Prepared by MERRILL CORPORATION

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) July 26, 2001

CORPORATE OFFICE PROPERTIES TRUST
(Exact name of registrant as specified in its charter)

Maryland		0-20047		23-2947217
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification Number)

8815 Centre Park Drive, Suite 400
Columbia, Maryland 21045
(Address of principal executive offices)

(410) 730-9092
(Registrant's telephone number, including area code)

Item 7. Financial Statements and Exhibits

The information contained in the attached exhibit is unaudited and should be read in conjunction with the Registrant's annual and quarterly reports filed with the Securities and Exchange Commission.

Exhibit Number		Description
99.1		Supplemental information dated June 30, 2001 for Corporate Office Properties Trust.

Item 9. Regulation FD Disclosure

In connection with its release of earnings on July 25, 2001, the Registrant is making available certain additional information pertaining to its properties and operations as of and for the period ended June 30, 2001. This information is filed herewith as Exhibit 99.1 and is incorporated herein by reference.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: July 26, 2001

		CORPORATE OFFICE PROPERTIES TRUST
		By:	/s/ RANDALL M. GRIFFIN Name: Randall M. Griffin Title: President and Chief Operating Officer
		By:	/s/ ROGER A. WAESCHE, JR. Name: Roger A. Waesche, Jr. Title: Chief Financial Officer

Supplemental Information
(Unaudited)

June 30, 2001

Corporate Office Properties Trust
Index to Supplemental Information (Unaudited)
June 30, 2001

		Page
Highlights and Discussion
	Reporting Period Highlights—Second Quarter 2001	1
	Subsequent Events	2
Financial Statements
	Quarterly Selected Financial Summary Data	3
	Quarterly Consolidated Balance Sheets	4
	Quarterly Consolidated Statements of Operations and Funds From Operations (FFO)	5
	Quarterly Consolidated Statements of Operations and FFO per Diluted Share	6
	Quarterly Consolidated Statements of Operations and FFO as a Percentage of Total Revenues	7
Selected Financial Analyses
	Quarterly Equity Analysis	8
	Quarterly Valuation Analysis	9
	Quarterly Debt Analysis	10
	Quarterly Operating Ratios	11
	Quarterly Dividend Analysis	12
	Investor Composition and Analyst Coverage	13
	Debt Maturity Schedule—June 30, 2001	14
Portfolio Summary
	Property Summary by Region—June 30, 2001	15
	Property Occupancy Rates by Region by Quarter	18
	Top Twenty Office Tenants as of June 30, 2001	19
	Total Rental Revenue and Net Operating Income by Geographic Region by Quarter	20
	Same Office Property Cash and GAAP Net Operating Income by Quarter	21
	Office Lease Expiration Analysis by Year	22
	Year to Date and Quarterly Office Renewal Analysis	23
	Acquisition and Disposition Summary as of June 30, 2001	25
	Development Summary as of June 30, 2001	26

To Members of the Investment Community:

We prepared this supplemental information package to provide you with additional detail on our properties and operations. The information in this package is unaudited, filed with the Securities and Exchange Commission and should be read in conjunction with our quarterly and annual reports. If you have any questions or comments, please contact Ms. Sara L. Grootwassink, Vice President, Finance and Investor Relations at (410) 992-7324 or sara.grootwassink@copt.com.

Reporting Period Highlights—Second Quarter 2001

Financial Results

•: Reported FFO—diluted of $10,560,000 or $.32 per share/unit for the second quarter of 2001 as compared to $9,250,000 or $.29 per share/unit for the comparable 2000 period, representing an increase of 10.3% per share/unit. FFO—diluted increased $1,310,000, or 14.2%, over the comparable 2000 period.
•: Reported AFFO—diluted of $8,591,000 or $.26 per share/unit for the second quarter of 2001 as compared to $7,634,000 or $.24 per share/unit for the comparable 2000 period, representing an increase of 8.3% per share/unit.
•: For the six months ended June 30, 2001, reported FFO—diluted of $20,723,000 or $.63 per share/unit as compared to $18,150,000 or $.56 per share/unit for the same six month period in 2000, representing an increase of 12.5% per share/unit. Similarly, reported AFFO—diluted of $16,948,000 or $.51 per share/unit for the same six month period as compared to $15,063,000 or $.47 per share/unit, representing an increase of 8.5% per share/unit.
•: Our diluted FFO payout ratio improved to 62.4% for the second quarter of 2001 as compared to 66.0% for the comparable 2000 period. For the six months ended June 30, 2001, the diluted FFO payout ratio was 63.4% as compared to 67.4% for the comparable period in 2000.

Financing and Capital Transactions

•: In April 2001, we issued 1,150,000 Series E cumulative redeemable preferred shares with a liquidation value of $25.00 per share, raising $28,750,000 in gross proceeds. These Series E preferred shares have a 10.25% coupon and can be redeemed at par at our option subsequent to July 15, 2006. Net proceeds were primarily used to pay down our Deutsche Bank revolving credit facility.
•: We closed on three permanent loans for $73.8 million with a blended fixed interest rate of 7.13% and an average term of 7.4 years. The net proceeds were utilized to repay existing debt. Additionally, our $50.0 million line of credit with Prudential Securities Corp. expired in June and we repaid the outstanding balance of $29.1 million.
•: Our debt to market capitalization is 54.5% and our debt to undepreciated book value of real estate assets is 57.1% as of June 30, 2001. We achieved an EBITDA interest coverage ratio of 2.64x and an EBITDA fixed charge coverage ratio of 2.06x for this quarter.

Operations

•: We renewed 76.9% of our office leases (based upon square footage) with an average capital cost of $5.58 per square foot during the 2^ndquarter. We realized increases in base and total rents on a straight-line basis of 26.2% and 21.0%, respectively, as measured from the GAAP straight-line rent in effect preceding the renewal date. Base and total rent on a cash basis increased 21.0% and 16.6%, respectively, on this renewed and retenanted space.

•: Overall occupancy was 96.9% as of June 30, 2001. Occupancy rates approximated 98.0% in the Baltimore/Washington Corridor, which represents 63.4% of our office square footage and 65.1% of our total office revenues for the 2^nd quarter of 2001. We were 97.6% leased as of June 30, 2001.
•: Weighted average lease term of our office portfolio is 4.5 years as of June 30, 2001, with an average contractual rental rate (including tenant reimbursements for operating costs) of $17.61 per square foot.

Acquisition / Disposition

•: On May 14, 2001, we acquired two operating properties totaling 110,675 square feet and a 30,855 square foot redevelopment property. The two operating properties are 100% leased, primarily to State Farm Mutual, General Physics Corp. and Arbitron. Our market concentration improves to over 30% in the Columbia Gateway Business Park through our portfolio of 8 operating properties comprising 557,000 square feet.
•: On June 18, 2001, we sold 19 Commerce, a 65,277 square foot building and development opportunity located in Cranbury, New Jersey, for $11,525,000.

Development

•: In May 2001, we delivered a 43,785 square foot property located in Montpelier Research Park, Columbia, Maryland. This property is 100% leased to Johns Hopkins University and was developed through a joint venture arrangement in which we hold an 80% interest.
•: During June, we signed a ten-year lease for 29,741 square feet with Titan Systems Corporation in 201 NBP, currently under construction. This building is now 77.1% pre-leased.

Subsequent Events

•: On July 2, 2001 we paid $6.9 million to acquire the remaining 60% interest in a joint venture which owned 5 properties totaling 314,594 square feet in the BWI Airport submarket. We now directly own these 5 properties.

Note: This supplemental information contains "forward looking" statements, as defined in the Private Securities Litigation Reform Act of 1995, that are based on the Company's current expectations, estimates and projections about future events and financial trends affecting the financial condition of the business. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. These statements are not guarantees of future performance, events or results and involve potential risks and uncertainties. Accordingly, actual results may differ materially. The Company undertakes no obligations to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. For further information, please refer to the Company's filings with the Securities and Exchange Commission.

Quarterly Selected Financial Summary Data

(Dollars in thousands)

	2001						2000
	June 30			March 31			December 31			September 30			June 30
Total Revenues from Real Estate Operations	$	28,711		$	28,851		$	27,609		$	27,656		$	26,417
Net Operating Income from Real Estate Operations		20,153			20,385			19,469			19,606			18,980
EBITDA		20,471			19,490			19,298			18,559			17,772
Net Income before Preferred Dividends		5,081			3,726			4,087			3,685			3,712
Preferred Dividends		(1,613	)		(881	)		(782	)		(781	)		(1,119	)

Net Income Available to Common Shareholders	$	3,468		$	2,845		$	3,305		$	2,904		$	2,593

Funds From Operations (FFO)—Diluted	$	10,560		$	10,102		$	9,804		$	9,550		$	9,250
FFO per diluted share	$	0.32		$	0.31		$	0.31		$	0.30		$	0.29
Adjusted FFO—Diluted(A)	$	8,591		$	8,296		$	8,228		$	6,691		$	7,634
Adjusted FFO per diluted share	$	0.26		$	0.25		$	0.26		$	0.23		$	0.24
Payout Ratios:
FFO—Diluted(B)		62.43	%		64.87	%		65.67	%		67.42	%		66.02	%
AFFO—Diluted(C)		76.73	%		78.99	%		78.25	%		87.68	%		80.00	%
Total Dividends/Distributions	$	8,069		$	7,334		$	7,220		$	7,220		$	6,888

(A): For the quarter ended September 30, 2000, the Series C convertible preferred units were anti-dilutive for AFFO calculations. Thus, in computing AFFO, the quarterly dividend of $572 was included in the numerator and the related 2,421 of Series C convertible preferred units (as if already converted into common shares) were excluded from the denominator.
(B): Computed by dividing total dividends/distributions (except for dividends on Series B and Series E Cumulative Redeemable Preferred Shares which are subtracted to calculate FFO) by FFO diluted.
(C): Computed by dividing total dividends/distributions (except for dividends on Series B and Series E Cumulative Redeemable Preferred Shares which are subtracted to calculate AFFO) by AFFO diluted. In addition, for the quarter ended September 30, 2000, the quarterly Series C preferred unit dividend of $572 was excluded from the numerator.

Quarterly Consolidated Balance Sheets

(Dollars in thousands except per share data)

			2001						2000
			June 30			March 31			December 31			September 30			June 30
Assets
Investment in real estate:
	Land—operational		$	142,461		$	140,620		$	140,018		$	136,723		$	141,646
	Land—development			24,488			24,683			19,069			21,888			15,888
	Construction in progress			30,066			22,228			17,489			21,579			20,300
	Buildings and improvements			624,635			615,586			604,666			585,067			575,531
	Investment in and advances to real estate joint ventures			12,009			6,877			3,616			8,606			—
	Less: accumulated depreciation			(41,659	)		(37,652	)		(33,271	)		(29,460	)		(25,490	)

		Net investment in real estate		792,000			772,342			751,587			744,403			727,875
	Cash and cash equivalents			2,962			3,806			4,981			3,259			630
	Restricted cash			9,633			4,468			2,703			2,007			2,903
	Accounts receivable, net			4,855			5,519			3,245			3,571			3,386
	Investment in and advances to other unconsolidated entities			2,041			2,159			6,124			4,074			4,095
	Deferred rent receivable			9,804			9,335			8,644			7,882			6,010
	Deferred charges, net			16,357			15,550			12,905			12,667			10,953
	Prepaid and other assets			9,383			6,726			4,501			6,836			4,197
	Furniture, fixtures and equipment, net of accumulated depreciation			1,772			1,807			147			166			185

		Total assets	$	848,807		$	821,712		$	794,837		$	784,865		$	760,234

Liabilities and beneficiaries' equity
Liabilities:
	Mortgage loans payable		$	475,999		$	478,913		$	474,349		$	465,696		$	436,679
	Accounts payable and accrued expenses			13,361			10,889			10,227			6,435			11,245
	Rents received in advance and security deposits			4,023			4,236			3,883			5,351			4,277
	Dividends/distributions payable			7,918			7,203			7,090			7,090			6,757
	Fair value of derivatives			2,232			1,993			—			—			—
	Other liabilities			10,637			10,243			—			—			—

		Total liabilities		514,170			513,477			495,549			484,572			458,958

Minority interests:
	Preferred Units in the Operating Partnership			24,367			24,367			24,367			24,367			24,367
	Common Units in the Operating Partnership			78,900			80,467			81,069			81,402			78,720
	Other consolidated partnership			224			166			124			115			109

		Total minority interests		103,491			105,000			105,560			105,884			103,196

Commitments and contingencies										—			—			—
Beneficiaries' equity:
	Preferred Shares ($0.01 par value; 5,000,000 authorized);
		1,025,000 designated as Series A Convertible Preferred Shares of beneficial interest (1 share issued as of June 30, 2001)		—			—			—			—			10
		1,725,000 designated as Series B Cumulative Redeemable Preferred Shares of beneficial interest (1,250,000 shares issued as of June 30, 2001)		13			13			12			12			12
		544,000 designated as Series D Cumulative Redeemable Preferred Shares of beneficial interest (544,000 shares issued as of June 30, 2001)		5			5			—			—			—
		1,150,000 designated as Series E Cumulative Redeemable Preferred Shares of beneficial interest (1,150,000 shares issued as of June 30, 2001)		11			—			—			—			—
	Common Shares of beneficial interest ($0.01 par value; 45,000,000 authorized, 20,692,663 shares issued as of June 30, 2001)			208			207			206			206			187
	Treasury Shares, at cost (166,600 shares as of June 30, 2001)			(1,415	)		(1,415	)		(1,415	)		(1,415	)		(1,415	)
Additional paid-in capital				249,617			221,682			209,388			209,384			211,978
Accumulated deficit				(12,776	)		(12,222	)		(11,064	)		(10,379	)		(9,293	)
Value of unearned restricted Common Share grants				(3,042	)		(3,042	)		(3,399	)		(3,399	)		(3,399	)
Accumulated comprehensive loss				(1,475	)		(1,993	)		—			—			—

	Total beneficiaries' equity			231,146			203,235			193,728			194,409			198,080

	Total beneficiaries' equity and minority interests			334,637			308,235			299,288			300,293			301,276

	Total liabilities and beneficiaries' equity		$	848,807		$	821,712		$	794,837		$	784,865		$	760,234

Note:

Prior to January 1, 2001, other unconsolidated entities include Corporate Office Services, Inc. (COS); Corporate Office Management, Inc. (COMI); Corporate Development Services, LLC (CDS); MediTract, LLC; Corporate Management Services, LLC (CMS); Corporate Realty Management, LLC (CRM); and Martin G. Knott and Associates, LLC (MGK). Subsequent to January 1, 2001, other unconsolidated entities consist solely of Meditract, LLC and Paragon Smart Technologies, LLC.

Quarterly Consolidated Statements of Operations and Funds From Operations (FFO)

(Dollars and units in thousands)

			2001						2000
			June 30			March 31			December 31			September 30			June 30
Revenues
	Rental revenue		$	25,960		$	25,619		$	24,269		$	23,980		$	23,154
	Tenant recoveries and other revenue			2,751			3,232			3,340			3,676			3,263

		Total Revenues from Real Estate Operations		28,711			28,851			27,609			27,656			26,417
Expenses
	Property operating			3,492			3,448			3,220			3,596			3,049
	Repairs and maintenance			3,595			3,518			3,491			3,018			3,065
	Real estate taxes			1,471			1,500			1,429			1,436			1,323

		Total Property Expenses from Real Estate Operations		8,558			8,466			8,140			8,050			7,437
Net Operating Income from Real Estate Operations				20,153			20,385			19,469			19,606			18,980
	General and administrative			(1,329	)		(1,446	)		(1,040	)		(1,319	)		(1,160	)
	Equity in income of unconsol. real estate joint ventures			124			30			—			—			—
	Earnings from service companies			143			(329	)		—			—			—
	Income from real estate services			1,380			850			1,067			383			—
	Equity in (loss) income of other unconsolidated entities			—			—			(198	)		(111	)		(48	)

EBITDA				20,471			19,490			19,298			18,559			17,772
	Interest expense			(7,762	)		(8,194	)		(8,266	)		(7,850	)		(7,404	)
	Series B & E Preferred Share dividends			(1,477	)		(781	)		(782	)		(781	)		(780	)
	Amortization of deferred financing costs			(546	)		(383	)		(416	)		(349	)		(311	)
	Income tax (expense) benefit			(44	)		122			—			—			—
	Income on options assumed to be converted			—			(61	)		—			—			—
	Depreciation on unconsolidated real estate entities			70			(4	)		(4	)		(3	)		(3	)
	Minority interestholders' share of operations			(58	)		4			(9	)		(6	)		(4	)
	Depreciation of corporate FF&E			(94	)		(91	)		(17	)		(20	)		(20	)

Funds From Operations (FFO)—Diluted				10,560			10,102			9,804			9,550			9,250
	Depreciation and other amortization			(4,863	)		(4,809	)		(4,485	)		(4,275	)		(4,287	)
	Gain on property sales			416			—			50			—			57
	Loss on early extinguishment of debt			(99	)		(106	)		(2	)		(109	)		(42	)
	Cumulative effect adjustment for accounting change			—			(263	)		—			—			—
	Income on options assumed to be converted			—			61			—			—			—
	Depreciation on unconsolidated real estate entities			(70	)		4			4			3			3
	Minority interestholders' share of operations			58			(4	)		9			6			4
	Series B & E Preferred Share dividends			1,477			781			782			781			780

Income Before Minority Interests and Preferred Share dividends				7,479			5,766			6,162			5,956			5,765
Minority Interests:
	Preferred Units in Operating Partnership			(572	)		(572	)		(572	)		(572	)		(548	)
	Common Units in Operating Partnership			(1,768	)		(1,472	)		(1,494	)		(1,693	)		(1,501	)
	Other consolidated partnership			(58	)		4			(9	)		(6	)		(4	)
Preferred Share dividends				(1,613	)		(881	)		(782	)		(781	)		(1,119	)

Net Income Available to Common Shareholders			$	3,468		$	2,845		$	3,305		$	2,904		$	2,593

Funds From Operations (FFO)—Diluted			$	10,560		$	10,102		$	9,804		$	9,550		$	9,250
	Preferred Units in Operating Partnership(1)			—			—			—			(572	)		—
	Straight line rents			(816	)		(690	)		(800	)		(1,872	)		(693	)
	Non-incremental capital expenditures			(1,153	)		(1,116	)		(776	)		(415	)		(923	)

Adjusted Funds from Operations—Diluted			$	8,591		$	8,296		$	8,228		$	6,691		$	7,634

	Preferred dividends/distributions(2)			2,185			1,453			1,353			1,353			1,668
	Common dividends/distributions			5,884			5,881			5,867			5,867			5,220

Total Dividends/Distributions			$	8,069		$	7,334		$	7,220		$	7,220		$	6,888

(1): For the quarter ended September 30, 2000, the Series C convertible preferred units were anti-dilutive for AFFO calculations. Thus, in computing AFFO, the quarterly dividend of $572 was included in the numerator and the related 2,421 of Series C convertible preferred units (as if already converted into common shares) were excluded from the denominator.
(2): Includes Series B and E Cumulative Redeemable Preferred Share dividends deducted for FFO/AFFO computations.

Quarterly Consolidated Statements of Operations and FFO per Diluted Share

(Shares in thousands)

			2001						2000
			June 30			March 31			December 31			September 30			June 30
Revenues
	Rental revenue		$	0.78		$	0.78		$	0.76		$	0.75		$	0.71
	Tenant recoveries and other revenue			0.08			0.10			0.10			0.11			0.10

		Total Revenues from Real Estate Operations		0.86			0.88			0.86			0.86			0.82
Expenses
	Property operating			0.10			0.10			0.10			0.11			0.09
	Repairs and maintenance			0.11			0.11			0.11			0.09			0.09
	Real estate taxes			0.04			0.05			0.04			0.04			0.04

		Total Property Expenses from Real Estate Operations		0.26			0.26			0.25			0.25			0.23
Net Operating Income from Real Estate Operations				0.60			0.62			0.61			0.61			0.59
	General and administrative			(0.04	)		(0.04	)		(0.03	)		(0.04	)		(0.04	)
	Equity in income of unconsol. real estate joint ventures			0.00			0.00			—			—			—
	Earnings from service companies			0.00			(0.01	)		—			—			—
	Income from real estate services			0.04			0.03			0.03			0.01			—
	Equity in (loss) income of other unconsolidated entities			—			—			(0.01	)		(0.00	)		(0.00	)

EBITDA				0.61			0.59			0.60			0.58			0.55
	Interest expense			(0.23	)		(0.25	)		(0.26	)		(0.25	)		(0.23	)
	Series B & E Preferred Share dividends			(0.04	)		(0.02	)		(0.02	)		(0.02	)		(0.02	)
	Amortization of deferred financing costs			(0.02	)		(0.01	)		(0.01	)		(0.01	)		(0.01	)
	Income tax (expense) benefit			(0.00	)		0.00			—			—			—
	Income on options assumed to be converted			—			(0.00	)		—			—			—
	Depreciation on unconsolidated real estate entities			0.00			(0.00	)		(0.00	)		(0.00	)		(0.00	)
	Minority interestholders' share of operations			(0.00	)		0.00			(0.00	)		(0.00	)		(0.00	)
	Depreciation of corporate FF&E			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)

Funds From Operations (FFO)—Diluted				0.32			0.31			0.31			0.30			0.29
	Depreciation and other amortization			(0.15	)		(0.15	)		(0.14	)		(0.13	)		(0.13	)
	Gain on property sales			0.01			—			0.00			—			0.00
	Loss on early extinguishment of debt			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
	Cumulative effect adjustment for accounting change			—			(0.01	)		—			—			—
	Income on options assumed to be converted			—			0.00			—			—			—
	Depreciation on unconsolidated real estate entities			(0.00	)		0.00			0.00			0.00			0.00
	Minority interestholders' share of operations			0.00			(0.00	)		0.00			0.00			0.00
	Series B & E Preferred Share dividends			0.04			0.02			0.02			0.02			0.02

Income Before Minority Interests and Preferred Share dividends				0.22			0.18			0.19			0.19			0.18
Minority Interests:
	Preferred Units in Operating Partnership			(0.02	)		(0.02	)		(0.02	)		(0.02	)		(0.02	)
	Common Units in Operating Partnership			(0.05	)		(0.04	)		(0.05	)		(0.05	)		(0.05	)
	Other consolidated partnership			(0.00	)		0.00			(0.00	)		(0.00	)		(0.00	)
Preferred Share dividends				(0.05	)		(0.03	)		(0.02	)		(0.02	)		(0.03	)

Net Income Available to Common Shareholders			$	0.10		$	0.09		$	0.10		$	0.09		$	0.08

Funds From Operations (FFO)—Diluted			$	0.32		$	0.31		$	0.31		$	0.30		$	0.29
	Preferred Units in Operating Partnership			—			—			—			(0.02	)		—
	Straight line rents			(0.02	)		(0.02	)		(0.02	)		(0.06	)		(0.02	)
	Non-incremental capital expenditures			(0.03	)		(0.03	)		(0.02	)		(0.01	)		(0.03	)

	Adjusted Funds from Operations—Diluted		$	0.26		$	0.25		$	0.26		$	0.23		$	0.24

For FFO Computations:
Weighted Average Converted Preferred Shares/Units				3,618			3,299			2,421			2,421			4,642
Weighted Average Common Shares/Units Outstanding				29,746			29,643			29,611			29,561			27,750

Weighted Average Diluted Shares Outstanding				33,364			32,942			32,032			31,982			32,393

For AFFO Computations:
Weighted Average Converted Preferred Shares/Units				3,618			3,299			2,421			—			4,642
Weighted Average Common Shares/Units Outstanding				29,746			29,643			29,611			29,561			27,750

Weighted Average Diluted Shares Outstanding				33,364			32,942			32,032			29,561			32,393

Quarterly Consolidated Statements of Operations and FFO as a Percentage of Total Revenues

			2001				2000
			June 30		March 31		December 31		September 30		June 30
Revenues
	Rental revenue		90	%	89	%	88	%	87	%	88	%
	Tenant recoveries and other revenue		10	%	11	%	12	%	13	%	12	%

		Total Revenues from Real Estate Operations	100	%	100	%	100	%	100	%	100	%
Expenses
	Property operating		12	%	12	%	12	%	13	%	12	%
	Repairs and maintenance		13	%	12	%	13	%	11	%	12	%
	Real estate taxes		5	%	5	%	5	%	5	%	5	%

		Total Property Expenses from Real Estate Operations	30	%	29	%	29	%	29	%	28	%
Net Operating Income from Real Estate Operations			70	%	71	%	71	%	71	%	72	%
	General and administrative		(5	)%	(5	)%	(4	)%	(5	)%	(4	)%
	Equity in income of unconsol. real estate joint ventures		0	%	0	%	0	%	0	%	0	%
	Earnings from service companies		0	%	(1	)%	0	%	0	%	0	%
	Income from real estate services		5	%	3	%	4	%	1	%	0	%
	Equity in (loss) income of other unconsolidated entities		0	%	0	%	(1	)%	(0	)%	(0	)%

EBITDA			71	%	68	%	70	%	67	%	67	%
	Interest expense		(27	)%	(28	)%	(30	)%	(28	)%	(28	)%
	Series B & E Preferred Share dividends		(5	)%	(3	)%	(3	)%	(3	)%	(3	)%
	Amortization of deferred financing costs		(2	)%	(1	)%	(2	)%	(1	)%	(1	)%
	Income tax (expense) benefit		(0	)%	0	%	0	%	0	%	0	%
	Income on options assumed to be converted		0	%	(0	)%	0	%	0	%	0	%
	Depreciation on unconsolidated real estate entities		0	%	(0	)%	(0	)%	(0	)%	(0	)%
	Minority interestholders' share of operations		(0	)%	0	%	(0	)%	(0	)%	(0	)%
	Depreciation of corporate FF&E		(0	)%	(0	)%	(0	)%	(0	)%	(0	)%

Funds From Operations (FFO)—Diluted			37	%	35	%	36	%	35	%	35	%
	Depreciation and other amortization		(17	)%	(17	)%	(16	)%	(15	)%	(16	)%
	Gain on property sales		1	%	0	%	0	%	0	%	0	%
	Loss on early extinguishment of debt		(0	)%	(0	)%	(0	)%	(0	)%	(0	)%
	Cumulative effect adjustment for accounting change		0	%	(1	)%	0	%	0	%	0	%
	Income on options assumed to be converted		0	%	0	%	0	%	0	%	0	%
	Depreciation on unconsolidated real estate entities		(0	)%	0	%	0	%	0	%	0	%
	Minority interestholders' share of operations		0	%	(0	)%	0	%	0	%	0	%
	Series B & E Preferred Share dividends		5	%	3	%	3	%	3	%	3	%

Income Before Minority Interests and Preferred Share dividends			26	%	20	%	22	%	22	%	22	%
Minority Interests:
	Preferred Units in Operating Partnership		(2	)%	(2	)%	(2	)%	(2	)%	(2	)%
	Common Units in Operating Partnership		(6	)%	(5	)%	(5	)%	(6	)%	(6	)%
	Other consolidated partnership		(0	)%	0	%	(0	)%	(0	)%	(0	)%
Preferred Share dividends			(6	)%	(3	)%	(3	)%	(3	)%	(4	)%

Net Income Available to Common Shareholders			12	%	10	%	12	%	11	%	10	%

Funds From Operations (FFO)—Diluted			37	%	35	%	36	%	35	%	35	%
	Preferred Units in Operating Partnership		0	%	0	%	0	%	(2	)%	0	%
	Straight line rents		(3	)%	(2	)%	(3	)%	(7	)%	(3	)%
	Non-incremental capital expenditures		(4	)%	(4	)%	(3	)%	(2	)%	(3	)%

Adjusted Funds from Operations—Diluted			30	%	29	%	30	%	24	%	29	%

Quarterly Equity Analysis

(Amounts in thousands, except per share data, share prices and ratios)

		2001						2000
		June 30			March 31			December 31			September 30			June 30
Common Equity—End of Quarter
	Common Shares(1)		20,526			20,429			20,409			20,407			18,544
	Common Units		9,307			9,388			9,388			9,388			9,388

	Total		29,833			29,817			29,797			29,795			27,932

Convertible Preferred Equity—End of Quarter
	Convertible Series A Preferred Shares Outstanding(2)		0			0			0			0			984
	Conversion Ratio		1.8748			1.8748			1.8748			1.8748			1.8748
	Common Shares Issued Assuming Conversion		0			0			0			0			1,845
	Preferred Share Liquidation Preference	$	25.00		$	25.00		$	25.00		$	25.00		$	25.00
	Convertible Series D Preferred Shares Outstanding(3)		544			544			n/a			n/a			n/a
	Conversion Ratio		2.2000			2.2000			n/a			n/a			n/a
	Common Shares Issued Assuming Conversion		1,197			1,197			n/a			n/a			n/a
	Preferred Share Liquidation Preference	$	25.00		$	25.00			n/a			n/a			n/a
	Convertible Series C Preferred Units Outstanding(4)		1,017			1,017			1,017			1,017			975
	Conversion Ratio		2.3810			2.3810			2.3810			2.3810			2.3810
	Common Units Issued Assuming Conversion		2,421			2,421			2,421			2,421			2,321
	Preferred Share Liquidation Preference	$	25.00		$	25.00		$	25.00		$	25.00		$	25.00
Perpetual Preferred Equity—End of Quarter
	Redeemable Series B Shares Outstanding		1,250			1,250			1,250			1,250			1,250
	Preferred Share Liquidation Preference	$	25.00		$	25.00		$	25.00		$	25.00		$	25.00
	Redeemable Series E Shares Outstanding(5)		1,150			n/a			n/a			n/a			n/a
	Preferred Share Liquidation Preference	$	25.00			n/a			n/a			n/a			n/a
Weighted Average Shares:
	Weighted Average Common Shares Outstanding		20,077			19,982			19,947			19,934			18,014
	Weighted Average Preferred Shares Outstanding Assuming Conversion		1,197			878			—			—			1,845
	Weighted Average Dilutive Options		334			273			276			239			180
	Weighted Average Dilutive Warrants(4)		—			—			—			—			476
	Weighted Average Common Units		9,335			9,388			9,388			9,388			9,556
	Weighted Average Preferred Units Assuming Conversion		2,421			2,421			2,421			2,421			2,321

Weighted Avg. Shares/Units Outstanding Assuming Conversion of Preferred Shares/Units			33,364			32,942			32,032			31,982			32,393

Common Shares Trading Volume
	Average Daily Volume (Shares)		24			21			13			20			22
	Average Daily Volume (Dollars in thousands)	$	237.66		$	198.00		$	122.20		$	188.38		$	187.74
	As a Percentage of Common Shares		0.1	%		0.1	%		0.1	%		0.1	%		0.1	%
Common Share Price Range
	Quarterly High	$	10.60		$	9.98		$	10.00		$	10.13		$	9.25
	Quarterly Low	$	9.36		$	9.03		$	8.94		$	8.75		$	8.00
	Quarterly Average	$	10.10		$	9.59		$	9.63		$	9.39		$	8.72
	End of Quarter	$	10.00		$	9.51		$	9.94		$	9.94		$	9.19
Capitalization
	Liquidation Value of Preferred Shares/Units	$	99,017		$	70,267		$	56,667		$	56,667		$	80,224
	Market Value of Common Shares/Units		298,330			283,560			296,106			296,088			256,625

	Total Equity Market Capitalization	$	397,347		$	353,826		$	352,773		$	352,754		$	336,850

	Total Debt	$	475,999		$	478,913		$	474,349		$	465,696		$	436,679

	Total Market Capitalization	$	873,346		$	832,739		$	827,122		$	818,450		$	773,529

Debt to Total Market Capitalization			54.5	%		57.5	%		57.3	%		56.9	%		56.5	%
Debt to Undepreciated Book Value of Real Estate Assets			57.1	%		59.1	%		60.4	%		60.0	%		58.0	%

(1): Net of 166,600 treasury shares as of June 30, 2001.
(2): On September 28, 2000, all Convertible Series A preferred shares except for 1 share were converted into common shares.
(3): We issued 544,000 Convertible Series D preferred shares on January 25, 2001.
(4): Eliminated a warrant to acquire a maximum of 476,200 common units in exchange for the issuance of 42,000 Series C convertible preferred units in July 2000.
(5): We issued 1,150,000 Cumulative Redeemable Series E preferred shares on April 6, 2001.

Quarterly Valuation Analysis

(Dollars in thousands except per share data and ratios)

	2001						2000
	June 30			March 31			December 31			September 30			June 30
PRICING MULTIPLES
NOI Multiple (Market value of Common Equity + Avg. Preferred Share/Units+ Avg. Total Debt) / Ann. NOI		10.82x			10.17x			10.54x			10.25x			10.10x
EBITDA Multiple (Market value of Common Equity + Avg. Preferred Share/Units + Avg. Total Debt) / Ann. EBITDA		10.66x			10.64x			10.63x			10.83x			10.79x
FFO Multiple (Quarter End Common Share Price / Ann. FFO—diluted)		7.90x			7.75x			8.12x			8.32x			8.04x
AFFO Multiple (Quarter End Common Share Price / Ann. AFFO—diluted)		9.71x			9.44x			9.67x			10.98x			9.75x
NOI Yield (Ann. NOI / (Market value of Common Equity + Avg. Preferred Share/Units + Avg. Debt))		9.24	%		9.83	%		9.49	%		9.76	%		9.90	%
EBITDA Yield (Ann. EBITDA / (Market value of Common Equity + Avg. Preferred Share/Units + Avg. Debt))		9.38	%		9.40	%		9.41	%		9.24	%		9.27	%
FFO Yield (Ann. FFO / Quarter End Common Share Price)		12.66	%		12.90	%		12.32	%		12.02	%		12.43	%
AFFO Yield (Ann. AFFO / Quarter End Common Share Price)		10.30	%		10.59	%		10.34	%		9.11	%		10.26	%
Total Market Capitalization Per Square Foot ((Market Value of Common Stock + Preferred Share/Units + Total Debt) / GLA)(1)	$	129.22		$	124.70		$	127.79		$	128.86		$	121.76
RETURNS
Yield on Real Estate Owned—NOI (Ann. NOI / Avg. Adjusted Gross Real Estate Investment)(2)		10.54	%		10.85	%		10.58	%		10.86	%		10.86	%
Yield on Real Estate Owned—EBITDA (Ann. EBITDA / Avg. Adjusted Gross Real Estate Investment)(2)		10.71	%		10.37	%		10.49	%		10.28	%		10.17	%
Return on Book Value of Average Equity & Minority Interest (Ann. EBTDA / Avg. Equity & Minority Interest)		15.82	%		14.87	%		14.72	%		14.24	%		13.69	%

(1): Excludes square footage of assets under development, under construction or held in a joint venture.
(2): Excludes land-development, construction in progress and investment in development real estate joint ventures as these assets are not yet income generating.

Quarterly Debt Analysis

(Dollars in thousands)

		2001						2000
		June 30			March 31			December 31			September 30			June 30
Debt Outstanding
	Mortgage Loans	$	409,670		$	356,872		$	329,955		$	338,063		$	313,325
	Construction Loans		13,099			18,950			33,058			25,586			38,669
	Revolving Credit Facility		—			29,091			29,091			4,761			—
	Secured Revolving Credit Facility		53,230			74,000			82,245			97,285			84,685

		$	475,999		$	478,913		$	474,349		$	465,695		$	436,679

Average Outstanding Balance
	Mortgage Loans	$	377,222		$	344,023		$	325,971		$	319,745		$	318,249
	Construction Loans		10,436			26,967			28,277			37,700			34,145
	Revolving Credit Facility		28,445			29,091			22,545			2,381			—
	Secured Revolving Credit Facility		59,123			75,507			90,910			91,239			77,794

		$	475,226		$	475,588		$	467,703		$	451,065		$	430,188

Interest Rate Structure
	Fixed	$	305,431		$	240,501		$	201,715		$	305,614		$	277,575
	Variable		—			13,412			147,634			60,081			109,104
	Variable Subject to Interest Rate Protection(1—4)		170,568			225,000			125,000			100,000			50,000

		$	475,999		$	478,913		$	474,349		$	465,695		$	436,679

	% of Fixed Rate Loans(A)		64.17	%		50.22	%		42.52	%		65.63	%		63.56	%
	% of Variable Rate Loans		35.83	%		49.78	%		57.48	%		34.37	%		36.44	%

			100.00	%		100.00	%		100.00	%		100.00	%		100.00	%

(A) Excludes interest rate protection agreements.
Average Interests Rates
	Mortgage & Construction Loans		7.31	%		7.44	%		7.84	%		7.62	%		7.52	%
	Revolving Credit Facility		6.71	%		7.31	%		8.17	%		8.12	%		n/a
	Secured Revolving Credit Facility		6.93	%		7.85	%		8.38	%		8.33	%		8.11	%
	Total Weighted Average		7.22	%		7.50	%		7.96	%		7.64	%		7.58	%
Debt Ratios
Debt to Total Market Capitalization			54.5	%		57.5	%		57.3	%		56.9	%		56.5	%
Debt to Undepreciated Book Value of Real Estate Assets			57.1	%		59.1	%		60.4	%		60.0	%		58.0	%
Coverage Ratios (excluding capitalized interest)
Interest Coverage—NOI (NOI / Interest)			2.60	x		2.49	x		2.36	x		2.50	x		2.56	x
Interest Coverage—EBITDA (EBITDA / Interest)			2.64	x		2.38	x		2.33	x		2.36	x		2.40	x
Interest Coverage—EBITDA—YTD (EBITDA / Interest—Year-to-date)			2.50	x		2.38	x		2.38	x		2.40	x		2.42	x
Debt Service Coverage—NOI (NOI / (Interest + Principal Amortization))			2.28	x		2.23	x		2.09	x		2.23	x		2.32	x
Debt Service Coverage—EBITDA (EBITDA / (Interest + Principal Amortization))			2.32	x		2.13	x		2.07	x		2.11	x		2.17	x
Fixed Charge Coverage—NOI (NOI / (Interest + Preferred Distribution))			2.03	x		2.11	x		2.02	x		2.13	x		2.09	x
Fixed Charge Coverage—EBITDA (EBITDA / (Interest + Preferred Distribution))			2.06	x		2.02	x		2.01	x		2.02	x		1.96	x

(1): We purchased a $50 million 2-year cap on LIBOR at a rate of 7.7% which expires May 31, 2002.
(2): We purchased a $50 million 1-year cap on LIBOR at a rate of 7.0% which expires October 13, 2001.
(3): We purchased a $25 million 1-year cap on LIBOR at a rate of 7.0% which expires October 13, 2001.
(4): We executed a $100 million notional amount swap exchanging 30-day floating LIBOR for LIBOR of 5.76% over a two-year period which expires January 2, 2003.

Quarterly Operating Ratios

(Dollars in thousands except per share data and ratios)

		2001						2000
		June 30			March 31			December 31			September 30			June 30
OPERATING RATIOS
NOI as a % of Real Estate Revenues
	(NOI / (Rental Revenue + Oper. Expense Reimb.))		70.19	%		70.66	%		70.52	%		70.89	%		71.85	%
EBITDA as a % of Real Estate Revenues
	(EBITDA / (Rental Revenue + Oper. Expense Reimb.))		71.30	%		67.55	%		69.90	%		67.11	%		67.27	%
G&A as a % of Real Estate Revenues
	(G&A / (Rental Revenue + Oper. Expense Reimb.))		4.63	%		5.01	%		3.77	%		4.77	%		4.39	%
G&A as a % of EBITDA
	(G&A / EBITDA)		6.49	%		7.42	%		5.39	%		7.11	%		6.53	%
	Quarter end occupancy for operating portfolio		96.92	%		96.95	%		97.03	%		97.33	%		96.66	%
	Quarter end % leased for operating portfolio		97.60	%		98.39	%		98.17	%		98.30	%		98.40	%
	Non-Incremental Capital Expenditures	$	1,153		$	1,116		$	776		$	415		$	923
	Non-Incremental Capital Expenditures per average square feet	$	0.36		$	0.34		$	0.12		$	0.07		$	0.15
	Non-Incremental Capital Expenditures per Diluted Share	$	0.03		$	0.03		$	0.02		$	0.01		$	0.03
	Non-Incremental Capital Expenditures as a % of NOI		5.72	%		5.47	%		3.99	%		2.12	%		4.86	%

Quarterly Dividend Analysis

		2001						2000
		June 30			March 31			December 31			September 30			June 30
Common Share Dividends
	Dividends per share/unit	$	0.20		$	0.20		$	0.20		$	0.20		$	0.19
	Increase over prior quarter		0.0	%		0.0	%		0.0	%		5.3	%		0.0	%
	Increase over prior year		5.3	%		5.3	%		5.3	%		5.3	%		5.6	%
Common Dividend Payout Ratios
	Payout—FFO—Diluted ((Dividend + Distributions)/FFO)		62.4	%		64.9	%		65.7	%		67.4	%		66.0	%
	Payout—AFFO—Diluted (Dividend /FAD)		76.7	%		79.0	%		78.3	%		87.7	%		80.0	%
	Dividend Coverage—FFO—Diluted (FFO /dividends)		1.60x			1.54x			1.52x			1.48x			1.51x
	Dividend Coverage—AFFO—Diluted (AFFO /dividends)		1.30x			1.27x			1.28x			1.14x			1.25x
Common Dividend Yields
	Dividend Yield		8.00	%		8.41	%		8.05	%		8.05	%		8.27	%
Series C Preferred Unit Distributions
	Preferred Unit Distributions Per Share	$	0.5625		$	0.5625		$	0.5625		$	0.5625		$	0.5625
	Preferred Unit Distributions Yield		9.00	%		9.00	%		9.00	%		9.00	%		9.00	%
	Quarter End Liquidation Preference	$	25.00		$	25.00		$	25.00		$	25.00		$	25.00
Series A Preferred Share Dividends
	Preferred Share Dividends Per Share	$	0.34375		$	0.34375		$	0.34375		$	0.34375		$	0.34375
	Preferred Share Dividend Yield		5.50	%		5.50	%		5.50	%		5.50	%		5.50	%
	Quarter End Liquidation Preference	$	25.00		$	25.00		$	25.00		$	25.00		$	25.00
Series B Preferred Share Dividends
	Preferred Share Dividends Per Share	$	0.6250		$	0.6250		$	0.6250		$	0.6250		$	0.6250
	Preferred Share Dividend Yield		10.00	%		10.00	%		10.00	%		10.00	%		10.00	%
	Quarter End Liquidation Preference	$	25.00		$	25.00		$	25.00		$	25.00		$	25.00
Series D Preferred Share Dividends(1)
	Preferred Share Dividends Per Share	$	0.2500		$	0.2500			n/a			n/a			n/a
	Preferred Share Dividend Yield		4.00	%		4.00	%		n/a			n/a			n/a
	Quarter End Liquidation Preference	$	25.00		$	25.00			n/a			n/a			n/a
Series E Preferred Share Dividends(2)
	Preferred Share Dividends Per Share	$	0.6406			n/a			n/a			n/a			n/a
	Preferred Share Dividend Yield		10.25	%		n/a			n/a			n/a			n/a
	Quarter End Liquidation Preference	$	25.00			n/a			n/a			n/a			n/a

(1): We issued 544,000 of Series D Convertible Preferred Shares on January 25, 2001. Dividend was prorated based upon the number of days outstanding from date of issuance through quarter end. Prorated dividend was $.1833 per share.
(2): We issued 1,150,000 of Series E Cumulative Redeemable Preferred Shares on April 6, 2001. Dividend was prorated based upon the number of days outstanding from date of issuance through quarter end. Prorated dividend was $.6050 per share.

Investor Composition and Analyst Coverage
(as of June 30, 2001)

SHAREHOLDER CLASSIFICATION	Common Shares	Common Units	As if Converted Preferred Shares / Units	Total	Fully Diluted Ownership % of Total
Constellation Real Estate, Inc.	8,876,171	—	2	8,876,173	26.54	%
Insiders	1,123,628	7,837,937	—	8,961,565	26.79	%
Institutional Ownership	3,456,876	—	—	3,456,876	10.33	%
Other / Retail	7,069,388	1,469,080	3,617,472	12,155,940	36.34	%

	20,526,063	9,307,017	3,617,474	33,450,554	100.00	%

RESEARCH COVERAGE	June 30, 2001	March 31, 2001	December 31, 2000	September 30, 2000	June 30, 2000
A. G. Edwards	x	x	x	x
Credit Suisse First Boston	x	x	x	x	x
Deutsche Banc Alex. Brown	x	x	x
Ferris, Baker Watts, Incorporated	x	x
Janney Montgomery Scott	x	x	x	x	x
Johnston, Lemon					x
Legg Mason Wood Walker, Inc.	x	x	x	x	x
McDonald Investments	x	x	x	x	x
Prudential Securities Incorporated				x	x
Tucker Anthony Cleary Gull					x

Source: Institutional ownership was obtained from filed Forms 13(f) as of March 31, 2001 per Vickers Stock Research Corporation.

Debt Maturity Schedule—June 30, 2001
(Dollars in thousands)

		Mortgages				Construction Loans(1)
Year of Maturity		Monthly Amortization		Due on Maturity		Monthly Amortization		Due on Maturity(2)		Term Credit Facility(3)		$125,000 Secured Revolving Credit Facility		Total Scheduled Payments
	2001		2,519		—		—		2,000		—		—		4,519
	2002		5,530		—		158		—		90,954		—		96,642
	2003		5,676		12,719		181		5,780		—		—		24,356
	2004		5,800		25,762		—		4,980		—		53,230		89,772
	2005		5,848		16,368		—		—		—		—		22,216
	2006		5,661		59,975		—		—		—		—		65,636
	2007		4,669		6,142		—		—		—		—		10,811
	2008		3,062		142,879		—		—		—		—		145,941
	2009		273		15,833		—		—		—		—		16,106

		$	39,038	$	279,678	$	339	$	12,760	$	90,954	$	53,230	$	475,999

Notes:

(1): The construction loan balances as of June 30 represent the outstanding balances as of that date.
(2): We have the right to extend construction loans of $6,018 and $5,081, for a one-year period subject to certain conditions, upon maturity in 2002 and 2003, respectively. The above table reflects the maturities in 2003 and 2004, respectively, as if the loans had been extended.
(3): The Term Credit Facility was extended through October 13, 2001. We have the right to extend for another one-year period, subject to certain conditions. This loan has been presented as maturing in October 2002 in the above table.

We have obtained interest rate protection agreements as follows:

$50 million cap on thirty-day LIBOR at 7.7% expiring in May 2002.
$50 million cap on thirty-day LIBOR at 7.0% expiring in October 2001.
$25 million cap on thirty-day LIBOR at 7.0% expiring in October 2001.
$100 million notional amount swap of thirty-day LIBOR at 5.76% expiring in January 2003.

Property Summary by Region—June 30, 2001

	Operating Property Count	Owned or Joint Venture (JV)	Submarket	State	Year Built or Renovated	Single Story (S) or Multi-story (M)	Rentable Square Feet	Anticipated Rentable Square Feet Development
Office Properties
Baltimore /Washington Corridor
131 National Business Parkway	1	Owned	BWI Airport	MD	1990	M	68,906
132 National Business Parkway	2	Owned	BWI Airport	MD	2000	M	117,568
133 National Business Parkway	3	Owned	BWI Airport	MD	1997	M	88,666
134 National Business Parkway	4	Owned	BWI Airport	MD	1999	M	93,482
135 National Business Parkway	5	Owned	BWI Airport	MD	1998	M	86,863
141 National Business Parkway	6	Owned	BWI Airport	MD	1990	M	86,964
2721 Phoenix Road (221 NBP)	7	Owned	BWI Airport	MD	2000	M	117,890
2701 Phoenix Road (201 NBP)		JV	BWI Airport	MD		M		118,000
2711 Phoenix Road (211 NBP)		JV	BWI Airport	MD		M		150,000
1099 Winterson Road	8	Owned	BWI Airport	MD	1988	M	70,938
1190 Winterson Road	9	Owned	BWI Airport	MD	1987	M	68,567
1199 Winterson Road	10	Owned	BWI Airport	MD	1988	M	96,636
1201 Winterson Road	11	Owned	BWI Airport	MD	1985	M	67,903
1331 Ashton Road	12	Owned	BWI Airport	MD	1989	S	29,936
1334 Ashton Road	13	Owned	BWI Airport	MD	1989	S	37,565
1340 Ashton Road	14	Owned	BWI Airport	MD	1989	S	46,400
1341 Ashton Road	15	Owned	BWI Airport	MD	1989	S	15,841
1343 Ashton Road	16	Owned	BWI Airport	MD	1989	S	9,962
1344 Ashton Road	17	Owned	BWI Airport	MD	1989	M	16,865
1350 Dorsey Road	18	Owned	BWI Airport	MD	1989	S	19,992
2730 Hercules Road	19	Owned	BWI Airport	MD	1990	M	240,336
7240 Parkway Drive	20	Owned	BWI Airport	MD	1985	M	73,500
7318 Parkway Drive	21	Owned	BWI Airport	MD	1984	S	59,204
7321 Parkway Drive	22	Owned	BWI Airport	MD	1984	S	39,822
7467 Ridge Road	23	Owned	BWI Airport	MD	1990	M	73,756
800 International Drive	24	Owned	BWI Airport	MD	1988	S	50,979
849 International Drive	25	Owned	BWI Airport	MD	1988	M	68,186
881 Elkridge Landing Road	26	Owned	BWI Airport	MD	1986	M	73,572
891 Elkridge Landing Road	27	JV	BWI Airport	MD	2001	M	56,489
900 Elkridge Landing Road	28	Owned	BWI Airport	MD	1982	M	97,139
900 International Drive	29	Owned	BWI Airport	MD	1986	S	57,140
901 Elkridge Landing Road	30	JV	BWI Airport	MD	2001	M	56,847
911 Elkridge Landing Road	31	Owned	BWI Airport	MD	1985	M	68,296
920 Elkridge Landing Road	32	JV	BWI Airport	MD	2001	M	96,566
921 Elkridge Landing Road	33	Owned	BWI Airport	MD	1983	M	54,057
930 International Drive	34	Owned	BWI Airport	MD	1986	S	57,140
938 Elkridge Landing Road	35	JV	BWI Airport	MD	2001	M	52,988
939 Elkridge Landing Road	36	Owned	BWI Airport	MD	1983	M	53,031
940 Elkridge Landing Road	37	JV	BWI Airport	MD	2001	M	51,704
999 Corporate Boulevard	38	Owned	BWI Airport	MD	2000	M	67,351
1302 Concourse Drive	39	Owned	BWI Airport	MD	1996	M	84,607
1304 Concourse Drive		Owned	BWI Airport	MD		M		100,000
1306 Concourse Drive	40	Owned	BWI Airport	MD	1990	M	114,046
1615 and 1629 Thames Street	41	Owned	Baltimore City	MD	1989	M	103,683
9690 Deereco Road	42	Owned	North Baltimore County	MD	1988	M	133,737
375 West Padonia Road	43	Owned	North Baltimore County	MD	1986	M	100,804
9140 Route 108	44	Owned	Howard County Perimeter	MD	1974/1985	S	150,000

6700 Alexander Bell Drive

Owned

Howard County Perimeter

1988

75,635

6708 Alexander Bell Drive

Owned

Howard County Perimeter

1988

35,040

6716 Alexander Bell Drive

Owned

Howard County Perimeter

1990

52,002

6724 Alexander Bell Drive

Owned

Howard County Perimeter

30,855

6740 Alexander Bell Drive

Owned

Howard County Perimeter

1992

61,878

6750 Alexander Bell Drive

Owned

Howard County Perimeter

2001

78,460

6760 Alexander Bell Drive

Owned

Howard County Perimeter

1991

37,248

6940 Columbia Gateway Drive

Owned

Howard County Perimeter

1999

108,737

6950 Columbia Gateway Drive

Owned

Howard County Perimeter

1998

107,778

6731 Columbia Gateway Drive

Owned

Howard County Perimeter

122,889

Montpelier Research Phase I

Howard County Perimeter

2001

43,785

Robert Fulton Drive—Phase I

Howard County Perimeter

144,350

7200 Riverwood Drive

Owned

Howard County Perimeter

1986

160,000

8815 Centre Park Drive

Owned

Howard County Perimeter

1987

53,782

14502 Greenview Drive

Owned

Laurel

1988

71,873

14504 Greenview Drive

Owned

Laurel

1985

69,194

4260 Forbes Boulevard

Lanham

54,692

6009-6011 Oxon Hill Road

Owned

Southern Prince George's County

1990

181,768

Total Baltimore / Washington Corridor:

4,413,104

720,786

Greater Philadelphia

751 Jolly Road

Owned

Blue Bell

1966/1991

112,958

753 Jolly Road

Owned

Blue Bell

1960/1992-94

419,472

760 Jolly Road

Owned

Blue Bell

1974/1994

208,854

785 Jolly Road

Owned

Blue Bell

1970/1996

219,065

Total Greater Philadelphia:

960,349

—

Greater Harrisburg

2601 Market Place

Owned

East Shore

1989

67,743

2605 Interstate Drive

Owned

East Shore

1990

84,404

6375 Flank Drive

Owned

East Shore

2000

19,783

6385 Flank Drive

Owned

East Shore

1995

32,800

75 Shannon Road

Owned

East Shore

1999

20,887

85 Shannon Road

Owned

East Shore

1999

12,863

95 Shannon Road

Owned

East Shore

1999

21,976

6340 Flank Drive

Owned

East Shore

1988

68,200

6345 Flank Drive

Owned

East Shore

1989

69,443

6360 Flank Drive

Owned

East Shore

1988

46,500

6380 Flank Drive

Owned

East Shore

1991

32,000

6400 Flank Drive

Owned

East Shore

1992

52,439

6405 Flank Drive

Owned

East Shore

1991

32,000

5035 Ritter Road

Owned

West Shore

1988

56,556

5070 Ritter Road—Building A

Owned

West Shore

1989

32,309

5070 Ritter Road—Building B

Owned

West Shore

1989

28,000

Total Greater Harrisburg:

677,903

—

Northern/Central New Jersey

101 Interchange Plaza

Owned

Exit 8A—Cranbury

1985

43,621

104 Interchange Plaza

Owned

Exit 8A—Cranbury

1990

47,677

2 Centre Drive

Owned

Exit 8A—Cranbury

1989

16,132

429 Ridge Road

Owned

Exit 8A—Cranbury

1966/1996

142,385

431 Ridge Road

Owned

Exit 8A—Cranbury

1958/1998

170,000

437 Ridge Road

Owned

Exit 8A—Cranbury

1962/1996

30,000

47 Commerce

Owned

Exit 8A—Cranbury

1992/1998

41,398

7 Centre Drive

Owned

Exit 8A—Cranbury

1989

19,466

8 Centre Drive

Owned

Exit 8A—Cranbury

1986

16,199

68 Culver Road

Owned

Exit 8A—Cranbury

2000

57,280

4301 Route 1

Owned

Monmouth Junction

1986

61,300

695 Route 46

Owned

Wayne

1990

157,394

710 Route 46

Owned

Wayne

1985

102,002

—

Total Northern / Central New Jersey:

904,854

—

TOTAL OFFICE PROPERTIES

6,956,210

720,786

Retail Properties

114 National Business Parkway

Owned

BWI Airport

—

10,000

# of Operating Buildings:

TOTAL RETAIL PROPERTIES

—

10,000

TOTAL PORTFOLIO

# of Operating Buildings:

6,956,210

730,786

Property Occupancy Rates by Region by Quarter

	Office
	Greater Philadelphia		Baltimore/ Washington Corridor		Northern/ Central New Jersey		Greater Harrisburg		Total Office		Retail		Total Portfolio
June 30, 2001
Number of Buildings	4		58		13		16		91		—		91
Rentable Square Feet	960,349		4,413,104		904,854		677,903		6,956,210		—		6,956,210
Percent Occupied	100.00	%	97.96	%	94.19	%	89.41	%	96.92	%	0	%	96.92	%
March 31, 2001
Number of Buildings	4		55		14		16		89		—		89
Rentable Square Feet	960,349		4,258,610		970,048		677,458		6,866,465		—		6,866,465
Percent Occupied	100.00	%	97.76	%	94.03	%	91.75	%	96.95	%	0	%	96.95	%
December 31, 2000
Number of Buildings	4		49		14		16		83		—		83
Rentable Square Feet	960,349		3,864,766		970,048		677,468		6,472,631		—		6,472,631
Percent Occupied	100.00	%	97.84	%	93.07	%	93.86	%	97.03	%	0	%	97.03	%
September 30, 2000
Number of Buildings	4		47		15		15		81		1		82
Rentable Square Feet	960,349		3,594,058		990,385		657,685		6,202,477		149,191		6,351,668
Percent Occupied	100.00	%	97.79	%	96.08	%	92.82	%	97.33	%	97.04	%	97.33	%
June 30, 2000
Number of Buildings	4		47		15		15		81		1		82
Rentable Square Feet	960,349		3,595,118		990,808		657,685		6,203,960		149,191		6,353,151
Percent Occupied	100.00	%	97.38	%	92.15	%	94.47	%	96.64	%	97.41	%	96.66	%

Top Twenty Office Tenants as of June 30, 2001

(Dollars and Square Feet in thousands)

Tenant			Number of Leases	Total Occupied Square Feet	Percentage of Total Occupied Square Feet		Total Rental Revenue(1)		Percentage of Total Rental Revenue		Weighted Average Remaining Lease Term(2)
United States of America	(3	)	19	960	14.2	%	$	17,098	14.8	%	4.7
AT&T Local Services	(4	),(5)	6	415	6.2	%		8,380	7.2	%	7.3
Unisys	(6	)	3	741	11.0	%		7,297	6.3	%	8.0
Ciena Corporation			5	298	4.4	%		3,806	3.3	%	3.9
Magellan Behavioral Health, Inc.			2	151	2.2	%		3,259	2.8	%	2.6
Booz Allen Hamilton			3	128	1.9	%		2,440	2.1	%	2.5
Johns Hopkins University	(4	)	4	124	1.8	%		2,432	2.1	%	5.1
General Dynamics Government Corp.			2	102	1.5	%		2,370	2.1	%	9.1
Merck & Co., Inc.	(6	)	1	219	3.2	%		2,193	1.9	%	8.0
Bookham Technology, Inc.			1	150	2.2	%		1,870	1.6	%	6.6
Commonwealth of Pennsylvania	(4	)	8	150	2.2	%		1,861	1.6	%	2.1
Sun Microsystems, Inc.			2	61	0.9	%		1,403	1.2	%	4.5
Credit Management Solutions, Inc.			1	71	1.1	%		1,381	1.2	%	7.4
Deutsche Banc Alex. Brown			1	84	1.3	%		1,338	1.2	%	2.9
Mentor Technologies			1	59	0.9	%		1,307	1.1	%	1.8
Ameritrade Holding Corporation			1	62	0.9	%		1,304	1.1	%	9.0
Raytheon E-Systems	(4	)	3	65	1.0	%		1,189	1.0	%	2.0
Computer Sciences Corporation			1	55	0.8	%		1,174	1.0	%	0.8
RAG American Coal Holding			1	48	0.7	%		1,093	1.0	%	8.9
Aerotek, Inc.			3	67	1.0	%		1,089	1.0	%	1.3

Subtotal Top 20 Office Tenants			68	4,010	59.4	%		64,284	55.6	%	5.4
All remaining tenants			358	2,732	40.6	%		51,381	44.4	%	3.3

Total/Weighted Average			426	6,742	100.0	%	$	115,665	100.0	%	4.5

(1): Total Rental Revenue is the monthly contractual base rent as of June 30, 2001 multiplied by 12 plus the estimated annualized expense reimbursements under existing office leases.
(2): The weighting of the lease term was computed using Total Rental Revenue.
(3): Many of our government leases are subject to early termination provisions which are customary to government leases. The weighted average remaining lease term was computed assuming no exercise of such early termination rights.
(4): Includes affiliated organizations or agencies.
(5): AT&T Local Services subleases 173,072 square feet under 2 leases which expire March 30, 2002. Effective April 1, 2002, this same 173,072 square feet will become directly leased by AT&T Local Services with expiration dates ranging from 2006 and 2009. The above weighted average lease term reflects the expiration date of these direct leases.
(6): Merck & Co., Inc. subleases 219,065 rentable square feet from Unisys' 960,349 leased rentable square feet.

Total Rental Revenue by Geographic Region by Quarter(1)
(Dollars in thousands)

		2001				2000
		June 30		March 31		December 31		September 30		June 30
Office Properties:
Greater Philadelphia		$	2,506	$	2,506	$	2,506	$	2,506	$	2,506
Baltimore/Washington Corridor			18,654		18,573		17,224		17,197		16,297
Northern/Central New Jersey			4,998		4,922		5,311		5,326		4,969
Greater Harrisburg			2,483		2,789		2,271		2,228		2,275

	Total Office Properties		28,641		28,790		27,312		27,257		26,047

Retail Properties:
	Total Retail Properties		—		—		72		261		279

Total Regional Rental Revenue		$	28,641	$	28,790	$	27,384	$	27,518	$	26,326

(1): Rental revenue represents GAAP revenue including operating expense reimbursements, straight line rent adjustments and tenant services income.

Net Operating Income by Geographic Region by Quarter
(Dollars in thousands)

			2001				2000
			June 30		March 31		December 31		September 30		June 30
Office Properties:
Greater Philadelphia			$	2,469	$	2,486	$	2,481	$	2,482	$	2,482
Baltimore/Washington Corridor				12,704		12,614		11,571		11,664		11,528
Northern/Central New Jersey				3,173		3,028		3,418		3,458		3,014
Greater Harrisburg				1,736		2,195		1,718		1,683		1,645

	Total Office Properties			20,082		20,323		19,188		19,287		18,669

Retail Properties:
	Total Retail Properties			—		—		55		179		222

		Total Regional NOI	$	20,082	$	20,323	$	19,243	$	19,466	$	18,891

Other income / expenses, net				71		62		226		140		89

		Total NOI	$	20,153	$	20,385	$	19,469	$	19,606	$	18,980

Same Office Property Cash Net Operating Income by Quarter (1)
(Dollars in thousands)

		2001				2000
		June 30		March 31		December 31		September 30		June 30
Office Properties:(2)
Greater Philadelphia		$	2,364	$	2,363	$	2,363	$	2,361	$	2,317
Baltimore/Washington Corridor			10,456		10,357		10,321		10,030		10,327
Northern/Central New Jersey			2,566		2,446		2,614		2,578		2,192
Greater Harrisburg			1,606		1,690		1,592		1,654		1,565

	Total Office Properties	$	16,992	$	16,856	$	16,890	$	16,623	$	16,401

Same Office Property GAAP Net Operating Income by Quarter(1)
(Dollars in thousands)

		2001				2000
		June 30		March 31		December 31		September 30		June 30
Office Properties:(2)
Greater Philadelphia		$	2,497	$	2,497	$	2,497	$	2,495	$	2,497
Baltimore/Washington Corridor			10,683		10,628		10,544		10,523		10,710
Northern/Central New Jersey			2,645		2,521		2,769		2,634		2,244
Greater Harrisburg			1,634		1,722		1,629		1,691		1,613

	Total Office Properties	$	17,459	$	17,368	$	17,439	$	17,343	$	17,064

(1): Net operating income for same office properties has been presented on a GAAP basis and a modified cash basis which removes the effect of straight-line rents from the GAAP net operating income.
(2): Same office properties include buildings owned for a minimum of five reporting quarters.

Office Lease Expiration
Analysis by Year

Year of Lease Expiration(1)	Number of Leases Expiring	Square Footage of Leases Expiring	Percentage of Total Occupied Square Feet		Total Rental Revenue of Expiring Leases(2)		Percentage of Total Rental Revenue Expiring		Total Rental Revenue of Expiring Leases per Occupied Square Foot
					($000s)
2001	37	281,808	4.2	%	$	5,042	4.4	%	$	17.89
2002	92	1,029,331	15.3	%		17,621	15.2	%		17.12
2003	89	775,724	11.5	%		14,618	12.6	%		18.84
2004	62	693,029	10.3	%		13,118	11.3	%		18.93
2005	63	702,217	10.4	%		13,611	11.8	%		19.38
2006	40	520,808	7.7	%		9,553	8.3	%		18.34
2007	10	393,924	5.8	%		6,246	5.4	%		15.86
2008	10	706,309	10.5	%		12,574	10.9	%		17.80
2009	13	1,223,320	18.1	%		14,387	12.4	%		11.76
2010	9	389,475	5.8	%		8,273	7.2	%		21.24
2011	1	26,051	0.4	%		622	0.5	%		23.88

Total/Weighted Average	426	6,741,996	100.0%		$	115,665	100.0%		$	17.61

NOTE: As of June 30, 2001, the weighted average lease term is 4.5 years.

(1): Many of our government leases are subject to certain early termination provisions which are customary to government leases. The year of lease expiration was computed assuming no exercise of such early termination rights.
(2): Total Rental Revenue is the monthly contractual base rent as of June 30, 2001 multiplied by 12 plus the estimated annualized expense reimbursements under existing office leases.

Year to Date Office Renewal Analysis

		Greater Philadelphia			Baltimore/ Washington Corridor			Northern/ Central New Jersey			Greater Harrisburg			Total Office
For Six Months Ended June 30, 2001:
	Expiring Square Feet		—			254,755			24,188			49,325			328,268
	Vacated Square Feet		—			18,137			6,050			33,026			57,213
	Renewed Square Feet		—			236,618			18,138			16,299			271,055
	Retention Rate (% based upon square feet)		0.00	%		92.88	%		74.99	%		33.04	%		82.57	%
Renewal & Retenanted Space:
	Increase in Base Rent—Straight-line		0.00	%		24.01	%		36.52	%		1.74	%		23.84	%
	Increase in Total Rent—Straight-line		0.00	%		20.00	%		31.32	%		2.37	%		19.95	%
	Increase in Base Rent—Cash		0.00	%		17.67	%		32.91	%		(5.35	)%		17.74	%
	Increase in Total Rent—Cash		0.00	%		14.37	%		28.04	%		(3.84	)%		14.52	%
	Average Capital Cost per Square Foot	$	—		$	5.30		$	13.53		$	5.30		$	6.07

Quarterly Office Renewal Analysis

		Greater Philadelphia			Baltimore/ Washington Corridor			Northern/ Central New Jersey			Greater Harrisburg			Total Office
Quarter Ended June 30, 2001:
	Expiring Square Feet		—			174,078			22,678			45,325			242,081
	Vacated Square Feet		—			16,922			6,050			33,026			55,998
	Renewed Square Feet		—			157,156			16,628			12,299			186,083
	Retention Rate (% based upon square feet)		0.00	%		90.28	%		73.32	%		27.14	%		76.87	%
Renewal & Retenanted Space:
	Increase in Base Rent—Straight-line		0.00	%		24.86	%		38.02	%		13.69	%		26.15	%
	Increase in Total Rent—Straight-line		0.00	%		19.76	%		32.98	%		10.21	%		21.02	%
	Increase in Base Rent—Cash		0.00	%		19.81	%		34.23	%		4.57	%		21.00	%
	Increase in Total Rent—Cash		0.00	%		15.52	%		29.50	%		2.37	%		16.63	%
	Average Capital Cost per Square Foot	$	—		$	3.87		$	14.05		$	6.50		$	5.58
Quarter Ended March 31, 2001:
	Expiring Square Feet		—			80,677			1,510			4,000			86,187
	Vacated Square Feet		—			1,215			—			—			1,215
	Renewed Square Feet		—			79,462			1,510			4,000			84,972
	Retention Rate (% based upon square feet)		0.00	%		98.49	%		100.00	%		100.00	%		98.59	%
Renewal & Retenanted Space:
	Increase in Base Rent—Straight-line		0.00	%		23.01	%		2.78	%		(28.63	)%		20.44	%
	Increase in Total Rent—Straight-line		0.00	%		20.31	%		2.03	%		(18.63	)%		18.20	%
	Increase in Base Rent—Cash		0.00	%		15.15	%		2.78	%		(30.74	)%		12.95	%
	Increase in Total Rent—Cash		0.00	%		12.84	%		2.03	%		(20.55	)%		11.12	%
	Average Capital Cost per Square Foot	$	—		$	7.20		$	0.42		$	1.70		$	6.88
Quarter Ended December 31, 2000:
	Expiring Square Feet		—			75,372			3,174			6,623			85,169
	Vacated Square Feet		—			29,132			—			—			29,132
	Renewed Square Feet		—			46,240			3,174			6,623			56,037
	Retention Rate (% based upon square feet)		0.00	%		61.35	%		100.00	%		100.00	%		65.80	%
Renewal & Retenanted Space:
	Increase in Base Rent—Straight-line		0.00	%		24.55	%		21.47	%		(17.49	)%		17.74	%
	Increase in Total Rent—Straight-line		0.00	%		15.08	%		11.19	%		(9.98	)%		10.57	%
	Increase in Base Rent—Cash		0.00	%		18.45	%		20.00	%		(18.85	)%		13.19	%
	Increase in Total Rent—Cash		0.00	%		9.73	%		10.01	%		(11.15	)%		6.66	%
	Average Capital Cost per Square Foot	$	—		$	10.27		$	17.92		$	1.10		$	9.72

Quarter Ended September 30, 2000:
	Expiring Square Feet		—			186,061			116,771			6,757			309,589
	Vacated Square Feet		—			50,043			40,094			6,757			96,894
	Renewed Square Feet		—			136,018			76,677			—			212,695
	Retention Rate (% based upon square feet)		0.00	%		73.10	%		65.66	%		0.00	%		68.70	%
Renewal & Retenanted Space:
	Increase in Base Rent—Straight-line		0.00	%		6.31	%		32.53	%		0.00	%		14.75	%
	Increase in Total Rent—Straight-line		0.00	%		4.24	%		20.06	%		0.00	%		9.74	%
	Increase in Base Rent—Cash		0.00	%		3.45	%		13.01	%		0.00	%		6.52	%
	Increase in Total Rent—Cash		0.00	%		1.44	%		2.97	%		0.00	%		1.97	%
	Average Capital Cost per Square Foot	$	—		$	5.32		$	27.35		$	—		$	12.57
Quarter Ended June 30, 2000:
	Expiring Square Feet		—			71,275			10,322			23,483			105,080
	Vacated Square Feet		—			34,644			—			3,920			38,564
	Renewed Square Feet		—			36,631			10,322			19,563			66,516
	Retention Rate (% based upon square feet)		0.00	%		51.39	%		100.00	%		83.31	%		63.30	%
Renewal & Retenanted Space:
	Increase in Base Rent—Straight-line		0.00	%		18.79	%		15.87	%		4.15	%		17.03	%
	Increase in Total Rent—Straight-line		0.00	%		14.10	%		4.75	%		3.69	%		11.05	%
	Increase in Base Rent—Cash		0.00	%		13.92	%		14.87	%		0.78	%		13.14	%
	Increase in Total Rent—Cash		0.00	%		9.43	%		3.42	%		0.38	%		7.33	%
	Average Capital Cost per Square Foot	$	—		$	7.40		$	19.95		$	4.58		$	9.85

Acquisition Summary as of June 30, 2001
(Dollars in Thousands)

		Submarket	Acquisition Date	Square Feet	Occupied Sq. Ft. at Acquisition	Occupancy Percentage at Acquisition	June 30, 2001 Occupancy Percentage	Investment(1)
*Wholly Owned Portfolio:(2)*
6700 Alexander Bell Drive		Howard County Perimeter	5/14/2001	75,635	75,635	100.0%	100.0%	$	8,762
6708 Alexander Bell Drive		Howard County Perimeter	5/14/2001	35,040	35,040	100.0%	100.0%		4,478

	Total			110,675	110,675	100.0%	100.0%	$	13,240

*Joint Venture Portfolio:(3)*
920 Elkridge Landing Road		BWI Airport	3/21/2001	96,566	96,566	100.0%	100.0%	$	10,939
938 Elkridge Landing Road		BWI Airport	3/21/2001	52,988	52,988	100.0%	100.0%		5,941
940 Elkridge Landing Road		BWI Airport	3/21/2001	51,704	51,704	100.0%	100.0%		4,904
891 Elkridge Landing Road		BWI Airport	3/21/2001	56,489	56,489	100.0%	89.0%		6,129
901 Elkridge Landing Road		BWI Airport	3/21/2001	56,847	50,155	88.2%	88.2%		5,705

	Total			314,594	307,902	97.9%	95.9%	$	33,618

(1): Initial investment recorded by property as of June 30, 2001 for asset purchase.
(2): In conjunction with these operating properties, we also purchased a 30,855 square foot property to be redeveloped.
(3): We held a 40% ownership interest in these office properties through a joint venture agreement during the quarter. As of July 2, 2001, we acquired the remaining 60% ownership interest for $6.9 million.

NOTE:

COPT classifies its acquisitions by type—entity, portfolio or individual acquisitions. Entity acquisitions are defined as mergers of significant portfolios of $100 + million with strong management organizations and a regional presence.

Disposition Summary as of June 30, 2001
(Dollars in Thousands)

		Submarket		Disposition Date		Square Feet		Gross Sales Proceeds			Debt Assumption or Repayment			Cash Proceeds After Debt Repayment
*Individual Property:*
19 Commerce		Cranbury, NJ		6/18/2001		65,277		$	11,525		$	7,000		$	4,525

Development Summary as of June 30, 2001
(Dollars in Thousands except per square foot data)

Property and Location				Submarket	Owned or Joint Venture (JV)	Rentable Square Feet	Percentage Pre-Leased or Committed		Anticipated Cost per Rentable Square Foot		Anticipated Cost		Cost to date		Anticipated Stabilization/ Delivery
*Under Construction*
	2701 Phoenix Road (201 NBP) Annapolis Junction, MD	(1	)	BWI Airport	JV	118,000	77.11	%	$	155	$	18,313	$	13,604	September 2001
	1304 Concourse Drive Linthicum, MD	(2	)	BWI Airport	Owned	100,000	0.00	%		166		16,572		11,866	October 2001
	Robert Fulton Drive—Phase IA Columbia, Maryland	(3	)	Howard County Perimeter	JV	115,850	0.00	%		116		13,406		6,239	October 2001
	114 National Business Parkway Annapolis Junction, MD			BWI Airport	Owned	10,000	100.00	%		164		1,644		656	December 2001
	6731 Columbia Gateway Drive Columbia, Maryland	(4	)	Howard County Perimeter	Owned	122,889	0.00	%		176		21,613		13,574	December 2001
	6724 Alexander Bell Drive Columbia, Maryland	(5	)	Howard County Perimeter	Owned	30,855	0.00	%		157		4,835		2,378	March 2002
	2711 Phoenix Road (211 NBP) Annapolis Junction, MD	(6	)	BWI Airport	JV	150,000	100.00	%		174		26,135		8,941	March 2002
	4260 Forbes Boulevard—Phase I Laurel, Maryland	(7	)	Lanham	JV	54,692	43.08	%		92		5,027		4,640	April 2002

	Total Under Construction:					702,286	39.09	%	$	153	$	107,545	$	61,898

*Under Development*
	Robert Fulton Drive—Phase IB Columbia, Maryland	(3	)	Howard County Perimeter	JV	28,500	0.00	%		116		3,298		771	December 2002

	Total Under Development:					28,500	0.00	%	$	116	$	3,298	$	771

	TOTAL/AVERAGE					730,786	37.57	%	$	152	$	110,843	$	62,669

(1): On September 29, 2000, we contributed this development asset into a joint venture. The joint venture obtained a $13,725 construction loan in October 2000 and $4,436 is outstanding as of June 30, 2001.
(2): We obtained a $11,800 construction loan and $6,018 is outstanding as of June 30, 2001.
(3): We participate in the development of this asset through a joint venture arrangement. The joint venture has obtained a $14,000 construction loan (to fund Phase IA and Phase IB) and has borrowed $2,965 as of June 30, 2001.
(4): We obtained a $15,750 construction loan and $5,081 is outstanding as of June 30, 2001.
(5): We purchased this property in May 2001 and are redeveloping.
(6): On December 15, 2000, we contributed this development asset into a joint venture. The joint venture has obtained a $20,550 construction loan. No draws have been made as of June 30, 2001.
(7): We participate in the development of this asset through a joint venture arrangement. The joint venture has obtained a $9,026 construction loan (to fund Phase I and II) and has borrowed $3,125 as of June 30, 2001.

QuickLinks

FORM 8-K
SIGNATURES
Corporate Office Properties Trust Index to Supplemental Information (Unaudited) June 30, 2001
Quarterly Selected Financial Summary Data (Dollars in thousands)
Quarterly Consolidated Balance Sheets (Dollars in thousands except per share data)
Quarterly Consolidated Statements of Operations and Funds From Operations (FFO) (Dollars and units in thousands)
Quarterly Consolidated Statements of Operations and FFO per Diluted Share (Shares in thousands)
Quarterly Equity Analysis (Amounts in thousands, except per share data, share prices and ratios)
Quarterly Valuation Analysis (Dollars in thousands except per share data and ratios)
Quarterly Debt Analysis (Dollars in thousands)
Quarterly Operating Ratios
Quarterly Dividend Analysis
Investor Composition and Analyst Coverage (as of June 30, 2001)
Property Summary by Region—June 30, 2001
Property Occupancy Rates by Region by Quarter
Top Twenty Office Tenants as of June 30, 2001 (Dollars and Square Feet in thousands)
Total Rental Revenue by Geographic Region by Quarter(1) (Dollars in thousands)
Net Operating Income by Geographic Region by Quarter (Dollars in thousands)
Same Office Property Cash Net Operating Income by Quarter (1) (Dollars in thousands)
Same Office Property GAAP Net Operating Income by Quarter(1) (Dollars in thousands)
Office Lease Expiration Analysis by Year
Acquisition Summary as of June 30, 2001 (Dollars in Thousands)
Disposition Summary as of June 30, 2001 (Dollars in Thousands)
Development Summary as of June 30, 2001 (Dollars in Thousands)