Prepared by MERRILL CORPORATION

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Supplemental Information
(Unaudited)

December 31, 2001

Corporate Office Properties Trust
Index to Supplemental Information (Unaudited)
December 31, 2001

		Page
Highlights and Discussion
	Shareholder Return	1
	Reporting Period Highlights—Year Ended December 31, 2001	1
	Reporting Period Highlights—Fourth Quarter 2001	2
	Subsequent Events	3
Financial Statements
	Quarterly Selected Financial Summary Data	4
	Quarterly Consolidated Balance Sheets	5
	Quarterly Consolidated Statements of Operations and Funds From Operations (FFO)	6
	Quarterly Consolidated Statements of Operations and FFO per Diluted Share	7
	Quarterly Consolidated Statements of Operations and FFO as a Percentage of Total Revenues	8
	Annual Selected Financial Summary Data	9
	Annual Consolidated Balance Sheets	10
	Annual Consolidated Statements of Operations and Funds From Operations (FFO)	11
	Annual Consolidated Statements of Operations and FFO per Diluted Share	12
	Annual Consolidated Statements of Operations and FFO as a Percentage of Total Revenues	13
Selected Financial Analyses
	Quarterly Equity Analysis	14
	Quarterly Valuation Analysis	15
	Quarterly Debt Analysis	16
	Quarterly Operating Ratios	17
	Quarterly Dividend Analysis	18
	Investor Composition and Analyst Coverage	19
	Debt Maturity Schedule—December 31, 2001	20
Portfolio Summary
	Property Summary by Region—December 31, 2001	21
	Property Occupancy Rates by Region by Quarter	24
	Top Twenty Office Tenants as of December 31, 2001	25
	Total Rental Revenue and Net Operating Income by Geographic Region by Quarter	26
	Same Office Property Cash and GAAP Net Operating Income by Quarter	27
	Average Occupancy Rates by Region for Same Office Properties	28
	Office Lease Expiration Analysis by Year	29
	Year to Date Office Renewal Analysis	30
	Quarterly Office Renewal Analysis	31
	Acquisition and Disposition Summary as of December 31, 2001	33
	Development Summary as of December 31, 2001	34
	Joint Venture Summary as of December 31, 2001	35

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 Mr. Roger A. Waesche, Jr., Senior Vice President and Chief Financial Officer at (410) 992-7348 or roger.waesche@copt.com.

Shareholder Return

•: Our shareholders earned a total return of 29.0% for the year 2001. Our shareholders realized a three-year total return of 116.4% for the period ended December 31, 2001, first among all publicly traded office REITs with a market capitalization greater than $50 million, on the basis of numbers compiled by the National Association of Real Estate Investment Trusts as of December 31, 2001. These return computations include the re-investment of dividends on the ex-dividend date and share price appreciation.
•: The market capitalization as of December 31, 2001 exceeded $1 billion for the first time in our company history.

Reporting Period Highlights—Year Ended December 31, 2001

Financial Results

•: Reported FFO—diluted of $43,214,000 or $1.29 per share/unit as compared to $37,504,000 or $1.17 per share/unit for the same twelve-month period in 2000, representing an increase of 10.3% per share/unit. Similarly, for the twelve months ended December 31, 2001, reported AFFO—diluted of $34,609,000 or $1.03 per share/unit as compared to $30,554,000 or $.95 per share/unit for the same twelve month period in 2000, representing an increase of 8.4% per share/unit.
•: We achieved FFO and AFFO payout ratios of 62.6% and 78.1% for the year.

Acquisitions/Dispositions

•: During 2001, we acquired 13 office buildings totaling over 1.1 million square feet for $141.4 million, equating to an average cost of $119.86 per square foot.
•: We accomplished our strategic objective of expanding into a new geographic market with our $59.0 million acquisition of a 470,000 square foot building located in the Dulles South submarket of Northern Virginia.
•: In June 2001, we disposed of a 65,277 square foot office building for $11.5 million.

Financing and Capital Transactions

•: We raised $78.0 million in preferred equity during the year including $64.4 million in public issuances for our Series E (1,150,000 shares) and Series F (1,425,000 shares) preferred offerings. The net proceeds were primarily utilized to fund our acquisition program and development pipeline as well as to repay debt.
•: We paid common dividends of $.82 per share in 2001, representing an increase of 5.1% over 2000.

•: Given the favorable interest rate environment, we refinanced $129.4 million of permanent loans with a blended interest rate of 7.36% and an average term of 7.1 years. The net proceeds were primarily utilized to repay existing debt.
•: We repaid two significant loan maturities including $90.9 million outstanding on our $100.0 million term credit facility with Deutsche Banc and $29.1 million outstanding on our $50.0 million line of credit with Prudential Securities Corp. Additionally, we expanded our Deutsche Banc revolving credit line from $100.0 million to $125.0 million and extended its maturity date for three years through March 2004.

Operations

•: While executing new or renewed leases for 1.0 million square feet, we achieved a 72.5% retention ratio for the year, coupled with an 18.5% increase in base rent on a straight-line basis on renewed and retenanted square footage. We also realized a 9.6% cash total rent increase (including base rent and operating expense recoveries) while expending an average capital cost of $6.92 per square foot on this same space.
•: We achieved an average occupancy of 96.6% during 2001 and ended the year with 96.1% occupancy and 96.6% leased.

Development

•: We completed three buildings totaling 240,245 square feet during 2001 with an average lease-up of 84.8% at date placed into service. As of December 31, 2001, these properties were 91.7% leased.

Reporting Period Highlights—Fourth Quarter 2001

Financial Results

•: Reported FFO—diluted of $11,462,000 or $.34 per share/unit for the fourth quarter of 2001 as compared to $9,804,000 or $.31 per share/unit for the comparable 2000 period, representing an increase of 9.7% per share/unit. FFO—diluted increased $1,658,000 or 16.9%, over the comparable 2000 period.
•: Reported AFFO—diluted of $8,560,000 or $.25 per share/unit for the fourth quarter of 2001 as compared to $8,228,000 or $.26 per share/unit for the comparable 2000 period, representing a decrease of (3.8%) per share/unit.

Financing and Capital Transactions

•: Our debt to market capitalization is 53.7% and our debt to undepreciated book value of real estate assets is 58.6% as of December 31, 2001. We achieved an EBITDA interest coverage ratio of 2.68x and an EBITDA fixed charge coverage ratio of 1.96x for this quarter. Our quarterly weighted average interest rate dropped to 6.85% in the fourth quarter of 2001 from 7.08% in the prior quarter.

Operations

•: We renewed 79.1% of our office leases (based upon square footage) with an average capital cost of $12.20 per square foot during the fourth quarter. We realized increases in base rent and total rent on a straight-line basis of 15.2% and 12.6%, respectively, as measured from the GAAP straight-line rent in effect preceding the renewal date. Base rent and total rent on a cash basis increased 6.1% and 3.8%, respectively, on this renewed and retenanted space.

•: Overall occupancy was 96.1% as of December 31, 2001. The occupancy rate was 95.7% in the Baltimore/Washington Corridor, which represents 61.4% of our office square footage and 68.6% of our total office revenues for the fourth quarter of 2001.
•: Weighted average lease term of our office portfolio is 4.6 years as of December 31, 2001, with an average contractual rental rate (including tenant reimbursements for operating costs) of $18.06 per square foot.
•: We executed a ten-year lease with the Commonwealth of Pennsylvania for 71,514 square feet or 88.5% of 2605 Interstate Drive. This lease represented an expansion of 27,686 square feet and an early renewal of the 43,828 square feet scheduled to expire in November 2002.

Acquisition/Disposition

•: Implementing our strategic objective of expanding into new markets, we acquired a 470,000 square foot building in the Dulles South submarket of Northern Virginia for $59.0 million. This building is 99.6% leased to six tenants consisting mainly of defense contractors with an average lease life of 6.5 years. Included in this purchase is a contiguous, 17-acre parcel that can support an additional 400,000 square feet of office space.

Development

•: We signed leases for over 28,000 square feet of development space in the fourth quarter including our initial lease at 1304 Concourse for 10,657 square feet. These leases primarily represent expansion opportunities for our existing tenant base.

Subsequent Events

•: In January, we signed a ten-year lease for 16,076 square feet for our development property, 6724 Alexander Bell Drive, representing 52.1% of the building.
•: In January, BB&T Capital Markets initiated coverage of our stock with a Buy recommendation. As a result, we now have eight analysts covering our stock.

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
		December 31			September 30			June 30			March 31			December 31
Total Revenues from Real Estate Operations		$	33,460		$	32,050		$	28,711		$	28,851		$	27,609
Net Operating Income from Real Estate Operations			23,358			22,394			20,153			20,385			19,469
EBITDA			22,731			21,411			20,471			19,490			19,298
Net Income before Preferred Dividends			5,893			5,222			5,081			3,726			4,087
Preferred Dividends			(2,533	)		(1,830	)		(1,613	)		(881	)		(782	)

Net Income Available to Common Shareholders		$	3,360		$	3,392		$	3,468		$	2,845		$	3,305

Funds From Operations (FFO)—Diluted		$	11,462		$	11,034		$	10,560		$	10,102		$	9,804
FFO per diluted share		$	0.34		$	0.33		$	0.32		$	0.31		$	0.31
Adjusted FFO—Diluted		$	8,560		$	9,106		$	8,591		$	8,296		$	8,228
Adjusted FFO per diluted share		$	0.25		$	0.27		$	0.26		$	0.25		$	0.26
Payout Ratios:
	FFO—Diluted^(A)		60.80	%		62.71	%		62.43	%		64.87	%		65.67	%
	AFFO—Diluted^(B)		81.41	%		75.98	%		76.73	%		78.99	%		78.25	%
Total Dividends/Distributions		$	9,366		$	8,613		$	8,069		$	7,334		$	7,220

(A): Computed by dividing total dividends/distributions (except for dividends on Series B, E and F Cumulative Redeemable Preferred Shares which are subtracted to calculate FFO) by FFO diluted.
(B): Computed by dividing total dividends/distributions (except for dividends on Series B, E and F Cumulative Redeemable Preferred Shares which are subtracted to calculate AFFO) by AFFO diluted.

Quarterly Consolidated Balance Sheets
(Dollars in thousands except per share data)

				2001												2000
				December 31			September 30			June 30			March 31			December 31
Assets
Investment in real estate:
	Land—operational			$	164,994		$	157,789		$	142,461		$	140,620		$	140,018
	Land—development				26,751			23,507			24,488			24,683			19,069
	Construction in progress				37,493			33,860			30,066			22,228			17,489
	Buildings and improvements				738,320			682,474			624,635			615,586			604,666
	Investment in and advances to unconsolidated real estate joint ventures				11,047			8,005			12,009			6,877			3,616
	Less: accumulated depreciation				(51,552	)		(46,361	)		(41,659	)		(37,652	)		(33,271	)

			Net investment in real estate		927,053			859,274			792,000			772,342			751,587
	Cash and cash equivalents				6,640			7,881			2,962			3,806			4,981
	Restricted cash				4,947			4,116			9,633			4,468			2,703
	Accounts receivable, net				3,805			4,720			4,855			5,519			3,245
	Investment in and advances to other unconsolidated entities				2,112			1,939			2,041			2,159			6,124
	Deferred rent receivable				11,447			10,511			9,804			9,335			8,644
	Deferred charges, net				16,884			16,561			16,357			15,550			12,905
	Prepaid and other assets				9,551			8,145			9,383			6,726			4,501
	Furniture, fixtures and equipment, net of accumulated depreciation				1,771			1,699			1,772			1,807			147

			Total assets	$	984,210		$	914,846		$	848,807		$	821,712		$	794,837

Liabilities and beneficiaries' equity
Liabilities:
	Mortgage loans payable			$	573,327		$	508,715		$	475,999		$	478,913		$	474,349
	Accounts payable and accrued expenses				10,674			8,923			13,361			10,889			10,227
	Rents received in advance and security deposits				6,567			4,319			4,023			4,236			3,883
	Dividends/distributions payable				8,965			8,346			7,918			7,203			7,090
	Fair value of derivatives				3,781			3,894			2,232			1,993			—
	Other liabilities				12,193			11,082			10,637			10,243			—

			Total liabilities		615,507			545,279			514,170			513,477			495,549

Minority interests:
	Preferred Units in the Operating Partnership				24,367			24,367			24,367			24,367			24,367
	Common Units in the Operating Partnership				80,158			80,720			78,900			80,467			81,069
	Other consolidated partnerships				257			231			224			166			124

			Total minority interests		104,782			105,318			103,491			105,000			105,560

			Commitments and contingencies		—			—			—			—			—
Beneficiaries' equity:
	Preferred Shares ($0.01 par value; 5,000,000 authorized);
		40,693 designated as Series A Convertible Preferred Shares of beneficial interest (1 share issued as of December 31, 2001)			—			—			—			—			—
		1,725,000 designated as Series B Cumulative Redeemable Preferred Shares of beneficial interest (1,250,000 shares issued as of December 31, 2001)			13			13			13			13			12
		544,000 designated as Series D Cumulative Redeemable Preferred Shares of beneficial interest (544,000 shares issued as of December 31, 2001)			5			5			5			5			—
		1,265,000 designated as Series E Cumulative Redeemable Preferred Shares of beneficial interest (1,150,000 shares issued as of December 31, 2001)			11			11			11			—			—
		1,425,000 designated as Series F Cumulative Redeemable Preferred Shares of beneficial interest (1,425,000 shares issued as of December 31, 2001)			14			14			—			—			—
	Common Shares of beneficial interest ($0.01 par value; 45,000,000 authorized, 20,814,701 shares issued as of December 31, 2001)				208			208			208			207			206
	Treasury Shares, at cost (166,600 shares as of December 31, 2001)				(1,415	)		(1,415	)		(1,415	)		(1,415	)		(1,415	)
Additional paid-in capital					285,362			284,834			249,617			221,682			209,388
Cumulative dividends in excess of net income					(14,502	)		(13,618	)		(12,776	)		(12,222	)		(11,064	)
Value of unearned restricted Common Share grants					(3,275	)		(3,229	)		(3,042	)		(3,042	)		(3,399	)
Accumulated other comprehensive loss					(2,500	)		(2,574	)		(1,475	)		(1,993	)		—

			Total beneficiaries' equity		263,921			264,249			231,146			203,235			193,728

			Total beneficiaries' equity and minority interests		368,703			369,567			334,637			308,235			299,288

			Total liabilities and beneficiaries' equity	$	984,210		$	914,846		$	848,807		$	821,712		$	794,837

Note:

Prior to January 1, 2001, other unconsolidated entities included 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
			December 31			September 30			June 30			March 31			December 31
Revenues
	Rental revenue		$	29,957		$	29,011		$	25,960		$	25,619		$	24,269
	Tenant recoveries and other revenue			3,503			3,039			2,751			3,232			3,340

		Total Revenues from Real Estate Operations		33,460			32,050			28,711			28,851			27,609
Expenses
	Property operating			4,243			4,178			3,492			3,448			3,220
	Repairs and maintenance			3,980			3,759			3,595			3,518			3,491
	Real estate taxes			1,879			1,719			1,471			1,500			1,429

		Total Property Expenses from Real Estate Operations		10,102			9,656			8,558			8,466			8,140
Net Operating Income from Real Estate Operations				23,358			22,394			20,153			20,385			19,469
	General and administrative			(1,167	)		(1,347	)		(1,329	)		(1,446	)		(1,040	)
	Equity in income of unconsol. real estate joint ventures			27			27			124			30			—
	Earnings from service companies			(218	)		(378	)		143			(329	)		—
	Income from real estate services			731			715			1,380			850			1,067
	Equity in loss of other unconsolidated entities			—			—			—			—			(198	)

EBITDA				22,731			21,411			20,471			19,490			19,298
	Interest expense			(8,475	)		(8,342	)		(7,762	)		(8,194	)		(8,266	)
	Series B, E & F Preferred Share dividends			(2,397	)		(1,694	)		(1,477	)		(781	)		(782	)
	Amortization of deferred financing costs			(492	)		(397	)		(546	)		(383	)		(416	)
	Income tax (expense) benefit			207			124			(44	)		122			—
	Expense (income) associated with options			—			5			—			(61	)		—
	Depreciation on unconsolidated real estate entities			40			38			70			(4	)		(4	)
	Minority interestholders' share of operations			(23	)		(7	)		(58	)		4			(9	)
	Depreciation of corporate FF&E			(129	)		(104	)		(94	)		(91	)		(17	)

	Funds From Operations (FFO)—Diluted			11,462			11,034			10,560			10,102			9,804
	Depreciation and other amortization			(5,738	)		(5,148	)		(4,863	)		(4,809	)		(4,485	)
	Gain on property sales			—			—			416			—			50
	Loss on early extinguishment of debt			(7	)		—			(99	)		(106	)		(2	)
	Cumulative effect adjustment for accounting change			—			—			—			(263	)		—
	Expense (income) associated with options			—			(5	)		—			61			—
	Depreciation on unconsolidated real estate entities			(40	)		(38	)		(70	)		4			4
	Minority interestholders' share of operations			23			7			58			(4	)		9
	Series B, E & F Preferred Share dividends			2,397			1,694			1,477			781			782

Income Before Minority Interests and Preferred Share Dividends				8,097			7,544			7,479			5,766			6,162
Minority Interests:
	Preferred Units in Operating Partnership			(571	)		(572	)		(572	)		(572	)		(572	)
	Common Units in Operating Partnership			(1,610	)		(1,743	)		(1,768	)		(1,472	)		(1,494	)
	Other consolidated entities			(23	)		(7	)		(58	)		4			(9	)
Preferred Share dividends				(2,533	)		(1,830	)		(1,613	)		(881	)		(782	)

Net Income Available to Common Shareholders			$	3,360		$	3,392		$	3,468		$	2,845		$	3,305

Funds From Operations (FFO)—Diluted			$	11,462		$	11,034		$	10,560		$	10,102		$	9,804
	Straight line rents			(952	)		(717	)		(816	)		(690	)		(800	)
	Non-incremental capital expenditures			(1,950	)		(1,211	)		(1,153	)		(1,116	)		(776	)

Adjusted Funds from Operations—Diluted			$	8,560		$	9,106		$	8,591		$	8,296		$	8,228

	Preferred dividends/distributions⁽¹⁾			3,104			2,402			2,185			1,453			1,353
	Common dividends/distributions			6,262			6,211			5,884			5,881			5,867

	Total Dividends/Distributions		$	9,366		$	8,613		$	8,069		$	7,334		$	7,220

(1): Includes Series B, E and F 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
			December 31			September 30			June 30			March 31			December 31
Revenues
	Rental revenue		$	0.88		$	0.86		$	0.78		$	0.78		$	0.76
	Tenant recoveries and other revenue			0.10			0.09			0.08			0.10			0.10

		Total Revenues from Real Estate Operations		0.98			0.95			0.86			0.88			0.86
Expenses
	Property operating			0.12			0.12			0.10			0.10			0.10
	Repairs and maintenance			0.12			0.11			0.11			0.11			0.11
	Real estate taxes			0.06			0.05			0.04			0.05			0.04

		Total Property Expenses from Real Estate Operations		0.30			0.29			0.26			0.26			0.25
Net Operating Income from Real Estate Operations				0.69			0.67			0.60			0.62			0.61
	General and administrative			(0.03	)		(0.04	)		(0.04	)		(0.04	)		(0.03	)
	Equity in income of unconsol. real estate joint ventures			0.00			0.00			0.00			0.00			—
	Earnings from service companies			(0.01	)		(0.01	)		0.00			(0.01	)		—
	Income from real estate services			0.02			0.02			0.04			0.03			0.03
	Equity in loss of other unconsolidated entities			—			—			—			—			(0.01	)

EBITDA				0.67			0.64			0.61			0.59			0.60
	Interest expense			(0.25	)		(0.25	)		(0.23	)		(0.25	)		(0.26	)
	Series B, E & F Preferred Share dividends			(0.07	)		(0.05	)		(0.04	)		(0.02	)		(0.02	)
	Amortization of deferred financing costs			(0.01	)		(0.01	)		(0.02	)		(0.01	)		(0.01	)
	Income tax (expense) benefit			0.01			0.00			(0.00	)		0.00			—
	Expense (income) associated with options			—			0.00			—			(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				0.34			0.33			0.32			0.31			0.31
	Depreciation and other amortization			(0.17	)		(0.15	)		(0.15	)		(0.15	)		(0.14	)
	Gain on property sales			—			—			0.01			—			0.00
	Loss on early extinguishment of debt			(0.00	)		—			(0.00	)		(0.00	)		(0.00	)
	Cumulative effect adjustment for accounting change			—			—			—			(0.01	)		—
	Expense (income) associated with options			—			(0.00	)		—			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 & F Preferred Share dividends			0.07			0.05			0.04			0.02			0.02

Income Before Minority Interests and Preferred Share Dividends				0.24			0.22			0.22			0.18			0.19
Minority Interests:
	Preferred Units in Operating Partnership			(0.02	)		(0.02	)		(0.02	)		(0.02	)		(0.02	)
	Common Units in Operating Partnership			(0.05	)		(0.05	)		(0.05	)		(0.04	)		(0.05	)
	Other consolidated entities			(0.00	)		(0.00	)		(0.00	)		0.00			(0.00	)
Preferred Share dividends				(0.07	)		(0.05	)		(0.05	)		(0.03	)		(0.02	)

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

Funds From Operations (FFO)—Diluted			$	0.34		$	0.33		$	0.32		$	0.31		$	0.31
	Straight line rents			(0.03	)		(0.02	)		(0.02	)		(0.02	)		(0.02	)
	Non-incremental capital expenditures			(0.06	)		(0.04	)		(0.03	)		(0.03	)		(0.02	)

Adjusted Funds from Operations—Diluted			$	0.25		$	0.27		$	0.26		$	0.25		$	0.26

For FFO Computations:
Weighted Average Converted Preferred Shares/Units				3,618			3,618			3,618			3,299			2,421
Weighted Average Common Shares/Units Outstanding				30,385			30,037			29,746			29,643			29,611

Weighted Average Diluted Shares Outstanding				34,003			33,655			33,364			32,942			32,032

For AFFO Computations:
Weighted Average Converted Preferred Shares/Units				3,618			3,618			3,618			3,299			2,421
Weighted Average Common Shares/Units Outstanding				30,385			30,037			29,746			29,643			29,611

Weighted Average Diluted Shares Outstanding				34,003			33,655			33,364			32,942			32,032

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

			2001								2000
			December 31		September 30		June 30		March 31		December 31

Revenues
	Rental revenue		90%		91%		90%		89%		88%
	Tenant recoveries and other revenue		10%		9%		10%		11%		12%

		Total Revenues from Real Estate Operations	100%		100%		100%		100%		100%
Expenses
	Property operating		13%		13%		12%		12%		12%
	Repairs and maintenance		12%		12%		13%		12%		13%
	Real estate taxes		6%		5%		5%		5%		5%

		Total Property Expenses from Real Estate Operations	30%		30%		30%		29%		29%
Net Operating Income from Real Estate Operations			70%		70%		70%		71%		71%
	General and administrative		(3%	)	(4%	)	(5%	)	(5%	)	(4%	)
	Equity in income of unconsol. real estate joint ventures		0%		0%		0%		0%		0%
	Earnings from service companies		(1%	)	(1%	)	0%		(1%	)	0%
	Income from real estate services		2%		2%		5%		3%		4%
	Equity in loss of other unconsolidated entities		0%		0%		0%		0%		(1%	)

EBITDA			68%		67%		71%		68%		70%
	Interest expense		(25%	)	(26%	)	(27%	)	(28%	)	(30%	)
	Series B, E & F Preferred Share dividends		(7%	)	(5%	)	(5%	)	(3%	)	(3%	)
	Amortization of deferred financing costs		(1%	)	(1%	)	(2%	)	(1%	)	(2%	)
	Income tax (expense) benefit		1%		0%		(0%	)	0%		0%
	Expense (income) associated with options		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			34%		34%		37%		35%		36%
	Depreciation and other amortization		(17%	)	(16%	)	(17%	)	(17%	)	(16%	)
	Gain on property sales		0%		0%		1%		0%		0%
	Loss on early extinguishment of debt		(0%	)	0%		(0%	)	(0%	)	(0%	)
	Cumulative effect adjustment for accounting change		0%		0%		0%		(1%	)	0%
	Expense (income) associated with options		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 & F Preferred Share dividends		7%		5%		5%		3%		3%

Income Before Minority Interests and Preferred Share Dividends			24%		24%		26%		20%		22%
Minority Interests:
	Preferred Units in Operating Partnership		(2%	)	(2%	)	(2%	)	(2%	)	(2%	)
	Common Units in Operating Partnership		(5%	)	(5%	)	(6%	)	(5%	)	(5%	)
	Other consolidated entities		(0%	)	(0%	)	(0%	)	0%		(0%	)
Preferred Share dividends			(8%	)	(6%	)	(6%	)	(3%	)	(3%	)

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

Funds From Operations (FFO)—Diluted			34%		34%		37%		35%		36%
Straight line rents			(3%	)	(2%	)	(3%	)	(2%	)	(3%	)
Non-incremental capital expenditures			(6%	)	(4%	)	(4%	)	(4%	)	(3%	)

Adjusted Funds from Operations—Diluted			26%		28%		30%		29%		30%

Annual Selected Financial Summary Data
(Dollars in thousands)

		December 31
		2001			2000			1999
Total Revenues		$	123,072		$	107,543		$	81,112
Net Operating Income			86,290			76,308			58,787
EBITDA			84,103			72,581			55,781
Net Income			19,922			15,134			15,083
Preferred Dividends			(6,857	)		(3,802	)		(2,854	)

Net Income Available to Common Shareholders		$	13,065		$	11,332		$	12,229

Funds From Operations (FFO)—Diluted		$	43,214		$	37,504		$	31,401
FFO per diluted share		$	1.29		$	1.17		$	1.07
Adjusted FFO—Diluted		$	34,609		$	30,554		$	26,056
Adjusted FFO per diluted share		$	1.03		$	0.95		$	0.89
Payout Ratios:
	FFO—Diluted^(A)		62.56	%		66.98	%		64.31	%
	AFFO—Diluted^(B)		78.11	%		82.22	%		77.50	%
Total Dividends/Distributions		$	33,382		$	28,246		$	21,694

(A): Computed by dividing total dividends/distributions (except for dividends on Series B, E and F Cumulative Redeemable Preferred Shares which are subtracted to calculate FFO) by FFO diluted.
(B): Computed by dividing total dividends/distributions (except for dividends on Series B, E and F Cumulative Redeemable Preferred Shares which are subtracted to calculate AFFO) by AFFO diluted.

Annual Consolidated Balance Sheets
(Dollars in thousands except per share data)

			December 31
			2001			2000			1999
Assets
Investment in real estate:
	Land—operational		$	164,994		$	140,018		$	135,641
	Land—development			26,751			19,069			13,158
	Construction in progress			37,493			17,489			20,667
	Buildings and improvements			738,320			604,666			544,967
	Investment in and advances to unconsolidated real estate joint ventures			11,047			3,616			—
	Less: accumulated depreciation			(51,552	)		(33,271	)		(18,156	)

		Net investment in real estate		927,053			751,587			696,277
	Cash and cash equivalents			6,640			4,981			2,376
	Restricted cash			4,947			2,703			2,041
	Accounts receivable, net			3,805			3,245			2,087
	Investment in and advances to other unconsolidated entities			2,112			6,124			3,661
	Deferred rent receivable			11,447			8,644			4,634
	Deferred charges, net			16,884			12,905			7,525
	Prepaid and other assets			9,551			4,501			2,221
	Furniture, fixtures and equipment, net of accumulated depreciation			1,771			147			212

		Total assets	$	984,210		$	794,837		$	721,034

Liabilities and beneficiaries' equity
Liabilities:
	Mortgage loans payable		$	573,327		$	474,349		$	399,627
	Accounts payable and accrued expenses			10,674			10,227			6,597
	Rents received in advance and security deposits			6,567			3,883			3,776
	Dividends/distributions payable			8,965			7,090			6,298
	Fair value of derivatives			3,781			—			—
	Other liabilities			12,193			—			—

		Total liabilities		615,507			495,549			416,298

Minority interests:
	Preferred Units in the Operating Partnership			24,367			24,367			24,367
	Common Units in the Operating Partnership			80,158			81,069			88,170
	Other consolidated partnerships			257			124			98

		Total minority interests		104,782			105,560			112,635

		Commitments and contingencies		—			—			—
Beneficiaries' equity:
	Preferred Shares ($0.01 par value; 5,000,000 authorized);
		40,693 designated as Series A Convertible Preferred Shares of beneficial interest (1 share issued as of December 31, 2001)		—			—			10
		1,725,000 designated as Series B Cumulative Redeemable Preferred Shares of beneficial interest (1,250,000 shares issued as of December 31, 2001)		13			12			12
		544,000 designated as Series D Cumulative Redeemable Preferred Shares of beneficial interest (544,000 shares issued as of December 31, 2001)		5			—			—
		1,265,000 designated as Series E Cumulative Redeemable Preferred Shares of beneficial interest (1,150,000 shares issued as of December 31, 2001)		11			—			—
		1,425,000 designated as Series F Cumulative Redeemable Preferred Shares of beneficial interest (1,425,000 shares issued as of December 31, 2001)		14			—			—
	Common Shares of beneficial interest ($0.01 par value; 45,000,000 authorized, 20,814,701 shares issued as of December 31, 2001)			208			206			176
	Treasury Shares, at cost (166,600 shares as of December 31, 2001)			(1,415	)		(1,415	)		—
Additional paid-in capital				285,362			209,388			202,867
Cumulative dividends in excess of net income				(14,502	)		(11,064	)		(7,547	)
Value of unearned restricted Common Share grants				(3,275	)		(3,399	)		(3,417	)
Accumulated other comprehensive loss				(2,500	)		—			—

		Total beneficiaries' equity		263,921			193,728			192,101

		Total beneficiaries' equity and minority interests		368,703			299,288			304,736

		Total liabilities and beneficiaries' equity	$	984,210		$	794,837		$	721,034

Note: Prior to January 1, 2001, other unconsolidated entities included 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.

Annual Consolidated Statements of Operations and Funds From Operations (FFO)
(Amounts in thousands)

			December 31
			2001			2000			1999

Revenues
	Rental revenue		$	110,547		$	93,309		$	70,101
	Tenant recoveries and other revenue			12,525			14,234			11,011

		Total Revenues from Real Estate Operations		123,072			107,543			81,112
Expenses
	Property operating			15,361			12,748			9,457
	Repairs and maintenance			14,852			13,013			9,042
	Real estate taxes			6,569			5,474			3,826

		Total Property Expenses from Real Estate Operations		36,782			31,235			22,325
Net Operating Income from Real Estate Operations				86,290			76,308			58,787
	General and administrative			(5,289	)		(4,867	)		(3,204	)
	Equity in income of unconsol. real estate joint ventures			208			—			—
	Earnings from service companies			(782	)		—			—
	Income from real estate services			3,676			1,450			—
	Equity in income (loss) of other unconsolidated entities			—			(310	)		198

EBITDA				84,103			72,581			55,781
	Interest expense			(32,773	)		(30,454	)		(21,808	)
	Series B, E & F Preferred Share dividends			(6,349	)		(3,125	)		(1,501	)
	Amortization of deferred financing costs			(1,818	)		(1,382	)		(975	)
	Income tax benefit			409			—			—
	Expense (income) associated with options			—			—			—
	Depreciation on unconsolidated real estate entities			144			(13	)		(6	)
	Minority interestholders' share of operations			(84	)		(26	)		(8	)
	Depreciation of corporate FF&E			(418	)		(77	)		(82	)

Funds From Operation (FFO)—Diluted				43,214			37,504			31,401
	Depreciation and other amortization			(20,558	)		(16,900	)		(11,993	)
	Gain on property sales			416			107			1,140
	Loss on early extinguishment of debt			(212	)		(153	)		(903	)
	Cumulative effect adjustment for accounting change			(263	)		—			—
	Expense (income) associated with options			—			—			—
	Depreciation on unconsolidated real estate entities			(144	)		13			—
	Minority interestholders' share of operations			84			26			14
	Series B, E & F Preferred Share dividends			6,349			3,125			1,501

Income Before Minority Interests and Preferred Share dividends				28,886			23,722			21,160
Minority Interests:
	Preferred Units in Operating Partnership			(2,287	)		(2,240	)		(2,620	)
	Common Units in Operating Partnership			(6,593	)		(6,322	)		(3,449	)
	Other consolidated entities			(84	)		(26	)		(8	)
	Preferred Share dividends			(6,857	)		(3,802	)		(2,854	)

Net Income Available to Common Shareholders			$	13,065		$	11,332		$	12,229

Funds From Operation (FFO)—Diluted			$	43,214		$	37,504		$	31,401
	Straight line rents			(3,175	)		(4,107	)		(2,766	)
	Non-incremental capital expenditures			(5,430	)		(2,843	)		(2,579	)

Adjusted Funds from Operations			$	34,609		$	30,554		$	26,056

	Preferred dividends/distributions			9,144			6,042			5,474
	Common dividends/distributions			24,238			22,204			16,220

Total Dividends/Distributions			$	33,382		$	28,246		$	21,694

	Weighted average outstanding shares/units			33,481			32,154			29,372

Annual Consolidated Statements of Operations and FFO per Diluted Share
(Shares in thousands)

			December 31
			2001			2000			1999
Revenues
	Rental revenue		$	3.30		$	2.90		$	2.39
	Tenant recoveries and other revenue			0.37			0.44			0.37

		Total Revenues from Real Estate Operations		3.68			3.34			2.76
Expenses
	Property operating			0.46			0.40			0.32
	Repairs and maintenance			0.44			0.40			0.31
	Real estate taxes			0.20			0.17			0.13

		Total Property Expenses from Real Estate Operations		1.10			0.97			0.76
Net Operating Income from Real Estate Operations				2.58			2.37			2.00
	General and administrative			(0.16	)		(0.15	)		(0.11	)
	Equity in income of unconsol. real estate joint ventures			0.01			0.00			0.00
	Earnings from service companies			(0.02	)		0.00			0.00
	Income from real estate services			0.11			0.05			0.00
	Equity in income (loss) of other unconsolidated entities			—			(0.01	)		0.01

EBITDA				2.51			2.26			1.90
	Interest expense			(0.98	)		(0.95	)		(0.74	)
	Series B, E & F Preferred Share dividends			(0.19	)		(0.10	)		(0.05	)
	Amortization of deferred financing costs			(0.05	)		(0.04	)		(0.03	)
	Income tax benefit			0.01			0.00			0.00
	Expense (income) associated with options			0.00			0.00			0.00
	Depreciation on unconsolidated real estate entities			0.00			(0.00	)		(0.00	)
	Minority interestholders' share of operations			(0.00	)		(0.00	)		(0.00	)
	Depreciation of corporate FF&E			(0.01	)		(0.00	)		(0.00	)

Funds From Operation (FFO)—Diluted				1.29			1.17			1.07
	Depreciation and other amortization			(0.61	)		(0.53	)		(0.41	)
	Gain on property sales			0.01			0.00			0.04
	Loss on early extinguishment of debt			(0.01	)		(0.00	)		(0.03	)
	Cumulative effect adjustment for accounting change			(0.01	)		0.00			0.00
	Expense (income) associated with options			0.00			0.00			0.00
	Depreciation on unconsolidated real estate entities			(0.00	)		0.00			0.00
	Minority interestholders' share of operations			0.00			0.00			0.00
	Series B, E & F Preferred Share dividends			0.19			0.10			0.05

Income Before Minority Interests and Preferred Share dividends				0.86			0.74			0.72
Minority Interests:
	Preferred Units in Operating Partnership			(0.07	)		(0.07	)		(0.09	)
	Common Units in Operating Partnership			(0.20	)		(0.20	)		(0.12	)
	Other consolidated entities			(0.00	)		(0.00	)		(0.00	)
Preferred Share dividends				(0.20	)		(0.12	)		(0.10	)

Net Income Available to Common Shareholders			$	0.39		$	0.35		$	0.42

Funds From Operation (FFO)—Diluted			$	1.29		$	1.17		$	1.07
	Straight line rents			(0.09	)		(0.13	)		(0.09	)
	Non-incremental capital expenditures			(0.16	)		(0.09	)		(0.09	)

Adjusted Funds from Operations			$	1.03		$	0.95		$	0.89

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

			December 31
			2001		2000		1999
Revenues
	Rental revenue		90%		87%		86%
	Tenant recoveries and other revenue		10%		13%		14%

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

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

EBITDA			68%		67%		69%
	Interest expense		(27%	)	(28%	)	(27%	)
	Series B, E & F Preferred Share dividends		(5%	)	(3%	)	(2%	)
	Amortization of deferred financing costs		(1%	)	(1%	)	(1%	)
	Income tax benefit		0%		0%		0%
	Expense (income) associated with options		0%		0%		0%
	Depreciation on unconsolidated real estate entities		0%		(0%	)	(0%	)
	Minority interestholders' share of operations		(0%	)	(0%	)	(0%	)
	Depreciation of corporate FF&E		(0%	)	(0%	)	(0%	)

Funds From Operation (FFO)—Diluted			35%		35%		39%
	Depreciation and other amortization		(17%	)	(16%	)	(15%	)
	Gain on property sales		0%		0%		1%
	Loss on early extinguishment of debt		(0%	)	(0%	)	(1%	)
	Cumulative effect adjustment for accounting change		(0%	)	0%		0%
	Expense (income) associated with options		0%		0%		0%
	Depreciation on unconsolidated real estate entities		(0%	)	0%		0%
	Minority interestholders' share of operations		0%		0%		0%
	Series B, E & F Preferred Share dividends		5%		3%		2%

Income Before Minority Interests and Preferred Share dividends			23%		22%		26%
Minority Interests:
	Preferred Units in Operating Partnership		(2%	)	(2%	)	(3%	)
	Common Units in Operating Partnership		(5%	)	(6%	)	(4%	)
	Other consolidated entities		(0%	)	(0%	)	(0%	)
Preferred Share dividends			(6%	)	(4%	)	(4%	)

Net Income Available to Common Shareholders			11%		11%		15%
Funds From Operation (FFO)—Diluted			35%		35%		39%
	Straight line rents		(3%	)	(4%	)	(3%	)
	Non-incremental capital expenditures		(4%	)	(3%	)	(3%	)

Adjusted Funds from Operations			28%		28%		32%
	Preferred dividends/distributions		7%		6%		7%
	Common dividends/distributions		20%		21%		20%

Total Dividends/Distributions			27%		26%		27%

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

		2001												2000
		December 31			September 30			June 30			March 31			December 31
Common Equity—End of Quarter
	Common Shares⁽¹⁾		20,648			20,590			20,526			20,429			20,409
	Common Units		9,607			9,617			9,307			9,388			9,388

	Total		30,255			30,207			29,833			29,817			29,797

Convertible Preferred Equity—End of Quarter
	Convertible Series A Preferred Shares Outstanding		0			0			0			0			0
	Conversion Ratio		1.8748			1.8748			1.8748			1.8748			1.8748
	Common Shares Issued Assuming Conversion		0			0			0			0			0
	Preferred Share Liquidation Preference	$	25.00		$	25.00		$	25.00		$	25.00		$	25.00
	Convertible Series D Preferred Shares Outstanding⁽²⁾		544			544			544			544			n/a
	Conversion Ratio		2.2000			2.2000			2.2000			2.2000			n/a
	Common Shares Issued Assuming Conversion		1,197			1,197			1,197			1,197			n/a
	Preferred Share Liquidation Preference	$	25.00		$	25.00		$	25.00		$	25.00			n/a
	Convertible Series C Preferred Units Outstanding		1,017			1,017			1,017			1,017			1,017
	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			2,421
	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⁽³⁾		1,150			1,150			1,150			n/a			n/a
	Preferred Share Liquidation Preference	$	25.00		$	25.00		$	25.00			n/a			n/a
	Redeemable Series F Shares Outstanding⁽⁴⁾		1,425			1,425			n/a			n/a			n/a
	Preferred Share Liquidation Preference	$	25.00		$	25.00			n/a			n/a			n/a
Weighted Average Shares:
	Weighted Average Common Shares Outstanding		20,186			20,141			20,077			19,982			19,947
	Weighted Average Preferred Shares Outstanding Assuming Conversion		1,197			1,197			1,197			878			—
	Weighted Average Dilutive Options		590			481			334			273			276
	Weighted Average Common Units		9,609			9,415			9,335			9,388			9,388
	Weighted Average Preferred Units Assuming Conversion		2,421			2,421			2,421			2,421			2,421

Weighted Avg. Shares/Units Outstanding Assuming Conversion of Preferred Shares/Units			34,003			33,655			33,364			32,942			32,032

Common Shares Trading Volume
	Average Daily Volume (Shares)		23			30			24			21			13
	Average Daily Volume (Dollars in thousands)	$	261.76		$	313.45		$	237.66		$	198.00		$	122.20
	As a Percentage of Common Shares		0.1	%		0.1	%		0.1	%		0.1	%		0.1	%
Common Share Price Range
	Quarterly High	$	12.71		$	11.50		$	10.60		$	9.98		$	10.00
	Quarterly Low	$	10.75		$	9.86		$	9.36		$	9.03		$	8.94
	Quarterly Average	$	11.50		$	10.61		$	10.10		$	9.59		$	9.63
	End of Quarter	$	11.87		$	10.90		$	10.00		$	9.51		$	9.94
Capitalization
	Liquidation Value of Preferred Shares/Units	$	134,642		$	134,642		$	99,017		$	70,267		$	56,667
	Market Value of Common Shares/Units		359,127			329,256			298,330			283,560			296,106

	Total Equity Market Capitalization	$	493,768		$	463,898		$	397,347		$	353,826		$	352,773

	Total Debt	$	573,327		$	508,715		$	475,999		$	478,913		$	474,349

	Total Market Capitalization	$	1,067,095		$	972,613		$	873,346		$	832,739		$	827,122

Debt to Total Market Capitalization			53.7	%		52.3	%		54.5	%		57.5	%		57.3	%
Debt to Undepreciated Book Value of Real Estate Assets			58.6	%		56.2	%		57.1	%		59.1	%		60.4	%

(1): Net of 166,600 treasury shares as of December 31, 2001.
(2): We issued 544,000 Convertible Series D preferred shares on January 25, 2001.
(3): We issued 1,150,000 Cumulative Redeemable Series E preferred shares on April 6, 2001.
(4): We issued 1,425,000 Cumulative Redeemable Series F preferred shares on September 13, 2001.

Quarterly Valuation Analysis
(Dollars in thousands except per share data and ratios)

		2001								2000
		December 31		September 30		June 30		March 31		December 31

PRICING MULTIPLES
NOI Multiple
	(Market value of Common Equity + Avg. Preferred Share/Units+ Avg. Total Debt) / Ann. NOI		11.00x		10.93x		10.82x		10.17x		10.54x
EBITDA Multiple
	(Market value of Common Equity + Avg. Preferred Share/Units + Avg. Total Debt) / Ann. EBITDA		11.30x		11.43x		10.66x		10.64x		10.63x
FFO Multiple
	(Quarter End Common Share Price / Ann. FFO—diluted)		8.80x		8.31x		7.90x		7.75x		8.12x
AFFO Multiple
	(Quarter End Common Share Price / Ann. AFFO—diluted)		11.79x		10.07x		9.71x		9.44x		9.67x
NOI Yield
	(Ann. NOI / (Market value of Common Equity + Avg. Preferred Share/Units + Avg. Debt))		9.09%		9.15%		9.24%		9.83%		9.49%
EBITDA Yield
	(Ann. EBITDA / (Market value of Common Equity + Avg. Preferred Share/Units + Avg. Debt))		8.85%		8.75%		9.38%		9.40%		9.41%
FFO Yield
	(Ann. FFO / Quarter End Common Share Price)		11.36%		12.03%		12.66%		12.90%		12.32%
AFFO Yield
	(Ann. AFFO / Quarter End Common Share Price)		8.48%		9.93%		10.30%		10.59%		10.34%
Total Market Capitalization Per Square Foot
	((Market Value of Common Stock + Preferred Share/Units + Total Debt) / GLA)⁽¹⁾	$	137.71	$	133.29	$	129.16	$	124.70	$	127.79
RETURNS
Yield on Real Estate Owned—NOI
	(Ann. NOI / Avg. Adjusted Gross Real Estate Investment)⁽²⁾		10.71%		11.12%		10.54%		10.85%		10.58%
Yield on Real Estate Owned—EBITDA
	(Ann. EBITDA / Avg. Adjusted Gross Real Estate Investment)⁽²⁾		10.42%		10.63%		10.71%		10.37%		10.49%
Return on Book Value of Average Equity & Minority Interest
	(Ann. EBTDA / Avg. Equity & Minority Interest)		15.45%		14.85%		15.82%		14.87%		14.72%

(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
			December 31		September 30		June 30		March 31		December 31
Debt Outstanding
	Mortgage Loans		$	445,951	$	475,163	$	409,670	$	356,872	$	329,955
	Construction Loans			17,376		15,852		13,099		18,950		33,058
	Revolving Credit Facility			—		—		—		29,091		29,091
	Secured Revolving Credit Facility			110,000		17,700		53,230		74,000		82,245

			$	573,327	$	508,715	$	475,999	$	478,913	$	474,349

Average Outstanding Balance
	Mortgage Loans		$	428,231	$	446,784	$	377,222	$	344,023	$	325,971
	Construction Loans			16,648		15,502		10,436		26,967		28,277
	Revolving Credit Facility			—		—		28,445		29,091		22,545
	Secured Revolving Credit Facility			89,110		52,548		59,123		75,507		90,910

			$	533,989	$	514,834	$	475,226	$	475,588	$	467,703

Interest Rate Structure
	Fixed		$	326,701	$	328,029	$	305,431	$	240,501	$	201,715
	Variable			96,626		—		—		13,412		147,634
	Variable Subject to Interest Rate Protection^(1-4)			150,000		180,686		170,568		225,000		125,000

			$	573,327	$	508,715	$	475,999	$	478,913	$	474,349

	% of Fixed Rate Loans^(A)			56.98%		64.48%		64.17%		50.22%		42.52%
	% of Variable Rate Loans			43.02%		35.52%		35.83%		49.78%		57.48%

				100.00%		100.00%		100.00%		100.00%		100.00%

^(A)Excludes interest rate protection agreements.
Average Interest Rates
	Mortgage & Construction Loans			6.71%		7.12%		7.31%		7.44%		7.84%
	Revolving Credit Facility			n/a		n/a		6.71%		7.31%		8.17%
	Secured Revolving Credit Facility			7.32%		6.73%		6.93%		7.85%		8.38%
	Total Weighted Average			6.85%		7.08%		7.22%		7.50%		7.96%
Debt Ratios
Debt to Total Market Capitalization				53.7%		52.3%		54.5%		57.5%		57.3%
Debt to Undepreciated Book Value of Real Estate Assets				58.6%		56.2%		57.1%		59.1%		60.4%
Coverage Ratios (excluding capitalized interest)
	Interest Coverage—NOI			2.76x		2.68x		2.60x		2.49x		2.36x
		(NOI / Interest)
	Interest Coverage—EBITDA			2.68x		2.57x		2.64x		2.38x		2.33x
		(EBITDA / Interest)
	Interest Coverage—EBITDA—YTD			2.57x		2.53x		2.50x		2.38x		2.38x
		(EBITDA / Interest—Year-to-date)
	Debt Service Coverage—NOI			2.38x		2.32x		2.28x		2.23x		2.09x
		(NOI / (Interest+Principal Amortization))
	Debt Service Coverage—EBITDA			2.31x		2.22x		2.32x		2.13x		2.07x
		(EBITDA / (Interest+Principal Amortization))
	Fixed Charge Coverage—NOI			2.02x		2.08x		2.03x		2.11x		2.02x
		(NOI / (Interest+Preferred Distribution))
	Fixed Charge Coverage—EBITDA			1.96x		1.99x		2.06x		2.02x		2.01x
		(EBITDA / (Interest + Preferred Distribution))

(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 expired October 13, 2001.
(3): We purchased a $25 million 1-year cap on LIBOR at a rate of 7.0% which expired 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
		December 31		September 30		June 30		March 31		December 31
OPERATING RATIOS
NOI as a % of Real Estate Revenues
	(NOI / (Rental Revenue + Oper. Expense Reimb.))		69.81%		69.87%		70.19%		70.66%		70.52%
EBITDA as a % of Real Estate Revenues
	(EBITDA / (Rental Revenue + Oper. Expense Reimb.))		67.93%		66.80%		71.30%		67.55%		69.90%
G&A as a % of Real Estate Revenues
	(G&A / (Rental Revenue + Oper. Expense Reimb.))		3.49%		4.20%		4.63%		5.01%		3.77%
G&A as a % of EBITDA
	(G&A / EBITDA)		5.13%		6.29%		6.49%		7.42%		5.39%
Quarter end occupancy for operating portfolio			96.07%		97.18%		96.92%		96.95%		97.03%
Quarter end % leased for operating portfolio			96.59%		97.57%		97.60%		98.39%		98.17%
Non-Incremental Capital Expenditures		$	1,950	$	1,211	$	1,153	$	1,116	$	776
Non-Incremental Capital Expenditures per average square feet		$	0.26	$	0.17	$	0.17	$	0.17	$	0.12
Non-Incremental Capital Expenditures per Diluted Share		$	0.06	$	0.04	$	0.03	$	0.03	$	0.02
Non-Incremental Capital Expenditures as a % of NOI			8.35%		5.41%		5.72%		5.47%		3.99%

Quarterly Dividend Analysis

			2001								2000
			December 31		September 30		June 30		March 31		December 31
Common Share Dividends
	Dividends per share/unit		$	0.21	$	0.21	$	0.20	$	0.20	$	0.20
	Increase over prior quarter			0.0%		5.0%		0.0%		0.0%		0.0%
	Increase over prior year			5.0%		5.0%		5.3%		5.3%		5.3%
Common Dividend Payout Ratios
	Payout—FFO—Diluted			60.8%		62.7%		62.4%		64.9%		65.7%
		((Dividend + Distributions)/FFO)
	Payout—AFFO—Diluted			81.4%		76.0%		76.7%		79.0%		78.3%
		(Dividend /FAD)
	Dividend Coverage—FFO—Diluted			1.64x		1.59x		1.60x		1.54x		1.52x
		(FFO /dividends)
	Dividend Coverage—AFFO—Diluted			1.23x		1.32x		1.30x		1.27x		1.28x
		(AFFO /dividends)
Common Dividend Yields
	Dividend Yield			7.08%		7.71%		8.00%		8.41%		8.05%
Series C Preferred Unit Distributions
	Preferred Unit Distributions Per Share		$	0.56250	$	0.56250	$	0.56250	$	0.56250	$	0.56250
	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		$	0.62500	$	0.62500	$	0.62500	$	0.62500	$	0.62500
	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		$	0.25000	$	0.25000	$	0.25000	$	0.25000		n/a
	Preferred Share Dividend Yield			4.00%		4.00%		4.00%		4.00%		n/a
	Quarter End Liquidation Preference		$	25.00	$	25.00	$	25.00	$	25.00		n/a
Series E Preferred Share Dividends⁽²⁾
	Preferred Share Dividends Per Share		$	0.64063	$	0.64063	$	0.64063		n/a		n/a
	Preferred Share Dividend Yield			10.25%		10.25%		10.25%		n/a		n/a
	Quarter End Liquidation Preference		$	25.00	$	25.00	$	25.00		n/a		n/a
Series F Preferred Share Dividends⁽³⁾
	Preferred Share Dividends Per Share		$	0.61719	$	0.61719		n/a		n/a		n/a
	Preferred Share Dividend Yield			9.875%		9.875%		n/a		n/a		n/a
	Quarter End Liquidation Preference		$	25.00	$	25.00		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.
(3): We issued 1,425,000 of Series F Cumulative Redeemable Preferred Shares on September 13, 2001. Dividend was prorated based upon the number of days outstanding from date of issuance through quarter end. Prorated dividend was $.123435 per share.

Investor Composition and Analyst Coverage
(as of December 31, 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	26.20%
Insiders	1,149,628	7,831,137	—	8,980,765	26.51%
Institutional Ownership	3,420,683	—	—	3,420,683	10.10%
Other / Retail	7,201,619	1,776,222	3,617,472	12,595,313	37.18%

	20,648,101	9,607,359	3,617,474	33,872,934	100.00%

RESEARCH COVERAGE	December 31, 2001	September 30, 2001	June 30, 2001	March 31, 2001	December 31, 2000

A. G. Edwards	x	x	x	x	x
Credit Suisse First Boston	x	x	x	x	x
Deutsche Banc Alex. Brown	x	x	x	x	x
Ferris, Baker Watts, Incorporated	x	x	x	x
Janney Montgomery Scott	x	x	x	x	x
Legg Mason Wood Walker, Inc.	x	x	x	x	x
McDonald Investments	x	x	x	x	x

Source: Institutional ownership was obtained from filed Forms 13(f) as of September 30, 2001 per Vickers Stock Research Corporation.

Debt Maturity Schedule—December 31, 2001
(Dollars in thousands)

	Mortgages				Construction Loans⁽¹⁾
Year of Maturity	Annual Amortization of Monthly Payments		Due on Maturity		Annual Amortization of Monthly Payments		Due on Maturity⁽²⁾		$125,000 Secured Revolving Credit Facility		Total Scheduled Payments
2002	$	5,675	$	50,000	$	158	$	—	$	—	$	55,833
2003		6,255		22,121		173		17,045		—		45,594
2004		6,664		72,078		—		—		110,000		188,742
2005		6,282		16,368		—		—		—		22,650
2006		6,154		59,975		—		—		—		66,129
2007		5,050		20,442		—		—		—		25,492
2008		3,200		142,879		—		—		—		146,079
2009		332		22,476		—		—		—		22,808

	$	39,612	$	406,339	$	331	$	17,045	$	110,000	$	573,327

Notes:

(1): The construction loan balances as of December 31, 2001 represent the outstanding balances as of that date.
(2): We have the right to extend construction loans of $10,396 and $6,980, for a one-year period subject to certain conditions, upon maturity in 2002. The above table reflects the maturities in 2003, as if the loans had been extended.

We have obtained interest rate protection agreements as follows:
$50 million cap on thirty-day LIBOR at 7.7% expiring in May 2002.
$100 million notional amount swap of thirty-day LIBOR at 5.76% expiring in January 2003.

Property Summary by Region — December 31, 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
2730 Hercules Road	1	Owned	BWI Airport	MD	1990	M	240,336
132 National Business Parkway	2	Owned	BWI Airport	MD	2000	M	118,456
2701 Technology Drive (201 NBP)	3	JV	BWI Airport	MD	2001	M	91,643	26,357
2721 Technology Drive (221 NBP)	4	Owned	BWI Airport	MD	2000	M	117,890
1306 Concourse Drive	5	Owned	BWI Airport	MD	1990	M	114,046
870-880 Elkridge Landing Road	6	Owned	BWI Airport	MD	1981	M	97,161
900 Elkridge Landing Road	7	Owned	BWI Airport	MD	1982	M	97,139
1199 Winterson Road	8	Owned	BWI Airport	MD	1988	M	96,636
920 Elkridge Landing Road	9	Owned	BWI Airport	MD	1982	M	96,566
134 National Business Parkway	10	Owned	BWI Airport	MD	1999	M	93,482
133 National Business Parkway	11	Owned	BWI Airport	MD	1997	M	88,666
141 National Business Parkway	12	Owned	BWI Airport	MD	1990	M	86,964
135 National Business Parkway	13	Owned	BWI Airport	MD	1998	M	86,863
1302 Concourse Drive	14	Owned	BWI Airport	MD	1996	M	84,607
7467 Ridge Road	15	Owned	BWI Airport	MD	1990	M	73,756
881 Elkridge Landing Road	16	Owned	BWI Airport	MD	1986	M	73,572
7240 Parkway Drive	17	Owned	BWI Airport	MD	1985	M	73,500
1099 Winterson Road	18	Owned	BWI Airport	MD	1988	M	70,938
131 National Business Parkway	19	Owned	BWI Airport	MD	1990	M	68,906
1190 Winterson Road	20	Owned	BWI Airport	MD	1987	M	68,567
849 International Drive	21	Owned	BWI Airport	MD	1988	M	68,397
911 Elkridge Landing Road	22	Owned	BWI Airport	MD	1985	M	68,296
1201 Winterson Road	23	Owned	BWI Airport	MD	1985	M	67,903
999 Corporate Boulevard	24	Owned	BWI Airport	MD	2000	M	67,351
7318 Parkway Drive	25	Owned	BWI Airport	MD	1984	S	59,204
900 International Drive	26	Owned	BWI Airport	MD	1986	S	57,140
930 International Drive	27	Owned	BWI Airport	MD	1986	S	57,140
901 Elkridge Landing Road	28	Owned	BWI Airport	MD	1984	M	56,847
891 Elkridge Landing Road	29	Owned	BWI Airport	MD	1984	M	56,489
921 Elkridge Landing Road	30	Owned	BWI Airport	MD	1983	M	54,057
939 Elkridge Landing Road	31	Owned	BWI Airport	MD	1983	M	53,031
938 Elkridge Landing Road	32	Owned	BWI Airport	MD	1984	M	52,988
940 Elkridge Landing Road	33	Owned	BWI Airport	MD	1984	M	51,704
800 International Drive	34	Owned	BWI Airport	MD	1988	S	50,979
1340 Ashton Road	35	Owned	BWI Airport	MD	1989	S	46,400
7321 Parkway Drive	36	Owned	BWI Airport	MD	1984	S	39,822
1334 Ashton Road	37	Owned	BWI Airport	MD	1989	S	37,565
1331 Ashton Road	38	Owned	BWI Airport	MD	1989	S	29,936
1350 Dorsey Road	39	Owned	BWI Airport	MD	1989	S	19,992
1344 Ashton Road	40	Owned	BWI Airport	MD	1989	M	16,865
1341 Ashton Road	41	Owned	BWI Airport	MD	1989	S	15,841
1343 Ashton Road	42	Owned	BWI Airport	MD	1989	S	9,962
2711 Technology Drive (211 NBP)		JV	BWI Airport	MD		M		150,000
1304 Concourse Drive		Owned	BWI Airport	MD		M		100,000

Subtotal (continued on next page)							2,977,603	276,357

Property Summary by Region — December 31, 2001 (continued)

	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
Subtotal (continued from prior page)							2,977,603	276,357
1615 and 1629 Thames Street	43	Owned	Baltimore City	MD	1989	M	103,683
9690 Deereco Road	44	Owned	North Baltimore Co.	MD	1988	M	133,737
375 West Padonia Road	45	Owned	North Baltimore Co.	MD	1986	M	100,804
7200 Riverwood Drive	46	Owned	Howard Co. Perimeter	MD	1986	S	160,000
9140 Route 108	47	Owned	Howard Co. Perimeter	MD	1974/1985	S	150,000
6940 Columbia Gateway Drive	48	Owned	Howard Co. Perimeter	MD	1999	M	108,737
6950 Columbia Gateway Drive	49	Owned	Howard Co. Perimeter	MD	1998	M	107,778
7067 Columbia Gateway Drive	50	Owned	Howard Co. Perimeter	MD	2001	M	82,953
6750 Alexander Bell Drive	51	Owned	Howard Co. Perimeter	MD	2001	M	78,460
6700 Alexander Bell Drive	52	Owned	Howard Co. Perimeter	MD	1988	M	75,635
6740 Alexander Bell Drive	53	Owned	Howard Co. Perimeter	MD	1992	M	61,957
8815 Centre Park Drive	54	Owned	Howard Co. Perimeter	MD	1987	M	53,782
6716 Alexander Bell Drive	55	Owned	Howard Co. Perimeter	MD	1990	M	52,002
Montpelier Research Phase I	56	JV	Howard Co. Perimeter	MD	2001	S	43,785
7065 Columbia Gateway Drive	57	Owned	Howard Co. Perimeter	MD	2000	S	38,560
6760 Alexander Bell Drive	58	Owned	Howard Co. Perimeter	MD	1991	M	37,248
7063 Columbia Gateway Drive	59	Owned	Howard Co. Perimeter	MD	2000	S	36,936
6708 Alexander Bell Drive	60	Owned	Howard Co. Perimeter	MD	1988	M	35,040
7061 Columbia Gateway Drive	61	Owned	Howard Co. Perimeter	MD	2000	M	29,604
6731 Columbia Gateway Drive		Owned	Howard Co. Perimeter	MD		M		122,889
Robert Fulton Drive—Phase I		JV	Howard Co. Perimeter	MD		M		115,850
6724 Alexander Bell Drive		Owned	Howard Co. Perimeter	MD		M		30,855
14502 Greenview Drive	62	Owned	Laurel	MD	1988	M	71,873
14504 Greenview Drive	63	Owned	Laurel	MD	1985	M	69,194
4260 Forbes Boulevard		JV	Lanham	MD		S		54,692
6009 - 6011 Oxon Hill Road	64	Owned	Southern Prince George's County	MD	1990	M	181,768

Total Baltimore / Washington Corridor:							4,791,139	600,643

Greater Philadelphia
753 Jolly Road	1	Owned	Blue Bell	PA	1960/1992-94	M	419,472
785 Jolly Road	2	Owned	Blue Bell	PA	1970/1996	M	219,065
760 Jolly Road	3	Owned	Blue Bell	PA	1974/1994	M	208,854
751 Jolly Road	4	Owned	Blue Bell	PA	1966/1991	M	112,958

Total Greater Philadelphia:							960,349	—

Property Summary by Region — December 31, 2001 (continued)

	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
Greater Harrisburg
2605 Interstate Drive	1	Owned	East Shore	PA	1990	M	81,187
6345 Flank Drive	2	Owned	East Shore	PA	1989	S	69,443
6340 Flank Drive	3	Owned	East Shore	PA	1988	S	68,200
2601 Market Place	4	Owned	East Shore	PA	1989	M	67,743
6400 Flank Drive	5	Owned	East Shore	PA	1992	S	52,439
6360 Flank Drive	6	Owned	East Shore	PA	1988	S	46,500
6385 Flank Drive	7	Owned	East Shore	PA	1995	S	32,800
6380 Flank Drive	8	Owned	East Shore	PA	1991	S	32,000
6405 Flank Drive	9	Owned	East Shore	PA	1991	S	32,000
95 Shannon Road	10	Owned	East Shore	PA	1999	S	21,976
75 Shannon Road	11	Owned	East Shore	PA	1999	S	20,887
6375 Flank Drive	12	Owned	East Shore	PA	2000	S	19,783
85 Shannon Road	13	Owned	East Shore	PA	1999	S	12,863
5035 Ritter Road	14	Owned	West Shore	PA	1988	S	56,556
5070 Ritter Road—Building A	15	Owned	West Shore	PA	1989	S	32,309
5070 Ritter Road—Building B	16	Owned	West Shore	PA	1989	S	28,000

Total Greater Harrisburg:							674,686	—

Northern/Central New Jersey
431 Ridge Road	1	Owned	Exit 8A—Cranbury	NJ	1958/1998	S	170,000
429 Ridge Road	2	Owned	Exit 8A—Cranbury	NJ	1966/1996	M	142,385
68 Culver Road	3	Owned	Exit 8A—Cranbury	NJ	2000	M	57,280
104 Interchange Plaza	4	Owned	Exit 8A—Cranbury	NJ	1990	M	47,677
101 Interchange Plaza	5	Owned	Exit 8A—Cranbury	NJ	1985	M	43,621
47 Commerce	6	Owned	Exit 8A—Cranbury	NJ	1992/1998	S	41,398
437 Ridge Road	7	Owned	Exit 8A—Cranbury	NJ	1962/1996	S	30,000
7 Centre Drive	8	Owned	Exit 8A—Cranbury	NJ	1989	S	19,466
8 Centre Drive	9	Owned	Exit 8A—Cranbury	NJ	1986	S	16,199
2 Centre Drive	10	Owned	Exit 8A—Cranbury	NJ	1989	S	16,132
4301 Route 1	11	Owned	Monmouth Junction	NJ	1986	M	61,300
695 Route 46	12	Owned	Wayne	NJ	1990	M	157,394
710 Route 46	13	Owned	Wayne	NJ	1985	M	101,120

Total Northern / Central New Jersey:							903,972	—

Northern Virginia
15000 Conference Center Drive	1	Owned	Chantilly	VA	1989	M	470,406

Total Northern Virginia:							470,406	—

TOTAL OFFICE PROPERTIES	98						7,800,552	600,643

Retail Properties
114 National Business Parkway		Owned	BWI Airport	MD		S	—	10,000

TOTAL RETAIL PROPERTIES							—	10,000

TOTAL PORTFOLIO	98						7,800,552	610,643

Property Occupancy Rates by Region by Quarter

	Office
	Greater Philadelphia		Baltimore/ Washington Corridor		Northern/ Central New Jersey		Greater Harrisburg		Northern Virginia		Total Office		Retail		Total Portfolio
December 31, 2001
Number of Buildings	4		64		13		16		1		98		—		98
Rentable Square Feet	960,349		4,791,139		903,972		674,686		470,406		7,800,552		—		7,800,552
Percent Occupied	100.00	%	95.68	%	95.80	%	91.17	%	99.56	%	96.07	%	0.00	%	96.07	%
September 30, 2001
Number of Buildings	4		64		13		16		—		97		—		97
Rentable Square Feet	960,349		4,759,623		904,854		677,903		—		7,302,729		—		7,302,729
Percent Occupied	100.00	%	98.33	%	95.65	%	87.19	%	0	%	97.18	%	0	%	97.18	%
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	%	0	%	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	%	0	%	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	%	0	%	97.03	%	0	%	97.03	%

Top Twenty Office Tenants as of December 31, 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⁾	20	870	11.6%	$	16,004	12.1%	4.7
AT&T Local Services⁽⁴⁾⁽⁵⁾	6	415	5.5%		8,487	6.4%	6.8
Unisys⁽⁶⁾	3	741	9.9%		7,444	5.6%	7.5
Dyncorp Information Systems, LLC	1	244	3.3%		5,033	3.8%	9.0
Ciena Corporation⁽⁷⁾	5	298	4.0%		3,816	2.9%	3.4
General Dynamics Government Corp.	3	162	2.2%		3,609	2.7%	7.3
Magellan Behavioral Health, Inc.	2	151	2.0%		3,308	2.5%	2.1
Booz-Allen & Hamilton	3	128	1.7%		2,525	1.9%	3.5
Johns Hopkins University⁽⁴⁾	5	126	1.7%		2,496	1.9%	4.6
Commonwealth of Pennsylvania⁽⁴⁾	9	178	2.4%		2,385	1.8%	6.6
Merck & Co., Inc.⁽⁶⁾	1	219	2.9%		2,237	1.7%	7.5
Corvis Operations, Inc.	3	117	1.6%		1,980	1.5%	5.2
Bookham Technology, Inc.	1	150	2.0%		1,870	1.4%	6.1
Northrop Grumman Systems	1	61	0.8%		1,554	1.2%	6.8
Genuity, Inc.	1	59	0.8%		1,538	1.2%	2.4
Arbros Communications, Inc.	1	92	1.2%		1,533	1.2%	9.3
First American Credit Management Solutions, Inc.	1	71	0.9%		1,410	1.1%	6.9
Sun Microsystems, Inc.	2	61	0.8%		1,403	1.1%	4.0
Deutsche Banc Alex. Brown	1	84	1.1%		1,327	1.0%	2.4
Ameritrade Holding Corporation	1	63	0.8%		1,318	1.0%	8.5
Subtotal Top 20 Office Tenants	70	4,290	57.2%		71,277	54.0%	5.8
All remaining tenants	376	3,204	42.8%		60,781	46.0%	3.2

Total/Weighted Average	446	7,494	100.0%	$	132,058	100.0%	4.6

(1): Total Rental Revenue is the monthly contractual base rent as of December 31, 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 through 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.
(7): In addition to the 298,482 square feet directly leased, Ciena Corporation also subleases 107,064 rentable square feet from various tenants in our portfolio over different lease terms.

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

		2001								2000
		December 31		September 30		June 30		March 31		December 31
Office Properties:
Greater Philadelphia		$	2,506	$	2,506	$	2,506	$	2,506	$	2,506
Baltimore/Washington Corridor			22,911		22,558		18,654		18,573		17,224
Northern/Central New Jersey			4,786		4,757		4,998		4,922		5,311
Greater Harrisburg			2,231		2,174		2,483		2,789		2,271
Northern Virginia			947		—		—		—		—

	Total Office Properties		33,381		31,995		28,641		28,790		27,312

Retail Properties:
	Total Retail Properties		—		—		—		—		72

Total Regional Rental Revenue		$	33,381	$	31,995	$	28,641	$	28,790	$	27,384

(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
			December 31		September 30		June 30		March 31		December 31
Office Properties:
Greater Philadelphia			$	2,478	$	2,476	$	2,469	$	2,486	$	2,481
Baltimore/Washington Corridor				15,745		15,539		12,704		12,614		11,571
Northern/Central New Jersey				2,890		2,819		3,173		3,028		3,418
Greater Harrisburg				1,640		1,506		1,736		2,195		1,718
Northern Virginia				527		—		—		—		—

	Total Office Properties			23,280		22,340		20,082		20,323		19,188

Retail Properties:
	Total Retail Properties			—		—		—		—		55

		Total Regional NOI	$	23,280	$	22,340	$	20,082	$	20,323	$	19,243

Other income/expenses, net				78		54		71		62		226

		Total NOI	$	23,358	$	22,394	$	20,153	$	20,385	$	19,469

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

		2001								2000
		December 31		September 30		June 30		March 31		December 31
Office Properties:⁽²⁾
Greater Philadelphia		$	2,410	$	2,408	$	2,364	$	2,363	$	2,363
Baltimore/Washington Corridor			10,713		11,477		11,122		11,215		11,100
Northern/Central New Jersey			2,850		2,779		2,845		2,665		2,889
Greater Harrisburg			1,577		1,446		1,668		1,682		1,651

	Total Office Properties	$	17,550	$	18,110	$	17,999	$	17,925	$	18,003

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

		2001								2000
		December 31		September 30		June 30		March 31		December 31
Office Properties:⁽²⁾
Greater Philadelphia		$	2,496	$	2,495	$	2,497	$	2,497	$	2,497
Baltimore/Washington Corridor			10,770		11,560		11,348		11,501		11,470
Northern/Central New Jersey			2,922		2,854		2,939		2,756		3,059
Greater Harrisburg			1,584		1,454		1,696		1,714		1,688

	Total Office Properties	$	17,772	$	18,363	$	18,480	$	18,468	$	18,714

(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.

Average Occupancy Rates by Region for Same Office Properties⁽¹⁾

	Greater Philadelphia		Baltimore/ Washington Corridor		Northern/ Central New Jersey		Greater Harrisburg		Total Office
*4th Quarter 2001 Average*
Number of Buildings	4		47		13		15		79
Rentable Square Feet	960,349		3,598,743		903,972		655,975		6,119,039
Percent Occupied	100.00	%	95.45	%	95.82	%	88.70	%	95.49	%
*3rd Quarter 2001 Average*
Number of Buildings	4		47		13		15		79
Rentable Square Feet	960,349		3,598,081		904,854		658,120		6,121,404
Percent Occupied	100.00	%	98.55	%	95.19	%	86.61	%	97.00	%
*2nd Quarter 2001 Average*
Number of Buildings	4		47		13		15		79
Rentable Square Feet	960,349		3,597,701		904,834		657,823		6,120,707
Percent Occupied	100.00	%	98.17	%	94.22	%	89.95	%	96.99	%
*1st Quarter 2001 Average*
Number of Buildings	4		47		13		15		79
Rentable Square Feet	960,349		3,597,449		904,771		657,678		6,120,247
Percent Occupied	100.00	%	97.43	%	92.19	%	93.98	%	96.69	%
*4th Quarter 2000 Average*
Number of Buildings	4		47		13		15		79
Rentable Square Feet	960,349		3,594,997		904,771		657,685		6,117,802
Percent Occupied	100.00	%	97.63	%	92.97	%	92.77	%	96.79	%

(1): 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)
Other⁽³⁾	8	48,694	0.6	%	$	31	0.0	%	$	0.64
2002	98	994,175	13.3	%		17,978	13.6	%		18.08
2003	95	833,099	11.1	%		14,319	10.8	%		17.19
2004	71	828,934	11.1	%		16,569	12.5	%		19.99
2005	63	744,854	9.9	%		14,779	11.2	%		19.84
2006	54	652,783	8.7	%		12,366	9.4	%		18.94
2007	16	454,641	6.1	%		7,531	5.7	%		16.56
2008	11	767,559	10.2	%		14,557	11.0	%		18.97
2009	13	1,222,057	16.3	%		14,736	11.2	%		12.06
2010	12	710,381	9.5	%		14,509	11.0	%		20.42
2011	4	165,443	2.2	%		3,536	2.7	%		21.37
2012	1	71,514	1.0	%		1,147	0.9	%		16.04

Total/Weighted Average	446	7,494,134	100.0	%	$	132,058	100.0	%	$	18.06

NOTE: As of December 31, 2001, the weighted average lease term is 4.6 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 December 31, 2001 multiplied by 12 plus the estimated annualized expense reimbursements under existing office leases.
(3): Other consists primarily of amenities, including cafeterias, concierge offices and property management space.

Year to Date Office Renewal Analysis

		Greater Philadelphia			Baltimore/ Washington Corridor			Northern/ Central New Jersey			Greater Harrisburg			Total Office
For Twelve Months Ended December 31, 2001:
	Expiring Square Feet		—			522,069			36,241			200,524			758,834
	Vacated Square Feet		—			164,841			6,050			38,031			208,922
	Renewed Square Feet		—			357,228			30,191			162,493			549,912
	Retention Rate (% based upon square feet)		0.00	%		68.43	%		83.31	%		81.03	%		72.47	%
Renewal & Retenanted Space:
	Increase in Base Rent—Straight-line		0.00	%		19.19	%		32.17	%		11.83	%		18.51	%
	Increase in Total Rent—Straight-line		0.00	%		15.76	%		25.31	%		10.34	%		15.24	%
	Increase in Base Rent—Cash		0.00	%		13.19	%		27.78	%		4.20	%		12.27	%
	Increase in Total Rent—Cash		0.00	%		10.31	%		21.37	%		3.55	%		9.60	%
	Average Capital Cost per Square Foot	$	—		$	6.40		$	11.87		$	7.04		$	6.92
For Twelve Months Ended December 31, 2000:
	Expiring Square Feet		—			483,339			151,975			65,986			701,300
	Vacated Square Feet		—			153,154			42,877			17,377			213,408
	Renewed Square Feet		—			330,185			109,098			48,609			487,892
	Retention Rate (% based upon square feet)		0.00	%		68.31	%		71.79	%		73.67	%		69.57	%
Renewal & Retenanted Space:
	Increase in Base Rent—Straight-line		0.00	%		14.10	%		20.80	%		0.68	%		15.65	%
	Increase in Total Rent—Straight-line		0.00	%		10.10	%		13.41	%		2.22	%		10.42	%
	Increase in Base Rent—Cash		0.00	%		10.49	%		14.22	%		–1.05	%		10.59	%
	Increase in Total Rent—Cash		0.00	%		6.64	%		4.42	%		0.62	%		5.71	%
	Average Capital Cost per Square Foot	$	—		$	6.27		$	21.34		$	2.81		$	9.28
For Twelve Months Ended December 31, 1999:
	Expiring Square Feet		—			234,042			67,934			93,962			395,938
	Vacated Square Feet		—			16,349			8,513			25,567			50,429
	Renewed Square Feet		—			217,693			59,421			68,395			345,509
	Retention Rate (% based upon square feet)		0.00	%		93.01	%		87.47	%		72.79	%		87.26	%
Renewal & Retenanted Space:
	Increase in Base Rent—Straight-line		0.00	%		15.98	%		19.44	%		12.10	%		16.22	%
	Increase in Total Rent—Straight-line		0.00	%		11.66	%		15.57	%		11.12	%		12.48	%
	Increase in Base Rent—Cash		0.00	%		11.57	%		16.12	%		10.32	%		12.41	%
	Increase in Total Rent—Cash		0.00	%		8.13	%		4.62	%		9.05	%		7.45	%
	Average Capital Cost per Square Foot	$	—		$	5.49		$	15.31		$	1.11		$	6.60

Quarterly Office Renewal Analysis

		Greater Philadelphia			Baltimore/ Washington Corridor			Northern/ Central New Jersey			Greater Harrisburg			Total Office
Quarter Ended December 31, 2001:
	Expiring Square Feet		—			84,400			4,276			53,256			141,932
	Vacated Square Feet		—			24,674			—			5,005			29,679
	Renewed Square Feet		—			59,726			4,276			48,251			112,253
	Retention Rate (% based upon square feet)		0.00	%		70.77	%		100.00	%		90.60	%		79.09	%
Renewal & Retenanted Space:
	Increase in Base Rent—Straight-line		0.00	%		12.52	%		17.24	%		18.61	%		15.16	%
	Increase in Total Rent—Straight-line		0.00	%		9.42	%		6.74	%		17.70	%		12.58	%
	Increase in Base Rent—Cash		0.00	%		5.95	%		11.02	%		5.78	%		6.08	%
	Increase in Total Rent—Cash		0.00	%		3.10	%		1.07	%		5.08	%		3.80	%
	Average Capital Cost per Square Foot	$	—		$	9.56		$	8.92		$	15.25		$	12.20
Quarter Ended September 30, 2001:
	Expiring Square Feet		—			182,914			7,777			97,943			288,634
	Vacated Square Feet		—			122,030			—			—			122,030
	Renewed Square Feet		—			60,884			7,777			97,943			166,604
	Retention Rate (% based upon square feet)		0.00	%		33.29	%		100.00	%		100.00	%		57.72	%
Renewal & Retenanted Space:
	Increase in Base Rent—Straight-line		0.00	%		13.01	%		25.29	%		8.18	%		11.93	%
	Increase in Total Rent—Straight-line		0.00	%		10.17	%		15.05	%		6.47	%		9.07	%
	Increase in Base Rent—Cash		0.00	%		8.22	%		18.70	%		5.90	%		7.87	%
	Increase in Total Rent—Cash		0.00	%		5.76	%		9.46	%		4.64	%		5.51	%
	Average Capital Cost per Square Foot	$	—		$	7.34		$	5.67		$	0.95		$	4.40
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

Quarterly Office Renewal Analysis—(Continued)

		Greater Philadelphia			Baltimore/ Washington Corridor			Northern/ Central New Jersey			Greater Harrisburg			Total Office
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

Acquisition Summary as of December 31, 2001
(Dollars in thousands)

	Submarket	Acquisition Date	Square Feet	Occupied Sq. Ft. at Acquisition	Occupancy Percentage at Acquisition		December 31, 2001 Occupancy Percentage		Investment⁽¹⁾
*Wholly Owned Portfolio:*
6700 Alexander Bell Drive⁽²⁾	Howard County Perimeter	5/14/01	75,635	75,635	100.0	%	100.0	%	$	8,774
6708 Alexander Bell Drive⁽²⁾	Howard County Perimeter	5/14/01	35,040	35,040	100.0	%	100.0	%		4,485
920 Elkridge Landing Road⁽³⁾	BWI Airport	7/2/01	96,566	96,566	100.0	%	100.0	%		11,017
938 Elkridge Landing Road⁽³⁾	BWI Airport	7/2/01	52,988	52,988	100.0	%	100.0	%		5,991
940 Elkridge Landing Road⁽³⁾	BWI Airport	7/2/01	51,704	51,704	100.0	%	100.0	%		4,928
891 Elkridge Landing Road⁽³⁾	BWI Airport	7/2/01	56,489	56,489	100.0	%	86.3	%		6,181
901 Elkridge Landing Road⁽³⁾	BWI Airport	7/2/01	56,847	50,155	88.2	%	75.6	%		5,741
870-880 Elkridge Landing Road	BWI Airport	8/3/01	97,161	97,161	100.0	%	100.0	%		11,479
7061 Columbia Gateway Drive	Howard County Perimeter	8/30/01	29,604	29,604	100.0	%	100.0	%		4,137
7063 Columbia Gateway Drive	Howard County Perimeter	8/30/01	36,936	36,936	100.0	%	100.0	%		5,179
7065 Columbia Gateway Drive	Howard County Perimeter	8/30/01	38,560	38,560	100.0	%	100.0	%		5,407
7067 Columbia Gateway Drive	Howard County Perimeter	8/30/01	82,032	82,032	100.0	%	100.0	%		9,143
15000 Conference Center Drive	Chantilly	11/30/01	470,406	468,339	99.6	%	99.6	%		58,968

Total			1,179,968	1,171,209	99.3	%	98.0	%	$	141,430

(1): Initial investment recorded by property as of December 31, 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 from March 21, 2001 through July 1, 2001. Effective July 2, 2001, we acquired the remaining 60% ownership for $6.9 million.

Disposition Summary as of December 31, 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		6/18/01		65,277		$	11,525		$	7,000		$	4,525

Development Summary as of December 31, 2001
(Dollars in thousands except square feet and 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		Loan Commitment		Outstanding Loan as of 12/31/01		Anticipated Stabilization/Delivery
*Under Construction*
	6724 Alexander Bell Drive⁽¹⁾ Columbia, Maryland		Howard County Perimeter	Owned	30,855	52.10	%	$	157	$	4,835	$	3,423	$	—	$	—	March 2002
	4260 Forbes Boulevard—Phase I Laurel, Maryland⁽²⁾		Lanham	JV	54,692	43.08	%		101		5,505		5,616		9,026		4,690	April 2002
	Robert Fulton Drive—Phase IA Columbia, Maryland⁽²⁾		Howard County Perimeter	JV	115,850	0.00	%		116		13,406		8,833		14,000		5,214	June 2002
	2711 Technology Drive (211 NBP) Annapolis Junction, MD		BWI Airport	JV	150,000	100.00	%		174		26,135		20,630		20,550		10,615	June 2002
	6731 Columbia Gateway Drive Columbia, Maryland		Howard County Perimeter	Owned	122,889	0.00	%		176		21,613		18,370		15,750		10,396	September 2002
	1304 Concourse Drive Linthicum, MD		BWI Airport	Owned	100,000	10.66	%		166		16,572		12,545		11,855		6,980	September 2002

		TOTAL / AVERAGE			574,286	34.88	%	$	153	$	88,066	$	69,417	$	71,181	$	37,895

Note 1: 2701 Technology Drive (201 NBP) totaling 118,000 square feet was placed into service in December of 2001, and the property was 89% leased. This property is held through a joint venture. The joint venture has obtained a $13,725 construction loan and $9,976 is outstanding as of December 31, 2001.

Note 2: 114 National Business Parkway was placed into service on January 2, 2002. This property is wholly-owned and serves as an amenity for the National Business Park.

(1): We purchased this property in May 2001 and are redeveloping.
(2): The loan commitments and outstanding loan balances as of December 31, 2001 for these joint venture properties cover Phase I and Phase II development activities.

Joint Venture Summary as of December 31, 2001
(Dollars in thousands except acreage and square feet)

Property and Location		Joint Venture Interest Held By COPT	Status	Square Feet	Acreage	COPT Investment			Off-Balance Sheet Debt as of 12/31/01		Recourse to COPT	Option to Acquire Partner's Interest
2701 Technology Drive (201 NBP) Annapolis Junction, Maryland		50%	Operational	118,000		$	2,587	(a)	$	9,976	Yes, 100%	Yes
Montpelier Research Phase I Laurel, Maryland		80%	Operational	43,785			1,008			4,446	No	Yes
4260 Forbes Boulevard Laurel, Maryland		80%	Lease-Up	54,692			924			4,690	Yes, 50%	Yes
2711 Technology Drive (211 NBP) Annapolis Junction, Maryland		50%	Construction	150,000			1,682	(a)		10,615	Yes, 100%	Yes
Robert Fulton Drive (Phase I & II) Columbia, Maryland		80%	Construction/ Development	115,850	12 acres		3,903			5,214	Yes, 80%	Yes
Gateway 70 Columbia, Maryland		80%	Development		12 acres		2,326			—	N/A	Yes
140 NBP Annapolis Junction, Maryland		20%	Development		8 acres		2,885			—	N/A	No

	TOTAL					$	15,315		$	34,941

(a): Upon formation of these joint ventures, we contributed land and have recorded our investment as land, construction in progress and buildings and improvements on our balance sheet. In addition, we obtained an option to acquire the joint venture partners' interest for a pre-determined price. Accordingly, we recorded a liability and are accreting towards the pre-determined purchase price over the respective time period. Refer to our most recent Form 10-Q for additional disclosure.

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