Excluded building improvements and leasing costs(5,256)(8,951)(866)(2,983)(3,602)(15,073)(7,244)
Replacement capital expenditures$13,085 $16,132 $17,754 $19,862 $16,752 $46,971 $43,927 

(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 31 and COPT’s share of unconsolidated real estate joint ventures reported on page 32.
9

Corporate Office Properties Trust
EBITDAre and Adjusted EBITDA
(in thousands)
 Three Months EndedNine Months Ended
 9/30/206/30/203/31/2012/31/199/30/199/30/209/30/19
Net (loss) income $(31,342)$25,121 $25,550 $44,877 $23,246 $19,329 $155,127 
Interest expense17,152 16,797 16,840 16,777 17,126 50,789 54,275 
Income tax expense (benefit)16 30 49 (104)(131)95 (113)
Real estate-related depreciation and amortization35,332 33,612 32,596 32,779 34,692 101,540 104,290 
Other depreciation and amortization457 448 419 438 467 1,324 1,396 
Impairment losses on real estate1,530 — — 327 1,530 327 
Gain on sales of real estate— — (5)(20,761)— (5)(84,469)
Adjustments from unconsolidated real estate JVs (1)1,274 1,270 1,270 1,206 1,202 3,814 2,859 
EBITDAre24,419 77,278 76,719 75,214 76,929 $178,416 $233,692 
Loss on early extinguishment of debt3,237 — — — — 3,237 — 
Loss on interest rate derivatives53,196 — — — — 53,196 — 
Net loss (gain) on other investments250 — (1)— 252 (400)
Credit loss (recoveries) expense (1,465)615 689 — — (161)— 
Business development expenses414 678 538 512 419 1,630 1,427 
Non-comparable professional and legal expenses
— — — 195 175 — 486 
Demolition costs on redevelopment and nonrecurring improvements11 43 104 — 63 44 
Executive transition costs— — — — — — 
Adjusted EBITDA80,062 78,582 77,989 76,024 77,523 $236,633 $235,253 
Proforma NOI adjustment for property changes within period1,631 959 734 463 — 
Change in collectability of deferred rental revenue224 1,007 — 928 — 
In-place adjusted EBITDA$81,917 $80,548 $78,723 $77,415 $77,523 

(1)Includes COPT’s share of adjusted EBITDA adjustments in unconsolidated real estate joint ventures (see page 32).
10

Corporate Office Properties Trust
Office and Data Center Shell Properties by Segment (1) - 9/30/20
(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 91.2%92.8%
Howard County
35 2,870 88.7%89.2%
Other
22 1,623 93.4%93.9%
Total Fort Meade/BW Corridor
88 8,314 90.7%91.8%
Northern Virginia (“NoVA”) Defense/IT
13 1,992 88.5%88.5%
Lackland AFB (San Antonio, Texas)
953 100.0%100.0%
Navy Support
21 1,241 95.6%97.5%
Redstone Arsenal (Huntsville, Alabama)
13 1,278 99.5%99.5%
Data Center Shells:
Consolidated Properties
10 2,045 100.0%100.0%
Unconsolidated JV Properties (3)
15 2,450 100.0%100.0%
Total Defense/IT Locations
167 18,273 94.2%94.8%
Regional Office
1,959 92.3%92.8%
Core Portfolio174 20,232 94.0%94.6%
Other Properties157 68.4%68.4%
Total Portfolio176 20,389 93.8%94.4%
Consolidated Portfolio161 17,940 93.0%93.6%

(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 32 for additional disclosure regarding our unconsolidated real estate joint ventures.



11

Corporate Office Properties Trust
NOI from Real Estate Operations and Occupancy by Property Grouping - 9/30/20
(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 EndedNine Months Ended
Core Portfolio:
Same Properties: (3)
Consolidated properties
144 15,448 92.3%93.0%$484,092 90.2 %$72,067 $218,489 
Unconsolidated real estate JV (4)
979 100.0%100.0%6,118 1.1 %1,247 3,674 
Total Same Properties in Core Portfolio
150 16,427 92.8%93.4%490,210 91.3 %73,314 222,163 
Properties Placed in Service (5)
15 2,334 99.1%99.6%41,952 7.8 %7,944 18,315 
Properties contributed to uncons. real estate JV (4)(6)
1,471 100.0%100.0%2,118 0.4 %505 1,503 
Wholesale Data Center and Other
N/AN/AN/AN/AN/AN/A2,424 9,350 
Total Core Portfolio174 20,232 94.0%94.6%534,280 99.5 %84,187 251,331 
Other Properties (Same Properties)157 68.4%68.4%2,634 0.5 %456 1,201 
Total Portfolio 176 20,389 93.8%94.4%$536,914 100.0 %$84,643 $252,532 
Consolidated Portfolio161 17,940 93.0%93.6%$528,678 98.5 %$82,891 $247,342 
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 EndedNine Months Ended
Core Portfolio:
Defense/IT Locations:
Consolidated properties
152 15,823 93.3%94.0%$464,401 86.9 %$72,877 $213,365 
Unconsolidated real estate JVs (4)
15 2,450 100.0%100.0%8,236 1.5 %1,752 5,190 
Total Defense/IT Locations167 18,273 94.2%94.8%472,637 88.5 %74,629 218,555 
Regional Office1,959 92.3%92.8%61,643 11.5 %7,131 23,328 
Wholesale Data Center and OtherN/AN/AN/AN/AN/AN/A2,427 9,448 
Total Core Portfolio174 20,232 94.0%94.6%$534,280 100.0 %$84,187 $251,331 
(1)Percentages calculated based on operational square feet.
(2)Excludes Annualized Rental Revenue from our wholesale data center, DC-6, of $22.0 million as of 9/30/20. 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 1/1/19.
(4)See page 32 for additional disclosure regarding our unconsolidated real estate joint ventures.
(5)Newly developed or redeveloped properties placed in service that were not fully operational by 1/1/19.
(6)Includes nine data center shell properties in which we sold a 90% interest and retained a 10% interest through a newly-formed unconsolidated real estate joint venture in 2019.
12

Corporate Office Properties Trust
Consolidated Real Estate Revenues and NOI by Segment
(dollars in thousands)
 Three Months EndedNine Months Ended
 9/30/206/30/203/31/2012/31/199/30/199/30/209/30/19
Consolidated real estate revenues     
Defense/IT Locations:
Fort Meade/BW Corridor$63,328 $62,698 $64,438 $65,003 $63,436 $190,464 $187,778 
NoVA Defense/IT14,699 14,447 13,678 13,448 13,551 42,824 42,294 
Lackland Air Force Base12,602 13,257 12,076 14,772 12,703 37,935 36,368 
Navy Support8,006 8,119 8,341 8,136 8,183 24,466 24,523 
Redstone Arsenal6,079 4,647 4,676 4,515 4,171 15,402 12,078 
Data Center Shells-Consolidated7,995 7,076 5,577 4,680 5,913 20,648 21,891 
Total Defense/IT Locations112,709 110,244 108,786 110,554 107,957 331,739 324,932 
Regional Office14,913 15,162 15,460 14,252 15,508 45,535 45,359 
Wholesale Data Center6,068 6,455 7,172 6,409 6,565 19,695 22,996 
Other753 677 698 753 704 2,128 2,208 
Consolidated real estate revenues$134,443 $132,538 $132,116 $131,968 $130,734 $399,097 $395,495 
NOI     
Defense/IT Locations:
Fort Meade/BW Corridor$41,791 $41,839 $43,216 $44,610 $42,693 $126,846 $125,356 
NoVA Defense/IT9,454 9,112 8,493 8,620 8,586 27,059 27,343 
Lackland Air Force Base5,486 5,472 5,281 5,486 5,554 16,239 16,612 
Navy Support4,962 4,948 5,056 4,828 4,602 14,966 14,252 
Redstone Arsenal4,050 3,035 2,829 2,744 2,454 9,914 7,223 
Data Center Shells:
Consolidated properties
7,134 6,287 4,920 4,348 5,395 18,341 20,261 
COPT’s share of unconsolidated real estate JVs (1)
1,752 1,725 1,713 1,634 1,601 5,190 4,071 
Total Defense/IT Locations74,629 72,418 71,508 72,270 70,885 218,555 215,118 
Regional Office7,131 8,274 7,923 6,919 8,165 23,328 23,010 
Wholesale Data Center2,426 2,992 3,939 3,026 3,191 9,357 13,166 
Other457 375 460 289 380 1,292 1,227 
NOI from real estate operations$84,643 $84,059 $83,830 $82,504 $82,621 $252,532 $252,521 

(1)See page 32 for additional disclosure regarding our unconsolidated real estate joint ventures.
13

Corporate Office Properties Trust
Cash NOI by Segment
(dollars in thousands)
 Three Months EndedNine Months Ended
 9/30/206/30/203/31/2012/31/199/30/199/30/209/30/19
Cash NOI     
Defense/IT Locations:
Fort Meade/BW Corridor$41,365 $41,968 $42,170 $43,939 $42,604 $125,503 $125,040 
NoVA Defense/IT9,410 9,610 9,118 8,963 8,064 28,138 25,592 
Lackland Air Force Base5,929 5,903 5,701 5,906 5,839 17,533 16,953 
Navy Support5,130 5,248 5,146 4,987 4,808 15,524 14,706 
Redstone Arsenal2,848 2,580 2,494 2,377 2,220 7,922 6,852 
Data Center Shells:
Consolidated properties
6,234 5,505 4,316 3,762 4,857 16,055 18,566 
COPT’s share of unconsolidated real estate JVs (1)
1,655 1,641 1,633 1,553 1,513 4,929 3,875 
Total Defense/IT Locations72,571 72,455 70,578 71,487 69,905 215,604 211,584 
Regional Office7,045 8,078 7,479 7,606 7,356 22,602 21,713 
Wholesale Data Center2,480 3,005 3,848 3,162 3,231 9,333 11,874 
Other438 358 457 292 380 1,253 1,370 
Cash NOI from real estate operations82,534 83,896 82,362 82,547 80,872 248,792 246,541 
Straight line rent adjustments and lease incentive amortization
861 (2,537)842 (1,488)235 (834)466 
Amortization of acquired above- and below-market rents98 97 96 197 82 291 115 
Amortization of intangibles and other assets to property operating expenses(60)(22)(23)(23)(23)(105)(69)
Lease termination fees, gross610 376 104 436 841 1,090 3,820 
Tenant funded landlord assets and lease incentives504 2,164 369 754 526 3,037 1,452 
Cash NOI adjustments in unconsolidated real estate JVs96 85 80 81 88 261 196 
NOI from real estate operations$84,643 $84,059 $83,830 $82,504 $82,621 $252,532 $252,521 

(1)See page 32 for additional disclosure regarding our unconsolidated real estate joint ventures.
14

Corporate Office Properties Trust
Same Properties (1) Average Occupancy Rates by Segment 
(square feet in thousands)
 # of PropertiesOperational Square FeetThree Months EndedNine Months Ended
 9/30/206/30/203/31/2012/31/199/30/199/30/209/30/19
Core Portfolio:
Defense/IT Locations:
Fort Meade/BW Corridor86 8,137 90.8 %91.2 %92.2 %92.1 %91.5 %91.4 %90.8 %
NoVA Defense/IT13 1,992 88.4 %87.0 %83.9 %82.4 %83.9 %86.4 %87.9 %
Lackland Air Force Base953 100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
Navy Support21 1,241 94.6 %94.0 %93.6 %92.4 %90.9 %94.0 %90.4 %
Redstone Arsenal651 99.7 %99.6 %99.4 %99.2 %99.2 %99.6 %98.7 %
Data Center Shells (2)1,494 100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
Total Defense/IT Locations
143 14,468 92.7 %92.7 %92.8 %92.5 %92.2 %92.7 %92.2 %
Regional Office
1,959 92.1 %92.0 %90.6 %88.0 %88.6 %91.6 %88.5 %
Core Portfolio Same Properties150 16,427 92.6 %92.6 %92.5 %91.9 %91.7 %92.6 %91.8 %
Other Same Properties157 68.4 %65.8 %67.4 %72.4 %72.1 %67.2 %72.8 %
Total Same Properties152 16,584 92.4 %92.4 %92.3 %91.7 %91.6 %92.4 %91.6 %

Same Properties (1) Period End Occupancy Rates by Segment 
(square feet in thousands)
 # of PropertiesOperational Square FeetThree Months Ended
 9/30/206/30/203/31/2012/31/199/30/19
Core Portfolio:
Defense/IT Locations:
Fort Meade/BW Corridor
86 8,137 90.8 %91.0 %92.3 %92.3 %91.9 %
NoVA Defense/IT
13 1,992 88.5 %87.0 %85.5 %82.4 %82.3 %
Lackland Air Force Base
953 100.0 %100.0 %100.0 %100.0 %100.0 %
Navy Support
21 1,241 95.6 %93.9 %94.0 %92.5 %91.7 %
Redstone Arsenal
651 99.0 %99.6 %99.6 %99.2 %99.2 %
Data Center Shells (2)
1,494 100.0 %100.0 %100.0 %100.0 %100.0 %
Total Defense/IT Locations
143 14,468 92.8 %92.6 %93.1 %92.5 %92.2 %
Regional Office
1,959 92.3 %92.0 %91.4 %88.1 %88.6 %
Core Portfolio Same Properties150 16,427 92.8 %92.5 %92.9 %92.0 %91.8 %
Other Same Properties157 68.4 %68.4 %64.6 %73.0 %72.1 %
Total Same Properties152 16,584 92.5 %92.3 %92.7 %91.8 %91.6 %

(1)Includes office and data center shell properties stably owned and 100% operational since at least 1/1/19.
(2)Properties owned through an unconsolidated real estate joint venture. See page 32 for additional disclosure.
15

Corporate Office Properties Trust
Same Properties Real Estate Revenues and NOI by Segment
(dollars in thousands)
 Three Months EndedNine Months Ended
 9/30/206/30/203/31/2012/31/199/30/199/30/209/30/19
Same Properties real estate revenues     
Defense/IT Locations:
Fort Meade/BW Corridor
$62,122 $61,507 $63,216 $63,974 $62,809 $186,845 $185,840 
NoVA Defense/IT
14,698 14,447 13,678 13,448 13,551 42,823 42,294 
Lackland Air Force Base
12,603 13,257 12,076 14,773 12,702 37,936 36,367 
Navy Support
8,006 8,119 8,341 8,135 8,183 24,466 24,523 
Redstone Arsenal
3,595 3,534 3,808 3,895 3,868 10,937 11,446 
Data Center Shells-Consolidated
2,175 2,208 2,111 1,943 2,045 6,494 6,216 
Total Defense/IT Locations103,199 103,072 103,230 106,168 103,158 309,501 306,686 
Regional Office14,913 15,162 15,460 14,251 15,509 45,535 45,360 
Other Properties753 677 698 753 704 2,128 2,205 
Same Properties real estate revenues$118,865 $118,911 $119,388 $121,172 $119,371 $357,164 $354,251 
Same Properties NOI     
Defense/IT Locations:
Fort Meade/BW Corridor
$40,994 $41,030 $42,403 $43,745 $42,317 $124,427 $124,134 
NoVA Defense/IT
9,454 9,112 8,494 8,619 8,586 27,060 27,344 
Lackland Air Force Base
5,486 5,472 5,281 5,487 5,554 16,239 16,612 
Navy Support
4,961 4,949 5,056 4,828 4,602 14,966 14,252 
Redstone Arsenal
2,097 2,219 2,232 2,295 2,236 6,548 6,821 
Data Center Shells:
Consolidated properties
1,944 1,993 1,893 1,810 1,896 5,830 5,763 
COPT’s share of unconsolidated real estate JV (1)
1,247 1,220 1,207 1,214 1,214 3,674 3,638 
Total Defense/IT Locations66,183 65,995 66,566 67,998 66,405 198,744 198,564 
Regional Office7,131 8,274 7,923 6,918 8,163 23,328 23,010 
Other Properties456 375 461 325 381 1,292 1,176 
Same Properties NOI$73,770 $74,644 $74,950 $75,241 $74,949 $223,364 $222,750 

(1)See page 32 for additional disclosure regarding our unconsolidated real estate joint ventures.
16

Corporate Office Properties Trust
Same Properties Cash NOI by Segment
(dollars in thousands)
 Three Months EndedNine Months Ended
 9/30/206/30/203/31/2012/31/199/30/199/30/209/30/19
Same Properties cash NOI     
Defense/IT Locations:
Fort Meade/BW Corridor
$40,759 $41,283 $41,848 $43,546 $42,456 $123,890 $124,088 
NoVA Defense/IT
9,410 9,610 9,118 8,963 8,064 28,138 25,592 
Lackland Air Force Base
5,928 5,904 5,701 5,907 5,839 17,533 16,953 
Navy Support
5,130 5,248 5,146 4,987 4,808 15,524 14,706 
Redstone Arsenal
2,211 2,350 2,310 2,311 2,291 6,871 7,041 
Data Center Shells:
Consolidated properties
1,789 1,821 1,724 1,627 1,706 5,334 5,159 
COPT’s share of unconsolidated real estate JV (1)
1,199 1,185 1,179 1,180 1,171 3,563 3,491 
Total Defense/IT Locations66,426 67,401 67,026 68,521 66,335 200,853 197,030 
Regional Office7,045 8,078 7,479 7,606 7,355 22,602 21,713 
Other Properties439 358 457 327 381 1,254 1,320 
Same Properties cash NOI73,910 75,837 74,962 76,454 74,071 224,709 220,063 
Straight line rent adjustments and lease incentive amortization
(1,214)(1,513)(567)(2,592)(572)(3,294)(587)
Amortization of acquired above- and below-market rents98 97 96 197 82 291 115 
Amortization of intangibles and other assets to property operating expenses(23)(23)(23)(23)(23)(69)(69)
Lease termination fees, gross609 358 85 417 823 1,052 1,629 
Tenant funded landlord assets and lease incentives342 (147)369 754 526 564 1,452 
Cash NOI adjustments in unconsolidated real estate JV (1)48 35 28 34 42 111 147 
Same Properties NOI$73,770 $74,644 $74,950 $75,241 $74,949 $223,364 $222,750 
Percentage change in total Same Properties cash NOI (2)(0.2)%2.1%
Percentage change in Defense/IT Locations Same Properties cash NOI (2)
0.1%1.9%

(1)See page 32 for additional disclosure regarding our unconsolidated real estate joint ventures.
(2)Represents the change between the current period and the same period in the prior year.
17

Corporate Office Properties Trust
Leasing - Office and Data Center Shell Portfolio (1)
Quarter Ended 9/30/20
(square feet in thousands)
Defense/IT Locations
 Ft Meade/BW CorridorLackland Air Force BaseNavy SupportRedstone ArsenalTotal Defense/IT LocationsRegional Office Total
Renewed Space     
Leased Square Feet392 — 31 392 814 27 841 
Expiring Square Feet473 — 43 398 914 31 945 
Vacating Square Feet81 — 12 100 104 
Retention Rate (% based upon square feet)82.9 %— %71.1 %98.4 %89.1 %86.1 %89.0 %
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot (2)$2.36 $— $0.59 $0.54 $1.41 $2.55 $1.45 
Weighted Average Lease Term in Years4.4 — 1.7 1.9 3.1 4.6 3.2 
Average Rent Per Square Foot
Renewal Average Rent
$38.12 $— $11.76 $22.78 $29.75 $33.16 $29.86 
Expiring Average Rent
$36.04 $— $10.93 $22.20 $28.44 $33.20 $28.59 
Change in Average Rent
5.8 %— %7.6 %2.6 %4.6 %(0.1)%4.4 %
Cash Rent Per Square Foot
Renewal Cash Rent
$37.90 $— $11.62 $22.69 $29.59 $31.52 $29.65 
Expiring Cash Rent
$38.90 $— $11.69 $22.85 $30.15 $33.89 $30.27 
Change in Cash Rent
(2.6)%— %(0.7)%(0.7)%(1.9)%(7.0)%(2.0)%
Average Escalations Per Year
2.4 %2.3 %3.8 %2.1 %2.4 %2.3 %2.4 %
New Leases
Development and Redevelopment Space
Leased Square Feet137 107 — — 244 — 244 
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot (2)$1.95 $0.39 $— $— $1.27 $— $1.27 
Weighted Average Lease Term in Years11.6 12.0 — — 11.8 — 11.8 
Average Rent Per Square Foot$48.16 $43.26 $— $— $46.01 $— $46.01 
Cash Rent Per Square Foot$43.40 $38.46 $— $— $41.23 $— $41.23 
Vacant Space (3)
Leased Square Feet45 — — 52 10 61 
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot (2)$3.21 $— $5.32 $— $3.47 $6.49 $3.96 
Weighted Average Lease Term in Years5.7 — 6.7 — 5.8 10.5 6.6 
Average Rent Per Square Foot$31.65 $— $35.66 $— $32.14 $31.48 $32.04 
Cash Rent Per Square Foot$30.26 $— $34.50 $— $30.79 $29.50 $30.58 
Total Square Feet Leased574 107 37 392 1,110 37 1,147 
Average Escalations Per Year2.4 %2.3 %3.2 %2.1 %2.4 %2.4 %2.4 %
Average Escalations Excl. Data Center Shells2.4 %
(1)Activity is exclusive of owner occupied space, leases with less than a one-year term and expirations associated with space removed from service. Weighted average lease term is based on the lease term defined in the lease assuming no exercise of early termination rights. Committed costs for leasing are reported above in the period of lease execution. Actual capital expenditures for leasing are reported on page 9 in the period such costs are incurred.
(2)Committed costs include tenant improvements and leasing commissions and exclude free rent concessions.
(3)Vacant space includes acquired first generation space, vacated second generation space and leases executed on developed and redeveloped space previously placed in service.
18

Corporate Office Properties Trust
Leasing - Office and Data Center Shell Portfolio (1)
Nine Months Ended 9/30/20
(square feet in thousands)
Defense/IT Locations
 Ft Meade/BW CorridorNoVA Defense/ITLackland Air Force BaseNavy SupportRedstone ArsenalData Center ShellsTotal Defense/IT LocationsRegional OfficeOtherTotal
Renewed Space      
Leased Square Feet889 120 — 152 412 297 1,870 66 1,942 
Expiring Square Feet1,174 122 — 183 418 297 2,194 91 19 2,304 
Vacating Square Feet285 — 31 — 323 25 13 362 
Retention Rate (% based upon square feet)75.7 %98.9 %— %83.1 %98.5 %100.0 %85.3 %72.3 %31.7 %84.3 %
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot (2)$2.26 $5.77 $— $3.53 $1.06 $— $1.96 $4.72 $0.51 $2.05 
Weighted Average Lease Term in Years4.9 6.8 — 2.7 1.9 5.0 4.2 5.7 3.5 4.2 
Average Rent Per Square Foot
Renewal Average Rent
$35.42 $29.79 $— $20.97 $22.84 $14.19 $27.74 $37.12 $24.74 $28.05 
Expiring Average Rent
$33.15 $27.74 $— $19.53 $22.18 $12.38 $25.98 $34.18 $27.39 $26.26 
Change in Average Rent
6.8 %7.4 %— %7.4 %3.0 %14.6 %6.8 %8.6 %(9.7)%6.8 %
Cash Rent Per Square Foot
Renewal Cash Rent
$35.36 $29.00 $— $20.55 $22.75 $13.66 $27.52 $35.99 $23.61 $27.80 
Expiring Cash Rent
$36.44 $29.16 $— $20.70 $22.87 $13.42 $28.04 $37.44 $29.72 $28.37 
Change in Cash Rent
(3.0)%(0.6)%— %(0.7)%(0.5)%1.8 %(1.9)%(3.9)%(20.6)%(2.0)%
Average Escalations Per Year
2.4 %2.5 %— %2.9 %2.1 %2.3 %2.4 %2.5 %3.1 %2.4 %
New Leases
Development and Redevelopment Space
Leased Square Feet148 — 107 — 218 42 515 — 520 
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot (2)$2.39 $— $0.39 $— $4.57 $— $2.70 $23.77 $— $2.91 
Weighted Average Lease Term in Years11.5 — 12.0 — 17.4 13.3 14.3 6.5 — 14.2 
Average Rent Per Square Foot$46.97 $— $43.26 $— $20.81 $37.92 $34.39 $76.61 $— $34.80 
Cash Rent Per Square Foot$42.42 $— $38.46 $— $20.22 $34.18 $31.53 $80.20 $— $32.00 
Vacant Space (3)
Leased Square Feet141 17 — 51 — 212 56 274 
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot (2)$6.49 $9.34 $— $5.12 $2.88 $— $6.33 $7.90 $3.06 $6.58 
Weighted Average Lease Term in Years6.7 8.8 — 5.7 5.2 — 6.6 6.9 5.3 6.6 
Average Rent Per Square Foot$34.74 $32.42 $— $29.23 $20.96 $— $33.04 $31.02 $22.15 $32.39 
Cash Rent Per Square Foot$32.80 $30.61 $— $29.07 $19.22 $— $31.54 $30.03 $21.50 $31.01 
Total Square Feet Leased1,178 137 107 204 633 340 2,597 127 12 2,737 
Average Escalations Per Year2.4 %2.6 %2.3 %2.8 %0.9 %2.1 %2.0 %2.6 %3.3 %2.0 %
Average Escalations Excl. Data Center Shells2.0 %
(1)Activity is exclusive of owner occupied space, leases with less than a one-year term and expirations associated with space removed from service. Weighted average lease term is based on the lease term defined in the lease assuming no exercise of early termination rights. Committed costs for leasing are reported above in the period of lease execution. Actual capital expenditures for leasing are reported on page 9 in the period such costs are incurred.
(2)Committed costs include tenant improvements and leasing commissions and exclude free rent concession.
(3)Vacant space includes acquired first generation space, vacated second generation space and leases executed on developed and redeveloped space previously placed in service.
19

Corporate Office Properties Trust
Lease Expiration Analysis as of 9/30/20 (1)
(dollars and square feet in thousands, except per square foot amounts)
Office and Data Center Shells
Segment of Lease and Year of Expiration (2)Square Footage of Leases ExpiringAnnualized Rental
Revenue of Expiring Leases (3)
% of Core/Total
Annualized 
Rental
Revenue
Expiring (3)(4)
Annualized Rental
Revenue of
Expiring Leases per
Occupied Sq. Foot (3)
Core Portfolio
Ft Meade/BW Corridor119 $4,518 0.8 %$37.92 
NoVA Defense/IT276 0.1 %31.45 
Lackland Air Force Base250 11,834 2.2 %47.34 
Navy Support276 0.1 %40.02 
Regional Office12 411 0.1 %33.05 
2020397 17,316 3.2 %43.59 
Ft Meade/BW Corridor789 25,602 4.8 %32.47 
NoVA Defense/IT100 3,014 0.6 %30.11 
Navy Support307 9,559 1.8 %31.10 
Redstone Arsenal10 266 — %25.90 
Regional Office82 2,769 0.5 %33.69 
20211,288 41,210 7.7 %31.99 
Ft Meade/BW Corridor945 32,901 6.2 %34.80 
NoVA Defense/IT148 5,102 1.0 %34.49 
Navy Support186 4,479 0.8 %24.14 
Redstone Arsenal393 8,965 1.7 %22.84 
Regional Office488 17,088 3.2 %34.93 
20222,160 68,536 12.8 %31.72 
Ft Meade/BW Corridor1,376 49,746 9.3 %36.13 
NoVA Defense/IT143 4,816 0.9 %33.59 
Navy Support200 5,747 1.1 %28.71 
Redstone Arsenal18 436 0.1 %24.09 
Regional Office143 4,269 0.8 %29.81 
20231,880 65,015 12.2 %34.55 
Ft Meade/BW Corridor1,149 41,796 7.8 %36.34 
NoVA Defense/IT459 15,398 2.9 %33.57 
Navy Support256 5,423 1.0 %21.18 
Redstone Arsenal75 1,810 0.3 %24.01 
Data Center Shells-Unconsolidated JV Properties546 3,283 0.6 %12.02 
Regional Office79 2,360 0.4 %29.68 
20242,564 70,070 13.1 %30.56 
Thereafter
Consolidated Properties8,829 267,180 50.1 %29.93 
Unconsolidated JV Properties1,904 4,953 0.9 %13.64 
Core Portfolio19,022 $534,280 100.0 %$30.87 
20


Segment of Lease and Year of Expiration (2)Square Footage of Leases ExpiringAnnualized Rental
Revenue of Expiring Leases (3)
% of Core/Total
Annualized 
Rental
Revenue
Expiring (3)(4)
Annualized Rental
Revenue of
Expiring Leases per
Occupied Sq. Foot (3)
Core Portfolio19,022 $534,280 99.5 %$30.87 
Other Properties
108 2,634 0.5 %24.47 
Total Portfolio 19,130 $536,914 100.0 %$30.83 
Consolidated Portfolio16,680 $528,678 
Unconsolidated JV Properties2,450 $8,236 

Note: As of 9/30/20, the weighted average lease term was 5.5 years for the core and total portfolio and 5.3 years for the consolidated portfolio.

Wholesale Data Center
Year of ExpirationCritical Load (MW)Annualized Rental
Revenue of
Expiring Leases (3)
2020— $29 
2021 (5)11.40 14,697 
20221.27 2,481 
20230.92 1,694 
2024— 10 
Thereafter2.00 3,054 
 15.59 $21,965 

(1)This expiration analysis reflects occupied space of our total portfolio (including consolidated and unconsolidated properties) and includes the effect of early renewals completed on existing leases but excludes the effect of new tenant leases on square feet yet to commence as of 9/30/20 of 119,000 for the core portfolio. With regard to properties owned through unconsolidated real estate joint ventures, the amounts reported above reflect 100% of the properties’ square footage but only reflect the portion of Annualized Rental Revenue that was allocable to COPT’s ownership interest.
(2)A number of our leases are subject to certain early termination provisions.  The year of lease expiration is based on the lease term determined in accordance with GAAP.
(3)Total Annualized Rental Revenue is the monthly contractual base rent as of 9/30/20 (ignoring free rent then in effect) multiplied by 12 plus the estimated annualized expense reimbursements under existing leases. The amounts reported above for Annualized Rental Revenue include the portion of properties owned through unconsolidated real estate joint ventures that was allocable to COPT’s ownership interest.
(4)Amounts reported represent the percentage of our core portfolio for components of such portfolio while other amounts represent the percentage of our total portfolio.
(5)Includes 11.25MW lease in holdover status requiring six months notice to terminate that we are negotiating for renewal.
21

Corporate Office Properties Trust
2021 Core Portfolio Quarterly Lease Expiration Analysis as of 9/30/20 (1)
(dollars and square feet in thousands, except per square foot amounts)
Segment of Lease and Quarter of Expiration (2)Square Footage of Leases ExpiringAnnualized Rental
Revenue of Expiring Leases (3)
% of Core Annualized 
Rental Revenue Expiring (3)(4)
Annualized Rental Revenue of Expiring Leases per Occupied Sq. Foot
Ft Meade/BW Corridor152 $4,551 0.9 %$30.03 
NoVA Defense/IT31 874 0.2 %27.99 
Navy Support53 1,448 0.3 %27.21 
Regional Office14 437 0.1 %31.35 
Q1 2021250 7,310 1.5 %29.25 
Ft Meade/BW Corridor222 7,268 1.4 %32.81 
NoVA Defense/IT18 586 0.1 %32.68 
Navy Support35 996 0.2 %28.53 
Regional Office25 808 0.2 %31.81 
Q2 2021300 9,658 1.9 %32.22 
Ft Meade/BW Corridor208 7,087 1.3 %34.02 
NoVA Defense/IT12 338 0.1 %28.13 
Navy Support99 2,688 0.5 %27.09 
Redstone Arsenal10 266 — %25.90 
Regional Office15 460 0.1 %30.89 
Q3 2021344 10,839 2.0 %31.45 
Ft Meade/BW Corridor207 6,696 1.3 %32.35
NoVA Defense/IT39 1,216 0.2 %31.23 
Navy Support120 4,427 0.8 %36.88 
Regional Office28 1,064 0.2 %38.06 
Q4 2021394 13,403 2.5 %34.02 
1,288 $41,210 7.7 %$31.99 

(1)This expiration analysis reflects occupied space of our total portfolio (including consolidated and unconsolidated properties) and includes the effect of early renewals completed on existing leases but excludes the effect of new tenant leases on square feet yet to commence as of 9/30/20.
(2)A number of our leases are subject to certain early termination provisions.  The period of lease expiration is based on the lease term determined in accordance with GAAP.
(3)Total Annualized Rental Revenue is the monthly contractual base rent as of 9/30/20 (ignoring free rent then in effect) multiplied by 12 plus the estimated annualized expense reimbursements under existing leases.
(4)Amounts reported represent the percentage of our core portfolio.
22

Corporate Office Properties Trust
Top 20 Tenants as of 9/30/20 (1)
(dollars and square feet in thousands)
TenantTotal
Annualized
Rental Revenue (2)
%
of Total
Annualized 
Rental Revenue (2)
Occupied Square Feet in Office and Data Center ShellsWeighted
Average
Remaining Lease Term in Office and Data Center Shells (3)
United States Government(4)$192,387 34.4 %4,673 4.4 
Fortune 500 Company55,952 10.0 %4,525 9.4 
General Dynamics Corporation29,684 5.3 %752 3.2 
The Boeing Company17,536 3.1 %614 1.7 
CACI International Inc13,585 2.4 %354 4.5 
Northrop Grumman Corporation 12,761 2.3 %417 3.3 
Booz Allen Hamilton, Inc. 11,289 2.0 %297 3.6 
CareFirst Inc. 11,121 2.0 %312 2.4 
Wells Fargo & Company 6,917 1.2 %172 8.0 
AT&T Corporation 6,099 1.1 %321 9.0 
Miles and Stockbridge, PC5,975 1.1 %160 7.0 
Raytheon Technologies Corporation 5,699 1.0 %157 1.9 
Science Applications International Corp. 5,261 0.9 %136 1.7 
Jacobs Engineering Group Inc. 5,184 0.9 %165 5.3 
Transamerica Life Insurance Company 5,123 0.9 %140 1.3 
Mantech International Corp. 4,751 0.9 %165 3.9 
Peraton Inc.  4,589 0.8 %134 6.3 
University of Maryland 4,056 0.7 %131 6.7 
The MITRE Corporation 3,987 0.7 %118 4.3 
Pandora A/S 3,812 0.7 %144 5.4 
Subtotal Top 20 Tenants 405,768 72.4 %13,887 5.9 
All remaining tenants 153,111 27.6 %5,243 4.4 
Total/Weighted Average $558,879 100.0 %19,130 5.5 

(1)Includes Annualized Rental Revenue (“ARR”) in our portfolio of operating office and data center shells and our wholesale data center. For properties owned through unconsolidated real estate joint ventures, includes COPT’s share of those properties’ ARR of $8.2 million (see page 32 for additional information).
(2)Total ARR is the monthly contractual base rent as of 9/30/20, multiplied by 12, plus the estimated annualized expense reimbursements under existing leases. With regard to properties owned through unconsolidated real estate joint ventures, the amounts reported above reflect 100% of the properties’ square footage but only reflect the portion of ARR that was allocable to COPT’s ownership interest.
(3)Weighted average remaining lease term is based on the lease term determined in accordance with GAAP for our office and data center shell properties (i.e., excluding the effect of our wholesale data center leases). The weighting of the lease term was computed based on occupied square feet.
(4)Substantially all of our government leases are subject to early termination provisions which are customary in government leases. As of 9/30/20, $6.1 million of our ARR was through the General Services Administration (GSA), representing 3.2% of our ARR from the United States Government and 1.1% of our total ARR.


23

Corporate Office Properties Trust
Summary of Development Projects as of 9/30/20 (1)
(dollars and square feet in thousands) 
Total Rentable Square Feet% Leased as of 10/7/20
as of 9/30/20 (2)
Actual or Anticipated Shell Completion Date Anticipated Operational Date (3)
Anticipated Total CostCost to DateCost to Date Placed in Service
Property and SegmentLocation
Fort Meade/BW Corridor:
4600 River Road
College Park, Maryland102 54%$30,735 $21,879 $— 4Q 204Q 21
610 Guardian WayAnnapolis Junction, Maryland107 100%68,600 20,094 — 1Q 221Q 22
Subtotal / Average209 78%99,335 41,973 — 
Redstone Arsenal:
100 Secured Gateway (4)
Huntsville, Alabama250 84%76,644 63,582 57,452 2Q 202Q 21
8600 Advanced Gateway
Huntsville, Alabama105 100%28,666 19,001 — 4Q 204Q 20
8000 Rideout Road
Huntsville, Alabama100 9%26,078 13,658 — 4Q 204Q 21
6000 Redstone Gateway
Huntsville, Alabama40 79%10,620 6,082 — 4Q 204Q 21
7100 Redstone GatewayHuntsville, Alabama46 100%11,166 4,906 — 1Q 211Q 21
Subtotal / Average541 74%153,174 107,229 57,452 
Data Center Shells:
Oak Grove Annex (5)
Northern Virginia14 100%7,734 5,819 — 4Q 204Q 20
P2 CNorthern Virginia230 100%50,420 42,630 — 4Q 204Q 20
Subtotal / Average244 100%58,154 48,449 — 
NoVA Defense/IT:
NoVA Office C
Chantilly, Virginia348 100%106,219 50,578 2,794 4Q 214Q 21
Lackland Air Force Base:
1511 Northwest CrossroadsSan Antonio, Texas107 100%57,000 8,967 — 4Q 214Q 21
Regional Office:
2100 L Street
Washington, DC190 56%177,000 152,891 — 2Q 202Q 21
Total Under Development1,639 84%$650,882 $410,087 $60,246   

(1)Includes properties under, or contractually committed for, development as of 9/30/20.
(2)Cost includes land, development, leasing costs and allocated portion of structured parking and other shared infrastructure, if applicable.
(3)Anticipated operational date is the earlier of the estimated date when leases have commenced on 100% of a property’s space or one year from the cessation of major construction activities.
(4)Although classified as under development, 211,000 square feet were operational as of 9/30/20.
(5)Represents expansion of existing property.

24

Corporate Office Properties Trust
Development and Redevelopment Placed in Service as of 9/30/20
(square feet in thousands)
 
Total PropertySquare Feet Placed in Service
Space Placed in Service % Leased as of 9/30/20
Property Segment
% Leased as of 9/30/20
Rentable Square FeetPrior Year2020
Property and Location1st Quarter2nd Quarter3rd QuarterTotal 2020
P2 A
Northern Virginia
Data Center Shells100%230 — 230 — — 230 100%
Oak Grove A
Northern Virginia
Data Center Shells100%216 — — 216 — 216 100%
7500 Advanced Gateway
Huntsville, Alabama
Redstone Arsenal100%135 — — 135 — 135 100%
6950 Columbia Gateway
Columbia, Maryland
Ft Meade/BW Corridor91%106 85 — 21 — 21 91%
100 Secured Gateway
Huntsville, Alabama
Redstone Arsenal84%250 — — 40 171 211 100%
7600 Advanced Gateway
Huntsville, Alabama
Redstone Arsenal100%126 — — — 126126 100%
P2 B
Northern Virginia
Data Center Shells100%274 — — — 274274 100%
Southpoint Annex (1)
Northern Virginia
Data Center Shells100%14 — — — 1414 100%
Paragon Annex (1)
Northern Virginia
Data Center Shells100%14 — — — 1414 100%
Total Development/Redevelopment Placed in Service96%1,365 85 230 412 599 1,241 99%


(1)Represent expansions of existing properties.
25

Corporate Office Properties Trust
Summary of Land Owned/Controlled as of 9/30/20 (1)
(square feet in thousands)
LocationAcres Estimated Developable Square FeetCarrying Amount
Land owned/controlled for future development
Defense/IT Locations:
   
Fort Meade/BW Corridor:
National Business Park
1751,999 
Howard County
19290 
Other
1261,338 
Total Fort Meade/BW Corridor
320 3,627 
NoVA Defense/IT
52 1,618 
Lackland AFB
19 410 
Navy Support
44 109 
Redstone Arsenal (2)
3583,127 
Data Center Shells
531,180 
Total Defense/IT Locations
84610,071 
Regional Office
10900 
Total land owned/controlled for future development856 10,971$281,988 
Other land owned/controlled43 638 3,413 
Land held, net89911,609 $285,401 

(1)This land inventory schedule includes properties under ground lease to us and excludes all properties listed as development or redevelopment as detailed on page 24. The costs associated with the land included on this summary are reported on our consolidated balance sheet in the line entitled “land held.”
(2)This land is controlled under a long-term master lease agreement to LW Redstone Company, LLC, a consolidated joint venture (see page 31). As this land is developed in the future, the joint venture will execute site-specific leases under the master lease agreement. Rental payments will commence under the site-specific leases as cash rents under tenant leases commence at the respective properties.
26

Corporate Office Properties Trust
Capitalization Overview
(dollars, shares and units in thousands)
Wtd. Avg. Maturity (Years)Stated RateEffective Rate
(1)(2)
Gross Debt Balance at 9/30/20
Debt
Secured debt3.2 3.28 %3.41 %$262,110 
Unsecured debt3.3 3.18 %3.57 %1,935,163 
Total Consolidated Debt3.3 3.19 %3.55 %$2,197,273 
Fixed rate debt (2)3.7 3.84 %3.65 %$2,065,715 
Variable rate debt2.3 1.39 %1.96 %131,558 
Total Consolidated Debt$2,197,273 
Preferred Equity
3.5% Series I Convertible Preferred Units (3)$8,800 
Common Equity
Common Shares112,176 
Common Units (4)1,331 
Total Common Shares and Units113,507 
Closing Common Share Price on 9/30/20
$23.72 
Common Equity Market Capitalization$2,692,386 
Total Equity Market Capitalization$2,701,186 
Total Market Capitalization$4,898,459 
(1) Excludes the effect of deferred financing cost amortization.
(2) Includes the effect of interest rate swaps with notional amounts of $446.3 million that hedge the risk of changes in interest rates on variable rate debt.
(3) 352,000 units outstanding with a liquidation preference of $25 per unit, convertible into 176,000 common units and redeemable by COPLP with six months notice.
(4) Excludes unvested share-based compensation awards subject to market conditions.



Investment Grade Ratings & OutlookLatest Affirmation
FitchBBB-Stable9/30/20
Moodys
Baa3Stable9/10/20
Standard & Poors
BBB-Stable9/10/20
chart-c5a171cb685247b5ae61a.jpgchart-07848c3862b84b8b9c31a.jpg
27

Corporate Office Properties Trust
Summary of Outstanding Debt as of 9/30/20
(dollars in thousands)
Unsecured DebtStated RateAmount OutstandingMaturity DateSecured DebtStated RateAmount OutstandingBalloon Payment Due Upon MaturityMaturity Date
Revolving Credit FacilityL + 1.10%$57,000 Mar-23(1)(2)7740 Milestone Parkway3.96%$17,017 $15,902 Feb-23
Senior Unsecured Notes100 & 30 Light Street4.32%50,730 47,676 Jun-23
3.70% due 20213.70%$177,052 Oct-20(3)LW Redstone:
3.60% due 20233.60%350,000 May-237200 & 7400 Redstone Gateway (4)L + 1.85%12,132 12,031 Jan-21
5.25% due 20245.25%250,000 Feb-241000, 1200 & 1100 Redstone
5.00% due 20255.00%300,000 Jul-25Gateway (4)4.47%(5)32,059 27,649 Jun-24
2.25% due 20262.25%400,000 Mar-264000 & 4100 Market Street and
Subtotal - Senior Unsecured Notes
3.81%$1,477,052 8800 Redstone Gateway (2)(4)L + 1.55%23,000 22,100 Mar-25(6)
M Square:
Unsecured Bank Term Loans5825 & 5850 University Research
2022 MaturityL + 1.00%$400,000 Dec-22(2)Court (4) 3.82%41,414 35,603 Jun-26
Other Unsecured Debt0.00%1,111 May-265801 University Research Court (2)(4)L + 1.45%11,200 10,020 Aug-26
Total Unsecured Debt3.18%$1,935,163 2100 L Street (2)(4)L + 2.35%74,558 74,558 Sept-22(7)
Total Secured Debt3.28%$262,110 
Debt Summary
Total Unsecured Debt3.18%$1,935,163 
Total Secured Debt3.28%262,110 
Consolidated Debt3.19%$2,197,273 
Net discounts and deferred
financing costs
(15,722)
Debt, per balance sheet$2,181,551 
Consolidated Debt$2,197,273 
COPT’s share of unconsolid. JV gross debt (8)50,250 
Gross debt$2,247,523 
(1)The Company’s $800 million Revolving Credit Facility matures in March 2023 and may be extended for two six-month periods, at our option.
(2)Pre-payable anytime without penalty.
(3)We redeemed these notes on 10/19/20.
(4)These properties are owned through consolidated joint ventures.
(5)Represents the weighted average rate of three loans on the properties.
(6)The loan maturity may be extended for two one-year periods, provided certain conditions are met.
(7)The loan maturity may be extended by one year, provided certain conditions are met.
(8)See page 32 for additional disclosure regarding our unconsolidated real estate joint ventures.
28

Corporate Office Properties Trust
Summary of Outstanding Debt as of 9/30/20 (continued)

chart-692e91f45fd54994a271a.jpg
chart-32e0c9930da14bed9c91a.jpgchart-3392437655d24e61b531a.jpg
(1)Represents $177.1 million in unsecured senior notes that we redeemed on 10/19/20 using borrowings under our Revolving Credit Facility.
(2)Revolving Credit Facility maturity of $57.0 million scheduled for 2023 is presented assuming our exercise of two six-month extension options.
(3)Includes the effect of $446.3 million in interest rate swaps that hedge the risk of changes in interest rates on variable rate debt.
29

Corporate Office Properties Trust
Debt Analysis
(dollars and square feet in thousands)
As of and for
Three Months Ended 9/30/20
As of and for Three Months Ended
9/30/20
Senior Note Covenants (1)Required2.25% NotesOther NotesLine of Credit & Term Loan Covenants (1)Required
Total Debt / Total Assets< 60%41.2%41.7%Total Debt / Total Assets< 60%39.6%
Secured Debt / Total Assets< 40%4.9%5.4%Secured Debt / Total Assets< 40%5.1%
Debt Service Coverage> 1.5x4.2x4.2xAdjusted EBITDA / Fixed Charges> 1.5x3.9x
Unencumbered Assets / Unsecured Debt> 150%243.8%243.8%Unsecured Debt / Unencumbered Assets< 60%38.8%
Unencumbered Adjusted NOI / Unsecured Interest Expense
> 1.75x4.3x
Debt RatiosPage Refer.Unencumbered Portfolio Analysis
Gross debt28$2,247,523 # of unencumbered properties148 
Adjusted book35$5,454,472 % of total portfolio84 %
Net debt / adjusted book ratio41.0 %Unencumbered square feet in-service16,280 
Net debt plus pref. equity / adj. book ratio41.1 %% of total portfolio80 %
Net debt35$2,235,527 NOI from unencumbered real estate operations$76,267 
Net debt plus preferred equity35$2,244,327 % of total NOI from real estate operations90 %
In-place adjusted EBITDA10$81,917 Adjusted EBITDA from unencumbered real estate operations$71,890 
Net debt / in-place adjusted EBITDA ratio
6.8x % of total adjusted EBITDA from real estate operations90 %
Net debt plus pref. equity / in-place adj. EBITDA ratio
6.8x Unencumbered adjusted book$4,793,532 
Denominator for debt service coverage34$17,518 % of total adjusted book88 %
Denominator for fixed charge coverage34$20,503 
Adjusted EBITDA10$80,062 
Adjusted EBITDA debt service coverage ratio4.6x 
Adjusted EBITDA fixed charge coverage ratio3.9x 
(1)The covenants are calculated as defined in the applicable agreements, and the calculations differ between those agreements.

30

Corporate Office Properties Trust
Consolidated Real Estate Joint Ventures as of 9/30/20
(dollars and square feet in thousands)

Operating PropertiesOperational
Square Feet
% Occupied% Leased
NOI for the Three Months Ended 9/30/20 (1)
NOI for the Nine Months Ended 9/30/20 (1)
Total Assets (2)Venture Level Debt% COPT Owned
Suburban Maryland:      
M Square Associates, LLC (3 properties)
313 99.2%99.2 %$1,490 $4,427 $67,834 $52,614 50%
Huntsville, Alabama:
LW Redstone Company, LLC (12 properties)
1,141 100.0%100.0 %3,651 8,807 235,430 67,191 85%
Total/Average1,454 99.8%99.8 %$5,141 $13,234 $303,264 $119,805 
 
        
Non-operating PropertiesEstimated Developable Square FeetTotal Assets (2)Venture Level Debt% COPT Owned
Suburban Maryland:    
M Square Research Park450 $30,488 $— 50%
Huntsville, Alabama:    
Redstone Gateway (3)3,457 136,107 — 85%
Washington, DC:
Stevens Place190 153,869 74,558 95%
Total4,097 $320,464 $74,558  
 
(1)Represents NOI of the joint venture operating properties before allocation to joint venture partners.
(2)Total assets includes the assets of the consolidated joint venture plus any outside investment basis.
(3)Total assets include $64.0 million in amortized cost basis pertaining to amounts due from the City of Huntsville (including accrued interest) in connection with infrastructure costs funded by the joint venture.
31

Corporate Office Properties Trust
Unconsolidated Real Estate Joint Ventures as of 9/30/20
(dollars and square feet in thousands) 
Joint venture informationDC Shell JV formed in 2016DC Shell JV formed in 2019
COPT ownership %50%10%
COPT’s investment
$36,135 $13,527 
# of Properties
Square Feet979 1,471 
% Occupied100%100%
COPT’s share of annualized rental revenue
$6,118 $2,118 
Balance sheet informationDC Shell JV formed in 2016DC Shell JV formed in 2019TotalCOPT’s Share (1)
Operating properties, net$119,013 $310,803 $429,816 $90,587 
Total assets$132,683 $342,770 $475,453 $100,618 
Debt$59,728 $200,867 $260,595 $49,951 
Total liabilities$60,413 $207,501 $267,914 $50,957 
Three Months Ended 9/30/20
Nine Months Ended 9/30/20
Operating informationDC Shell JV formed in 2016DC Shell JV formed in 2019TotalCOPT’s Share (1)DC Shell JV formed in 2016DC Shell JV formed in 2019TotalCOPT’s Share (1)
Revenue$3,045 $5,762 $8,807 $2,098 $8,993 $17,249 $26,242 $6,221 
Operating expenses(551)(719)(1,270)(346)(1,645)(2,093)(3,738)(1,031)
NOI and EBITDA2,494 5,043 7,537 1,752 7,348 15,156 22,504 5,190 
Interest expense(533)(1,882)(2,415)(455)(1,596)(5,606)(7,202)(1,359)
Depreciation and amortization(1,133)(2,520)(3,653)(819)(3,398)(7,558)(10,956)(2,455)
Net income$828 $641 $1,469 $478 $2,354 $1,992 $4,346 $1,376 
NOI (per above)$2,494 $5,043 $7,537 $1,752 $7,348 $15,156 $22,504 $5,190 
Straight line rent adjustments(96)(340)(436)(82)(221)(1,077)(1,298)(218)
Amortization of acquired above- and below-market rents
— (142)(142)(15)— (425)(425)(43)
Cash NOI$2,398 $4,561 $6,959 $1,655 $7,127 $13,654 $20,781 $4,929 

(1)Represents the portion allocable to our ownership interest.

32

Corporate Office Properties Trust
Supplementary Reconciliations of Non-GAAP Measures
(dollars in thousands)

 Three Months EndedNine Months Ended
 9/30/206/30/203/31/2012/31/199/30/199/30/209/30/19
NOI from real estate operations (1)     
Real estate revenues $134,443 $132,538 $132,116 $131,968 $130,734 $399,097 $395,495 
Property operating expenses (51,552)(50,204)(49,999)(51,098)(49,714)(151,755)(147,045)
COPT’s share of NOI in unconsolidated real estate JVs (2)1,752 1,725 1,713 1,634 1,601 5,190 4,071 
NOI from real estate operations84,643 84,059 83,830 82,504 82,621 252,532 252,521 
General and administrative expenses(5,558)(6,511)(5,303)(7,043)(6,105)(17,372)(20,474)
Leasing expenses(1,909)(1,647)(2,183)(2,293)(1,824)(5,739)(5,592)
Business development expenses and land carry costs(1,094)(1,262)(1,118)(1,292)(964)(3,474)(2,947)
NOI from construction contracts and other service operations1,103 525 560 985 895 2,188 2,816 
Equity in loss of unconsolidated non-real estate entities(1)(1)(2)(2)(3)(4)(5)
Interest and other income1,746 2,282 1,205 1,917 1,842 5,233 5,977 
Credit loss recoveries (expense) (3)1,465 (615)(689)— — 161 — 
Loss on early extinguishment of debt(3,237)— — — — (3,237)— 
Loss on interest rate derivatives(53,196)— — — — (53,196)— 
Interest expense(17,152)(16,797)(16,840)(16,777)(17,126)(50,789)(54,275)
COPT’s share of interest expense of unconsolidated real estate JVs (2)(455)(452)(452)(425)(412)(1,359)(937)
Income tax (expense) benefit(16)(30)(49)104 131 (95)113 
FFO - per Nareit (1)$6,339 $59,551 $58,959 $57,678 $59,055 $124,849 $177,197 
Real estate revenues
Lease revenue
Fixed contractual payments
$106,743 $103,993 $104,109 $101,116 $102,389 $314,845 $311,226 
Variable lease payments
Lease termination fees
610 376 104 436 841 1,090 3,820 
Other variable lease payments (4)
26,522 27,778 26,799 29,141 26,231 81,099 76,733 
Lease revenue133,875 132,147 131,012 130,693 129,461 397,034 391,779 
Other property revenue568 391 1,104 1,275 1,273 2,063 3,716 
Real estate revenues$134,443 $132,538 $132,116 $131,968 $130,734 $399,097 $395,495 
Provision for credit losses (recoveries) on billed lease revenue$890 $591 $(355)$579 $39 $1,126 $107 
(1)Refer to section entitled “Definitions” for a definition of this measure.
(2)See page 32 for a schedule of the related components.
(3)Excludes credit losses on lease revenue, which are included in lease revenue.
(4)Represents primarily lease revenue associated with property operating expense reimbursements from tenants.
33

Corporate Office Properties Trust
Supplementary Reconciliations of Non-GAAP Measures (continued)
(dollars in thousands)
 Three Months EndedNine Months Ended
 9/30/206/30/203/31/2012/31/199/30/199/30/209/30/19
Total interest expense$17,152 $16,797 $16,840 $16,777 $17,126 $50,789 $54,275 
Less: Amortization of deferred financing costs(658)(642)(575)(541)(538)(1,875)(1,595)
Less: Amortization of net debt discounts, net of amounts capitalized
(453)(390)(386)(382)(377)(1,229)(1,121)
Less: Accum. other comprehensive loss on derivatives amortized to expense
— — — — (12)— (79)
COPT’s share of interest expense of unconsolidated real estate JVs, excluding deferred financing costs
444 442 441 416 403 1,327 916 
Denominator for interest coverage16,485 16,207 16,320 16,270 16,602 49,012 52,396 
Scheduled principal amortization1,033 1,023 1,021 1,010 1,107 3,077 3,300 
Denominator for debt service coverage17,518 17,230 17,341 17,280 17,709 52,089 55,696 
Capitalized interest2,908 3,174 3,358 3,467 2,927 9,440 7,319 
Preferred unit distributions77 77 77 77 157 231 487 
Denominator for fixed charge coverage$20,503 $20,481 $20,776 $20,824 $20,793 $61,760 $63,502 
Preferred unit distributions$77 $77 $77 $77 $157 $231 $487 
Common share dividends - unrestricted shares and deferred shares30,763 30,761 30,754 30,724 30,721 92,278 92,099 
Common share dividends - restricted shares and deferred shares80 94 84 102 103 258 234 
Common unit distributions - unrestricted units341 341 339 337 338 1,021 1,068 
Common unit distributions - restricted units25 25 25 22 22 75 65 
Total dividends/distributions$31,286 $31,298 $31,279 $31,262 $31,341 $93,863 $93,953 
Common share dividends - unrestricted shares and deferred shares$30,763 $30,761 $30,754 $30,724 $30,721 $92,278 $92,099 
Common unit distributions - unrestricted units341 341 339 337 338 1,021 1,068 
Distributions on dilutive preferred units— 77 — 77 — — — 
Dividends and distributions for diluted FFO payout ratio31,104 31,179 31,093 31,138 31,059 93,299 93,167 
Distributions on dilutive preferred units77 — 77 — — 231 — 
Dividends and distributions for other payout ratios$31,181 $31,179 $31,170 $31,138 $31,059 $93,530 $93,167 
34

Corporate Office Properties Trust
Supplementary Reconciliations of Non-GAAP Measures (continued)
(dollars in thousands)
9/30/206/30/203/31/2012/31/199/30/19
Total assets$4,120,189 $4,011,325 $4,054,457 $3,854,453 $3,855,369 
Accumulated depreciation1,095,441 1,065,094 1,035,703 1,007,120 979,353 
Accumulated depreciation included in assets held for sale— — — — 1,397 
Accumulated amort. of real estate intangibles and deferred leasing costs215,651 216,267 214,693 212,547 212,222 
Accumulated amortization of real estate intangibles and deferred leasing costs included in assets held for sale
— — — — 
COPT’s share of liabilities of unconsolidated real estate JVs
50,957 50,984 50,966 50,734 46,061 
COPT’s share of accumulated depreciation and amortization of unconsolidated real estate JVs
10,640 9,815 8,990 8,164 7,376 
Less: Property - operating lease liabilities
(26,382)(20,796)(17,365)(17,317)(16,686)
Less: Property - finance lease liabilities
(28)(688)(702)(702)(702)
Less: Cash and cash equivalents
(11,458)(21,596)(159,061)(14,733)(34,005)
Less: COPT’s share of cash of unconsolidated real estate JVs
(538)(627)(593)(498)(505)
Adjusted book$5,454,472 $5,309,778 $5,187,088 $5,099,768 $5,049,884 
Gross debt (page 28)
$2,247,523 $2,073,351 $2,139,130 $1,893,057 $1,920,179 
Less: Cash and cash equivalents(11,458)(21,596)(159,061)(14,733)(34,005)
Less: COPT’s share of cash of unconsolidated real estate JVs(538)(627)(593)(498)(505)
Net debt$2,235,527 $2,051,128 $1,979,476 $1,877,826 $1,885,669 
Preferred equity8,800 8,800 8,800 8,800 8,800 
Net debt plus preferred equity$2,244,327 $2,059,928 $1,988,276 $1,886,626 $1,894,469 


35



Corporate Office Properties Trust
Definitions
Non-GAAP Measures

We believe that the measures defined below that are not determined in accordance with generally accepted accounting principles (“GAAP”) are helpful to investors in measuring our performance and comparing it to that of other real estate investment trusts (“REITs”).  Since these measures exclude certain items includable in their respective most comparable GAAP measures, reliance on the measures has limitations; management compensates for these limitations by using the measures simply as supplemental measures that are weighed in balance with other GAAP and non-GAAP measures.  These measures should not be used as an alternative to the respective most comparable GAAP measures when evaluating our financial performance or to cash flow from operating, investing and financing activities when evaluating our liquidity or ability to make cash distributions or pay debt service.
 
Adjusted book
Defined as total assets presented on our consolidated balance sheet, net of lease liabilities associated with property right-of-use assets, and excluding the effect of cash and cash equivalents, accumulated depreciation on real estate properties, accumulated amortization of intangible assets on real estate acquisitions, accumulated amortization of deferred leasing costs, disposed properties included in assets held for sale, unconsolidated real estate joint ventures (“JVs”) cash and cash equivalents, liabilities and accumulated depreciation and amortization (of real estate intangibles and deferred leasing costs) allocable to our ownership interest in the JVs and the effect of properties serving as collateral for debt in default that we extinguished (or intend to extinguish) via conveyance of such properties.

Adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”) 
Adjusted EBITDA is net income adjusted for the effects of interest expense, depreciation and amortization, gain on sales and impairment losses of real estate, gain or loss on early extinguishment of debt, loss on interest rate derivatives, net gain or loss on other investments, credit loss expense or recoveries, operating property acquisition costs, income taxes, business development expenses, demolition costs on redevelopment and nonrecurring improvements, executive transition costs and certain other expenses that we believe are not closely correlated with our operating performance.  Adjusted EBITDA also includes adjustments to net income for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JV. While EBITDA (earnings before interest, taxes, depreciation and amortization) is a universally-defined supplemental measure, Adjusted EBITDA incorporates additional adjustments for gains and losses from investing and financing activities and certain other items that we believe are not closely correlated to (or associated with) our operating performance. We believe that adjusted EBITDA is a useful supplemental measure for assessing our un-levered performance.  We believe that net income is the most directly comparable GAAP measure to this non-GAAP measure.
 
Amortization of acquisition intangibles included in NOI 
Represents the amortization of intangible asset and liability categories that is included in net operating income, including amortization of above- or below-market leases and above- or below-market cost arrangements.

Basic FFO available to common share and common unit holders (“Basic FFO”) 
This measure is FFO adjusted to subtract (1) preferred share dividends, (2) income attributable to noncontrolling interests through ownership of preferred units in Corporate Office Properties, L.P. (the “Operating Partnership”) or interests in other consolidated entities not owned by us, (3) depreciation and amortization allocable to noncontrolling interests in other consolidated entities, (4) Basic FFO allocable to share-based compensation awards and (5) issuance costs associated with redeemed preferred shares.  With these adjustments, Basic FFO represents FFO available to common shareholders and holders of common units in the Operating Partnership (“common units”).  Common units are substantially similar to our common shares of beneficial interest (“common shares”) and are exchangeable into common shares, subject to certain conditions.  We believe that Basic FFO is useful to investors due to the close correlation of common units to common shares.  We believe that net income is the most directly comparable GAAP measure to this non-GAAP measure.

36



Corporate Office Properties Trust
Definitions
Cash net operating income (“Cash NOI”) 
Defined as NOI from real estate operations adjusted to eliminate the effects of: straight-line rental adjustments, amortization of tenant incentives, amortization of intangibles and other assets included in FFO and NOI, lease termination fees from tenants to terminate their lease obligations prior to the end of the agreed upon lease terms and rental revenue recognized under GAAP resulting from landlord assets and lease incentives funded by tenants.  Cash NOI also includes adjustments to NOI from real estate operations for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. Under GAAP, rental revenue is recognized evenly over the term of tenant leases (through straight-line rental adjustments and amortization of tenant incentives), which, given the long term nature of our leases, does not align with the economics of when tenant payments are due to us under the arrangements.  Also under GAAP, when a property is acquired, we allocate the acquisition to certain intangible components, which are then amortized into NOI over their estimated lives, even though the resulting revenue adjustments are not reflective of our lease economics.  In addition, revenue from lease termination fees and tenant-funded landlord improvements, absent an adjustment from us, would result in large one-time lump sum amounts in Cash NOI that we do not believe are reflective of a property’s long-term value.  We believe that Cash NOI is a useful supplemental measure of operating performance for a REIT’s operating real estate because it makes adjustments to NOI for the above stated items to be more reflective of the economics of when tenant payments are due to us under our leases and the value of our properties.  As is the case with NOI, the measure is useful in our opinion in evaluating and comparing the performance of geographic segments, Same Properties groupings and individual properties.  We believe that NOI from real estate operations, our segment performance measure, is the most directly comparable GAAP measure to this non-GAAP measure.

COPT’s share of NOI from unconsolidated real estate JVs
Represents the net of revenues and property operating expenses of real estate operations owned through unconsolidated JVs that are allocable to COPT’s ownership interest. This measure is included in the computation of NOI, our segment performance measure, as discussed below.

Diluted adjusted funds from operations available to common share and common unit holders (“Diluted AFFO”) 
Defined as Diluted FFO, as adjusted for comparability, adjusted for the following: (1) the elimination of the effect of (a) noncash rental revenues and property operating expenses (comprised of straight-line rental adjustments, which includes the amortization of recurring tenant incentives, and amortization of acquisition intangibles included in FFO and NOI, both of which are described under “Cash NOI” above), (b) share-based compensation, net of amounts capitalized, (c) amortization of deferred financing costs, (d) amortization of debt discounts and premiums and (e) amortization of settlements of debt hedges; and (2) replacement capital expenditures (defined below).  Diluted AFFO also includes adjustments to Diluted FFO, as adjusted for comparability for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We believe that Diluted AFFO is a useful supplemental measure of operating performance for a REIT because it incorporates adjustments for: certain revenue and expenses that are not associated with cash to or from us during the period; and certain capital expenditures for operating properties incurred during the period that do require cash outlays.  We believe that net income is the most directly comparable GAAP measure to this non-GAAP measure.

Diluted FFO available to common share and common unit holders (“Diluted FFO”) 
Diluted FFO is Basic FFO adjusted to add back any changes in Basic FFO that would result from the assumed conversion of securities that are convertible or exchangeable into common shares.  The computation of Diluted FFO assumes the conversion of common units but does not assume the conversion of other securities that are convertible into common shares if the conversion of those securities would increase Diluted FFO per share in a given period.  We believe that Diluted FFO is useful to investors because it is the numerator used to compute Diluted FFO per share, discussed below.  We believe that net income is the most directly comparable GAAP measure to this non-GAAP measure.
37



Corporate Office Properties Trust
Definitions
 
Diluted FFO available to common share and common unit holders, as adjusted for comparability (“Diluted FFO, as adjusted for comparability”)
Defined as Diluted FFO or FFO adjusted to exclude: operating property acquisition costs; gain or loss on early extinguishment of debt; FFO associated with properties that secured non-recourse debt on which we defaulted and, subsequently, extinguished via conveyance of such properties (including property NOI, interest expense and gains on debt extinguishment); loss on interest rate derivatives; demolition costs on redevelopment and nonrecurring improvements; executive transition costs, accounting charges for original issuance costs associated with redeemed preferred shares; allocations of FFO to holders of noncontrolling interests resulting from capital events; and certain other expenses that we believe are not closely correlated with our operating performance.  Diluted FFO, as adjusted for comparability also includes adjustments to Diluted FFO for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We believe this to be a useful supplemental measure alongside Diluted FFO as it excludes gains and losses from certain investing and financing activities and certain other items that we believe are not closely correlated to (or associated with) our operating performance. The adjustment for FFO associated with properties securing non-recourse debt on which we defaulted pertains to the periods subsequent to our default on the loan’s payment terms, which was the result of our decision to not support payments on the loan since the estimated fair value of the properties was less than the loan balance. While we continued as the legal owner of the properties during this period, all cash flows produced by them went directly to the lender and we did not fund any debt service shortfalls, which included incremental additional interest under the default rate. We believe that net income is the most directly comparable GAAP measure to this non-GAAP measure.
 
Diluted FFO per share 
Diluted FFO per share is (1) Diluted FFO divided by (2) the sum of the (a) weighted average common shares outstanding during a period, (b) weighted average common units outstanding during a period and (c) weighted average number of potential additional common shares that would have been outstanding during a period if other securities that are convertible or exchangeable into common shares were converted or exchanged.  The computation of Diluted FFO per share assumes the conversion of common units but does not assume the conversion of other securities that are convertible into common shares if the conversion of those securities would increase Diluted FFO per share in a given period.  We believe that Diluted FFO per share is useful to investors because it provides investors with a further context for evaluating our FFO results in the same manner that investors use earnings per share (“EPS”) in evaluating net income available to common shareholders.  We believe that diluted EPS is the most directly comparable GAAP measure to this non-GAAP measure.
 
Diluted FFO per share, as adjusted for comparability 
Defined as (1) Diluted FFO available to common share and common unit holders, as adjusted for comparability divided by (2) the sum of the (a) weighted average common shares outstanding during a period, (b) weighted average common units outstanding during a period and (c) weighted average number of potential additional common shares that would have been outstanding during a period if other securities that are convertible or exchangeable into common shares were converted or exchanged.  The computation of this measure assumes the conversion of common units but does not assume the conversion of other securities that are convertible into common shares if the conversion of those securities would increase the per share measure in a given period.  We believe this to be a useful supplemental measure alongside Diluted FFO per share as it excludes gains and losses from investing and financing activities and certain other items that we believe are not closely correlated to (or associated with) our operating performance. We believe that diluted EPS is the most directly comparable GAAP measure to this non-GAAP measure.
 
Earnings before interest, income taxes, depreciation and amortization for real estate (“EBITDAre”) 
Defined as net income adjusted for the effects of interest expense, depreciation and amortization, gains on sales and impairment losses of real estate and income taxes. EBITDAre also includes adjustments to net income for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. While EBITDA (earnings before interest, taxes, depreciation and amortization) is a universally-defined supplemental measure, EBITDAre incorporates additional adjustments for gains and losses from investing activities related to our investments in operating properties. We believe that EBITDAre is a useful supplemental measure for assessing our un-levered performance. We believe that net income is the most directly comparable GAAP measure to this non-GAAP measure.

38



Corporate Office Properties Trust
Definitions
Funds from operations (“FFO” or “FFO per Nareit”)
Defined as net income computed using GAAP, excluding gains on sales and impairment losses of real estate (net of associated income tax) and real estate-related depreciation and amortization. FFO also includes adjustments to net income for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We believe that we use the National Association of Real Estate Investment Trust’s (“Nareit”) definition of FFO, although others may interpret the definition differently and, accordingly, our presentation of FFO may differ from those of other REITs.  We believe that FFO is useful to management and investors as a supplemental measure of operating performance because, by excluding gains on sales and impairment losses of real estate (net of associated income tax) and real estate-related depreciation and amortization, FFO can help one compare our operating performance between periods.  We believe that net income is the most directly comparable GAAP measure to this non-GAAP measure.

Gross debt
Defined as total consolidated outstanding debt, which is debt reported per our balance sheet adjusted to exclude net discounts and premiums and deferred financing costs, as further adjusted to include outstanding debt of unconsolidated real estate JVs that were allocable to our ownership interest in the JVs.

In-place adjusted EBITDA
Defined as Adjusted EBITDA, as further adjusted for: (1) the removal of NOI pertaining to properties in the quarterly periods in which such properties were disposed or removed from service; (2) the addition of pro forma adjustments to NOI for (a) properties acquired, placed in service or expanded upon subsequent to the commencement of a quarter made in order to reflect a full quarter of ownership/operations and (b) significant mid-quarter occupancy changes associated with properties recently placed in service with no occupancy; and (3) certain adjustments to deferred rental revenue associated with changes in our assessment of collectability that we believe are not closely correlated with our operating performance. The measure also includes adjustments to Adjusted EBITDA for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We believe that in-place adjusted EBITDA is a useful supplemental measure of performance for assessing our un-levered performance, as further adjusted for changes in operating properties subsequent to the commencement of a quarter.  We believe that net income is the most directly comparable GAAP measure to this non-GAAP measure.

Net debt
Defined as Gross debt (total outstanding debt reported per our balance sheet as adjusted to exclude net discounts and premiums and deferred financing costs), as adjusted to subtract cash and cash equivalents as of the end of the period and debt in default that was extinguished via conveyance of properties. The measure also includes adjustments to Gross debt for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs.

Net debt plus preferred equity
Defined as Net debt plus the total liquidation preference of our outstanding preferred equity.

Net debt to Adjusted book and Net debt plus preferred equity to Adjusted book
These measures divide either Net debt or Net debt plus preferred equity (defined above) by Adjusted book (defined above).

Net debt to in-place adjusted EBITDA ratio and Net debt plus preferred equity to in-place adjusted EBITDA ratio
Defined as Net debt or Net debt plus preferred equity (as defined above) divided by in-place adjusted EBITDA (defined above) for the three month period that is annualized by multiplying by four.

39



Corporate Office Properties Trust
Definitions
Net operating income from real estate operations (“NOI”)
NOI, which is our segment performance measure, includes: consolidated real estate revenues; consolidated property operating expenses; and the net of revenues and property operating expenses of real estate operations owned through unconsolidated real estate JVs that are allocable to COPT’s ownership interest in the JVs. We believe that NOI is an important supplemental measure of operating performance for a REIT’s operating real estate because it provides a measure of the core real estate operations that is unaffected by depreciation, amortization, financing and general, administrative and leasing expenses; we believe this measure is particularly useful in evaluating the performance of geographic segments, Same Properties groupings and individual properties. 

NOI debt service coverage ratio and Adjusted EBITDA debt service coverage ratio 
These measures divide either NOI from real estate operations or Adjusted EBITDA by the sum of interest expense (excluding amortization of deferred financing costs and amortization of debt discounts and premiums, net of amounts capitalized, gains or losses on interest rate derivatives and interest expense on debt in default to be extinguished via conveyance of properties) and scheduled principal amortization on mortgage loans.
 
NOI fixed charge coverage ratio and Adjusted EBITDA fixed charge coverage ratio 
These measures divide either NOI from real estate operations or Adjusted EBITDA by the sum of (1) interest expense (excluding amortization of deferred financing costs and amortization of debt discounts and premiums, net of amounts capitalized, gains or losses on interest rate derivatives and interest expense on debt in default to be extinguished via conveyance of properties), (2) scheduled principal amortization on mortgage loans, (3) capitalized interest, (4) dividends on preferred shares and (5) distributions on preferred units in the Operating Partnership not owned by us.
 
NOI interest coverage ratio and Adjusted EBITDA interest coverage ratio 
These measures divide either NOI from real estate operations or Adjusted EBITDA by interest expense (excluding amortization of deferred financing costs and amortization of debt discounts and premiums, net of amounts capitalized, gains on losses on interest rate derivatives and interest expense on debt in default to be extinguished via conveyance of properties).

Payout ratios based on: Diluted FFO; Diluted FFO, as adjusted for comparability; and Diluted AFFO 
These payout ratios are defined as (1) the sum of dividends on unrestricted common shares and distributions to holders of interests in the Operating Partnership (excluding unvested share-based compensation awards) and dividends on convertible preferred shares when such distributions and dividends are included in Diluted FFO divided by (2) the respective non-GAAP measures on which the payout ratios are based.

Replacement capital expenditures 
Replacement capital expenditures are defined as tenant improvements and incentives, building improvements and leasing costs incurred during the period for operating properties that are not (1) items contemplated prior to the acquisition of a property, (2) improvements associated with the expansion of a building or its improvements, (3) renovations to a building which change the underlying classification of the building (for example, from industrial to office or Class C office to Class B office), (4) capital improvements that represent the addition of something new to the property rather than the replacement of something (for example, the addition of a new heating and air conditioning unit that is not replacing one that was previously there) or (5) replacements of significant components of a building after the building has reached the end of its original useful life. Replacement capital expenditures excludes expenditures of operating properties included in disposition plans during the period that were already sold or are held for future disposition. For cash tenant incentives not due to the tenant for a period exceeding three months past the date on which such incentives were incurred, we recognize such incentives as replacement capital expenditures in the periods such incentives are due to the tenant. Replacement capital expenditures, which is included in the computation of Diluted AFFO, is intended to represent non-transformative capital expenditures of existing properties held for long-term investment. We believe that the excluded expenditures are more closely associated with our investing activities than the performance of our operating portfolio.

40



Corporate Office Properties Trust
Definitions
Same Properties NOI and Same Properties cash NOI
Defined as NOI, or Cash NOI, from real estate operations of Same Properties.  We believe that these are important supplemental measures of operating performance of Same Properties for the same reasons discussed above for NOI from real estate operations and Cash NOI.

Other Definitions
 
Acquisition Costs — Transaction costs expensed in connection with executed or anticipated acquisitions of operating properties.
 
Annualized Rental Revenue — The monthly contractual base rent as of the reporting date multiplied by 12, plus the estimated annualized expense reimbursements under existing leases for occupied space. With regard to properties owned through unconsolidated real estate JVs, we include the portion of Annualized Rental Revenue allocable to COPT’s ownership interest.

Average escalations — Leasing statistic used to report average increase in rental rates over lease terms for leases with a term of greater than one-year.
 
Development Properties — Properties under, or contractually committed for, development.

Core Portfolio — Represents Defense/IT Locations and Regional Office properties.

Defense/IT Locations — Represents properties in locations that support the United States Government and its contractors, most of whom are engaged in national security, defense and IT related activities servicing what we believe are growing, durable, priority missions.

First Generation Space — Newly-developed or redeveloped space that has never been occupied.
 
Operational Space — The portion of a property in operations (excludes portion under development or redevelopment).

Redevelopment Properties — Properties previously in operations on which activities to substantially renovate such properties were underway or approved.

Regional Office Properties — Includes office properties located in select urban/urban-like submarkets in the Greater Washington, DC/Baltimore region with durable Class-A office fundamentals and characteristics.

Same Properties — Operating office and data center shell properties stably owned and 100% operational since at least 1/1/19.
 
Second Generation Space — Space leased that has been previously occupied.
 
Total Portfolio — Operating properties, including ones owned through unconsolidated real estate JVs.
41


logo2dtd021015a01a181a.jpg
6711 Columbia Gateway Drive, Suite 300
Columbia, Maryland 21046
Telephone 443-285-5400
Facsimile 443-285-7650
www.copt.com
NYSE: OFC
  
 NEWS RELEASE
   
FOR IMMEDIATE RELEASEIR Contacts: 
 Stephanie Krewson-KellyMichelle Layne
 443-285-5453443-285-5452
 stephanie.kelly@copt.commichelle.layne@copt.com


COPT Reports Third Quarter 2020 Results
________________________________________________________

3Q20 Results Outperform High-End of Guidance; Increase Full Year Guidance

COVID-19 Impact on Operations Remain Minimal; 3Q20 Rent Collections Continue to Exceed 99.5%

FFO per share, as adjusted for comparability, of $0.54 in 3Q Exceeded High-End of Guidance by 1-Cent

Same-Property Cash NOI change of (0.2%) in 3Q20 was at High-End of Guidance

Core Portfolio 94.0% Occupied & 94.6% Leased

1.2 Million SF of 99% Leased Developments Placed in Service During First Nine Months of 2020
________________________________________________________

Raising Full-Year Guidance for FFO per Share, as Adjusted for Comparability,
by 2-Cents at the Mid-Point, to $2.09
________________________________________________________

Solid Leasing Volumes

Total Leasing of 1.1 Million SF in 3Q included 244,000 SF of Development Leasing and
61,000 SF of Vacancy Leasing

Continued Strong Tenant Retention of 89% in 3Q; 84% for First Nine Months of 2020

1.6 Million SF Under Active Development are 84% Leased
________________________________________________________

COLUMBIA, MD (BUSINESS WIRE) October 29, 2020 - Corporate Office Properties Trust (“COPT” or the “Company”) (NYSE: OFC) announced financial and operating results for the third quarter ended September 30, 2020.

Management Comments
Stephen E. Budorick, COPT’s President & Chief Executive Officer, commented, “Third quarter FFO per share exceeded the high-end of our guidance, marking the third consecutive quarter of outperformance. Solid demand throughout our Defense/IT Locations continued to support strong development leasing volumes, and tenant retention remains on-track to set a 20-year record. We are in the process of selling interests in data center shell
i


properties to a joint venture with an institutional partner. We anticipate completing two transactions that are expected to raise approximately $165 million of equity proceeds, which would reduce our year-end debt-to-EBITDA ratio to between 6.2x and 6.4x.” He continued, “The Company continues to meet or exceed its 2020 plan objectives largely unimpeded by restrictions, shutdowns, or tenant credit issues related to the pandemic, and is raising the mid-point of 2020 guidance for FFO per share, as adjusted for comparability, by 2-cents, to $2.09. The nearly 1.8 million square feet of fully leased development projects we have or will place in service this year position the Company to generate FFO growth of 3-to-6 percent in 2021.”

Financial Highlights

3rd Quarter Financial Results:
Diluted earnings (loss) per share (“EPS”) was ($0.29) for the quarter ended September 30, 2020 as compared to $0.19 for the third quarter of 2019.

Diluted funds from operations per share (“FFOPS”), as calculated in accordance with Nareit’s definition, was $0.04 for the third quarter of 2020 as compared to $0.51 for third quarter 2019 results.

FFOPS as adjusted for comparability of $0.54 in the third quarter of 2020 was 5.9% higher than the $0.51 reported for the third quarter of 2019.

Operating Performance Highlights

Operating Portfolio Summary:
At September 30, 2020, the Company’s core portfolio of 174 operating office and data center shell properties was 94.0% occupied and 94.6% leased.

During the quarter, the Company placed into service 599,000 square feet that were 100% leased, bringing the total for the year to 1.2 million square feet placed in service that were 99% leased.

Same-Property Performance:
At September 30, 2020, COPT’s same-property portfolio of 152 buildings was 92.5% occupied and 93.2% leased.

For the quarter and nine months ended September 30, 2020, the Company’s same-property cash NOI decreased 0.2% and increased 2.1%, respectively, over the prior year’s comparable periods.

Leasing:
Total Square Feet Leased: For the quarter ended September 30, 2020, the Company leased 1.1 million total square feet, including 841,000 square feet of renewals, 244,000 square feet in development projects, and 61,000 square feet of new leases on vacant space.

For the nine months ended September 30, 2020, the Company executed 2.7 million square feet of total leasing, including 1.9 million square feet of renewals, 520,000 square feet of development leasing, and 274,000 square feet of vacancy leasing.

Renewal Rates: During the quarter and nine months ended September 30, 2020, the Company respectively renewed 89.0% and 84.3% of total expiring square feet and is on-track to set a 20-year record for tenant retention.

Cash Rent Spreads & Average Escalations on Renewing Leases: For the quarter and nine months ended September 30, 2020, cash rents on renewed space decreased 2.0%. For the same time periods, annual escalations on renewing leases averaged 2.4%.

Lease Terms: In the third quarter, lease terms averaged 3.2 years on renewing leases, 11.8 years on development leasing, and 6.6 years on new leasing of vacant space. For the nine months, lease terms
ii


averaged 4.2 years on renewing leases, 14.2 years on development leasing, and 6.6 years on vacancy leasing.

Investment Activity Highlights

Development Pipeline: As of October 7, 2020, the Company’s development pipeline consisted of 11 properties and expansion of one fully operational property totaling 1.6 million square feet that were 84% leased. These projects have a total estimated cost of $650.9 million, of which $410.1 million had been incurred as of September 30, 2020.

Balance Sheet and Capital Transaction Highlights

As of September 30, 2020, the Company’s net debt plus preferred equity to adjusted book ratio was 41.1% and its net debt plus preferred equity to in-place adjusted EBITDA ratio was 6.8x. For the quarter ended September 30, 2020, the Company’s adjusted EBITDA fixed charge coverage ratio was 3.9x.

As of September 30, 2020, and including the effect of interest rate swaps, the Company’s weighted average effective interest rate on its consolidated debt portfolio was 3.55% with a weighted average maturity of 3.3 years; additionally, 94.0% of the Company’s debt was subject to fixed interest rates.

During the quarter the Company issued $400 million of 2.25% senior unsecured notes, the proceeds from which were used to complete the tender offer for and subsequent redemption of all of its remaining $300 million of 3.7% senior unsecured notes due in 2021. The redemption was completed on October 19, 2020.

2020 Guidance
Management is increasing its prior full-year guidance ranges from $0.48-$0.52 for EPS to a new range of $0.77-$0.79. Management is also increasing its full-year guidance ranges for FFOPS per Nareit and FFOPS, as adjusted for comparability, to $1.44-$1.46 and $2.08-$2.10, respectively.

For the fourth quarter ending December 31, 2020, management is increasing its guidance for EPS from $0.43-$0.45 to a new range of $0.63-$0.65, lowering its existing guidance for FFOPS, per Nareit, to $0.48-$0.50, and affirming its existing guidance range of $0.52-$0.54 for FFOPS, as adjusted for comparability. Reconciliations of projected diluted EPS to projected FFOPS are as follows:
Reconciliation of EPS to FFOPS, per Nareit and As Adjusted for ComparabilityQuarter endingYear ending
December 31, 2020December 31, 2020
 LowHighLowHigh
EPS$0.63 $0.65 $0.77 $0.79 
Real estate-related depreciation and amortization0.36 0.36 1.27 1.27 
Gain on sales of real estate(0.51)(0.51)(0.51)(0.51)
Impairment losses— — 0.01 0.01 
FFO allocation to other noncontrolling interests resulting from capital event
— — (0.10)(0.10)
FFOPS, Nareit definition0.48 0.50 1.44 1.46 
FFO allocation to other noncontrolling interests resulting from capital event
— — 0.10 0.10 
Loss on interest rate derivatives and early extinguishment of debt0.04 0.04 0.54 0.54 
FFOPS, as adjusted for comparability$0.52 $0.54 $2.08 $2.10 

Associated Supplemental Presentation
Prior to the call, the Company will post a slide presentation to accompany management’s prepared remarks for its third quarter 2020 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/

iii


Conference Call Information
Management will discuss third quarter 2020 results on its conference call tomorrow at 12:00 p.m. Eastern Time, details of which are listed below:

Conference Call Date:     Friday, October 30, 2020
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:     8968029

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, October 30, through 2:00 p.m. Eastern Time on Friday, November 13. 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 8968029.

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 September 30, 2020, 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 15 properties owned through unconsolidated joint ventures, COPT’s core portfolio of 174 office and data center shell properties encompassed 20.2 million square feet and was 94.6% 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, 2019 and subsequent Quarterly Reports on Form 10-Q.
iv

Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(in thousands, except per share data)
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
 2020201920202019
Revenues  
Revenues from real estate operations$134,443 $130,734 $399,097 $395,495 
Construction contract and other service revenues20,323 28,697 46,240 87,946 
Total revenues154,766 159,431 445,337 483,441 
Operating expenses  
Property operating expenses51,552 49,714 151,755 147,045 
Depreciation and amortization associated with real estate operations35,332 34,692 101,540 104,290 
Construction contract and other service expenses19,220 27,802 44,052 85,130 
Impairment losses1,530 327 1,530 327 
General and administrative expenses5,558 6,105 17,372 20,474 
Leasing expenses1,909 1,824 5,739 5,592 
Business development expenses and land carry costs1,094 964 3,474 2,947 
Total operating expenses116,195 121,428 325,462 365,805 
Interest expense(17,152)(17,126)(50,789)(54,275)
Interest and other income1,746 1,842 5,233 5,977 
Credit loss recoveries1,465 — 161 — 
Gain on sales of real estate— — 84,469 
Loss on early extinguishment of debt(3,237)— (3,237)— 
Loss on interest rate derivatives(53,196)— (53,196)— 
(Loss) income before equity in income of unconsolidated entities and income taxes(31,803)22,719 18,052 153,807 
Equity in income of unconsolidated entities477 396 1,372 1,207 
Income tax (expense) benefit(16)131 (95)113 
Net (loss) income (31,342)23,246 19,329 155,127 
Net loss (income) attributable to noncontrolling interests:  
Common units in the Operating Partnership (“OP”)386 (267)(185)(1,863)
Preferred units in the OP(77)(157)(231)(487)
Other consolidated entities(812)(1,565)(3,207)(3,870)
Net (loss) income attributable to COPT common shareholders$(31,845)$21,257 $15,706 $148,907 
Earnings per share (“EPS”) computation:  
Numerator for diluted EPS:  
Net (loss) income attributable to COPT common shareholders$(31,845)$21,257 $15,706 $148,907 
Redeemable noncontrolling interests— — — 100 
Amount allocable to share-based compensation awards(145)(118)(359)(469)
Numerator for diluted EPS$(31,990)$21,139 $15,347 $148,538 
Denominator:  
Weighted average common shares - basic111,811 111,582 111,778 111,036 
Dilutive effect of share-based compensation awards— 361 278 313 
Dilutive effect of redeemable noncontrolling interests— — — 123 
Weighted average common shares - diluted111,811 111,943 112,056 111,472 
Diluted EPS$(0.29)$0.19 $0.14 $1.33 
v



Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(in thousands, except per share data)
 For the Three Months Ended September 30, For the Nine Months Ended September 30,
 2020201920202019
Net (loss) income$(31,342)$23,246 $19,329 $155,127 
Real estate-related depreciation and amortization35,332 34,692 101,540 104,290 
Impairment losses on real estate
1,530 327 1,530 327 
Gain on sales of real estate— — (5)(84,469)
Depreciation and amortization on unconsolidated real estate JVs819 790 2,455 1,922 
Funds from operations (“FFO”)6,339 59,055 124,849 177,197 
Noncontrolling interests - preferred units in the OP(77)(157)(231)(487)
FFO allocable to other noncontrolling interests(1,074)(1,429)(14,614)(3,588)
Basic FFO allocable to share-based compensation awards(119)(248)(449)(662)
Basic FFO available to common share and common unit holders (“Basic FFO”)
5,069 57,221 109,555 172,460 
Redeemable noncontrolling interests— 34 103 100 
Diluted FFO available to common share and common unit holders (“Diluted FFO”)
5,069 57,255 109,658 172,560 
Loss on early extinguishment of debt3,237 — 3,237 — 
Loss on interest rate derivatives53,196 — 53,196 — 
Demolition costs on redevelopment and nonrecurring improvements
11 — 63 44 
Executive transition costs
— — — 
Non-comparable professional and legal expenses
— 175 — 486 
Dilutive preferred units in the OP
77 — 231 — 
FFO allocation to other noncontrolling interests resulting from capital event
— — 11,090 — 
Diluted FFO comparability adjustments for redeemable noncontrolling interests34 — — — 
Diluted FFO comparability adjustments allocable to share-based compensation awards
(139)— (307)(2)
Diluted FFO available to common share and common unit holders, as adjusted for comparability
61,485 57,430 177,168 173,092 
Straight line rent adjustments and lease incentive amortization(1,009)(515)662 (1,131)
Amortization of intangibles included in net operating income(39)(59)(186)(47)
Share-based compensation, net of amounts capitalized1,727 1,697 4,754 4,993 
Amortization of deferred financing costs658 538 1,875 1,595 
Amortization of net debt discounts, net of amounts capitalized453 377 1,229 1,121 
Accum. other comprehensive loss on derivatives amortized to expense— 12 — 79 
Replacement capital expenditures(13,085)(16,752)(46,971)(43,927)
Other diluted AFFO adjustments associated with real estate JVs
150 66 (6)280 
Diluted adjusted funds from operations available to common share and common unit holders (“Diluted AFFO”)
$50,340 $42,794 $138,525 $136,055 
Diluted FFO per share$0.04 $0.51 $0.97 $1.53 
Diluted FFO per share, as adjusted for comparability$0.54 $0.51 $1.56 $1.53 
Dividends/distributions per common share/unit$0.275 $0.275 $0.825 $0.825 

vi



Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(Dollars and shares in thousands, except per share data)
September 30,
2020
December 31,
2019
Balance Sheet Data  
Properties, net of accumulated depreciation$3,586,938 $3,340,886 
Total assets4,120,189 3,854,453 
Debt, per balance sheet2,181,551 1,831,139 
Total liabilities2,447,031 2,105,777 
Redeemable noncontrolling interests23,522 29,431 
Equity1,649,636 1,719,245 
Net debt to adjusted book41.0 %36.8 %
Core Portfolio Data (as of period end) (1)  
Number of operating properties174 168 
Total operational square feet (in thousands)20,232 19,016 
% Occupied94.0 %93.1 %
% Leased94.6 %94.6 %
For the Three Months Ended September 30, For the Nine Months Ended September 30,
2020201920202019
Payout ratios    
Diluted FFO613.6 %54.2 %85.1 %54.0 %
Diluted FFO, as adjusted for comparability50.7 %54.1 %52.8 %53.8 %
Diluted AFFO
61.9 %72.6 %67.5 %68.5 %
Adjusted EBITDA fixed charge coverage ratio3.9x  3.7x  3.8x  3.7x  
Net debt to in-place adjusted EBITDA ratio (2)6.8x  6.1x  N/AN/A
Net debt plus preferred equity to in-place adjusted EBITDA ratio (3)6.8x  6.1x  N/AN/A
Reconciliation of denominators for per share measures 
Denominator for diluted EPS111,811 111,943 112,056 111,472 
Weighted average common units1,240 1,312 1,235 1,323 
Redeemable noncontrolling interests— 109 125 — 
Anti-dilutive EPS effect of share-based compensation awards274 — — — 
Denominator for diluted FFO per share113,325 113,364 113,416 112,795 
Dilutive convertible preferred units176 — 176 — 
Redeemable noncontrolling interests109 — — — 
Denominator for diluted FFO per share, as adjusted for comparability113,610 113,364 113,592 112,795 

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

vii



Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(Dollars in thousands)
For the Three Months Ended September 30, For the Nine Months Ended September 30,
 2020201920202019
Reconciliation of common share dividends to dividends and distributions for payout ratios  
Common share dividends - unrestricted shares and deferred shares$30,763 $30,721 $92,278 $92,099 
Common unit distributions - unrestricted units341 338 1,021 1,068 
Dividends and distributions for diluted FFO payout ratio31,104 31,059 93,299 93,167 
Distributions on dilutive preferred units77 — 231 — 
Dividends and distributions for other payout ratios$31,181 $31,059 $93,530 $93,167 
Reconciliation of GAAP net income to earnings before interest, income taxes, depreciation and amortization for real estate (“EBITDAre”), adjusted EBITDA and in-place adjusted EBITDA    
Net (loss) income$(31,342)$23,246 $19,329 $155,127 
Interest expense17,152 17,126 50,789 54,275 
Income tax expense (benefit)16 (131)95 (113)
Real estate-related depreciation and amortization35,332 34,692 101,540 104,290 
Impairment losses on real estate1,530 327 1,530 327 
Other depreciation and amortization457 467 1,324 1,396 
Gain on sales of real estate— — (5)(84,469)
Adjustments from unconsolidated real estate JVs1,274 1,202 3,814 2,859 
EBITDAre24,419 76,929 178,416 233,692 
Loss on early extinguishment of debt3,237 — 3,237 — 
Loss on interest rate derivatives53,196 — 53,196 — 
Net loss (gain) on other investments
250 — 252 (400)
Credit loss recoveries(1,465)— (161)— 
Business development expenses414 419 1,630 1,427 
Non-comparable professional and legal expenses— 175 — 486 
Demolition costs on redevelopment and nonrecurring improvements11 — 63 44 
Executive transition costs— — — 
Adjusted EBITDA80,062 77,523 $236,633 $235,253 
Proforma net operating income adjustment for property changes within period
1,631 — 
Change in collectability of deferred rental revenue224 — 
In-place adjusted EBITDA$81,917 $77,523 
Reconciliation of interest expense to the denominators for fixed charge coverage-Adjusted EBITDA    
Interest expense$17,152 $17,126 $50,789 $54,275 
Less: Amortization of deferred financing costs(658)(538)(1,875)(1,595)
Less: Amortization of net debt discounts, net of amounts capitalized
(453)(377)(1,229)(1,121)
Less: Accum. other comprehensive loss on derivatives amortized to expense
— (12)— (79)
COPT’s share of interest expense of unconsolidated real estate JVs, excluding deferred financing costs
444 403 1,327 916 
Scheduled principal amortization1,033 1,107 3,077 3,300 
Capitalized interest2,908 2,927 9,440 7,319 
Preferred unit distributions77 157 231 487 
Denominator for fixed charge coverage-Adjusted EBITDA$20,503 $20,793 $61,760 $63,502 
viii



Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(Dollars in thousands)
For the Three Months Ended September 30, For the Nine Months Ended September 30,
 2020201920202019
Reconciliations of tenant improvements and incentives, building improvements and leasing costs for operating properties to replacement capital expenditures
Tenant improvements and incentives$6,950 $10,880 $27,177 $26,600 
Building improvements10,400 8,908 26,537 17,772 
Leasing costs1,934 2,722 6,918 8,665 
Net additions to (exclusions from) tenant improvements and incentives(943)(2,156)1,412 (1,866)
Excluded building improvements and leasing costs(5,256)(3,602)(15,073)(7,244)
Replacement capital expenditures
$13,085 $16,752 $46,971 $43,927 
Same Properties cash NOI$73,910 $74,071 $224,709 $220,063 
Straight line rent adjustments and lease incentive amortization(1,214)(572)(3,294)(587)
Amortization of acquired above- and below-market rents98 82 291 115 
Amortization of intangibles and other assets to property operating expenses(23)(23)(69)(69)
Lease termination fees, gross609 823 1,052 1,629 
Tenant funded landlord assets and lease incentives342 526 564 1,452 
Cash NOI adjustments in unconsolidated real estate JV48 42 111 147 
Same Properties NOI$73,770 $74,949 $223,364 $222,750 
September 30,
2020
December 31,
2019
Reconciliation of total assets to adjusted book
  
Total assets$4,120,189 $3,854,453 
Accumulated depreciation1,095,441 1,007,120 
Accumulated amortization of real estate intangibles and deferred leasing costs215,651 212,547 
COPT’s share of liabilities of unconsolidated real estate JVs
50,957 50,734 
COPT’s share of accumulated depreciation and amortization of unconsolidated real estate JVs
10,640 8,164 
Less: Property - operating lease liabilities
(26,382)(17,317)
Less: Property - finance lease liabilities
(28)(702)
Less: Cash and cash equivalents
(11,458)(14,733)
Less: COPT’s share of cash of unconsolidated real estate JVs
(538)(498)
Adjusted book$5,454,472 $5,099,768 
Reconciliation of debt outstanding to net debt and net debt plus preferred equity
Debt outstanding (excluding net debt discounts and deferred financing costs)$2,247,523 1,893,057 
Less: Cash and cash equivalents(11,458)(14,733)
Less: COPT’s share of cash of unconsolidated real estate JVs(538)(498)
Net debt$2,235,527 $1,877,826 
Preferred equity8,800 8,800 
Net debt plus preferred equity$2,244,327 $1,886,626 
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