Document

Exhibit 99.1

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, 2021, we derived 88% of our core portfolio annualized rental revenue from Defense/IT Locations and 12% from Regional Office Properties. As of September 30, 2021, our core portfolio of 184 office and data center shell properties, including 19 owned through unconsolidated joint ventures, encompassed 21.5 million square feet and was 94.8% leased. As of the same date, we also owned a wholesale data center with a capacity of 19.25 megawatts that was 86.7% leased.


Management:			Investor Relations:
Stephen E. Budorick, President & CEO			Stephanie Krewson-Kelly, VP of IR
Todd Hartman, EVP & COO			443-285-5453, stephanie.kelly@copt.com
Anthony Mifsud, EVP & CFO			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, 2020.

Corporate Office Properties Trust

Equity Research Coverage

Firm

Senior Analyst

Phone

Bank of America Securities

Jamie Feldman

646-855-5808

james.feldman@bofa.com

BTIG

Tom Catherwood

212-738-6410

tcatherwood@btig.com

Capital One Securities

Chris Lucas

571-633-8151

christopher.lucas@capitalone.com

Citigroup Global Markets

Manny Korchman

212-816-1382

emmanuel.korchman@citi.com

Evercore ISI

Steve Sakwa

212-446-9462

steve.sakwa@evercoreisi.com

Green Street

Daniel Ismail

949-640-8780

dismail@greenstreet.com

Jefferies & Co.

Peter Abramowitz

212-336-7241

pabramowitz@jefferies.com

JP Morgan

Tony Paolone

212-622-6682

anthony.paolone@jpmorgan.com

KeyBanc Capital Markets

Craig Mailman

917-368-2316

cmailman@key.com

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 Anderson

646-521-2351

randerson@smbcnikko-si.com

Truist Securities

Michael Lewis

212-319-5659

michael.r.lewis@truist.com

Wells Fargo Securities

Blaine Heck

443-263-6529

blaine.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 Refinitiv (formerly Thomson’s First Call). 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.

Corporate Office Properties Trust

Selected Financial Summary Data

(in thousands, except per share data)



	Page	Three Months Ended										Nine Months Ended
SUMMARY OF RESULTS	Refer.	9/30/21		6/30/21		3/31/21		12/31/20		9/30/20		9/30/21		9/30/20
Net income (loss)	6	$	28,794	$	43,898	$	(6,079)	$	83,549	$	(31,342)	$	66,613	$	19,329
NOI from real estate operations	13	$	90,460	$	90,780	$	89,107	$	89,304	$	84,643	$	270,347	$	252,532
Same Properties NOI	16	$	76,728	$	76,819	$	74,369	$	75,633	$	74,046	$	227,916	$	224,197
Same Properties cash NOI	17	$	77,219	$	77,429	$	72,664	$	76,515	$	73,697	$	227,312	$	224,024
Adjusted EBITDA	10	$	83,991	$	85,186	$	83,338	$	82,298	$	80,062	$	252,515	$	236,633

Diluted AFFO avail. to common share and unit holders	9	$	53,635	$	54,781	$	52,387	$	56,792	$	50,340	$	160,433	$	138,525
Dividend per common share	N/A	$	0.275	$	0.275	$	0.275	$	0.275	$	0.275	$	0.825	$	0.825

Per share - diluted:
EPS	8	$	0.24	$	0.38	$	(0.06)	$	0.73	$	(0.29)	$	0.56	$	0.14
FFO - Nareit	8	$	0.56	$	0.35	$	0.27	$	0.53	$	0.04	$	1.19	$	0.97
FFO - as adjusted for comparability	8	$	0.57	$	0.58	$	0.56	$	0.56	$	0.54	$	1.71	$	1.56

Numerators for diluted per share amounts:
Diluted EPS	6	$	26,933	$	42,256	$	(6,839)	$	81,501	$	(31,990)	$	62,431	$	15,347
Diluted FFO available to common share and unit holders	7	$	63,898	$	40,212	$	30,997	$	60,137	$	5,069	$	135,184	$	109,658
Diluted FFO available to common share and unit holders, as adjusted for comparability	7	$	65,179	$	65,605	$	64,454	$	64,188	$	61,485	$	194,868	$	177,168

Payout ratios:
Diluted FFO	N/A	48.8%		77.5%		100.5%		51.8%		613.6%		69.2%		85.1%
Diluted FFO - as adjusted for comparability	N/A	47.8%		47.5%		48.3%		48.6%		50.7%		48.0%		52.8%
Diluted AFFO	N/A	58.1%		56.9%		59.5%		54.9%		61.9%		58.3%		67.5%


CAPITALIZATION
Total Market Capitalization	28	$	5,251,729	$	5,315,385	$	5,226,694	$	5,062,432	$	4,898,459
Total Equity Market Capitalization	28	$	3,069,056	$	3,184,310	$	2,995,090	$	2,960,967	$	2,701,186
Gross debt	29	$	2,208,923	$	2,157,325	$	2,257,854	$	2,127,715	$	2,247,523
Net debt to adjusted book	31	39.4%		39.4%		40.8%		39.1%		41.0%		N/A		N/A
Net debt plus preferred equity to adjusted book	31	39.4%		39.4%		40.8%		39.1%		41.1%		N/A		N/A


Adjusted EBITDA fixed charge coverage ratio	31	4.8x		4.9x		4.3x		4.1x		3.9x		4.7x		3.8x

Net debt plus pref. equity to in-place adj. EBITDA ratio	31	6.3x		6.3x		6.6x		6.2x		6.8x		N/A		N/A
Net debt adjusted for fully-leased development plus pref. equity to in-place adj. EBITDA ratio	31	5.9x		5.8x		6.3x		5.9x		6.4x		N/A		N/A

Corporate Office Properties Trust

Selected Portfolio Data (1)


	9/30/21		6/30/21 (2)		3/31/21		12/31/20		9/30/20
Operating Office and Data Center Shell Properties
# of Properties
Total Portfolio	186		184		182		181		176
Consolidated Portfolio	167		165		165		164		161
Core Portfolio	184		182		180		179		174
Same Properties	159		159		159		159		159

% Occupied
Total Portfolio	93.3	%	93.2	%	93.8	%	94.1	%	93.8	%
Consolidated Portfolio	92.2	%	92.0	%	92.9	%	93.2	%	93.0	%
Core Portfolio	93.5	%	93.4	%	94.0	%	94.3	%	94.0	%
Same Properties	92.2	%	92.2	%	92.6	%	92.9	%	92.9	%

% Leased
Total Portfolio	94.6	%	94.1	%	94.7	%	94.8	%	94.4	%
Consolidated Portfolio	93.7	%	93.0	%	93.9	%	94.0	%	93.6	%
Core Portfolio	94.8	%	94.3	%	94.9	%	95.0	%	94.6	%
Same Properties	93.7	%	93.2	%	93.6	%	93.8	%	93.5	%

Square Feet (in thousands)
Total Portfolio	21,660		21,198		21,006		20,959		20,389
Consolidated Portfolio	18,479		18,016		18,257		18,209		17,940
Core Portfolio	21,503		21,041		20,849		20,802		20,232
Same Properties	17,362		17,362		17,362		17,362		17,362

Wholesale Data Center
Megawatts Operational	19.25		19.25		19.25		19.25		19.25
% Leased	86.7	%	86.7	%	86.7	%	86.7	%	86.7	%

(1)Includes properties owned through unconsolidated real estate joint ventures (see page 33).

(2)The 6/30/21 portfolio data was restated to include a 63,000 square foot property previously reported as removed from service for redevelopment since we no longer intend to redevelop the property.

Corporate Office Properties Trust

Consolidated Balance Sheets

(in thousands)


	9/30/21		6/30/21		3/31/21		12/31/20		9/30/20
Assets
Properties, net:
Operating properties, net	$	3,227,797	$	3,099,182	$	3,106,698	$	3,115,280	$	2,999,892
Development and redevelopment in progress, including land (1)	151,438		201,421		187,290		172,614		302,158
Land held (1)	227,887		230,114		285,266		274,655		284,888
Total properties, net	3,607,122		3,530,717		3,579,254		3,562,549		3,586,938
Property - operating right-of-use assets	38,854		39,333		39,810		40,570		36,442
Property - finance right-of-use assets	40,077		40,082		40,091		40,425		40,432
Assets held for sale, net	2,821		—		—		—		—
Cash and cash equivalents	14,570		17,182		36,139		18,369		11,458
Investment in unconsolidated real estate joint ventures	40,304		40,586		28,934		29,303		49,662
Accounts receivable, net	33,110		39,951		44,916		41,637		36,151
Deferred rent receivable	103,062		99,715		98,048		92,876		92,853
Intangible assets on real estate acquisitions, net	15,788		16,959		18,137		19,344		22,433
Deferred leasing costs, net	62,269		62,277		56,508		58,613		59,392
Investing receivables, net	75,947		73,073		71,831		68,754		74,136

Prepaid expenses and other assets, net	117,214		92,157		99,280		104,583		110,292
Total assets	$	4,151,138	$	4,052,032	$	4,112,948	$	4,077,023	$	4,120,189
Liabilities and equity
Liabilities:
Debt	$	2,159,732	$	2,109,640	$	2,207,903	$	2,086,918	$	2,181,551
Accounts payable and accrued expenses	176,636		127,027		96,465		142,717		140,921
Rents received in advance and security deposits	32,092		30,893		30,922		33,425		30,276
Dividends and distributions payable	31,306		31,302		31,305		31,231		31,307
Deferred revenue associated with operating leases	8,704		9,564		10,221		10,832		8,579

Property - operating lease liabilities	29,630		29,909		30,176		30,746		26,382

Interest rate derivatives	5,562		6,646		7,640		9,522		10,977
Other liabilities	10,691		9,699		15,599		12,490		17,038
Total liabilities	2,454,353		2,354,680		2,430,231		2,357,881		2,447,031
Redeemable noncontrolling interests	26,006		26,040		25,925		25,430		23,522
Equity:
COPT’s shareholders’ equity:

Common shares	1,123		1,123		1,123		1,122		1,122
Additional paid-in capital	2,480,412		2,478,416		2,476,807		2,478,906		2,479,321
Cumulative distributions in excess of net income	(839,676)		(835,894)		(847,407)		(809,836)		(860,647)
Accumulated other comprehensive loss	(5,347)		(6,415)		(7,391)		(9,157)		(10,548)
Total COPT’s shareholders’ equity	1,636,512		1,637,230		1,623,132		1,661,035		1,609,248
Noncontrolling interests in subsidiaries:
Common units in the Operating Partnership	21,568		21,604		21,345		20,465		19,522
Preferred units in the Operating Partnership	—		—		—		—		8,800
Other consolidated entities	12,699		12,478		12,315		12,212		12,066
Total noncontrolling interests in subsidiaries	34,267		34,082		33,660		32,677		40,388
Total equity	1,670,779		1,671,312		1,656,792		1,693,712		1,649,636
Total liabilities, redeemable noncontrolling interests and equity	$	4,151,138	$	4,052,032	$	4,112,948	$	4,077,023	$	4,120,189

(1)Refer to pages 25 and 27 for detail.

Corporate Office Properties Trust

Consolidated Statements of Operations

(in thousands)


	Three Months Ended										Nine Months Ended
	9/30/21		6/30/21		3/31/21		12/31/20		9/30/20		9/30/21		9/30/20
Revenues
Lease revenue	$	145,749	$	143,658	$	144,624	$	139,093	$	133,875	$	434,031	$	397,034
Other property revenue	841		765		540		535		568		2,146		2,063
Construction contract and other service revenues	28,046		19,988		16,558		24,400		20,323		64,592		46,240
Total revenues	174,636		164,411		161,722		164,028		154,766		500,769		445,337
Operating expenses
Property operating expenses	57,190		54,616		56,974		52,085		51,552		168,780		151,755
Depreciation and amortization associated with real estate operations	36,611		37,555		37,321		36,653		35,332		111,487		101,540
Construction contract and other service expenses	27,089		19,082		15,793		23,563		19,220		61,964		44,052
Impairment losses	—		—		—		—		1,530		—		1,530
General and administrative expenses	7,269		7,293		6,062		7,897		5,558		20,624		17,372
Leasing expenses	2,073		1,929		2,344		1,993		1,909		6,346		5,739
Business development expenses and land carry costs	1,093		1,372		1,094		999		1,094		3,559		3,474
Total operating expenses	131,325		121,847		119,588		123,190		116,195		372,760		325,462
Interest expense	(15,720)		(15,942)		(17,519)		(17,148)		(17,152)		(49,181)		(50,789)
Interest and other income	1,818		2,228		1,865		3,341		1,746		5,911		5,233
Credit loss recoveries (expense)	326		(193)		907		772		1,465		1,040		161
Gain on sales of real estate	(32)		40,233		(490)		30,204		—		39,711		5
Gain on sale of investment in unconsolidated real estate joint venture	—		—		—		29,416		—		—		—
Loss on early extinguishment of debt	(1,159)		(25,228)		(33,166)		(4,069)		(3,237)		(59,553)		(3,237)
Loss on interest rate derivatives	—		—		—		—		(53,196)		—		(53,196)
Income (loss) before equity in income of unconsolidated entities and income taxes	28,544		43,662		(6,269)		83,354		(31,803)		65,937		18,052
Equity in income of unconsolidated entities	297		260		222		453		477		779		1,372
Income tax expense	(47)		(24)		(32)		(258)		(16)		(103)		(95)
Net income (loss)	28,794		43,898		(6,079)		83,549		(31,342)		66,613		19,329
Net (income) loss attributable to noncontrolling interests:
Common units in the Operating Partnership	(357)		(559)		85		(995)		386		(831)		(185)
Preferred units in the Operating Partnership	—		—		—		(69)		(77)		—		(231)
Other consolidated entities	(1,336)		(938)		(675)		(817)		(812)		(2,949)		(3,207)



Net income (loss) attributable to COPT common shareholders	$	27,101	$	42,401	$	(6,669)	$	81,668	$	(31,845)	$	62,833	$	15,706
Amount allocable to share-based compensation awards	(79)		(125)		(170)		(280)		(145)		(320)		(359)
Redeemable noncontrolling interests	(89)		(20)		—		44		—		(82)		—

Distributions on dilutive convertible preferred units	—		—		—		69		—		—		—
Numerator for diluted EPS	$	26,933	$	42,256	$	(6,839)	$	81,501	$	(31,990)	$	62,431	$	15,347

Corporate Office Properties Trust

Funds from Operations

(in thousands)


	Three Months Ended										Nine Months Ended
	9/30/21		6/30/21		3/31/21		12/31/20		9/30/20		9/30/21		9/30/20
Net income (loss)	$	28,794	$	43,898	$	(6,079)	$	83,549	$	(31,342)	$	66,613	$	19,329
Real estate-related depreciation and amortization	36,611		37,555		37,321		36,653		35,332		111,487		101,540
Impairment losses on real estate	—		—		—		—		1,530		—		1,530
Gain on sales of real estate	32		(40,233)		490		(30,204)		—		(39,711)		(5)
Depreciation and amortization on unconsolidated real estate JVs (1)	525		476		454		874		819		1,455		2,455
Gain on sale of investment in unconsolidated real estate JV	—		—		—		(29,416)		—		—		—

FFO - per Nareit (2)(3)	65,962		41,696		32,186		61,456		6,339		139,844		124,849


Noncontrolling interests - preferred units in the Operating Partnership	—		—		—		(69)		(77)		—		(231)
FFO allocable to other noncontrolling interests (4)	(1,696)		(1,302)		(1,027)		(1,091)		(1,074)		(4,025)		(14,614)
Basic FFO allocable to share-based compensation awards	(313)		(193)		(162)		(272)		(119)		(663)		(449)
Basic FFO available to common share and common unit holders (3)	63,953		40,201		30,997		60,024		5,069		135,156		109,555
Dilutive preferred units in the Operating Partnership	—		—		—		69		—		—		—
Redeemable noncontrolling interests	(68)		11		—		44		—		1		103
Diluted FFO adjustments allocable to share-based compensation awards	13		—		—		—		—		27		—
Diluted FFO available to common share and common unit holders - per Nareit (3)	63,898		40,212		30,997		60,137		5,069		135,184		109,658
Loss on early extinguishment of debt	1,159		25,228		33,166		4,069		3,237		59,553		3,237
Loss on interest rate derivatives	—		—		—		—		53,196		—		53,196

Demolition costs on redevelopment and nonrecurring improvements	129		302		—		—		11		431		63


Dilutive preferred units in the Operating Partnership	—		—		—		—		77		—		231
FFO allocation to other noncontrolling interests resulting from capital event (4)	—		—		—		—		—		—		11,090
Diluted FFO comparability adjustments for redeemable noncontrolling interests	—		—		458		—		34		—		—
Diluted FFO comparability adjustments allocable to share-based compensation awards	(7)		(137)		(167)		(18)		(139)		(300)		(307)
Diluted FFO available to common share and common unit holders, as adjusted for comparability (3)	$	65,179	$	65,605	$	64,454	$	64,188	$	61,485	$	194,868	$	177,168

(1)FFO adjustment pertaining to COPT’s share of unconsolidated real estate joint ventures reported on page 33.

(2)See reconciliation on page 34 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 32.

Corporate Office Properties Trust

Diluted Share and Unit Computations

(in thousands, except per share data)


	Three Months Ended										Nine Months Ended
	9/30/21		6/30/21		3/31/21		12/31/20		9/30/20		9/30/21		9/30/20
EPS Denominator:
Weighted average common shares - basic	111,985		111,974		111,888		111,817		111,811		111,949		111,778
Dilutive effect of share-based compensation awards	375		297		—		320		—		285		278

Dilutive effect of redeemable noncontrolling interests	138		133		—		117		—		130		—
Dilutive convertible preferred units	—		—		—		155		—		—		—

Weighted average common shares - diluted	112,498		112,404		111,888		112,409		111,811		112,364		112,056
Diluted EPS	$	0.24	$	0.38	$	(0.06)	$	0.73	$	(0.29)	$	0.56	$	0.14

Weighted Average Shares for period ended:
Common shares	111,985		111,974		111,888		111,817		111,811		111,949		111,778
Dilutive effect of share-based compensation awards	375		297		261		320		274		311		278
Common units	1,262		1,262		1,246		1,239		1,240		1,257		1,235


Redeemable noncontrolling interests	138		133		—		117		—		130		125
Dilutive convertible preferred units	—		—		—		155		—		—		—
Denominator for diluted FFO per share	113,760		113,666		113,395		113,648		113,325		113,647		113,416
Redeemable noncontrolling interests	—		—		940		—		109		—		—
Dilutive convertible preferred units	—		—		—		—		176		—		176
Denominator for diluted FFO per share, as adjusted for comparability	113,760		113,666		114,335		113,648		113,610		113,647		113,592
Weighted average common units	(1,262)		(1,262)		(1,246)		(1,239)		(1,240)		(1,257)		(1,235)
Redeemable noncontrolling interests	—		—		(940)		—		(109)		—		(125)
Anti-dilutive EPS effect of share-based compensation awards	—		—		(261)		—		(274)		(26)		—
Dilutive convertible preferred units	—		—		—		—		(176)		—		(176)
Denominator for diluted EPS	112,498		112,404		111,888		112,409		111,811		112,364		112,056
Diluted FFO per share - Nareit	$	0.56	$	0.35	$	0.27	$	0.53	$	0.04	$	1.19	$	0.97
Diluted FFO per share - as adjusted for comparability	$	0.57	$	0.58	$	0.56	$	0.56	$	0.54	$	1.71	$	1.56

Corporate Office Properties Trust

Adjusted Funds from Operations

(in thousands)


	Three Months Ended										Nine Months Ended
	9/30/21		6/30/21		3/31/21		12/31/20		9/30/20		9/30/21		9/30/20
Diluted FFO available to common share and common unit holders, as adjusted for comparability	$	65,179	$	65,605	$	64,454	$	64,188	$	61,485	$	194,868	$	177,168
Straight line rent adjustments and lease incentive amortization	(1,806)		(1,288)		(3,357)		3,438		(1,009)		(6,451)		662
Amortization of intangibles and other assets included in NOI	41		41		40		24		(39)		122		(186)
Share-based compensation, net of amounts capitalized	2,048		2,009		1,904		1,751		1,727		5,961		4,754
Amortization of deferred financing costs	736		811		793		664		658		2,340		1,875
Amortization of net debt discounts, net of amounts capitalized	567		520		542		504		453		1,629		1,229

Replacement capital expenditures (1)	(13,331)		(13,095)		(12,230)		(13,973)		(13,085)		(38,656)		(46,971)
Other diluted AFFO adjustments associated with real estate JVs (2)	201		178		241		196		150		620		(6)
Diluted AFFO available to common share and common unit holders (“diluted AFFO”)	$	53,635	$	54,781	$	52,387	$	56,792	$	50,340	$	160,433	$	138,525

Replacement capital expenditures (1)
Tenant improvements and incentives	$	8,654	$	8,303	$	7,139	$	9,165	$	6,950	$	24,096	$	27,177
Building improvements	7,793		6,771		3,628		7,523		10,400		18,192		26,537
Leasing costs	2,939		2,805		1,129		1,514		1,934		6,873		6,918
Net (exclusions from) additions to tenant improvements and incentives	(1,523)		(988)		2,900		(370)		(943)		389		1,412
Excluded building improvements and leasing costs	(4,532)		(3,796)		(2,566)		(3,859)		(5,256)		(10,894)		(15,073)


Replacement capital expenditures	$	13,331	$	13,095	$	12,230	$	13,973	$	13,085	$	38,656	$	46,971

(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 32 and COPT’s share of unconsolidated real estate joint ventures reported on page 33.

Corporate Office Properties Trust

EBITDAre and Adjusted EBITDA

(in thousands)


	Three Months Ended										Nine Months Ended
	9/30/21		6/30/21		3/31/21		12/31/20		9/30/20		9/30/21		9/30/20
Net income (loss)	$	28,794	$	43,898	$	(6,079)	$	83,549	$	(31,342)	$	66,613	$	19,329
Interest expense	15,720		15,942		17,519		17,148		17,152		49,181		50,789
Income tax expense	47		24		32		258		16		103		95
Real estate-related depreciation and amortization	36,611		37,555		37,321		36,653		35,332		111,487		101,540
Other depreciation and amortization	589		1,045		555		513		457		2,189		1,324
Impairment losses on real estate	—		—		—		—		1,530		—		1,530
Gain on sales of real estate	32		(40,233)		490		(30,204)		—		(39,711)		(5)
Gain on sale of investment in unconsolidated real estate JV	—		—		—		(29,416)		—		—		—
Adjustments from unconsolidated real estate JVs	763		711		693		1,306		1,274		2,167		3,814
EBITDAre	82,556		58,942		50,531		79,807		24,419		192,029		178,416
Loss on early extinguishment of debt	1,159		25,228		33,166		4,069		3,237		59,553		3,237
Loss on interest rate derivatives	—		—		—		—		53,196		—		53,196
Net (gain) loss on other investments	—		(63)		—		(1,218)		250		(63)		252
Credit loss (recoveries) expense	(326)		193		(907)		(772)		(1,465)		(1,040)		(161)
Business development expenses	473		584		548		412		414		1,605		1,630

Demolition costs on redevelopment and nonrecurring improvements	129		302		—		—		11		431		63

Adjusted EBITDA	83,991		85,186		83,338		82,298		80,062		$	252,515	$	236,633
Proforma NOI adjustment for property changes within period	3,240		(379)		166		1,459		1,631
Change in collectability of deferred rental revenue	—		—		124		678		224
In-place adjusted EBITDA	$	87,231	$	84,807	$	83,628	$	84,435	$	81,917

Corporate Office Properties Trust

Office and Data Center Shell Properties by Segment (1) - 9/30/21

(square feet in thousands)


	# of Properties	Operational Square Feet	% Occupied	% Leased
Core Portfolio:
Defense/IT Locations:
Fort Meade/Baltimore Washington (“BW”) Corridor:
National Business Park	32	3,925	92.8%	95.1%
Howard County	35	2,855	85.9%	90.0%
Other	23	1,679	92.3%	93.1%
Total Fort Meade/BW Corridor	90	8,459	90.4%	93.0%
Northern Virginia (“NoVA”) Defense/IT	14	2,336	88.8%	90.6%
Lackland AFB (San Antonio, Texas)	8	1,060	100.0%	100.0%
Navy Support	21	1,242	96.5%	96.9%
Redstone Arsenal (Huntsville, Alabama)	17	1,520	99.3%	99.3%
Data Center Shells:
Consolidated Properties	7	1,557	100.0%	100.0%
Unconsolidated JV Properties (2)	19	3,182	100.0%	100.0%
Total Defense/IT Locations	176	19,356	94.1%	95.5%
Regional Office	8	2,147	87.8%	88.6%
Core Portfolio	184	21,503	93.5%	94.8%

Other Properties	2	157	66.2%	66.2%
Total Portfolio	186	21,660	93.3%	94.6%
Consolidated Portfolio	167	18,479	92.2%	93.7%

(1)This presentation sets forth core portfolio data by segment followed by data for the remainder of the portfolio.

(2)See page 33 for additional disclosure regarding our unconsolidated real estate JVs.

Corporate Office Properties Trust

NOI from Real Estate Operations and Occupancy by Property Grouping - 9/30/21

(dollars and square feet in thousands)


	As of Period End
	# of Office and Data Center Shell Properties	Operational Square Feet	% Occupied (1)	% Leased (1)	Annualized Rental Revenue (2)		% of Total Annualized Rental Revenue (2)		NOI from Real Estate Operations
Property Grouping									Three Months Ended		Nine Months Ended
Core Portfolio:
Same Properties: (3)
Consolidated properties	148	15,733	91.7%	93.4%	$	495,692	87.4	%	$	75,899	$	225,399
Unconsolidated real estate JV	9	1,472	100.0%	100.0%	2,166		0.4	%	504		1,506
Total Same Properties in Core Portfolio	157	17,205	92.4%	94.0%	497,858		87.8	%	76,403		226,905
Properties Placed in Service (4)	17	2,588	96.6%	97.0%	64,434		11.4	%	9,992		28,107
Other unconsolidated JV properties (5)	10	1,710	100.0%	100.0%	2,378		0.4	%	358		3,658
Wholesale Data Center and Other	N/A	N/A	N/A	N/A	N/A		N/A		3,382		10,666
Total Core Portfolio	184	21,503	93.5%	94.8%	564,670		99.6	%	90,135		269,336


Other Properties (Same Properties) (3)	2	157	66.2%	66.2%	2,524		0.4	%	325		1,011
Total Portfolio	186	21,660	93.3%	94.6%	$	567,194	100.0	%	$	90,460	$	270,347
Consolidated Portfolio	167	18,479	92.2%	93.7%	$	562,650	99.2	%	$	89,400	$	267,397

	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 Grouping									Three Months Ended		Nine Months Ended
Core Portfolio:
Defense/IT Locations: (6)
Consolidated properties	157	16,174	93.0%	94.7%	$	492,754	87.3	%	$	77,469	$	229,429
Unconsolidated real estate JVs (5)	19	3,182	100.0%	100.0%	4,544		0.8	%	1,060		2,950
Total Defense/IT Locations	176	19,356	94.1%	95.5%	497,298		88.1	%	78,529		232,379
Regional Office	8	2,147	87.8%	88.6%	67,372		11.9	%	8,415		26,470
Wholesale Data Center and Other	N/A	N/A	N/A	N/A	N/A		N/A		3,191		10,487
Total Core Portfolio	184	21,503	93.5%	94.8%	$	564,670	100.0	%	$	90,135	$	269,336

(1)Percentages calculated based on operational square feet.

(2)Excludes Annualized Rental Revenue from our wholesale data center, DC-6, of $25.3 million as of 9/30/21. With regard to properties owned through unconsolidated real estate joint ventures, we include the portion of Annualized Rental Revenue allocable to COPT’s ownership interest.

(3)Includes office and data center shell properties stably owned and 100% operational since at least 1/1/20.

(4)Newly developed or redeveloped properties placed in service that were not fully operational by 1/1/20.

(5)Includes data center shell properties in which we sold ownership interests and retained 10% interests through unconsolidated real estate JVs in 2021 and 2020. See page 33 for additional disclosure regarding these JVs.

(6)For two data center shell properties in which we sold a 90% interest and retained a 10% interest through an unconsolidated real estate JV on 6/2/21, the activity associated with these properties prior to the sale is included in consolidated properties and the activity thereafter is included in unconsolidated real estate JVs.

Corporate Office Properties Trust

Consolidated Real Estate Revenues and NOI by Segment

(in thousands)


	Three Months Ended										Nine Months Ended
	9/30/21		6/30/21		3/31/21		12/31/20		9/30/20		9/30/21		9/30/20
Consolidated real estate revenues
Defense/IT Locations:
Fort Meade/BW Corridor	$	66,029	$	64,840	$	66,446	$	63,733	$	63,328	$	197,315	$	190,464
NoVA Defense/IT	15,291		14,712		15,211		14,993		14,699		45,214		42,824
Lackland Air Force Base	14,519		13,688		12,555		13,047		12,602		40,762		37,935
Navy Support	8,558		8,445		8,398		8,403		8,006		25,401		24,466
Redstone Arsenal	9,144		8,775		8,253		7,113		6,079		26,172		15,402
Data Center Shells-Consolidated	6,913		8,070		8,787		8,491		7,995		23,770		20,648
Total Defense/IT Locations	120,454		118,530		119,650		115,780		112,709		358,634		331,739
Regional Office	16,810		16,884		16,677		15,092		14,913		50,371		45,535
Wholesale Data Center	8,637		8,175		8,090		8,093		6,068		24,902		19,695
Other	689		834		747		663		753		2,270		2,128
Consolidated real estate revenues	$	146,590	$	144,423	$	145,164	$	139,628	$	134,443	$	436,177	$	399,097

NOI
Defense/IT Locations:
Fort Meade/BW Corridor	$	43,073	$	43,126	$	41,775	$	42,319	$	41,791	$	127,974	$	126,846
NoVA Defense/IT	9,311		9,174		9,335		9,437		9,454		27,820		27,059
Lackland Air Force Base	7,584		6,182		5,681		5,688		5,486		19,447		16,239
Navy Support	5,104		5,218		4,965		5,248		4,962		15,287		14,966
Redstone Arsenal	6,141		5,807		5,699		4,482		4,050		17,647		9,914
Data Center Shells:
Consolidated properties	6,256		7,293		7,705		7,603		7,134		21,254		18,341
COPT’s share of unconsolidated real estate JVs	1,060		973		917		1,761		1,752		2,950		5,190
Total Defense/IT Locations	78,529		77,773		76,077		76,538		74,629		232,379		218,555
Regional Office	8,415		9,042		9,013		8,155		7,131		26,470		23,328
Wholesale Data Center	3,292		3,546		3,669		4,260		2,426		10,507		9,357
Other	224		419		348		351		457		991		1,292
NOI from real estate operations	$	90,460	$	90,780	$	89,107	$	89,304	$	84,643	$	270,347	$	252,532

Corporate Office Properties Trust

Cash NOI by Segment

(in thousands)


	Three Months Ended										Nine Months Ended
	9/30/21		6/30/21		3/31/21		12/31/20		9/30/20		9/30/21		9/30/20
Cash NOI
Defense/IT Locations:
Fort Meade/BW Corridor	$	42,301	$	42,514	$	39,666	$	42,430	$	41,365	$	124,481	$	125,503
NoVA Defense/IT	9,591		9,600		9,222		9,519		9,410		28,413		28,138
Lackland Air Force Base	6,637		6,122		5,999		6,006		5,929		18,758		17,533
Navy Support	5,381		5,394		4,965		5,376		5,130		15,740		15,524
Redstone Arsenal	5,262		4,890		4,706		4,383		2,848		14,858		7,922
Data Center Shells:
Consolidated properties	5,426		6,261		6,505		6,588		6,234		18,192		16,055
COPT’s share of unconsolidated real estate JVs	951		871		816		1,668		1,655		2,638		4,929
Total Defense/IT Locations	75,549		75,652		71,879		75,970		72,571		223,080		215,604
Regional Office	7,172		7,684		7,448		8,156		7,045		22,304		22,602
Wholesale Data Center	3,385		3,633		3,760		4,320		2,480		10,778		9,333
Other	200		429		363		356		438		992		1,253
Cash NOI from real estate operations	86,306		87,398		83,450		88,802		82,534		257,154		248,792
Straight line rent adjustments and lease incentive amortization	2,148		1,692		4,006		(3,104)		1,016		7,846		(435)
Amortization of acquired above- and below-market rents	99		98		99		99		98		296		291
Amortization of intangibles and other assets to property operating expenses	(140)		(139)		(139)		(122)		(60)		(418)		(105)
Lease termination fees, net	853		1,094		1,362		141		455		3,309		691
Tenant funded landlord assets and lease incentives	1,085		535		228		3,395		504		1,848		3,037
Cash NOI adjustments in unconsolidated real estate JVs	109		102		101		93		96		312		261
NOI from real estate operations	$	90,460	$	90,780	$	89,107	$	89,304	$	84,643	$	270,347	$	252,532

Corporate Office Properties Trust

Same Properties (1) Average Occupancy Rates by Segment

(square feet in thousands)


	# of Properties	Operational Square Feet	Three Months Ended										Nine Months Ended
			9/30/21		6/30/21		3/31/21		12/31/20		9/30/20		9/30/21		9/30/20
Core Portfolio:
Defense/IT Locations:
Fort Meade/BW Corridor	87	8,192	89.6	%	90.4	%	90.3	%	91.2	%	90.8	%	90.1	%	91.5	%
NoVA Defense/IT	13	1,988	86.9	%	87.7	%	87.8	%	88.4	%	88.4	%	87.5	%	86.4	%
Lackland Air Force Base	7	953	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Navy Support	21	1,242	96.7	%	96.9	%	96.8	%	96.9	%	94.6	%	96.8	%	94.0	%
Redstone Arsenal	10	806	99.0	%	99.2	%	99.2	%	99.1	%	99.7	%	99.2	%	99.6	%
Data Center Shells:
Consolidated properties	3	594	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Unconsolidated JV properties	9	1,471	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Total Defense/IT Locations	150	15,246	92.4	%	93.0	%	92.9	%	93.4	%	93.1	%	92.7	%	93.1	%
Regional Office	7	1,959	90.8	%	92.0	%	92.0	%	92.1	%	92.1	%	91.6	%	91.6	%
Core Portfolio Same Properties	157	17,205	92.2	%	92.8	%	92.8	%	93.3	%	93.0	%	92.6	%	92.9	%
Other Same Properties	2	157	66.2	%	67.0	%	68.4	%	68.4	%	68.4	%	67.2	%	67.2	%
Total Same Properties	159	17,362	92.0	%	92.6	%	92.6	%	93.0	%	92.8	%	92.4	%	92.7	%

Same Properties (1) Period End Occupancy Rates by Segment (square feet in thousands)
	# of Properties	Operational Square Feet
			9/30/21		6/30/21		3/31/21		12/31/20		9/30/20
Core Portfolio:
Defense/IT Locations:
Fort Meade/BW Corridor	87	8,192	90.1	%	89.8	%	90.3	%	91.0	%	90.9	%
NoVA Defense/IT	13	1,988	86.8	%	87.7	%	87.6	%	88.1	%	88.5	%
Lackland Air Force Base	7	953	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Navy Support	21	1,242	96.5	%	96.9	%	96.9	%	97.2	%	95.6	%
Redstone Arsenal	10	806	98.7	%	99.2	%	99.2	%	98.9	%	99.2	%
Data Center Shells:
Consolidated properties	3	594	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Unconsolidated JV properties	9	1,471	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Total Defense/IT Locations	150	15,246	92.6	%	92.6	%	92.9	%	93.3	%	93.2	%
Regional Office	7	1,959	90.8	%	91.3	%	92.5	%	92.1	%	92.3	%
Core Portfolio Same Properties	157	17,205	92.4	%	92.5	%	92.8	%	93.2	%	93.1	%
Other Same Properties	2	157	66.2	%	66.2	%	68.4	%	68.4	%	68.4	%
Total Same Properties	159	17,362	92.2	%	92.2	%	92.6	%	92.9	%	92.9	%

(1)Includes office and data center shell properties stably owned and 100% operational since at least 1/1/20.

Corporate Office Properties Trust

Same Properties Real Estate Revenues and NOI by Segment

(in thousands)


	Three Months Ended										Nine Months Ended
	9/30/21		6/30/21		3/31/21		12/31/20		9/30/20		9/30/21		9/30/20
Same Properties real estate revenues
Defense/IT Locations:
Fort Meade/BW Corridor	$	64,643	$	63,669	$	65,278	$	62,912	$	62,694	$	193,590	$	188,567
NoVA Defense/IT	15,266		14,713		15,127		14,993		14,698		45,106		42,823
Lackland Air Force Base	13,551		13,420		12,555		13,047		12,603		39,526		37,936
Navy Support	8,558		8,445		8,398		8,403		8,007		25,401		24,466
Redstone Arsenal	4,828		4,785		4,555		4,487		4,449		14,168		13,530
Data Center Shells-Consolidated	2,361		2,366		2,419		2,559		2,281		7,146		6,907
Total Defense/IT Locations	109,207		107,398		108,332		106,401		104,732		324,937		314,229
Regional Office	15,121		15,205		14,995		14,829		14,913		45,321		45,535
Other Properties	665		652		665		663		753		1,982		2,127
Same Properties real estate revenues	$	124,993	$	123,255	$	123,992	$	121,893	$	120,398	$	372,240	$	361,891

Same Properties NOI
Defense/IT Locations:
Fort Meade/BW Corridor	$	42,032	$	42,378	$	40,975	$	41,756	$	41,369	$	125,385	$	125,572
NoVA Defense/IT	9,288		9,174		9,251		9,436		9,454		27,713		27,060
Lackland Air Force Base	6,653		5,924		5,682		5,688		5,486		18,259		16,239
Navy Support	5,104		5,218		4,965		5,248		4,961		15,287		14,966
Redstone Arsenal	3,015		2,951		2,912		2,684		2,743		8,878		8,407
Data Center Shells:
Consolidated properties	2,068		2,070		2,066		2,072		1,942		6,204		5,818
COPT’s share of unconsolidated real estate JV	504		503		499		506		504		1,506		1,515
Total Defense/IT Locations	68,664		68,218		66,350		67,390		66,459		203,232		199,577
Regional Office	7,739		8,220		7,715		7,892		7,131		23,674		23,328
Other Properties	325		381		304		351		456		1,010		1,292
Same Properties NOI	$	76,728	$	76,819	$	74,369	$	75,633	$	74,046	$	227,916	$	224,197

Corporate Office Properties Trust

Same Properties Cash NOI by Segment

(dollars in thousands)


	Three Months Ended										Nine Months Ended
	9/30/21		6/30/21		3/31/21		12/31/20		9/30/20		9/30/21		9/30/20
Same Properties cash NOI
Defense/IT Locations:
Fort Meade/BW Corridor	$	41,706	$	42,074	$	39,192	$	42,069	$	40,991	$	122,972	$	124,900
NoVA Defense/IT	9,593		9,599		9,138		9,519		9,410		28,330		28,138
Lackland Air Force Base	6,664		6,133		5,999		6,005		5,929		18,796		17,534
Navy Support	5,381		5,394		4,965		5,376		5,130		15,740		15,524
Redstone Arsenal	3,111		3,054		2,957		2,790		2,628		9,122		7,731
Data Center Shells:
Consolidated properties	1,823		1,778		1,806		1,783		1,670		5,407		4,977
COPT’s share of unconsolidated real estate JV	465		465		456		460		456		1,386		1,365
Total Defense/IT Locations	68,743		68,497		64,513		68,002		66,214		201,753		200,169
Regional Office	8,176		8,540		7,832		8,157		7,045		24,548		22,602
Other Properties	300		392		319		356		438		1,011		1,253
Same Properties cash NOI	77,219		77,429		72,664		76,515		73,697		227,312		224,024
Straight line rent adjustments and lease incentive amortization	(1,671)		(2,283)		24		(1,416)		(571)		(3,930)		(1,582)
Amortization of acquired above- and below-market rents	99		98		99		99		98		296		291
Amortization of intangibles and other assets to property operating expenses	—		—		—		—		(23)		—		(69)
Lease termination fees, net	853		1,094		1,362		141		455		3,309		693
Tenant funded landlord assets and lease incentives	191		441		178		249		342		810		690
Cash NOI adjustments in unconsolidated real estate JV	37		40		42		45		48		119		150
Same Properties NOI	$	76,728	$	76,819	$	74,369	$	75,633	$	74,046	$	227,916	$	224,197
Percentage change in total Same Properties cash NOI (1)	4.8%										1.5%
Percentage change in Defense/IT Locations Same Properties cash NOI (1)	3.8%										0.8%

(1)Represents the change between the current period and the same period in the prior year.

Corporate Office Properties Trust

Leasing - Office and Data Center Shell Portfolio (1)

Quarter Ended 9/30/21

(square feet in thousands)


	Defense/IT Locations
	Ft Meade/BW Corridor			NoVA Defense/IT			Navy Support			Redstone Arsenal			Total Defense/IT Locations			Regional Office			Total
Renewed Space
Leased Square Feet	206			10			79			242			538			15			553
Expiring Square Feet	345			25			96			246			713			17			730
Vacating Square Feet	139			15			18			4			176			2			177
Retention Rate (% based upon square feet)	59.8		%	39.7		%	81.7		%	98.3		%	75.4		%	89.6		%	75.7		%
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot (2)	$	4.13		$	3.58		$	1.59		$	0.46		$	2.09		$	1.13		$	2.07
Weighted Average Lease Term in Years	5.6			5.3			2.9			1.0			3.1			1.0			3.1
Average Rent Per Square Foot
Renewal Average Rent	$	33.33		$	23.56		$	18.72		$	23.49		$	26.57		$	33.52		$	26.76
Expiring Average Rent	$	33.84		$	25.06		$	17.19		$	22.93		$	26.32		$	33.23		$	26.51
Change in Average Rent	(1.5)		%	(6.0)		%	8.9		%	2.4		%	1.0		%	0.9		%	1.0		%
Cash Rent Per Square Foot
Renewal Cash Rent	$	34.39		$	29.50		$	18.37		$	23.49		$	27.04		$	33.84		$	27.23
Expiring Cash Rent	$	35.56		$	30.11		$	18.14		$	22.93		$	27.22		$	33.79		$	27.39
Change in Cash Rent	(3.3)		%	(2.0)		%	1.3		%	2.4		%	(0.6)		%	0.2		%	(0.6)		%
Average Escalations Per Year	1.6		%	2.5		%	2.3		%	—		%	1.7		%	—		%	1.7		%
New Leases
Development and Redevelopment Space
Leased Square Feet	—			—			—			274			274			—			274
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot (2)	$	—		$	—		$	—		$	4.30		$	4.30		$	—		$	4.30
Weighted Average Lease Term in Years	—			—			—			17.0			17.0			—			17.0
Average Rent Per Square Foot	$	—		$	—		$	—		$	28.19		$	28.19		$	—		$	28.19
Cash Rent Per Square Foot	$	—		$	—		$	—		$	24.98		$	24.98		$	—		$	24.98
Vacant Space (3)
Leased Square Feet	170			32			—			5			207			8			215
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot (2)	$	9.09		$	5.76		$	—		$	1.92		$	8.41		$	7.66		$	8.38
Weighted Average Lease Term in Years	9.7			7.2			—			5.3			9.2			10.8			9.3
Average Rent Per Square Foot	$	27.13		$	29.14		$	—		$	24.30		$	27.37		$	29.89		$	27.46
Cash Rent Per Square Foot	$	25.59		$	29.41		$	—		$	24.25		$	26.14		$	28.75		$	26.24
Total Square Feet Leased	377			42			79			522			1,019			23			1,042
Average Escalations Per Year	2.2		%	2.5		%	2.3		%	2.5		%	2.4		%	2.4		%	2.4		%
Average Escalations Excl. Data Center Shells																			2.4		%

(1)Activity excludes 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. Cash rent per square foot ignores the effect of rent abatements.

(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.

Corporate Office Properties Trust

Leasing - Office and Data Center Shell Portfolio (1)

Nine Months Ended 9/30/21

(square feet in thousands)


	Defense/IT Locations
	Ft Meade/BW Corridor			NoVA Defense/IT			Lackland Air Force Base			Navy Support			Redstone Arsenal			Data Center Shells			Total Defense/IT Locations			Regional Office			Other			Total
Renewed Space
Leased Square Feet	587			66			250			191			252			—			1,346			15			7			1,368
Expiring Square Feet	914			97			250			219			257			—			1,737			87			10			1,835
Vacating Square Feet	328			31			—			28			4			—			392			72			3			467
Retention Rate (% based upon square feet) (1)	64.2		%	67.7		%	100.0		%	87.2		%	98.4		%	—		%	77.5		%	17.4		%	67.0		%	74.6		%
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot (2)	$	3.95		$	2.24		$	2.00		$	1.58		$	0.48		$	—		$	2.52		$	1.13		$	0.28		$	2.49
Weighted Average Lease Term in Years	4.7			4.4			5.0			3.0			1.0			—			3.8			1.0			11.8			3.8
Average Rent Per Square Foot
Renewal Average Rent	$	35.37		$	31.06		$	50.29		$	22.24		$	23.65		$	—		$	33.87		$	33.52		$	25.83		$	33.82
Expiring Average Rent	$	33.96		$	29.52		$	44.30		$	21.36		$	22.93		$	—		$	31.81		$	33.23		$	20.69		$	31.77
Change in Average Rent	4.2		%	5.2		%	13.5		%	4.1		%	3.1		%	—		%	6.5		%	0.9		%	24.8		%	6.5		%
Cash Rent Per Square Foot
Renewal Cash Rent	$	35.39		$	33.54		$	48.52		$	22.20		$	23.65		$	—		$	33.67		$	33.84		$	26.32		$	33.63
Expiring Cash Rent	$	36.16		$	33.89		$	47.70		$	22.46		$	23.08		$	—		$	33.80		$	33.79		$	22.59		$	33.74
Change in Cash Rent	(2.1)		%	(1.0)		%	1.7		%	(1.2)		%	2.5		%	—		%	(0.4)		%	0.2		%	16.5		%	(0.3)		%
Average Escalations Per Year	2.1		%	2.5		%	3.0		%	2.6		%	—		%	—		%	2.4		%	—		%	—		%	2.4		%
New Leases
Development and Redevelopment Space
Leased Square Feet	183			—			—			—			464			265			911			3			—			915
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot (2)	$	8.91		$	—		$	—		$	—		$	6.83		$	—		$	5.26		$	13.83		$	—		$	5.29
Weighted Average Lease Term in Years	11.8			—			—			—			14.4			15.0			14.1			10.0			—			14.1
Average Rent Per Square Foot	$	37.87		$	—		$	—		$	—		$	28.45		$	31.40		$	31.20		$	73.66		$	—		$	31.36
Cash Rent Per Square Foot	$	38.00		$	—		$	—		$	—		$	26.65		$	27.70		$	29.23		$	68.89		$	—		$	29.38
Vacant Space (3)
Leased Square Feet	343			52			—			6			5			—			407			13			—			420
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot (2)	$	9.04		$	6.72		$	—		$	6.13		$	1.92		$	—		$	8.60		$	8.56		$	—		$	8.60
Weighted Average Lease Term in Years	8.8			7.1			—			8.9			5.3			—			8.5			9.4			—			8.6
Average Rent Per Square Foot	$	28.05		$	29.93		$	—		$	40.18		$	24.30		$	—		$	28.43		$	29.57		$	—		$	28.47
Cash Rent Per Square Foot	$	27.50		$	30.18		$	—		$	44.00		$	24.25		$	—		$	28.06		$	28.26		$	—		$	28.06
Total Square Feet Leased	1,113			118			250			197			721			265			2,664			31			7			2,702
Average Escalations Per Year	2.3		%	2.5		%	3.0		%	2.5		%	2.5		%	2.0		%	2.4		%	2.5		%	—		%	2.4		%
Average Escalations Excl. Data Center Shells																												2.4		%

(1)Activity excludes owner occupied space, leases with less than a one-year term and expirations associated with space removed from service. Retention rate includes the effect of 63,000 square feet vacated in a property in the Ft Meade/BW Corridor that was removed from service for redevelopment in June 2021 and excluded from reporting as of 6/30/21; this property was placed back into operations and retrospectively added to YTD reporting. 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. Cash rent per square foot ignores the effect of rent abatements.

(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.

Corporate Office Properties Trust

Lease Expiration Analysis as of 9/30/21 (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 Expiring	Annualized 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 Corridor	252	$	7,730	1.4	%	$	30.70
NoVA Defense/IT	3	99		—	%	30.11

Navy Support	95	3,369		0.6	%	35.56
Redstone Arsenal	121	2,724		0.5	%	22.50


Regional Office	24	932		0.2	%	37.85

2021	495	14,854		2.6	%	29.98
Ft Meade/BW Corridor	1,032	36,237		6.4	%	35.09
NoVA Defense/IT	109	3,752		0.7	%	34.49

Navy Support	225	6,223		1.1	%	27.60
Redstone Arsenal	40	978		0.2	%	24.74


Regional Office	555	18,449		3.3	%	33.16

2022	1,961	65,639		11.7	%	33.44
Ft Meade/BW Corridor	1,325	48,802		8.6	%	36.79
NoVA Defense/IT	165	5,531		1.0	%	33.51

Navy Support	231	6,592		1.2	%	28.58
Redstone Arsenal	256	5,892		1.0	%	23.00


Regional Office	145	4,584		0.8	%	31.58

2023	2,122	71,400		12.6	%	33.62
Ft Meade/BW Corridor	1,111	41,099		7.3	%	36.95
NoVA Defense/IT	408	14,458		2.6	%	35.44

Navy Support	276	6,491		1.1	%	23.52
Redstone Arsenal	75	1,852		0.3	%	24.56

Data Center Shells-Unconsolidated JV Properties	546	669		0.1	%	12.25
Regional Office	78	2,410		0.4	%	30.56

2024	2,494	66,978		11.9	%	33.40
Ft Meade/BW Corridor	1,582	55,525		9.8	%	35.03
NoVA Defense/IT	280	11,660		2.1	%	41.65
Lackland Air Force Base	703	39,339		7.0	%	55.98
Navy Support	93	1,746		0.3	%	18.75
Redstone Arsenal	253	5,337		0.9	%	20.96

Data Center Shells-Unconsolidated JV Properties	121	156		—	%	12.93
Regional Office	110	4,127		0.7	%	37.45

2025	3,142	117,890		20.9	%	38.82
Thereafter
Consolidated Properties	7,380	224,190		39.8	%	29.69
Unconsolidated JV Properties	2,515	3,719		0.7	%	14.79
Core Portfolio	20,109	$	564,670	100.0	%	$	32.43


Segment of Lease and Year of Expiration (2)	Square Footage of Leases Expiring	Annualized 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	20,109	$	564,670	99.6	%	$	32.43
Other Properties	104	2,524		0.4	%	24.10
Total Portfolio	20,213	$	567,194	100.0	%	$	32.38
Consolidated Portfolio	17,031	$	562,650
Unconsolidated JV Properties	3,182	$	4,544

Note: As of 9/30/21, the weighted average lease term was 5.4 years for the core and total portfolio and 5.2 years for the consolidated portfolio.

Wholesale Data Center


Year of Expiration	Capacity (MW)	Annualized Rental Revenue of Expiring Leases (3)
2021 (5)	11.25	$	14,908
2022	1.15	2,454
2023	1.19	2,295
2024	—	11
2025	3.10	5,328
Thereafter	—	291
	16.69	$	25,287

(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 9/30/21 of 284,000 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 9/30/21 (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)An 11.25MW lease that expired in August 2020 remains in place until renewed by both parties or terminated by either party.

Corporate Office Properties Trust

2022 Core Portfolio Quarterly Lease Expiration Analysis as of 9/30/21 (1)

(dollars and square feet in thousands, except per square foot amounts)

Office and Data Center Shells


Segment of Lease and Quarter of Expiration (2)	Square Footage of Leases Expiring	Annualized Rental Revenue of Expiring Leases (3)		% of Core Annualized Rental Revenue Expiring (3)		Annualized Rental Revenue of Expiring Leases per Occupied Sq. Foot
Core Portfolio











































Ft Meade/BW Corridor	202	$	7,109	1.3	%	$	35.12
NoVA Defense/IT	11	262		—	%	22.86

Navy Support	96	2,402		0.4	%	25.13



Regional Office	211	5,748		1.0	%	27.15

Q1 2022	520	15,521		2.7	%	29.79
Ft Meade/BW Corridor	255	8,369		1.5	%	32.79
NoVA Defense/IT	58	1,981		0.4	%	34.21

Navy Support	37	1,803		0.3	%	48.93



Regional Office	45	1,648		0.3	%	36.58

Q2 2022	395	13,801		2.5	%	34.94
Ft Meade/BW Corridor	261	9,419		1.7	%	36.06
NoVA Defense/IT	6	224		—	%	36.60

Navy Support	60	1,178		0.2	%	19.60
Redstone Arsenal	10	281		—	%	27.32


Regional Office	17	604		0.1	%	34.03

Q3 2022	354	11,706		2.0	%	32.93
Ft Meade/BW Corridor	315	11,341		2.0	%	36.12
NoVA Defense/IT	33	1,284		0.2	%	38.59

Navy Support	33	839		0.1	%	25.53
Redstone Arsenal	29	697		0.1	%	23.83


Regional Office	282	10,450		1.9	%	37.05

Q4 2022	692	24,611		4.3	%	35.60

	1,961	$	65,639	11.7	%	$	33.44

(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.

Corporate Office Properties Trust

Top 20 Tenants as of 9/30/21 (1)

(dollars and square feet in thousands)


Tenant		Total Annualized Rental Revenue (2)		% of Total Annualized Rental Revenue (2)		Occupied Square Feet in Office and Data Center Shells	Weighted Average Remaining Lease Term in Office and Data Center Shells (3)
United States Government	(4)	$	208,672	35.2	%	5,057	4.6
Fortune 100 Company		54,976		9.3	%	4,983	8.8
General Dynamics Corporation		33,107		5.6	%	752	2.2
The Boeing Company		17,577		3.0	%	610	1.7
CACI International Inc		13,561		2.3	%	354	3.5
Peraton Corp.		12,421		2.1	%	349	6.5
CareFirst Inc.		11,409		1.9	%	312	1.4
Booz Allen Hamilton, Inc.		11,055		1.9	%	297	3.5
Northrop Grumman Corporation		8,121		1.4	%	284	2.2
Wells Fargo & Company		7,063		1.2	%	172	6.4
Raytheon Technologies Corporation		6,684		1.1	%	202	1.5
Yulista Holding, LLC		6,494		1.1	%	366	8.2
AT&T Corporation		6,287		1.1	%	321	8.0
Miles and Stockbridge, PC		6,180		1.0	%	160	6.0
Mantech International Corp.		5,926		1.0	%	195	3.3
Morrison & Foerster, LLP		5,925		1.0	%	102	15.5
Jacobs Engineering Group Inc.		5,312		0.9	%	165	7.2
Transamerica Life Insurance Company		5,296		0.9	%	140	0.3
The Mitre Corporation		4,922		0.8	%	152	4.7
University of Maryland		4,700		0.8	%	146	6.2
Subtotal Top 20 Tenants		435,688		73.6	%	15,119	5.8
All remaining tenants		156,793		26.4	%	5,094	3.9
Total/Weighted Average		$	592,481	100.0	%	20,213	5.4

(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 $4.5 million (see page 33 for additional information).

(2)Total ARR is the monthly contractual base rent as of 9/30/21, 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 9/30/21, $5.7 million of our ARR was through the General Services Administration (GSA), representing 2.7% of our ARR from the United States Government and 1.0% of our total ARR.

Corporate Office Properties Trust

Property Dispositions

(dollars and square feet in thousands)

Property

Property Segment

Location

# of Properties

Operational Square Feet

Transaction
Date

% Occupied on Transaction Date

Transaction
Value
(in millions)

Quarter Ended 6/30/21

90% interest in MP 1 and 2 (1)

Data Center Shells

Northern Virginia

432

6/2/21

100.0

107

(1)We sold a 90% interest in these properties based on an aggregate property value of $119 million and retained a 10% interest in the properties through, BRE-COPT 3, an unconsolidated real estate JV.

Corporate Office Properties Trust

Summary of Development Projects as of 9/30/21 (1)

(dollars and square feet in thousands)


		Total Rentable Square Feet	% Leased as of 10/14/21	as of 9/30/21 (2)						Actual or Anticipated Shell Completion Date	Anticipated Operational Date (3)
				Anticipated Total Cost		Cost to Date		Cost to Date Placed in Service

Property and Segment	Location
Fort Meade/BW Corridor:
4600 River Road (4)	College Park, Maryland	102	54%	$	30,734	$	24,687	$	16,756	4Q 20	4Q 21
560 National Business Parkway	Annapolis Junction, Maryland	183	100%	66,325		26,629		—		2Q 22	4Q 22
Subtotal / Average		285	84%	97,059		51,316		16,756







Navy Support:
Expedition VII	St. Mary’s County, Maryland	29	62%	8,907		4,810		—		4Q 21	4Q 22

Redstone Arsenal:
6000 Redstone Gateway (5)	Huntsville, Alabama	42	100%	9,928		8,897		7,852		4Q 20	4Q 21
8000 Rideout Road (6)	Huntsville, Alabama	100	88%	28,070		20,178		6,465		2Q 21	2Q 22
6200 Redstone Gateway	Huntsville, Alabama	172	91%	53,900		9,683		—		1Q 23	1Q 23
8300 Rideout Road	Huntsville, Alabama	131	100%	51,100		15,316		—		3Q 22	3Q 22
8200 Rideout Road	Huntsville, Alabama	131	100%	52,100		12,326		—		4Q 22	4Q 22
7000 Redstone Gateway	Huntsville, Alabama	46	46%	11,600		966		—		1Q 23	1Q 24
300 Secured Gateway	Huntsville, Alabama	205	100%	59,700		2,060		—		1Q 24	1Q 24
Subtotal / Average		827	94%	266,398		69,426		14,317

Data Center Shells:
Oak Grove C	Northern Virginia	265	100%	92,700		51,391		—		1Q 22	1Q 22
PS A	Northern Virginia	227	100%	65,600		6,085		—		2Q 23	2Q 23
PS B	Northern Virginia	193	100%	55,000		5,129		—		2Q 24	2Q 24
Subtotal / Average		685	100%	213,300		62,605		—




Total Under Development		1,826	94%	$	585,664	$	188,157	$	31,073

(1)Includes properties under, or contractually committed for, development as of 9/30/21.

(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, 55,000 square feet were operational as of 9/30/21.

(5)Although classified as under development, 32,000 square feet were operational as of 9/30/21.

(6)Although classified as under development, 20,000 square feet were operational as of 9/30/21.

Corporate Office Properties Trust

Development Placed in Service as of 9/30/21

(square feet in thousands)


		Total Property		Square Feet Placed in Service					Total Space Placed in Service % Leased as of 9/30/21
	Property Segment	% Leased as of 9/30/21	Rentable Square Feet	Prior Year	2021			Total
Property and Location					1st Quarter	2nd Quarter	3rd Quarter			Total 2021
7100 Redstone Gateway Huntsville, Alabama	Redstone Arsenal	100%	46	—	46	—	—	46	46	100%
8000 Rideout Road Huntsville, Alabama	Redstone Arsenal	88%	100	—	—	9	11	20	20	100%
2100 L Street Washington, D.C.	Regional Office	59%	188	107	—	81	—	81	188	59%
Project EL San Antonio, Texas	Lackland Air Force Base	100%	107	—	—	107	—	107	107	100%
610 Guardian Way Annapolis Junction, Maryland	Fort Meade/BW Corridor	100%	107	—	—	—	107	107	107	100%
NoVA Office C Chantilly, Virginia	NoVA Defense/IT	100%	348	—	—	—	348	348	348	100%
Total Development Placed in Service		90%	896	107	46	197	466	709	816	90%
% Leased as of 9/30/21					100%	60%	100%	89%

Corporate Office Properties Trust

Summary of Land Owned/Controlled as of 9/30/21 (1)

(in thousands)


Location	Acres	Estimated Developable Square Feet	Carrying Amount
Land owned/controlled for future development
Defense/IT Locations:
Fort Meade/BW Corridor:
National Business Park	146	1,816
Howard County	19	290
Other	126	1,338
Total Fort Meade/BW Corridor	291	3,444
NoVA Defense/IT	29	1,133

Navy Support	38	64
Redstone Arsenal (2)	310	2,439
Data Center Shells	43	913
Total Defense/IT Locations	711	7,993
Regional Office	10	900

Total land owned/controlled for future development	721	8,893	$	224,453

Other land owned/controlled	43	638	3,434




Land held, net	764	9,531	$	227,887

(1)This land inventory schedule includes properties under ground lease to us and excludes all properties listed as development as detailed on page 25. 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 32). 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.

Corporate Office Properties Trust

Capitalization Overview

(dollars, shares and units in thousands)


	Wtd. Avg. Maturity (Years) (1)	Stated Rate		Effective Rate (2)(3)		Gross Debt Balance at 9/30/21

Debt
Secured debt	3.0	3.65	%	3.78	%	$	171,762
Unsecured debt	5.9	2.58	%	2.99	%	2,010,911
Total Consolidated Debt	5.7	2.66	%	3.05	%	$	2,182,673

Fixed rate debt (3)	6.5	2.95	%	3.10	%	$	2,122,673
Variable rate debt	1.5	1.14	%	1.10	%	60,000
Total Consolidated Debt						$	2,182,673


Common Equity
Common Shares						112,325
Common Units (4)						1,428
Total Common Shares and Units						113,753

Closing Common Share Price on 9/30/21						$	26.98
Equity Market Capitalization						$	3,069,056

Total Market Capitalization						$	5,251,729

(1)Calculated assuming exercise of extension options on our Revolving Credit Facility.

(2)Excludes the effect of deferred financing cost amortization.

(3)Includes the effect of interest rate swaps with notional amounts of $284.2 million that hedge the risk of changes in interest rates on variable rate debt.

(4)Excludes unvested share-based compensation awards subject to market conditions.

Investment Grade Ratings & Outlook

Latest Affirmation

Fitch

BBB-

Stable

10/8/21

Moody’s

Baa3

Stable

3/3/21

Standard & Poor’s

BBB-

Stable

3/3/21

Corporate Office Properties Trust

Summary of Outstanding Debt as of 9/30/21

(dollars in thousands)


Unsecured Debt	Stated Rate	Amount Outstanding		Maturity Date		Secured Debt	Stated Rate		Amount Outstanding		Balloon Payment Due Upon Maturity		Maturity Date
Revolving Credit Facility	L + 1.10%	$	10,000	Mar-23	(1)(2)	7740 Milestone Parkway	3.96%		$	16,552	$	15,902	Feb-23
Senior Unsecured Notes						100 & 30 Light Street	4.32%		49,625		47,676		Jun-23
5.00% due 2025	5.00%	300,000		Jul-25		LW Redstone:
2.25% due 2026	2.25%	400,000		Mar-26		1000, 1200 & 1100 Redstone
2.00% due 2029	2.00%	400,000		Jan-29		Gateway (3)	4.47%	(4)	30,926		27,649		Jun-24
2.75% due 2031	2.75%	600,000		Apr-31		4000 & 4100 Market Street and
Subtotal - Senior Unsecured Notes	2.85%	$	1,700,000			8800 Redstone Gateway (2)(3)	L + 1.55%		23,000		22,100		Mar-25	(5)
						M Square:
Unsecured Bank Term Loans						5825 & 5850 University Research
2022 Maturity	L + 1.00%	$	300,000	Dec-22	(2)	Court (3)	3.82%		40,479		35,603		Jun-26
Other Unsecured Debt	0.00%	911		May-26		5801 University Research Court (2)(3)	L + 1.45%		11,180		10,020		Aug-26
Total Unsecured Debt	2.58%	$	2,010,911			Total Secured Debt	3.65%		$	171,762

Debt Summary
Total Unsecured Debt	2.58%	$	2,010,911
Total Secured Debt	3.65%	171,762
Consolidated Debt	2.66%	$	2,182,673
Net discounts and deferred financing costs		(22,941)
Debt, per balance sheet		$	2,159,732

Consolidated Debt		$	2,182,673
COPT’s share of unconsolidated JV gross debt		26,250
Gross debt		$	2,208,923

(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)These properties are owned through consolidated joint ventures.

(4)Represents the weighted average rate of three loans on the properties.

(5)The loan maturity may be extended for two one-year periods, provided certain conditions are met.

Corporate Office Properties Trust

Summary of Outstanding Debt as of 9/30/21 (continued)

(1)Revolving Credit Facility maturity of $10.0 million scheduled for 2023 is presented assuming our exercise of two six-month extension options.

(2)Includes the effect of $284.2 million in interest rate swaps that hedge the risk of changes in interest rates on variable rate debt.

Corporate Office Properties Trust

Debt Analysis

(dollars and square feet in thousands)


		As of and for Three Months Ended 9/30/21						As of and for Three Months Ended 9/30/21
Senior Note Covenants (1)	Required	Other Notes	5.00% Notes			Line of Credit & Term Loan Covenants (1)	Required
Total Debt / Total Assets	< 60%	39.7%	40.2%			Total Debt / Total Assets	< 60%	37.0%
Secured Debt / Total Assets	< 40%	3.1%	3.7%			Secured Debt / Total Assets	< 40%	2.9%
Debt Service Coverage	> 1.5x	5.0x	5.1x			Adjusted EBITDA / Fixed Charges	> 1.5x	4.7x
Unencumbered Assets / Unsecured Debt	> 150%	251.8%	251.8%			Unsecured Debt / Unencumbered Assets	< 60%	37.2%
						Unencumbered Adjusted NOI / Unsecured Interest Expense	> 1.75x	5.3x

Debt Ratios		Page Refer.				Unencumbered Portfolio Analysis
Gross debt		29	$	2,208,923		# of unencumbered properties		160
Adjusted book		36	$	5,574,260		% of total portfolio		86		%
Net debt / adjusted book ratio			39.4		%	Unencumbered square feet in-service		17,683
Net debt		36	$	2,193,823		% of total portfolio		82		%
Net debt adj. for fully-leased development		36	$	2,073,842		NOI from unencumbered real estate operations		$	82,983
In-place adjusted EBITDA		10	$	87,231		% of total NOI from real estate operations		92		%
Net debt / in-place adjusted EBITDA ratio			6.3		x	Adjusted EBITDA from unencumbered real estate operations		$	76,515
Net debt adj. for fully-leased development / in-place adj. EBITDA ratio			5.9		x	% of total adjusted EBITDA from real estate operations		91		%
Denominator for debt service coverage		35	$	15,642		Unencumbered adjusted book		$	5,127,439
Denominator for fixed charge coverage		35	$	17,405		% of total adjusted book		92		%
Adjusted EBITDA		10	$	83,991
Adjusted EBITDA debt service coverage ratio			5.4		x
Adjusted EBITDA fixed charge coverage ratio			4.8		x

(1)The covenants are calculated as defined in the applicable agreements, and the calculations differ between those agreements.

Corporate Office Properties Trust

Consolidated Real Estate Joint Ventures as of 9/30/21

(dollars and square feet in thousands)


Operating Properties	Operational Square Feet	% Occupied	% Leased	NOI for the Three Months Ended 9/30/21 (1)		NOI for the Nine Months Ended 9/30/21 (1)		Total Assets (2)		Venture Level Debt		COPT Nominal Ownership %
Suburban Maryland:
M Square Associates, LLC (4 properties)	368	98.0%	98.0%	$	1,789	$	5,350	$	86,982	$	51,659	50%
Huntsville, Alabama:
LW Redstone Company, LLC (16 properties)	1,383	100.0%	100.0%	5,657		16,168		296,506		53,926		85%	(3)
Washington, D.C.:
Stevens Place (1 property)	188	56.9%	58.7%	675		2,795		164,189		—		95%
Total/Average	1,939	95.4%	95.6%	$	8,121	$	24,313	$	547,677	$	105,585


Non-operating Properties	Estimated Developable Square Feet	Total Assets (2)		Venture Level Debt		COPT Nominal Ownership %
Suburban Maryland:
M Square Research Park	395	$	13,652	$	—	50%
Huntsville, Alabama:
Redstone Gateway (4)	3,214	156,990		—		85%	(3)
Total	3,609	$	170,642	$	—

(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)Our partner receives an annual priority return of 13.5% on its $9.0 million in contributed equity, plus certain fees for leasing and development, and we expect to receive all other distributions from the JV.

(4)Total assets include $71.3 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.

Corporate Office Properties Trust

Unconsolidated Real Estate Joint Ventures as of 9/30/21

(dollars and square feet in thousands)


Joint venture information (1)	BREIT-COPT			BRE-COPT 2			BRE-COPT 3
COPT ownership %	10%			10%			10%
COPT’s investment	$	12,620		$	15,735		$	11,949
# of Properties	9			8			2
Square Feet	1,472			1,278			432
% Occupied	100		%	100		%	100		%
COPT’s share of ARR	$	2,166		$	1,747		$	631

Balance sheet information	Total			COPT’s Share (2)
Operating properties, net	$	686,233		$	68,623
Total assets	$	750,674		$	75,067
Debt	$	261,697		$	26,170
Total liabilities	$	274,983		$	27,498

	Three Months Ended 9/30/21						Nine Months Ended 9/30/21
Operating information (1)	Total			COPT’s Share (2)			Total			COPT’s Share (2)
Revenue	$	12,463		$	1,232		$	34,720		$	3,458
Operating expenses	(1,708)			(172)			(5,069)			(508)
NOI and EBITDA	10,755			1,060			29,651			2,950

Interest expense	(2,375)			(238)			(7,116)			(712)
Depreciation and amortization	(5,713)			(525)			(15,946)			(1,455)
Net income	$	2,667		$	297		$	6,589		$	783

NOI (per above)	$	10,755		$	1,060		$	29,651		$	2,950

Straight line rent adjustments	(614)			(61)			(1,690)			(169)
Amortization of acquired above- and below-market rents	(477)			(48)			(1,429)			(143)
Cash NOI	$	9,664		$	951		$	26,532		$	2,638

(1)Refer to the section entitled “Definitions” for joint venture names. On 6/2/21, we sold a 90% interest in two data center shell properties totaling 432,000 square feet based on an aggregate property value of $119 million and retained a 10% interest in the properties through BRE-COPT 3.

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

Corporate Office Properties Trust

Supplementary Reconciliations of Non-GAAP Measures

(in thousands)


	Three Months Ended										Nine Months Ended
	9/30/21		6/30/21		3/31/21		12/31/20		9/30/20		9/30/21		9/30/20
NOI from real estate operations (1)
Real estate revenues	$	146,590	$	144,423	$	145,164	$	139,628	$	134,443	$	436,177	$	399,097
Property operating expenses	(57,190)		(54,616)		(56,974)		(52,085)		(51,552)		(168,780)		(151,755)
COPT’s share of NOI in unconsolidated real estate JVs (2)	1,060		973		917		1,761		1,752		2,950		5,190
NOI from real estate operations	90,460		90,780		89,107		89,304		84,643		270,347		252,532
General and administrative expenses	(7,269)		(7,293)		(6,062)		(7,897)		(5,558)		(20,624)		(17,372)
Leasing expenses	(2,073)		(1,929)		(2,344)		(1,993)		(1,909)		(6,346)		(5,739)
Business development expenses and land carry costs	(1,093)		(1,372)		(1,094)		(999)		(1,094)		(3,559)		(3,474)
NOI from construction contracts and other service operations	957		906		765		837		1,103		2,628		2,188
Equity in loss of unconsolidated non-real estate entities	—		(2)		(2)		(2)		(1)		(4)		(4)
Interest and other income	1,818		2,228		1,865		3,341		1,746		5,911		5,233
Credit loss recoveries (expense) (3)	326		(193)		907		772		1,465		1,040		161
Interest expense	(15,720)		(15,942)		(17,519)		(17,148)		(17,152)		(49,181)		(50,789)
Loss on early extinguishment of debt	(1,159)		(25,228)		(33,166)		(4,069)		(3,237)		(59,553)		(3,237)
Loss on interest rate derivatives	—		—		—		—		(53,196)		—		(53,196)
COPT’s share of interest expense of unconsolidated real estate JVs (2)	(238)		(235)		(239)		(432)		(455)		(712)		(1,359)
Income tax expense	(47)		(24)		(32)		(258)		(16)		(103)		(95)
FFO - per Nareit (1)	$	65,962	$	41,696	$	32,186	$	61,456	$	6,339	$	139,844	$	124,849

Real estate revenues
Lease revenue
Fixed contractual payments	$	114,309	$	113,423	$	112,425	$	110,748	$	106,743	$	340,157	$	314,845
Variable lease payments (4)	31,440		30,235		32,199		28,345		27,132		93,874		82,189
Lease revenue	145,749		143,658		144,624		139,093		133,875		434,031		397,034
Other property revenue	841		765		540		535		568		2,146		2,063
Real estate revenues	$	146,590	$	144,423	$	145,164	$	139,628	$	134,443	$	436,177	$	399,097

Provision for credit losses (recoveries) on billed lease revenue	$	(1)	$	(5)	$	—	$	41	$	212	$	(6)	$	215

(1)Refer to section entitled “Definitions” for a definition of this measure.

(2)See page 33 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.

Corporate Office Properties Trust

Supplementary Reconciliations of Non-GAAP Measures (continued)

(in thousands)


	Three Months Ended										Nine Months Ended
	9/30/21		6/30/21		3/31/21		12/31/20		9/30/20		9/30/21		9/30/20




Total interest expense	$	15,720	$	15,942	$	17,519	$	17,148	$	17,152	$	49,181	$	50,789
Less: Amortization of deferred financing costs	(736)		(811)		(793)		(664)		(658)		(2,340)		(1,875)
Less: Amortization of net debt discounts, net of amounts capitalized	(567)		(520)		(542)		(504)		(453)		(1,629)		(1,229)

COPT’s share of interest expense of unconsolidated real estate JVs, excluding deferred financing costs	236		236		234		422		444		706		1,327
Denominator for interest coverage	14,653		14,847		16,418		16,402		16,485		45,918		49,012
Scheduled principal amortization	989		959		962		1,048		1,033		2,910		3,077
Denominator for debt service coverage	15,642		15,806		17,380		17,450		17,518		48,828		52,089
Capitalized interest	1,763		1,707		1,805		2,620		2,908		5,275		9,440

Preferred unit distributions	—		—		—		69		77		—		231
Denominator for fixed charge coverage	$	17,405	$	17,513	$	19,185	$	20,139	$	20,503	$	54,103	$	61,760


Common share dividends - unrestricted shares and deferred shares	$	30,813	$	30,811	$	30,805	$	30,764	$	30,763	$	92,429	$	92,278
Common share dividends - restricted shares and deferred shares	70		77		97		94		80		244		258
Common unit distributions - unrestricted units	347		347		347		341		341		1,041		1,021
Common unit distributions - restricted units	52		52		51		31		25		155		75
Preferred unit distributions	—		—		—		69		77		—		231
Total dividends/distributions	$	31,282	$	31,287	$	31,300	$	31,299	$	31,286	$	93,869	$	93,863

Common share dividends - unrestricted shares and deferred shares	$	30,813	$	30,811	$	30,805	$	30,764	$	30,763	$	92,429	$	92,278
Common unit distributions - unrestricted units	347		347		347		341		341		1,041		1,021
Common unit distributions - dilutive restricted units	6		—		—		—		—		19		—
Distributions on dilutive preferred units	—		—		—		69		—		—		—
Dividends and distributions for diluted FFO payout ratio	31,166		31,158		31,152		31,174		31,104		93,489		93,299
Distributions on dilutive preferred units	—		—		—		—		77		—		231
Dividends and distributions for other payout ratios	$	31,166	$	31,158	$	31,152	$	31,174	$	31,181	$	93,489	$	93,530

Corporate Office Properties Trust

Supplementary Reconciliations of Non-GAAP Measures (continued)

(in thousands)



	9/30/21		6/30/21		3/31/21		12/31/20		9/30/20
Total assets	$	4,151,138	$	4,052,032	$	4,112,948	$	4,077,023	$	4,120,189
Accumulated depreciation	1,202,780		1,182,432		1,157,059		1,124,253		1,095,441
Accumulated depreciation included in assets held for sale	12,146		—		—		—		—
Accumulated amort. of real estate intangibles and deferred leasing costs	219,179		219,666		217,811		217,124		215,651
Accumulated amortization of real estate intangibles and deferred leasing costs included in assets held for sale	3,102		—		—		—		—
COPT’s share of liabilities of unconsolidated real estate JVs	27,498		27,529		27,603		26,710		50,957
COPT’s share of accumulated depreciation and amortization of unconsolidated real estate JVs	3,161		2,578		2,043		1,489		10,640
Less: Property - operating lease liabilities	(29,630)		(29,909)		(30,176)		(30,746)		(26,382)
Less: Property - finance lease liabilities	(14)		(18)		(28)		(28)		(28)
Less: Cash and cash equivalents	(14,570)		(17,182)		(36,139)		(18,369)		(11,458)
Less: COPT’s share of cash of unconsolidated real estate JVs	(530)		(373)		(202)		(152)		(538)
Adjusted book	$	5,574,260	$	5,436,755	$	5,450,919	$	5,397,304	$	5,454,472


Gross debt (page 29)	$	2,208,923	$	2,157,325	$	2,257,854	$	2,127,715	$	2,247,523
Less: Cash and cash equivalents	(14,570)		(17,182)		(36,139)		(18,369)		(11,458)
Less: COPT’s share of cash of unconsolidated real estate JVs	(530)		(373)		(202)		(152)		(538)
Net debt	$	2,193,823	$	2,139,770	$	2,221,513	$	2,109,194	$	2,235,527
Preferred equity	—		—		—		—		8,800
Net debt plus preferred equity	$	2,193,823	$	2,139,770	$	2,221,513	$	2,109,194	$	2,244,327
Costs incurred on fully-leased development properties	(119,981)		(171,453)		(128,032)		(114,532)		(149,201)
Net debt adjusted for fully-leased development plus preferred equity	$	2,073,842	$	1,968,317	$	2,093,481	$	1,994,662	$	2,095,126

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 and investments in unconsolidated real estate JVs, 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.

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.

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 investments in unconsolidated real estate JVs, 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.

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 and investments in unconsolidated real estate JVs (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 outstanding preferred equity.

Net debt adjusted for fully-leased development

Defined as Net debt less costs incurred on properties under development that were 100% leased.

Net debt adjusted for fully-leased development plus preferred equity

Defined as Net debt less costs incurred on properties under development that were 100% leased plus the total liquidation preference of 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).

Corporate Office Properties Trust

Definitions

Net debt to in-place adjusted EBITDA ratio, Net debt plus preferred equity to in-place adjusted EBITDA ratio, Net debt adjusted for fully-leased development to in-place adjusted EBITDA ratio and Net debt adjusted for fully-leased development plus preferred equity to in-place adjusted EBITDA ratio

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

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.

Corporate Office Properties Trust

Definitions

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.

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 (“ARR”) — 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.

BRE-COPT 2 — B RE COPT DC JV II LLC, a real estate JV formed in 2020.

BRE-COPT 3 — B RE COPT DC JV III LLC, a real estate JV formed in 2021.

BREIT-COPT — BREIT COPT DC JV LLC, a real estate JV formed in 2019.

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).

Corporate Office Properties Trust

Definitions

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 1/1/20.

Second Generation Space — Space leased that has been previously occupied.

Total Portfolio — Operating properties, including ones owned through unconsolidated real estate JVs.


	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 RELEASE	IR Contacts:
	Stephanie Krewson-Kelly	Michelle Layne
	443-285-5453	443-285-5452
	stephanie.kelly@copt.com	michelle.layne@copt.com

COPT Reports Third Quarter 2021 Results

Raises Midpoint of Full Year Guidance Another 1-Cent, Implying 7.1% Growth

in FFO per Share, as Adjusted for Comparability

Stronger 3Q Results Drive Higher Full-Year Expectations

_______________________________________________________________

Reported EPS of $0.24 in 3Q21;

3Q FFO per Share, as Adjusted for Comparability, of $0.57 was 1-Cent Above

High-End of Guidance

Same-Property Cash NOI Increase of 4.8% in the Quarter;

Increasing Midpoint of Same-Property Cash NOI Guidance for the Year

Core Portfolio 93.5% Occupied & 94.8% Leased

1.8 Million SF of Active Developments are 94% Leased

_______________________________________________________________

Solid Leasing Activity

Total Leasing of 1.0 Million SF in the Quarter and 2.7 Million SF for First Nine Months of 2021

Included 215,000 SF and 420,000 SF of Vacancy Leasing, Respectively

Tenant Retention of 76% in the Quarter and 75% for the First Nine Months and

Changes in Cash Rents In-Line with Expectations

1.2 Million SF of Development Leasing Accomplished To-Date Surpasses 2021 Goal

_______________________________________________________________

COLUMBIA, MD (BUSINESS WIRE) October 28, 2021 - Corporate Office Properties Trust (“COPT” or the “Company”) (NYSE: OFC) announced results for the third quarter ended September 30, 2021.

Management Comments

Stephen E. Budorick, COPT’s President & Chief Executive Officer, commented, “Our portfolio of office and data center properties that support priority missions at U.S. defense installations continues to produce strong results, and distinguishes us from other office companies. Demand for our Defense/IT Locations has driven 1.2 million square feet of development leasing to-date, which exceeds our 2021 goal. Vacancy leasing in the third quarter was a very strong 215,000 square feet--our best quarterly volume since the third quarter of 2019--and brought our total for the nine months to 420,000 square feet. Importantly, tenants are committing to lease term lengths that are at or above pre-pandemic levels. Our Development Leasing Pipeline and Activity Ratio remain robust, which leads us to expect customers to continue making long-term commitments to our Defense/IT Locations. Based on our outperformance

this quarter, we are increasing the midpoint of full-year guidance for FFO per share, as adjusted for comparability, to $2.27, which is 8-cents above our original midpoint and represents 7.1% growth over 2020’s elevated results.”

Financial Highlights

3rd Quarter Financial Results:

•Diluted earnings (loss) per share (“EPS”) was $0.24 for the quarter ended September 30, 2021 compared to ($0.29) for the third quarter of 2020.

•Diluted funds from operations per share (“FFOPS”), as calculated in accordance with Nareit’s definition, was $0.56 for the third quarter of 2021 compared to $0.04 for third quarter 2020.

•FFOPS, as adjusted for comparability, was $0.57 for the third quarter of 2021 compared to $0.54 for the third quarter of 2020.

Operating Performance Highlights

Operating Portfolio Summary:

•At September 30, 2021, the Company’s core portfolio of 184 operating office and data center shell properties was 93.5% occupied and 94.8% leased.

•During the quarter, the Company placed into service 466,000 square feet that were 100% leased.

Same-Property Performance:

•At September 30, 2021, COPT’s same-property portfolio of 159 buildings was 92.2% occupied and 93.7% leased.

•For the quarter ended September 30, 2021, the Company’s same-property cash NOI increased 4.8% over the prior year’s comparable period.

Leasing:

•Total Square Feet Leased: For the quarter ended September 30, 2021, the Company leased 1.0 million square feet, including 553,000 square feet of renewals, 274,000 square feet in development projects, and 215,000 square feet of new leases on vacant space. For the nine months ended September 30, 2021, the Company executed 2.7 million square feet of leasing, including 1.4 million square feet of renewals, 915,000 square feet in development projects, and 420,000 square feet of vacancy leasing.

•Renewal Rates: During the quarter and nine months ended September 30, 2021, the Company renewed 75.7% and 74.6%, respectively, of expiring square feet.

•Rent Spreads & Average Escalations on Renewing Leases: For the quarter and nine months ended September 30, 2021, cash rents on renewed space decreased 0.6% and 0.3%, respectively. For the same time periods, annual escalations on renewing leases averaged 1.7% and 2.4%, respectively.

•Lease Terms: In the third quarter of 2021, lease terms averaged 3.1 years on renewing leases, 9.3 years on new leasing of vacant space, and 17.0 years on development leasing. For the first nine months, lease terms averaged 3.8 years on renewing leases, 8.6 years on vacancy leasing, and 14.1 years on development leasing.

•Post-Quarter Development Leasing: In October, the Company completed two build-to-suit leases totaling 263,000 square feet with a defense contractor at Redstone Gateway. Details of those leases can be found in a separate press release issued this same date.

Investment Activity Highlights

•Development Pipeline: The Company’s development pipeline consists of 13 properties totaling 1.8 million square feet that are 94% leased. These projects have a total estimated cost of $585.7 million, of which $188.2 million has been incurred.

Balance Sheet and Capital Transaction Highlights

•In August, the Company issued $400 million of 2.000% senior unsecured notes due 2029. The Company used net proceeds from this issuance to repay $100.0 million of its term loan facility due December 2022, retire the outstanding $89.0 million balance of a construction loan, and repay borrowings under its unsecured credit facility.

•At September 30, 2021, the Company’s net debt to adjusted book ratio was 39.4% and its net debt to in-place adjusted EBITDA ratio was 6.3x. As of the same date, net debt adjusted for fully-leased development to in-place adjusted EBITDA ratio was 5.9x. For the quarter ended September 30, 2021, the Company’s adjusted EBITDA fixed charge coverage ratio was 4.8x.

•At September 30, 2021, and including the effect of interest rate swaps, the Company’s weighted average effective interest rate on its consolidated debt portfolio was 3.05% with a weighted average maturity of 5.7 years; additionally, 97.3% of the Company’s debt was subject to fixed interest rates.

Associated Supplemental Presentation

Prior to the call, the Company will post a slide presentation to accompany management’s prepared remarks for its third quarter 2021 conference call; the presentation can be viewed and downloaded from the ‘Latest Updates’ section of COPT’s Investors website: https://investors.copt.com/

2021 Guidance

Management is increasing its full-year guidance for EPS and FFOPS, per Nareit and as adjusted for comparability from the prior ranges of $0.72-$0.76, $1.73-$1.77, and $2.24-$2.28, respectively, to new ranges of $0.76-$0.78, $1.74-$1.76, and $2.26-$2.28, respectively. To account for the expected timing of repair and maintenance projects, management is lowering its prior guidance ranges for EPS and FFOPS (per Nareit and as adjusted for comparability) for the fourth quarter from $0.21-$0.23 and $0.56-$0.58, respectively, to $0.20-$0.22 and $0.55-$0.57, respectively. Reconciliations of projected EPS to projected FFOPS, in accordance with Nareit and as adjusted for comparability are as follows:



Reconciliation of EPS to FFOPS, per Nareit, and As Adjusted for Comparability	Quarter ending				Year ending
	December 31, 2021				December 31, 2021
	Low		High		Low		High
EPS	$	0.20	$	0.22	$	0.76	$	0.78
Real estate-related depreciation and amortization	0.35		0.35		1.33		1.33
Gain on sales of real estate	—		—		(0.35)		(0.35)


FFOPS, Nareit definition	0.55		0.57		1.74		1.76

Loss on early extinguishment of debt	—		—		0.52		0.52
FFOPS, as adjusted for comparability	$	0.55	$	0.57	$	2.26	$	2.28

Conference Call Information

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

Conference Call Date: Friday, October 29, 2021

Time: 12:00 p.m. Eastern Time

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

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

Passcode: 9759656

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

iii

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 29, through 2:00 p.m. Eastern Time on Friday, November 12. 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 9759656.

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, 2021, the Company derived 88% of its core portfolio annualized rental revenue from Defense/IT Locations and 12% from its Regional Office Properties. As of the same date and including 19 properties owned through unconsolidated joint ventures, COPT’s core portfolio of 184 office and data center shell properties encompassed 21.5 million square feet and was 94.8% leased; the Company also owned one wholesale data center with a capacity of 19.25 megawatts that was 86.7% leased.

Forward-Looking Information

This press release may contain “forward-looking” statements, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that are based on the Company’s current expectations, estimates and projections about future events and financial trends affecting the Company. Forward-looking statements can be identified by the use of words such as “may,” “will,” “should,” “could,” “believe,” “anticipate,” “expect,” “estimate,” “plan” or other comparable terminology. Forward-looking statements are inherently subject to risks and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate. Although the Company believes that the expectations, estimates and projections reflected in such forward-looking statements are based on reasonable assumptions at the time made, the Company can give no assurance that these expectations, estimates and projections will be achieved. Future events and actual results may differ materially from those discussed in the forward-looking statements and the Company undertakes no obligation to update or supplement any forward-looking statements.

The areas of risk that may affect these expectations, estimates and projections include, but are not limited to, those risks described in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Corporate Office Properties Trust

Summary Financial Data

(unaudited)

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


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2021		2020		2021		2020
Revenues
Revenues from real estate operations	$	146,590	$	134,443	$	436,177	$	399,097
Construction contract and other service revenues	28,046		20,323		64,592		46,240
Total revenues	174,636		154,766		500,769		445,337
Operating expenses
Property operating expenses	57,190		51,552		168,780		151,755
Depreciation and amortization associated with real estate operations	36,611		35,332		111,487		101,540
Construction contract and other service expenses	27,089		19,220		61,964		44,052
Impairment losses	—		1,530		—		1,530
General and administrative expenses	7,269		5,558		20,624		17,372
Leasing expenses	2,073		1,909		6,346		5,739
Business development expenses and land carry costs	1,093		1,094		3,559		3,474
Total operating expenses	131,325		116,195		372,760		325,462
Interest expense	(15,720)		(17,152)		(49,181)		(50,789)
Interest and other income	1,818		1,746		5,911		5,233
Credit loss recoveries	326		1,465		1,040		161
Gain on sales of real estate	(32)		—		39,711		5

Loss on early extinguishment of debt	(1,159)		(3,237)		(59,553)		(3,237)
Loss on interest rate derivatives	—		(53,196)		—		(53,196)
Income (loss) before equity in income of unconsolidated entities and income taxes	28,544		(31,803)		65,937		18,052
Equity in income of unconsolidated entities	297		477		779		1,372
Income tax expense	(47)		(16)		(103)		(95)
Net income (loss)	28,794		(31,342)		66,613		19,329
Net (income) loss attributable to noncontrolling interests:
Common units in the Operating Partnership (“OP”)	(357)		386		(831)		(185)
Preferred units in the OP	—		(77)		—		(231)
Other consolidated entities	(1,336)		(812)		(2,949)		(3,207)



Net income (loss) attributable to COPT common shareholders	$	27,101	$	(31,845)	$	62,833	$	15,706

Earnings per share (“EPS”) computation:
Numerator for diluted EPS:
Net income attributable to COPT common shareholders	$	27,101	$	(31,845)	$	62,833	$	15,706
Amount allocable to share-based compensation awards	(79)		(145)		(320)		(359)
Redeemable noncontrolling interests	(89)		—		(82)		—


Numerator for diluted EPS	$	26,933	$	(31,990)	$	62,431	$	15,347
Denominator:
Weighted average common shares - basic	111,985		111,811		111,949		111,778
Dilutive effect of share-based compensation awards	375		—		285		278
Dilutive effect of redeemable noncontrolling interests	138		—		130		—



Weighted average common shares - diluted	112,498		111,811		112,364		112,056
Diluted EPS	$	0.24	$	(0.29)	$	0.56	$	0.14

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,
	2021		2020		2021		2020
Net income (loss)	$	28,794	$	(31,342)	$	66,613	$	19,329
Real estate-related depreciation and amortization	36,611		35,332		111,487		101,540
Impairment losses on real estate	—		1,530		—		1,530
Gain on sales of real estate	32		—		(39,711)		(5)

Depreciation and amortization on unconsolidated real estate JVs	525		819		1,455		2,455
Funds from operations (“FFO”)	65,962		6,339		139,844		124,849
FFO allocable to other noncontrolling interests	(1,696)		(1,074)		(4,025)		(14,614)
Basic FFO allocable to share-based compensation awards	(313)		(119)		(663)		(449)
Noncontrolling interests - preferred units in the OP	—		(77)		—		(231)
Basic FFO available to common share and common unit holders (“Basic FFO”)	63,953		5,069		135,156		109,555

Redeemable noncontrolling interests	(68)		—		1		103
Diluted FFO adjustments allocable to share-based compensation awards	13		—		27		—
Diluted FFO available to common share and common unit holders (“Diluted FFO”)	63,898		5,069		135,184		109,658
Loss on early extinguishment of debt	1,159		3,237		59,553		3,237
Loss on interest rate derivatives	—		53,196		—		53,196


Demolition costs on redevelopment and nonrecurring improvements	129		11		431		63
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 interests	—		34		—		—
Diluted FFO comparability adjustments allocable to share-based compensation awards	(7)		(139)		(300)		(307)
Diluted FFO available to common share and common unit holders, as adjusted for comparability	65,179		61,485		194,868		177,168
Straight line rent adjustments and lease incentive amortization	(1,806)		(1,009)		(6,451)		662
Amortization of intangibles and other assets included in net operating income	41		(39)		122		(186)
Share-based compensation, net of amounts capitalized	2,048		1,727		5,961		4,754
Amortization of deferred financing costs	736		658		2,340		1,875
Amortization of net debt discounts, net of amounts capitalized	567		453		1,629		1,229

Replacement capital expenditures	(13,331)		(13,085)		(38,656)		(46,971)
Other diluted AFFO adjustments associated with real estate JVs	201		150		620		(6)
Diluted adjusted funds from operations available to common share and common unit holders (“Diluted AFFO”)	$	53,635	$	50,340	$	160,433	$	138,525
Diluted FFO per share	$	0.56	$	0.04	$	1.19	$	0.97
Diluted FFO per share, as adjusted for comparability	$	0.57	$	0.54	$	1.71	$	1.56
Dividends/distributions per common share/unit	$	0.275	$	0.275	$	0.825	$	0.825

Corporate Office Properties Trust

Summary Financial Data

(unaudited)

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


	September 30, 2021			December 31, 2020
Balance Sheet Data
Properties, net of accumulated depreciation	$	3,607,122		$	3,562,549
Total assets	4,151,138			4,077,023
Debt, per balance sheet	2,159,732			2,086,918
Total liabilities	2,454,353			2,357,881
Redeemable noncontrolling interests	26,006			25,430
Equity	1,670,779			1,693,712
Net debt to adjusted book	39.4		%	39.1		%

Core Portfolio Data (as of period end) (1)
Number of operating properties	184			179
Total operational square feet (in thousands)	21,503			20,802
% Occupied	93.5		%	94.3		%
% Leased	94.8		%	95.0		%


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2021		2020		2021		2020
Payout ratios
Diluted FFO	48.8	%	613.6	%	69.2	%	85.1	%
Diluted FFO, as adjusted for comparability	47.8	%	50.7	%	48.0	%	52.8	%
Diluted AFFO	58.1	%	61.9	%	58.3	%	67.5	%
Adjusted EBITDA fixed charge coverage ratio	4.8	x	3.9	x	4.7	x	3.8	x

Net debt plus preferred equity to in-place adjusted EBITDA ratio (2)	6.3	x	6.8	x	N/A		N/A
Net debt adj. for fully-leased development plus pref. equity to in-place adj. EBITDA ratio (3)	5.9	x	6.4	x	N/A		N/A

Reconciliation of denominators for per share measures
Denominator for diluted EPS	112,498		111,811		112,364		112,056
Weighted average common units	1,262		1,240		1,257		1,235
Anti-dilutive EPS effect of share-based compensation awards	—		274		26		—
Redeemable noncontrolling interests	—		—		—		125

Denominator for diluted FFO per share	113,760		113,325		113,647		113,416
Redeemable noncontrolling interests	—		109		—		—
Dilutive convertible preferred units	—		176		—		176
Denominator for diluted FFO per share, as adjusted for comparability	113,760		113,610		113,647		113,592

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

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

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

vii

Corporate Office Properties Trust

Summary Financial Data

(unaudited)

(in thousands)


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2021		2020		2021		2020
Reconciliation of common share dividends to dividends and distributions for payout ratios
Common share dividends - unrestricted shares and deferred shares	$	30,813	$	30,763	$	92,429	$	92,278
Common unit distributions - unrestricted units	347		341		1,041		1,021
Common unit distributions - dilutive restricted units	6		—		19		—

Dividends and distributions for diluted FFO payout ratio	31,166		31,104		93,489		93,299
Distributions on dilutive preferred units	—		77		—		231
Dividends and distributions for other payout ratios	$	31,166	$	31,181	$	93,489	$	93,530

Reconciliation of GAAP net income (loss) to earnings before interest, income taxes, depreciation and amortization for real estate (“EBITDAre”), adjusted EBITDA and in-place adjusted EBITDA
Net income (loss)	$	28,794	$	(31,342)	$	66,613	$	19,329
Interest expense	15,720		17,152		49,181		50,789
Income tax expense	47		16		103		95
Real estate-related depreciation and amortization	36,611		35,332		111,487		101,540
Other depreciation and amortization	589		457		2,189		1,324
Impairment losses on real estate	—		1,530		—		1,530
Gain on sales of real estate	32		—		(39,711)		(5)

Adjustments from unconsolidated real estate JVs	763		1,274		2,167		3,814
EBITDAre	82,556		24,419		192,029		178,416
Loss on early extinguishment of debt	1,159		3,237		59,553		3,237
Loss on interest rate derivatives	—		53,196		—		53,196
Net loss (gain) on other investments	—		250		(63)		252
Credit loss recoveries	(326)		(1,465)		(1,040)		(161)
Business development expenses	473		414		1,605		1,630

Demolition costs on redevelopment and nonrecurring improvements	129		11		431		63

Adjusted EBITDA	83,991		80,062		$	252,515	$	236,633
Proforma net operating income adjustment for property changes within period	3,240		1,631
Change in collectability of deferred rental revenue	—		224
In-place adjusted EBITDA	$	87,231	$	81,917

Reconciliation of interest expense to the denominators for fixed charge coverage-Adjusted EBITDA
Interest expense	$	15,720	$	17,152	$	49,181	$	50,789
Less: Amortization of deferred financing costs	(736)		(658)		(2,340)		(1,875)
Less: Amortization of net debt discounts, net of amounts capitalized	(567)		(453)		(1,629)		(1,229)

COPT’s share of interest expense of unconsolidated real estate JVs, excluding deferred financing costs	236		444		706		1,327
Scheduled principal amortization	989		1,033		2,910		3,077
Capitalized interest	1,763		2,908		5,275		9,440

Preferred unit distributions	—		77		—		231
Denominator for fixed charge coverage-Adjusted EBITDA	$	17,405	$	20,503	$	54,103	$	61,760

viii

Corporate Office Properties Trust

Summary Financial Data

(unaudited)

(in thousands)


	For the Three Months Ended September 30,				For the Nine Months Ended September 30,
	2021		2020		2021		2020
Reconciliations of tenant improvements and incentives, building improvements and leasing costs for operating properties to replacement capital expenditures
Tenant improvements and incentives	$	8,654	$	6,950	$	24,096	$	27,177
Building improvements	7,793		10,400		18,192		26,537
Leasing costs	2,939		1,934		6,873		6,918
Net (exclusions from) additions to tenant improvements and incentives	(1,523)		(943)		389		1,412
Excluded building improvements and leasing costs	(4,532)		(5,256)		(10,894)		(15,073)


Replacement capital expenditures	$	13,331	$	13,085	$	38,656	$	46,971

Same Properties cash NOI	$	77,219	$	73,697	$	227,312	$	224,024
Straight line rent adjustments and lease incentive amortization	(1,671)		(571)		(3,930)		(1,582)
Amortization of acquired above- and below-market rents	99		98		296		291
Amortization of intangibles and other assets to property operating expenses	—		(23)		—		(69)
Lease termination fees, net	853		455		3,309		693
Tenant funded landlord assets and lease incentives	191		342		810		690
Cash NOI adjustments in unconsolidated real estate JV	37		48		119		150
Same Properties NOI	$	76,728	$	74,046	$	227,916	$	224,197


	September 30, 2021		December 31, 2020
Reconciliation of total assets to adjusted book
Total assets	$	4,151,138	$	4,077,023
Accumulated depreciation	1,202,780		1,124,253
Accumulated depreciation included in assets held for sale	12,146		—
Accumulated amortization of real estate intangibles and deferred leasing costs	219,179		217,124
Accumulated amortization of real estate intangibles and deferred leasing costs included in assets held for sale	3,102		—
COPT’s share of liabilities of unconsolidated real estate JVs	27,498		26,710
COPT’s share of accumulated depreciation and amortization of unconsolidated real estate JVs	3,161		1,489
Less: Property - operating lease liabilities	(29,630)		(30,746)
Less: Property - finance lease liabilities	(14)		(28)
Less: Cash and cash equivalents	(14,570)		(18,369)
Less: COPT’s share of cash of unconsolidated real estate JVs	(530)		(152)
Adjusted book	$	5,574,260	$	5,397,304


	September 30, 2021		December 31, 2020		September 30, 2020
Reconciliation of debt outstanding to net debt and net debt adjusted for fully-leased development plus preferred equity
Debt outstanding (excluding net debt discounts and deferred financing costs)	$	2,208,923	$	2,127,715	$	2,247,523
Less: Cash and cash equivalents	(14,570)		(18,369)		(11,458)
Less: COPT’s share of cash of unconsolidated real estate JVs	(530)		(152)		(538)
Net debt	$	2,193,823	$	2,109,194	$	2,235,527
Preferred equity	—		—		8,800
Net debt plus preferred equity	$	2,193,823	$	2,109,194	$	2,244,327
Costs incurred on fully-leased development properties	(119,981)		(114,532)		(149,201)
Net debt adjusted for fully-leased development plus preferred equity	$	2,073,842	$	1,994,662	$	2,095,126