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Exhibit 99.1

Supplemental Information

(Unaudited)

December 31, 2002

Corporate Office Properties Trust
Index to Supplemental Information (Unaudited)
December 31, 2002

		Page
Highlights and Discussion
	Shareholder Return	1
	Reporting Period Highlights—Year Ended December 31, 2002	1
	Reporting Period Highlights—Fourth Quarter 2002	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, 2002	20
Portfolio Summary
	Property Summary by Region—December 31, 2002	21
	Property Occupancy Rates by Region by Quarter	24
	Top Twenty Office Tenants as of December 31, 2002	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
	Annual Office Renewal Analysis	30
	Quarterly Office Renewal Analysis	31
	Year to Date Acquisition and Disposition Summary as of December 31, 2002	33
	Development Summary as of December 31, 2002 and Development Properties Placed into Service	34
	Joint Venture Summary as of December 31, 2002	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 Ms. Mary Ellen Fowler, Vice President, Finance and Investor Relations at (410) 992-7324 or maryellen.fowler@copt.com.

Shareholder Return

•: Our shareholders earned a total return of 25.8% for the year 2002 and 172.2% for the past four years, the highest returns among all publicly traded office REITs on the basis of numbers compiled by the National Association of Real Estate Investment Trusts. These return computations include the re-investment of dividends on the ex-dividend date and share price appreciation.

Reporting Period Highlights—Year Ended December 31, 2002

Financial Results

•: Reported FFO—diluted of $50,824,000 or $1.39 per share/unit for the year ended December 31, 2002 as compared to $43,214,000 or $1.29 per share/unit for the comparable 2001 period, representing an increase of 7.8% per share/unit. FFO—diluted increased $7,610,000 or 17.6% over the comparable 2001 period.
•: Reported AFFO—diluted of $41,795,000 or $1.14 per share/unit for the year ended December 31, 2002 as compared to $34,609,000 or $1.03 per share/unit for the comparable 2001 period, representing an increase of 10.7% per share/unit.
•: We achieved FFO and AFFO payout ratios of 60.5% and 73.6%, respectively, for the year.

Financing / Capital Transactions

•: In March 2002, we sold 2,084,828 common shares and realized gross proceeds of $25.1 million. As part of this offering, Constellation Real Estate, Inc., our largest shareholder at that date, sold its entire ownership position of 8,876,172 common shares in a public offering at a price of $12.04 per share.
•: We raised our quarterly common dividend by 4.8% to $.22 per share. Accordingly, our annual common dividend was $.86 per share as compared to $.82 per share for the comparable period in 2001.
•: During the year, we reduced the quarterly weighted average cost of debt from 6.85% for the fourth quarter of 2001 to 6.41% for the fourth quarter of 2002. As of December 31, 2002, 82.4% of our debt, including the effect of our interest rate swap, bears interest at fixed rates.

Operations

•: While executing new or renewed leases for over 1.5 million square feet, we achieved a 66.2% retention rate for the year, coupled with increases of 8.5% and 6.5% in base and total rent, respectively, as measured from the GAAP straight-line rent in effect preceding the renewal date. We also realized increases of 5.2% and 3.5% in cash base and total rent, respectively, while expending an average capital cost of $5.02 per square foot on this renewed and retenanted space.

Acquisitions / Dispositions

•: We acquired 9 office buildings totaling 839,364 square feet for $107.3 million equaling an average cost of $127.85 per square feet. Additionally, we expanded into a new geographic market with our $27.2 million purchase of a 236,441 square foot building located in North Silver Spring, Maryland.
•: In July 2002, we sold a 53,782 square foot office building for $7.2 million.

Joint Ventures

•: We acquired the remaining 50% joint venture interests in two different joint ventures for $11.8 million and now directly own 100% of two properties totaling 269,450 square feet located in the National Business Park. These properties are 100% leased.
•: During 2002, we sold our interest in two different development joint ventures and realized a total gain of $1.2 million, of which $927,000 has been included in FFO.

Development

•: We commenced construction on 140 National Business Parkway, a 119,000 square foot office building, in September 2002. This joint venture property represents our eleventh office building in the National Business Park.
•: During the year ended December 31, 2002, we placed into service 412,000 square feet of office space. Collectively, after the sale of 4260 Forbes Boulevard in December 2002, these buildings are now 79.5% leased.

Reporting Period Highlights—Fourth Quarter 2002

Financial Results

•: Reported FFO—diluted of $13,985,000 or $.38 per share/unit for the fourth quarter of 2002 as compared to $11,462,000 or $.34 per share/unit for the comparable 2001 period, representing an increase of 11.8% per share/unit. FFO—diluted increased $2,523,000 or 22.0% over the comparable 2001 period.
•: Reported AFFO—diluted of $11,677,000 or $.31 per share/unit for the fourth quarter of 2002 as compared to $8,560,000 or $.25 per share/unit for the comparable 2001 period, representing an increase of 24.0% per share/unit.
•: Our FFO and AFFO payout ratios improved to 56.3% and 67.4%, respectively, for the fourth quarter of 2002 as compared to 60.8% and 81.4%, respectively, for the comparable 2001 period.

Financing and Capital Transactions

•: During the quarter, we closed a $49.0 million, 5.60% fixed rate, ten-year loan and repaid $55.2 million of variable rate debt. We borrowed $1.5 million under our Deutsche Bank revolving credit facility and used cash reserves to fund the remaining $4.7 million. As a result, our total debt for the quarter decreased $5.0 million as excess cash from operations funded repayments.
•: In November 2002, we executed a two-year interest rate swap agreement for the notional amount of $50.0 million that fixes the one-month LIBOR rate at 2.3075% per annum, commencing in January 2003.
•: As of December 31, 2002, our debt to market capitalization is 54.4% and our debt to undepreciated book value of real estate assets is 62.1%. We achieved an EBITDA interest coverage ratio of 2.51x and an EBITDA fixed charge coverage ratio of 1.96x for this quarter.

Operations

•: Overall occupancy was 93.0% and our portfolio was 93.8% leased as of December 31, 2002.
•: Our same property cash NOI remained flat as compared to the quarter ended December 31, 2001 for the 94 properties comprising our same property portfolio. Our average occupancy for this same property portfolio dropped from 95.3% for the fourth quarter 2001 to 92.4% for the fourth quarter 2002. This lower occupancy was offset by operating cost reductions. Our same property portfolio represents 79.9% of our total square feet as of December 31, 2002.
•: Weighted average lease term of our office portfolio is 4.6 years as of December 31, 2002, with an average contractual rental rate (including tenant reimbursements of operating costs) of $18.87 per square foot.
•: We reserved our entire investment of $323,000 (after-tax), representing a 22% interest in Paragon Smart Technologies, LLC, which performs telecom and information technology services.
•: We renewed 67.8% of our office leases (based upon square footage) with an average capital cost of $4.49 per square foot during the fourth quarter. We realized increases in base rent and total rent on a straight-line basis of 5.0% and 3.3%, respectively, as measured from the GAAP straight-line rent in effect preceding the renewal date. Base rent and total rent on a cash basis changed 1.1% and (0.2)%, respectively, on this renewed and retenanted space.

Subsequent Events

•: We closed the initial phase of a purchase agreement to acquire up to 108 acres of land adjacent to the National Business Park. This $21.0 million purchase price for the initial phase was funded with $2.6 million of cash and an $18.4 million, five-year seller loan, with a fixed interest rate of 3.0%. This initial phase can accommodate 900,000 square feet of development. Closing of the second phase is contingent upon subdivision approval.
•: We closed a $25.0 million line of credit with Wachovia Bank, National Association which is secured by pledged membership interests for certain previously unencumbered properties. This line of credit matures in January 2005 and bears interest at varying LIBOR rates, depending upon corporate leverage levels. Our initial borrowing was $8.4 million.
•: In January 2003, we executed a one-year interest rate swap agreement for the notional amount of $50.0 million that fixes the one-month LIBOR rate at 1.52% per annum.

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)

		2002												2001
		December 31			September 30			June 30			March 31			December 31
Total Revenues from Real Estate Operations		$	41,943		$	38,664		$	36,835		$	34,499		$	33,460
Net Operating Income from Real Estate Operations			29,563			26,303			26,483			24,306			23,358
EBITDA			27,811			26,422			24,419			22,919			22,731
Net Income before Preferred Dividends			5,960			6,162			5,884			5,295			5,893
Preferred Dividends			(2,534	)		(2,533	)		(2,534	)		(2,533	)		(2,533	)

Net Income Available to Common Shareholders		$	3,426		$	3,629		$	3,350		$	2,762		$	3,360

Funds From Operations (FFO) — Diluted		$	13,985		$	12,991		$	12,331		$	11,373		$	11,462
FFO per diluted share		$	0.38		$	0.35		$	0.34		$	0.33		$	0.34
Adjusted FFO — Diluted		$	11,677		$	10,475		$	9,958		$	9,541		$	8,560
Adjusted FFO per diluted share		$	.31		$	0.28		$	0.27		$	0.27		$	0.25
Payout Ratios:
	FFO — Diluted^(A)		56.30%			60.53%			60.50%			65.35%			60.80%
	AFFO — Diluted^(B)		67.42%			75.07%			74.91%			77.90%			81.41%
Total Dividends/Distributions		$	10,196		$	10,191		$	9,857		$	9,829		$	9,366

(A): Computed by dividing total dividends/distributions (except for dividends on Series B, E and F Cumulative Redeemable Preferred Shares which are deducted to calculate FFO and including dividends on restricted shares for the 3rd and 4th quarters of 2002) 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 deducted to calculate AFFO and including dividends on restricted shares for the 3rd and 4th quarters of 2002) by AFFO diluted.

Note: The above presentation does not separately report discontinued operations.

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

			2002												2001
			December 31			September 30			June 30			March 31			December 31
Assets
Investment in real estate:
	Land — operational		$	195,021		$	194,045		$	179,027		$	165,685		$	164,994
	Land — development			24,998			25,014			22,891			29,544			26,751
	Construction in progress			9,926			10,536			14,718			38,140			37,493
	Buildings and improvements			897,280			891,962			830,268			755,597			738,320
	Investment in and advances to unconsolidated real estate joint ventures			7,999			8,656			11,508			10,740			11,047
	Less: accumulated depreciation			(76,095	)		(68,968	)		(63,101	)		(57,245	)		(51,552	)

		Net investment in real estate		1,059,129			1,061,245			995,311			942,461			927,053
	Cash and cash equivalents			5,991			7,664			4,256			4,250			6,640
	Restricted cash			9,739			8,149			6,596			6,977			4,947
	Accounts receivable, net			3,509			5,197			3,953			4,909			3,805
	Investment in and advances to other unconsolidated entities			1,621			2,092			2,107			2,105			2,112
	Deferred rent receivable			13,698			13,395			12,636			11,651			11,447
	Deferred charges, net			19,848			19,944			19,877			18,175			16,884
	Prepaid and other assets			11,260			9,878			4,821			10,991			9,551
	Furniture, fixtures and equipment, net of accumulated depreciation			1,676			1,758			1,783			1,717			1,771

		Total assets	$	1,126,471		$	1,129,322		$	1,051,340		$	1,003,236		$	984,210

Liabilities and beneficiaries' equity
Liabilities:
	Mortgage loans payable		$	705,056		$	710,033		$	633,498		$	573,821		$	573,327
	Accounts payable and accrued expenses			11,670			8,448			7,943			11,355			10,674
	Rents received in advance and security deposits			8,253			7,467			5,514			6,805			6,567
	Dividends/distributions payable			9,794			9,789			9,455			9,426			8,965
	Fair value of derivatives			494			1,044			1,970			2,720			3,781
	Other liabilities			1,821			1,673			873			7,171			12,193

		Total liabilities		737,088			738,454			659,253			611,298			615,507

Minority interests:
	Preferred Units in the Operating Partnership			24,367			24,367			24,367			24,367			24,367
	Common Units in the Operating Partnership			76,519			76,518			79,150			81,905			80,158
	Other consolidated partnerships			—			—			229			286			257

		Total minority interests		100,886			100,885			103,746			106,558			104,782

		Commitments and contingencies		—			—			—			—			—
Beneficiaries' equity:
	Preferred Shares ($0.01 par value; 10,000,000 authorized);
		40,693 designated as Series A Convertible Preferred Shares of beneficial interest (no shares issued as of December 31, 2002)		—			—			—			—			—
		1,725,000 designated as Series B Cumulative Redeemable Preferred Shares of beneficial interest (1,250,000 shares issued as of December 31, 2002)		13			13			13			13			13
		544,000 designated as Series D Cumulative Convertible Redeemable Preferred Shares of beneficial interest (544,000 shares issued as of December 31, 2002)		5			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, 2002)		11			11			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, 2002)		14			14			14			14			14
	Common Shares of beneficial interest ($0.01 par value; 45,000,000 authorized, 23,772,732 shares issued as of December 31, 2002)			238			237			234			229			208
	Treasury Shares, at cost (166,600 shares as of December 31, 2002)			(1,415	)		(1,415	)		(1,415	)		(1,415	)		(1,415	)
Additional paid-in capital				313,786			313,862			311,391			307,500			285,362
Cumulative dividends in excess of net income				(21,067	)		(19,379	)		(17,899	)		(16,446	)		(14,502	)
Value of unearned restricted Common Share grants				(2,739	)		(2,739	)		(2,739	)		(2,739	)		(3,275	)
Accumulated other comprehensive loss				(349	)		(626	)		(1,274	)		(1,792	)		(2,500	)

		Total beneficiaries' equity		288,497			289,983			288,341			285,380			263,921

		Total beneficiaries' equity and minority interests		389,383			390,868			392,087			391,938			368,703

		Total liabilities and beneficiaries' equity	$	1,126,471		$	1,129,322		$	1,051,340		$	1,003,236		$	984,210

Quarterly Consolidated Statements of Operations and Funds From Operations (FFO)
(Dollars and units in thousands)

			2002												2001
			December 31			September 30			June 30			March 31			December 31
Revenues
	Rental revenue		$	37,550		$	34,279		$	33,220		$	30,538		$	29,957
	Tenant recoveries and other revenue			4,393			4,385			3,615			3,961			3,503

		Total Revenues from Real Estate Operations		41,943			38,664			36,835			34,499			33,460
Expenses
	Property operating			4,908			5,859			4,284			4,473			4,243
	Repairs and maintenance			5,009			4,054			4,007			3,721			3,980
	Real estate taxes			2,463			2,448			2,061			1,999			1,879

		Total Property Expenses from Real Estate Operations		12,380			12,361			10,352			10,193			10,102
Net Operating Income from Real Estate Operations				29,563			26,303			26,483			24,306			23,358
	General and administrative			(1,772	)		(815	)		(1,940	)		(2,170	)		(1,167	)
	Equity in income of unconsol. real estate joint ventures			35			138			(22	)		18			27
	Earnings from service companies			(696	)		15			(104	)		(90	)		(218	)
	Income from real estate services			681			781			2			855			731

EBITDA				27,811			26,422			24,419			22,919			22,731
	Interest expense			(11,065	)		(10,563	)		(9,082	)		(8,648	)		(8,475	)
	Series B, E & F Preferred Share dividends			(2,398	)		(2,398	)		(2,397	)		(2,397	)		(2,397	)
	Amortization of deferred financing costs			(597	)		(557	)		(549	)		(486	)		(492	)
	Income tax (expense) benefit			282			(11	)		36			40			207
	Expense (income) associated with options			8			3			12			14			—
	Dividends on restricted shares			75			71			—			—			—
	Depreciation on unconsolidated real estate entities			40			40			21			64			40
	Minority interestholders' share of operations			—			104			(14	)		(31	)		(23	)
	Depreciation of corporate FF&E			(171	)		(120	)		(115	)		(102	)		(129	)

Funds From Operations (FFO) — Diluted				13,985			12,991			12,331			11,373			11,462
	Depreciation and other amortization			(8,341	)		(7,017	)		(6,593	)		(6,539	)		(5,738	)
	Gain on property sales			156			19			—			93			—
	Loss on early extinguishment of debt			(111	)		(2	)		(157	)		(42	)		(7	)
	Expense (income) associated with options			(8	)		(3	)		(12	)		(14	)		—
	Dividends on restricted shares			(75	)		(71	)		—			—			—
	Depreciation on unconsolidated real estate entities			(40	)		(40	)		(21	)		(64	)		(40	)
	Minority interestholders' share of operations			—			(104	)		14			31			23
	Series B, E & F Preferred Share dividends			2,398			2,398			2,397			2,397			2,397

Income Before Minority Interests and Preferred Share Dividends				7,964			8,171			7,959			7,235			8,097
Minority Interests:
	Preferred Units in Operating Partnership			(571	)		(572	)		(572	)		(572	)		(571	)
	Common Units in Operating Partnership			(1,433	)		(1,541	)		(1,489	)		(1,337	)		(1,610	)
	Other consolidated entities			—			104			(14	)		(31	)		(23	)
Preferred Share dividends				(2,534	)		(2,533	)		(2,534	)		(2,533	)		(2,533	)

Net Income Available to Common Shareholders			$	3,426		$	3,629		$	3,350		$	2,762		$	3,360

Funds From Operations (FFO) — Diluted			$	13,985		$	12,991		$	12,331		$	11,373		$	11,462
	Straight line rents			(317	)		(867	)		(991	)		(214	)		(952	)
	Non-incremental capital expenditures			(1,991	)		(1,649	)		(1,382	)		(1,618	)		(1,950	)

Adjusted Funds from Operations — Diluted			$	11,677		$	10,475		$	9,958		$	9,541		$	8,560

	Preferred dividends/distributions ⁽¹⁾			3,105			3,105			3,105			3,105			3,104
	Common dividends/distributions ⁽²⁾			7,091			7,086			6,752			6,724			6,262

Total Dividends/Distributions			$	10,196		$	10,191		$	9,857		$	9,829		$	9,366

⁽¹⁾: Includes Series B, E and F Cumulative Redeemable Preferred Share dividends deducted for FFO/AFFO computations.
⁽²⁾: Includes dividends on restricted shares for the 3rd and 4th quarters of 2002.

Note: The above presentation does not separately report discontinued operations.

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

			2002												2001
			December 31			September 30			June 30			March 31			December 31
Revenues
	Rental revenue		$	1.01		$	0.92		$	0.90		$	0.87		$	0.88
	Tenant recoveries and other revenue			0.12			0.12			0.10			0.11			0.10

		Total Revenues from Real Estate Operations		1.13			1.04			1.00			0.99			0.98
Expenses
	Property operating			0.13			0.16			0.12			0.13			0.12
	Repairs and maintenance			0.13			0.11			0.11			0.11			0.12
	Real estate taxes			0.07			0.07			0.06			0.06			0.06

		Total Property Expenses from Real Estate Operations		0.33			0.33			0.28			0.29			0.30
Net Operating Income from Real Estate Operations				0.80			0.71			0.72			0.70			0.69
	General and administrative			(0.05	)		(0.02	)		(0.05	)		(0.06	)		(0.03	)
	Equity in income of unconsol. real estate joint ventures			0.00			0.00			(0.00	)		0.00			0.00
	Earnings from service companies			(0.02	)		0.00			(0.00	)		(0.00	)		(0.01	)
	Income from real estate services			0.02			0.02			0.00			0.02			0.02

EBITDA				0.75			0.71			0.66			0.66			0.67
	Interest expense			(0.30	)		(0.28	)		(0.25	)		(0.25	)		(0.25	)
	Series B, E & F Preferred Share dividends			(0.06	)		(0.06	)		(0.07	)		(0.07	)		(0.07	)
	Amortization of deferred financing costs			(0.02	)		(0.02	)		(0.01	)		(0.01	)		(0.01	)
	Income tax (expense) benefit			0.01			(0.00	)		0.00			0.00			0.01
	Expense (income) associated with options			0.00			0.00			0.00			0.00			—
	Dividends on restricted shares			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	)
	Depreciation of corporate FF&E			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)

Funds From Operations (FFO) — Diluted				0.38			0.35			0.34			0.33			0.34
	Depreciation and other amortization			(0.22	)		(0.19	)		(0.18	)		(0.19	)		(0.17	)
	Gain on property sales			0.00			0.00			—			0.00			—
	Loss on early extinguishment of debt			(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
	Expense (income) associated with options			(0.00	)		(0.00	)		(0.00	)		(0.00	)		—
	Dividends on restricted shares			(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
	Series B, E & F Preferred Share dividends			0.06			0.06			0.07			0.07			0.07

Income Before Minority Interests and Preferred Share Dividends				0.21			0.22			0.22			0.21			0.24
Minority Interests:
	Preferred Units in Operating Partnership			(0.02	)		(0.02	)		(0.02	)		(0.02	)		(0.02	)
	Common Units in Operating Partnership			(0.04	)		(0.04	)		(0.04	)		(0.04	)		(0.05	)
	Other consolidated entities			—			0.00			(0.00	)		(0.00	)		(0.00	)
Preferred Share dividends				(0.07	)		(0.07	)		(0.07	)		(0.07	)		(0.07	)

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

Funds From Operations (FFO) — Diluted			$	0.38		$	0.35		$	0.34		$	0.33		$	0.34
	Straight line rents			(0.01	)		(0.02	)		(0.03	)		(0.01	)		(0.03	)
	Non-incremental capital expenditures			(0.05	)		(0.04	)		(0.04	)		(0.05	)		(0.06	)

Adjusted Funds from Operations — Diluted			$	0.31		$	0.28		$	0.27		$	0.27		$	0.25

For FFO Computations:
Weighted Average Converted Preferred Shares/Units				3,944			3,935			3,618			3,618			3,618
Weighted Average Common Shares/Units Outstanding				33,168			33,156			33,135			31,324			30,385

Weighted Average Diluted Shares Outstanding				37,112			37,091			36,753			34,942			34,003

Note: The above presentation does not separately report discontinued operations.

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

			2002								2001
			December 31		September 30		June 30		March 31		December 31
Revenues
	Rental revenue		90%		89%		90%		89%		90%
	Tenant recoveries and other revenue		10%		11%		10%		11%		10%

		Total Revenues from Real Estate Operations	100%		100%		100%		100%		100%
Expenses
	Property operating		12%		15%		12%		13%		13%
	Repairs and maintenance		12%		10%		11%		11%		12%
	Real estate taxes		6%		6%		6%		6%		6%

		Total Property Expenses from Real Estate Operations	30%		32%		28%		30%		30%
Net Operating Income from Real Estate Operations			70%		68%		72%		70%		70%
	General and administrative		(4%	)	(2%	)	(5%	)	(6%	)	(3%	)
	Equity in income of unconsol. real estate joint ventures		0%		0%		(0%	)	0%		0%
	Earnings from service companies		(2%	)	0%		(0%	)	(0%	)	(1%	)
	Income from real estate services		2%		2%		0%		2%		2%

EBITDA			66%		68%		66%		66%		68%
	Interest expense		(26%	)	(27%	)	(25%	)	(25%	)	(25%	)
	Series B, E & F Preferred Share dividends		(6%	)	(6%	)	(7%	)	(7%	)	(7%	)
	Amortization of deferred financing costs		(1%	)	(1%	)	(1%	)	(1%	)	(1%	)
	Income tax (expense) benefit		1%		(0%	)	0%		0%		1%
	Expense (income) associated with options		0%		0%		0%		0%		0%
	Dividends on restricted shares		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			33%		34%		33%		33%		34%
	Depreciation and other amortization		(20%	)	(18%	)	(18%	)	(19%	)	(17%	)
	Gain on property sales		0%		0%		0%		0%		0%
	Loss on early extinguishment of debt		(0%	)	(0%	)	(0%	)	(0%	)	(0%	)
	Expense (income) associated with options		(0%	)	(0%	)	(0%	)	(0%	)	0%
	Dividends on restricted shares		(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		6%		6%		7%		7%		7%

Income Before Minority Interests and Preferred Share Dividends			19%		21%		22%		21%		24%
Minority Interests:
	Preferred Units in Operating Partnership		(1%	)	(1%	)	(2%	)	(2%	)	(2%	)
	Common Units in Operating Partnership		(3%	)	(4%	)	(4%	)	(4%	)	(5%	)
	Other consolidated entities		0%		0%		(0%	)	(0%	)	(0%	)
Preferred Share dividends			(6%	)	(7%	)	(7%	)	(7%	)	(8%	)

Net Income Available to Common Shareholders			8%		9%		9%		8%		10%

Funds From Operations (FFO)—Diluted			33%		34%		33%		33%		34%
	Straight line rents		(1%	)	(2%	)	(3%	)	(1%	)	(3%	)
	Non-incremental capital expenditures		(5%	)	(4%	)	(4%	)	(5%	)	(6%	)

Adjusted Funds from Operations—Diluted			28%		27%		27%		28%		26%

Note: The above presentation does not separately report discontinued operations.

Annual Selected Financial Summary Data
(Dollars in thousands)

		December 31
		2002			2001			2000
Total Revenues		$	151,942		$	123,072		$	107,543
Net Operating Income			106,655			86,290			76,308
EBITDA			101,571			84,103			72,581
Net Income			23,301			19,922			15,134
Preferred Dividends			(10,134	)		(6,857	)		(3,802	)

Net Income Available to Common Shareholders		$	13,167		$	13,065		$	11,332

Funds From Operations (FFO) — Diluted		$	50,824		$	43,214		$	37,504
FFO per diluted share		$	1.39		$	1.29		$	1.17
Adjusted FFO — Diluted		$	41,795		$	34,609		$	30,554
Adjusted FFO per diluted share		$	1.14		$	1.03		$	0.95
Payout Ratios:
	FFO — Diluted ^(A)		60.54%			62.56%			66.98%
	AFFO — Diluted ^(B)		73.61%			78.11%			82.22%
Total Dividends/Distributions		$	40,074		$	33,382		$	28,246

(A): Computed by dividing total dividends/distributions (except for dividends on Series B, E and F Cumulative Redeemable Preferred Shares which are deducted to calculate FFO and including dividends on restricted shares in year 2002) 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 deducted to calculate AFFO and including dividends on restricted shares in year 2002) by AFFO diluted.

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

			December 31
			2002			2001			2000
Assets
Investment in real estate:
	Land — operational		$	195,021		$	164,994		$	140,018
	Land — development			24,998			26,751			19,069
	Construction in progress			9,926			37,493			17,489
	Buildings and improvements			897,280			738,320			604,666
	Investment in and advances to unconsolidated real estate joint ventures			7,999			11,047			3,616
	Less: accumulated depreciation			(76,095	)		(51,552	)		(33,271	)

		Net investment in real estate		1,059,129			927,053			751,587
	Cash and cash equivalents			5,991			6,640			4,981
	Restricted cash			9,739			4,947			2,703
	Accounts receivable, net			3,509			3,805			3,245
	Investment in and advances to other unconsolidated entities			1,621			2,112			6,124
	Deferred rent receivable			13,698			11,447			8,644
	Deferred charges, net			19,848			16,884			12,905
	Prepaid and other assets			11,260			9,551			4,501
	Furniture, fixtures and equipment, net of accumulated depreciation			1,676			1,771			147

		Total assets	$	1,126,471		$	984,210		$	794,837

Liabilities and beneficiaries' equity
Liabilities:
	Mortgage loans payable		$	705,056		$	573,327		$	474,349
	Accounts payable and accrued expenses			11,670			10,674			10,227
	Rents received in advance and security deposits			8,253			6,567			3,883
	Dividends/distributions payable			9,794			8,965			7,090
	Fair value of derivatives			494			3,781			—
	Other liabilities			1,821			12,193			—

		Total liabilities		737,088			615,507			495,549

Minority interests:
	Preferred Units in the Operating Partnership			24,367			24,367			24,367
	Common Units in the Operating Partnership			76,519			80,158			81,069
	Other consolidated partnerships			—			257			124

		Total minority interests		100,886			104,782			105,560

		Commitments and contingencies		—			—			—
Beneficiaries' equity:
	Preferred Shares ($0.01 par value; 10,000,000 authorized);
		40,693 designated as Series A Convertible Preferred Shares of beneficial interest (no shares issued as of December 31, 2002)		—			—			—
		1,725,000 designated as Series B Cumulative Redeemable Preferred Shares of beneficial interest (1,250,000 shares issued as of December 31, 2002)		13			13			12
		544,000 designated as Series D Cumulative Convertible Redeemable Preferred Shares of beneficial interest (544,000 shares issued as of December 31, 2002)		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, 2002)		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, 2002)		14			14			—
	Common Shares of beneficial interest ($0.01 par value; 45,000,000 authorized, 23,772,732 shares issued as of December 31, 2002)			238			208			206
	Treasury Shares, at cost (166,600 shares as of December 31, 2002)			(1,415	)		(1,415	)		(1,415	)
Additional paid-in capital				313,786			285,362			209,388
Cumulative dividends in excess of net income				(21,067	)		(14,502	)		(11,064	)
Value of unearned restricted Common Share grants				(2,739	)		(3,275	)		(3,399	)
Accumulated other comprehensive loss				(349	)		(2,500	)		—

		Total beneficiaries' equity		288,497			263,921			193,728

		Total beneficiaries' equity and minority interests		389,383			368,703			299,288

		Total liabilities and beneficiaries' equity	$	1,126,471		$	984,210		$	794,837

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

			December 31
			2002			2001			2000
Revenues
	Rental revenue		$	135,588		$	110,547		$	93,309
	Tenant recoveries and other revenue			16,354			12,525			14,234

		Total Revenues from Real Estate Operations		151,942			123,072			107,543
Expenses
	Property operating			19,525			15,361			12,748
	Repairs and maintenance			16,791			14,852			13,013
	Real estate taxes			8,971			6,569			5,474

		Total Property Expenses from Real Estate Operations		45,287			36,782			31,235
Net Operating Income from Real Estate Operations				106,655			86,290			76,308
	General and administrative			(6,697	)		(5,289	)		(4,867	)
	Equity in income of unconsol. real estate joint ventures			169			208			—
	Earnings from service companies			(875	)		(782	)		—
	Income from real estate services			2,319			3,676			1,450
	Equity in income (loss) of other unconsolidated entities			—			—			(310	)

EBITDA				101,571			84,103			72,581
	Interest expense			(39,358	)		(32,773	)		(30,454	)
	Series B, E & F Preferred Share dividends			(9,590	)		(6,349	)		(3,125	)
	Amortization of deferred financing costs			(2,189	)		(1,818	)		(1,382	)
	Income tax benefit			347			409			—
	Expense (income) associated with options			44			—			—
	Dividends on restricted shares			283			—			—
	Depreciation on unconsolidated real estate entities			165			144			(13	)
	Minority interestholders' share of operations			59			(84	)		(26	)
	Depreciation of corporate FF&E			(508	)		(418	)		(77	)

Funds From Operation (FFO) — Diluted				50,824			43,214			37,504
	Depreciation and other amortization			(28,490	)		(20,558	)		(16,900	)
	Gain on property sales			268			416			107
	Loss on early extinguishment of debt			(312	)		(212	)		(153	)
	Cumulative effect adjustment for accounting change			—			(263	)		—
	Expense (income) associated with options			(44	)		—			—
	Dividends on restricted shares			(283	)		—			—
	Depreciation on unconsolidated real estate entities			(165	)		(144	)		13
	Minority interestholders' share of operations			(59	)		84			26
	Series B, E & F Preferred Share dividends			9,590			6,349			3,125

Income Before Minority Interests and Preferred Share dividends				31,329			28,886			23,722
Minority Interests:
	Preferred Units in Operating Partnership			(2,287	)		(2,287	)		(2,240	)
	Common Units in Operating Partnership			(5,800	)		(6,593	)		(6,322	)
	Other consolidated entities			59			(84	)		(26	)
Preferred Share dividends				(10,134	)		(6,857	)		(3,802	)

Net Income Available to Common Shareholders			$	13,167		$	13,065		$	11,332

Funds From Operation (FFO) — Diluted			$	50,824		$	43,214		$	37,504
	Straight line rents			(2,389	)		(3,175	)		(4,107	)
	Non-incremental capital expenditures			(6,640	)		(5,430	)		(2,843	)

Adjusted Funds from Operations			$	41,795		$	34,609		$	30,554

	Preferred dividends/distributions ⁽¹⁾			12,421			9,144			6,042
	Common dividends/distributions ⁽²⁾			27,653			24,238			22,204

Total Dividends/Distributions			$	40,074		$	33,382		$	28,246

Weighted average outstanding shares/units				36,634			33,481			32,154

(1): Includes Series B, E and F Cumulative Redeemable Preferred Share dividends deducted for FFO/AFFO computations.
(2): Includes dividends on restricted shares in year 2002.

Note: The above presentation does not separately report discontinued operations.

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

			December 31
			2002			2001			2000
Revenues
	Rental revenue		$	3.70		$	3.30		$	2.90
	Tenant recoveries and other revenue			0.45			0.37			0.44

		Total Revenues from Real Estate Operations		4.15			3.68			3.34
Expenses
	Property operating			0.53			0.46			0.40
	Repairs and maintenance			0.46			0.44			0.40
	Real estate taxes			0.24			0.20			0.17

		Total Property Expenses from Real Estate Operations		1.24			1.10			0.97
Net Operating Income from Real Estate Operations				2.91			2.58			2.37
	General and administrative			(0.18	)		(0.16	)		(0.15	)
	Equity in income of unconsol. real estate joint ventures			0.00			0.01			—
	Earnings from service companies			(0.02	)		(0.02	)		—
	Income from real estate services			0.06			0.11			0.05
	Equity in income (loss) of other unconsolidated entities			—			—			(0.01	)

EBITDA				2.77			2.51			2.26
	Interest expense			(1.07	)		(0.98	)		(0.95	)
	Series B, E & F Preferred Share dividends			(0.26	)		(0.19	)		(0.10	)
	Amortization of deferred financing costs			(0.06	)		(0.05	)		(0.04	)
	Income tax benefit			0.01			0.01			—
	Expense (income) associated with options			0.00			—			—
	Dividends on restricted shares			0.01			—			—
	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	)		(0.01	)		(0.00	)

Funds From Operation (FFO) — Diluted				1.39			1.29			1.17
	Depreciation and other amortization			(0.78	)		(0.61	)		(0.53	)
	Gain on property sales			0.01			0.01			0.00
	Loss on early extinguishment of debt			(0.01	)		(0.01	)		(0.00	)
	Cumulative effect adjustment for accounting change			—			(0.01	)		—
	Expense (income) associated with options			(0.00	)		—			—
	Dividends on restricted shares			(0.01	)		—			—
	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			0.26			0.19			0.10

Income Before Minority Interests and Preferred Share dividends				0.86			0.86			0.74
Minority Interests:
	Preferred Units in Operating Partnership			(0.06	)		(0.07	)		(0.07	)
	Common Units in Operating Partnership			(0.16	)		(0.20	)		(0.20	)
	Other consolidated entities			0.00			(0.00	)		(0.00	)
				—						—
Preferred Share dividends				(0.28	)		(0.20	)		(0.12	)

Net Income Available to Common Shareholders			$	0.36		$	0.39		$	0.35

Funds From Operation (FFO) — Diluted			$	1.39		$	1.29		$	1.17
	Straight line rents			(0.07	)		(0.09	)		(0.13	)
	Non-incremental capital expenditures			(0.18	)		(0.16	)		(0.09	)

Adjusted Funds from Operations			$	1.14		$	1.03		$	0.95

Note: The above presentation does not separately report discontinued operations.

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

			December 31
			2002		2001		2000
Revenues
	Rental revenue		89%		90%		87%
	Tenant recoveries and other revenue		11%		10%		13%

		Total Revenues from Real Estate Operations	100%		100%		100%
Expenses
	Property operating		13%		12%		12%
	Repairs and maintenance		11%		12%		12%
	Real estate taxes		6%		5%		5%

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

EBITDA			67%		68%		67%
	Interest expense		(26%	)	(27%	)	(28%	)
	Series B, E & F Preferred Share dividends		(6%	)	(5%	)	(3%	)
	Amortization of deferred financing costs		(1%	)	(1%	)	(1%	)
	Income tax benefit		0%		0%		0%
	Expense (income) associated with options		0%		0%		0%
	Dividends on restricted shares		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			33%		35%		35%
	Depreciation and other amortization		(19%	)	(17%	)	(16%	)
	Gain on property sales		0%		0%		0%
	Loss on early extinguishment of debt		(0%	)	(0%	)	(0%	)
	Cumulative effect adjustment for accounting change		0%		(0%	)	0%
	Expense (income) associated with options		(0%	)	0%		0%
	Dividends on restricted shares		(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		6%		5%		3%

Income Before Minority Interests and Preferred Share dividends			21%		23%		22%
Minority Interests:
	Preferred Units in Operating Partnership		(2%	)	(2%	)	(2%	)
	Common Units in Operating Partnership		(4%	)	(5%	)	(6%	)
	Other consolidated entities		0%		(0%	)	(0%	)
Preferred Share dividends			(7%	)	(6%	)	(4%	)

Net Income Available to Common Shareholders			9%		11%		11%
Funds From Operation (FFO)—Diluted			33%		35%		35%
	Straight line rents		(2%	)	(3%	)	(4%	)
	Non-incremental capital expenditures		(4%	)	(4%	)	(3%	)

Adjusted Funds from Operations			28%		28%		28%
	Preferred dividends/distributions⁽¹⁾		8%		7%		6%
	Common dividends/distributions⁽²⁾		18%		20%		21%

Total Dividends/Distributions			26%		27%		26%

(1): Includes Series B, E and F Cumulative Redeemable Preferred Share dividends deducted for FFO/AFFO computations.
(2): Includes dividends on restricted shares in year 2002.

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

		2002								2001
		December 31		September 30		June 30		March 31		December 31
Common Equity — End of Quarter
	Common Shares⁽¹⁾		23,606		23,583		23,236		22,772		20,648
	Common Units		8,990		8,990		9,278		9,607		9,607

Total			32,596		32,573		32,514		32,379		30,255

Convertible Preferred Equity — End of Quarter
	Convertible Series A Preferred Shares Outstanding⁽²⁾		n/a		n/a		n/a		n/a		0
	Conversion Ratio		n/a		n/a		n/a		n/a		1.8748
	Common Shares Issued Assuming Conversion		n/a		n/a		n/a		n/a		0
	Preferred Share Liquidation Preference		n/a		n/a		n/a		n/a	$	25.00
	Convertible Series D Preferred Shares Outstanding		544		544		544		544		544
	Conversion Ratio		2.2000		2.2000		2.2000		2.2000		2.2000
	Common Shares Issued Assuming Conversion		1,197		1,197		1,197		1,197		1,197
	Preferred Share Liquidation Preference	$	25.00	$	25.00	$	25.00	$	25.00	$	25.00
	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		1,150		1,150		1,150		1,150		1,150
	Preferred Share Liquidation Preference	$	25.00	$	25.00	$	25.00	$	25.00	$	25.00
	Redeemable Series F Shares Outstanding		1,425		1,425		1,425		1,425		1,425
	Preferred Share Liquidation Preference	$	25.00	$	25.00	$	25.00	$	25.00	$	25.00
Weighted Average Shares:
	Common Shares Outstanding		23,234		23,029		22,704		20,889		20,186
	Restricted Shares Outstanding		326		317		—		—		—
	Preferred Shares Outstanding Assuming Conversion		1,197		1,197		1,197		1,197		1,197
	Dilutive Options		944		978		1,040		828		590
	Common Units		8,990		9,149		9,391		9,607		9,609
	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			37,112		37,091		36,753		34,942		34,003

Common Shares Trading Volume
	Average Daily Volume (Shares)		70		95		76		116		23
	Average Daily Volume (Dollars in thousands)	$	948.95	$	1,291.31	$	1,042.19	$	1,460.22	$	261.76
	As a Percentage of Common Shares		0.3%		0.4%		0.3%		0.6%		0.1%
Common Share Price Range
	Quarterly High	$	14.16	$	14.50	$	14.69	$	13.20	$	12.71
	Quarterly Low	$	11.60	$	11.97	$	12.95	$	11.62	$	10.75
	Quarterly Average	$	13.49	$	13.56	$	13.78	$	12.54	$	11.50
	End of Quarter	$	14.03	$	13.55	$	14.59	$	13.10	$	11.87
Capitalization
	Liquidation Value of Preferred Shares/Units	$	134,642	$	134,642	$	134,642	$	134,642	$	134,642
	Market Value of Common Shares/Units		457,322		441,364		474,379		424,165		359,127

	Total Equity Market Capitalization	$	591,963	$	576,006	$	609,021	$	558,806	$	493,768

	Total Debt	$	705,056	$	710,033	$	633,498	$	573,821	$	573,327

	Total Market Capitalization	$	1,297,019	$	1,286,039	$	1,242,519	$	1,132,627	$	1,067,095

Debt to Total Market Capitalization			54.4%		55.2%		51.0%		50.7%		53.7%
Debt to Undepreciated Book Value of Real Estate Assets			62.1%		62.8%		59.9%		57.4%		58.6%

(1): Net of 166,600 treasury shares as of December 31, 2002.
(2): On March 5, 2002, Constellation converted its Series A Preferred Share and then sold its entire common share position.

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

		2002												2001
		December 31			September 30			June 30			March 31			December 31
PRICING MULTIPLES
Quarter End Common Stock Price		$	14.03		$	13.55		$	14.59		$	13.10		$	11.87
NOI Multiple
	(Market value of Common Equity + Avg. Preferred Share/Units+ Avg. Total Debt) / Ann. NOI)		11.00x			11.95x			11.48x			11.70x			11.00x
EBITDA Multiple
	(Market value of Common Equity + Avg. Preferred Share/Units + Avg. Total Debt) / Ann. EBITDA)		11.69x			11.89x			12.46x			12.41x			11.30x
FFO Multiple
	(Quarter End Common Share Price / Ann. FFO — diluted)		9.31x			9.67x			10.87x			10.06x			8.80x
AFFO Multiple
	(Quarter End Common Share Price / Ann. AFFO — diluted)		11.15x			11.99x			13.46x			11.99x			11.79x
NOI Yield
	(Ann. NOI / (Market value of Common Equity + Avg. Preferred Share/Units + Avg. Debt))		9.09	%		8.37	%		8.71	%		8.54	%		9.09	%
EBITDA Yield
	(Ann. EBITDA / (Market value of Common Equity + Avg. Preferred Share/Units + Avg. Debt))		8.55	%		8.41	%		8.03	%		8.06	%		8.85	%
FFO Yield
	(Ann. FFO / Quarter End Common Share Price)		10.74	%		10.34	%		9.20	%		9.94	%		11.36	%
AFFO Yield
	(Ann. AFFO / Quarter End Common Share Price)		8.97	%		8.34	%		7.43	%		8.34	%		8.48	%
Total Market Capitalization Per Square Foot
	((Market Value of Common Stock + Preferred Share/Units + Total Debt) / GLA) ⁽¹⁾	$	145.06		$	142.91		$	147.84		$	145.61		$	137.76
RETURNS
Yield on Real Estate Owned — NOI
	(Ann. NOI / Avg. Adjusted Gross Real Estate Investment)⁽²⁾		10.86	%		10.04	%		10.97	%		10.65	%		10.71	%
Yield on Real Estate Owned — EBITDA
	(Ann. EBITDA / Avg. Adjusted Gross Real Estate Investment)⁽²⁾		10.21	%		10.09	%		10.12	%		10.04	%		10.42	%
Return on Book Value of Average Equity & Minority Interest
	(Ann. EBTDA / Avg. Equity & Minority Interest)		17.17	%		16.20	%		15.65	%		15.01	%		15.45	%

(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)

			2002												2001
			December 31			September 30			June 30			March 31			December 31
Debt Outstanding
	Mortgage Loans		$	565,486		$	564,522		$	489,145		$	462,287		$	445,951
	Construction Loans			11,570			20,511			18,553			17,534			17,376
	Secured Revolving Credit Facility			128,000			125,000			125,800			94,000			110,000

			$	705,056		$	710,033		$	633,498		$	573,821		$	573,327

Average Outstanding Balance
	Mortgage Loans		$	563,904		$	537,954		$	467,885		$	452,987		$	428,231
	Construction Loans			18,011			20,144			18,273			17,431			16,648
	Secured Revolving Credit Facility			126,645			122,685			121,403			108,581			89,110

			$	708,560		$	680,783		$	607,561		$	578,999		$	533,989

Interest Rate Structure
	Fixed		$	481,121		$	433,931		$	391,906		$	340,037		$	326,701
	Variable			123,935			176,102			141,592			83,784			96,626
	Variable Subject to Interest Rate Protection ^(1-4)			100,000			100,000			100,000			150,000			150,000

			$	705,056		$	710,033		$	633,498		$	573,821		$	573,327

	% of Fixed Rate Loans⁽⁵⁾			82.42	%		75.20	%		77.65	%		85.40	%		83.15	%
	% of Variable Rate Loans			17.58	%		24.80	%		22.35	%		14.60	%		16.85	%

				100.00	%		100.00	%		100.00	%		100.00	%		100.00	%

Average Interest Rates
	Mortgage & Construction Loans			6.36	%		6.40	%		6.40	%		6.37	%		6.71	%
	Secured Revolving Credit Facility			6.64	%		6.79	%		6.86	%		7.21	%		7.32	%
	Total Weighted Average			6.41	%		6.51	%		6.47	%		6.52	%		6.85	%
Debt Ratios
Debt to Total Market Capitalization				54.4	%		55.2	%		51.0	%		50.7	%		53.7	%
Debt to Undepreciated Book Value of Real Estate Assets				62.1	%		62.8	%		59.9	%		57.4	%		58.6	%
Coverage Ratios (excluding capitalized interest)
	Interest Coverage — NOI			2.67x			2.49x			2.92x			2.81x			2.76x
		(NOI / Interest)
	Interest Coverage — EBITDA			2.51x			2.50x			2.69x			2.65x			2.68x
		(EBITDA / Interest)
	Interest Coverage — EBITDA — YTD			2.58x			2.61x			2.67x			2.65x			2.63x
		(EBITDA / Interest — Year-to-date)
	Debt Service Coverage — NOI			2.28x			1.99x			2.49x			2.43x			2.38x
		(NOI / (Interest + Principal Amortization))
	Debt Service Coverage — EBITDA			2.14x			2.00x			2.30x			2.29x			2.31x
		(EBITDA / (Interest + Principal Amortization))
	Fixed Charge Coverage — NOI			2.09x			1.92x			2.17x			2.07x			2.02x
		(NOI / (Interest + Preferred Distribution))
	Fixed Charge Coverage — EBITDA			1.96x			1.93x			2.00x			1.95x			1.96x
		(EBITDA / (Interest + Preferred Distribution))

(1): We purchased a $50 million 2-year cap on LIBOR at a rate of 7.0% which expired 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% which expired January 2, 2003.
(5): Includes interest rate protection agreements.

Quarterly Operating Ratios
(Dollars in thousands except per share data and ratios)

		2002								2001
		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.))		70.48%		68.03%		71.90%		70.45%		69.81%
EBITDA as a % of Real Estate Revenues
	(EBITDA / (Rental Revenue + Oper. Expense Reimb.))		66.31%		68.34%		66.29%		66.43%		67.93%
G&A as a % of Real Estate Revenues
	(G&A / (Rental Revenue + Oper. Expense Reimb.))		4.22%		2.11%		5.27%		6.29%		3.49%
G&A as a % of EBITDA
	(G&A / EBITDA)		6.37%		3.08%		7.94%		9.47%		5.13%
Quarter end occupancy for operating portfolio			93.05%		93.98%		94.10%		93.92%		96.07%
Quarter end % leased for operating portfolio			93.75%		94.37%		95.07%		94.70%		96.59%
Non-Incremental Capital Expenditures		$	1,991	$	1,649	$	1,382	$	1,618	$	1,950
Non-Incremental Capital Expenditures per average square foot		$	0.22	$	0.19	$	0.17	$	0.21	$	0.26
Non-Incremental Capital Expenditures per Diluted Share		$	0.05	$	0.04	$	0.04	$	0.05	$	0.06
Non-Incremental Capital Expenditures as a % of NOI			6.73%		6.27%		5.22%		6.66%		8.35%

Quarterly Dividend Analysis

			2002												2001
			December 31			September 30			June 30			March 31			December 31
Common Share Dividends
	Dividends per share/unit		$	0.22		$	0.22		$	0.21		$	0.21		$	0.21
	Increase over prior quarter			0.0	%		4.8	%		0.0	%		0.0	%		0.0	%
	Increase over prior year			4.8	%		4.8	%		5.0	%		5.0	%		5.0	%
Common Dividend Payout Ratios
	Payout — FFO — Diluted			56.3	%		60.5	%		60.5	%		65.3	%		60.8	%
		((Dividend + Distributions)/FFO)
	Payout — AFFO — Diluted			67.4	%		75.1	%		74.9	%		77.9	%		81.4	%
		(Dividend /FAD)
	Dividend Coverage — FFO — Diluted			1.78x			1.65x			1.65x			1.53x			1.64x
		(FFO /dividends)
	Dividend Coverage — AFFO — Diluted			1.48x			1.33x			1.33x			1.28x			1.23x
		(AFFO /dividends)
Common Dividend Yields
	Dividend Yield			6.27	%		6.49	%		5.76	%		6.41	%		7.08	%
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⁽¹⁾
	Preferred Share Dividends Per Share			n/a			n/a			n/a			n/a		$	0.34375
	Preferred Share Dividend Yield			n/a			n/a			n/a			n/a			5.50	%
	Quarter End Liquidation Preference			n/a			n/a			n/a			n/a		$	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
	Preferred Share Dividends Per Share		$	0.25000		$	0.25000		$	0.25000		$	0.25000		$	0.25000
	Preferred Share Dividend Yield			4.00	%		4.00	%		4.00	%		4.00	%		4.00	%
	Quarter End Liquidation Preference		$	25.00		$	25.00		$	25.00		$	25.00		$	25.00
Series E Preferred Share Dividends
	Preferred Share Dividends Per Share		$	0.64063		$	0.64063		$	0.64063		$	0.64063		$	0.64063
	Preferred Share Dividend Yield			10.25	%		10.25	%		10.25	%		10.25	%		10.25	%
	Quarter End Liquidation Preference		$	25.00		$	25.00		$	25.00		$	25.00		$	25.00
Series F Preferred Share Dividends
	Preferred Share Dividends Per Share		$	0.61719		$	0.61719		$	0.61719		$	0.61719		$	0.61719
	Preferred Share Dividend Yield			9.875	%		9.875	%		9.875	%		9.875	%		9.875	%
	Quarter End Liquidation Preference		$	25.00		$	25.00		$	25.00		$	25.00		$	25.00

(1): On March 5, 2002, Constellation converted its Series A Preferred Share and then sold its entire common share ownership position.

Investor Composition and Analyst Coverage
(as of December 31, 2002)

	Common Shares	Common Units	As if Converted Preferred Shares / Units	Total	Fully Diluted Ownership % of Total
SHAREHOLDER CLASSIFICATION
Insiders	1,162,778	7,734,557	—	8,897,335	24.57%
Institutional Ownership	14,211,838	—	3,617,472	17,829,310	49.23%
Other / Retail	8,231,516	1,255,292	—	9,486,808	26.20%

	23,606,132	8,989,849	3,617,472	36,213,453	100.00%

	December 31, 2002	September 30, 2002	June 30, 2002	March 31, 2002	December 31, 2001
RESEARCH COVERAGE
A. G. Edwards	x	x	x	x	x
BB&T Capital Markets	x	x	x	x	n/a
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	x
Janney Montgomery Scott	n/a	n/a	n/a	n/a	x
Legg Mason Wood Walker, Inc.	x	x	x	x	x
McDonald Investments	x	x	x	x	x
Mercury Partners, LLC	x	x	x	n/a	n/a
Raymond James	x	n/a	n/a	n/a	n/a
Wachovia Securities	x	n/a	n/a	n/a	n/a

Source: Institutional ownership was obtained from filed Forms 13(f) as of September 30, 2002 per Vickers Stock Research Corporation.

Debt Maturity Schedule — December 31, 2002
(Dollars in thousands)

	Mortgages⁽¹⁾				Construction Loan ⁽²⁾
Year of Maturity	Annual Amortization of Monthly Payments		Due on Maturity		Annual Amortization of Monthly Payments		Due on Maturity		$150,000 Secured Revolving Credit Facility⁽³⁾		Total Scheduled Payments
2003	$	9,986	$	9,360	$	94	$	11,476	$	—	$	30,916
2004		11,326		71,984		—		—		—		83,310
2005		9,890		41,567		—		—		128,000		179,457
2006		9,635		59,975		—		—		—		69,610
2007		8,391		51,346		—		—		—		59,737
2008		6,536		142,837		—		—		—		149,373
2009		3,095		52,056		—		—		—		55,151
2010		2,148		12,460		—		—		—		14,608
2011		2,226		—		—		—		—		2,226
2012		2,006		21,586		—		—		—		23,592
2013		—		37,076		—		—		—		37,076

	$	65,239	$	500,247	$	94	$	11,476	$	128,000	$	705,056

Notes:

(1): Certain mortgages contain extension options, generally either for a period of six months or one year, subject to certain conditions. The above table reflects these maturities as if the mortgages have already been extended.
(2): The construction loan balance as of December 31, 2002 represents the outstanding balance as of that date.
(3): We have the right to extend the Secured Revolving Credit Facility for a one-year period, subject to certain conditions, upon maturity in March 2004. The extended maturity date has been presented above.

We have the following interest rate protection agreements in place:
    $100 million notional amount swap of thirty-day LIBOR at 5.76%, which expired in January 2003.
    $50 million notional amount swap of one-month LIBOR at 2.3075%, commencing in January 2003 and expiring in January 2005.
    $50 million notional amount swap of one-month LIBOR at 1.52%, commencing in January 2003 and expiring in January 2004.

Property Summary by Region — December 31, 2002

Operating Property Count		Owned or Joint Venture (JV)	Submarket	State	Year Built or Renovated	Single Story (S) or Multi-story (M)	Total Operational Square Feet	Total Square Feet Under Development
	Office Properties
	Baltimore /Washington Corridor
1	2730 Hercules Road	Owned	BWI Airport	MD	1990	M	240,336
2	2711 Technology Drive (211 NBP)	Owned	BWI Airport	MD	2002	M	152,000
	140 National Business Parkway	JV	BWI Airport	MD		M		119,000
3	132 National Business Parkway	Owned	BWI Airport	MD	2000	M	118,456
4	2721 Technology Drive (221 NBP)	Owned	BWI Airport	MD	2000	M	118,093
5	2701 Technology Drive (201 NBP)	Owned	BWI Airport	MD	2001	M	117,450
6	1306 Concourse Drive	Owned	BWI Airport	MD	1990	M	114,046
7	1304 Concourse Drive	Owned	BWI Airport	MD	2002	M	102,964
8	870-880 Elkridge Landing Road	Owned	BWI Airport	MD	1981	M	101,785
9	900 Elkridge Landing Road	Owned	BWI Airport	MD	1982	M	97,261
10	1199 Winterson Road	Owned	BWI Airport	MD	1988	M	96,636
11	920 Elkridge Landing Road	Owned	BWI Airport	MD	1982	M	96,566
12	134 National Business Parkway	Owned	BWI Airport	MD	1999	M	93,482
13	133 National Business Parkway	Owned	BWI Airport	MD	1997	M	88,666
14	141 National Business Parkway	Owned	BWI Airport	MD	1990	M	86,964
15	135 National Business Parkway	Owned	BWI Airport	MD	1998	M	86,863
16	1302 Concourse Drive	Owned	BWI Airport	MD	1996	M	84,607
17	7467 Ridge Road	Owned	BWI Airport	MD	1990	M	74,273
18	7240 Parkway Drive	Owned	BWI Airport	MD	1985	M	74,156
19	881 Elkridge Landing Road	Owned	BWI Airport	MD	1986	M	73,572
20	1099 Winterson Road	Owned	BWI Airport	MD	1988	M	71,076
21	131 National Business Parkway	Owned	BWI Airport	MD	1990	M	69,039
22	849 International Drive	Owned	BWI Airport	MD	1988	M	68,758
23	1190 Winterson Road	Owned	BWI Airport	MD	1987	M	68,746
24	911 Elkridge Landing Road	Owned	BWI Airport	MD	1985	M	68,296
25	1201 Winterson Road	Owned	BWI Airport	MD	1985	M	67,903
26	999 Corporate Boulevard	Owned	BWI Airport	MD	2000	M	67,351
27	7318 Parkway Drive	Owned	BWI Airport	MD	1984	M	59,204
28	901 Elkridge Landing Road	Owned	BWI Airport	MD	1984	M	57,308
29	7320 Parkway Drive	Owned	BWI Airport	MD	1983	S	57,176
30	900 International Drive	Owned	BWI Airport	MD	1986	S	57,140
31	930 International Drive	Owned	BWI Airport	MD	1986	S	57,140
32	891 Elkridge Landing Road	Owned	BWI Airport	MD	1984	M	56,489
33	921 Elkridge Landing Road	Owned	BWI Airport	MD	1983	M	54,175
34	939 Elkridge Landing Road	Owned	BWI Airport	MD	1983	M	53,031
35	938 Elkridge Landing Road	Owned	BWI Airport	MD	1984	M	52,988
36	940 Elkridge Landing Road	Owned	BWI Airport	MD	1984	M	51,704
37	800 International Drive	Owned	BWI Airport	MD	1988	S	50,979
38	1340 Ashton Road	Owned	BWI Airport	MD	1989	S	46,400
39	7321 Parkway Drive	Owned	BWI Airport	MD	1984	S	39,822
40	1334 Ashton Road	Owned	BWI Airport	MD	1989	S	37,565
41	1331 Ashton Road	Owned	BWI Airport	MD	1989	S	29,936
42	1350 Dorsey Road	Owned	BWI Airport	MD	1989	S	19,992
43	1344 Ashton Road	Owned	BWI Airport	MD	1989	M	17,076
44	1341 Ashton Road	Owned	BWI Airport	MD	1989	S	15,841
45	1343 Ashton Road	Owned	BWI Airport	MD	1989	S	9,962
46	114 National Business Parkway	Owned	BWI Airport	MD	2002	S	9,717

	Subtotal (continued on next page)						3,332,990	119,000

Operating Property Count		Owned or Joint Venture (JV)	Submarket	State	Year Built or Renovated	Single Story (S) or Multi-story (M)	Total Operational Square Feet	Total Square Feet Under Development
	Subtotal (continued from prior page)						3,332,990	119,000
47	1615 and 1629 Thames Street	Owned	Baltimore City	MD	1989	M	104,115
48	9690 Deereco Road	Owned	North Baltimore Co.	MD	1988	M	133,737
49	375 West Padonia Road	Owned	North Baltimore Co.	MD	1986	M	101,133
50	7200 Riverwood Drive	Owned	Howard Co. Perimeter	MD	1986	S	160,000
51	9140 Route 108	Owned	Howard Co. Perimeter	MD	1974/1985	S	150,000
52	7000 Columbia Gateway Drive	Owned	Howard Co. Perimeter	MD	1999	M	145,806
53	6731 Columbia Gateway Drive	Owned	Howard Co. Perimeter	MD	2002	M	73,902	49,841
54	6940 Columbia Gateway Drive	Owned	Howard Co. Perimeter	MD	1999	M	108,737
55	6950 Columbia Gateway Drive	Owned	Howard Co. Perimeter	MD	1998	M	107,778
56	7067 Columbia Gateway Drive	Owned	Howard Co. Perimeter	MD	2001	M	82,953
57	6750 Alexander Bell Drive	Owned	Howard Co. Perimeter	MD	2001	M	78,460
58	6700 Alexander Bell Drive	Owned	Howard Co. Perimeter	MD	1988	M	75,650
59	6740 Alexander Bell Drive	Owned	Howard Co. Perimeter	MD	1992	M	61,957
60	6716 Alexander Bell Drive	Owned	Howard Co. Perimeter	MD	1990	M	52,002
61	9140 Guilford Road	Owned	Howard Co. Perimeter	MD	1983	S	41,704
62	7065 Columbia Gateway Drive	Owned	Howard Co. Perimeter	MD	2000	S	38,560
63	7063 Columbia Gateway Drive	Owned	Howard Co. Perimeter	MD	2000	S	36,936
64	9160 Guilford Road	Owned	Howard Co. Perimeter	MD	1984	M	36,528
65	6760 Alexander Bell Drive	Owned	Howard Co. Perimeter	MD	1991	M	36,309
66	6708 Alexander Bell Drive	Owned	Howard Co. Perimeter	MD	1988	M	35,040
67	7061 Columbia Gateway Drive	Owned	Howard Co. Perimeter	MD	2000	M	29,604
68	6724 Alexander Bell Drive	Owned	Howard Co. Perimeter	MD	2002	M	28,420
69	9150 Guilford Road	Owned	Howard Co. Perimeter	MD	1984	S	17,655
70	9130 Guilford Road	Owned	Howard Co. Perimeter	MD	1984	S	13,700
	Robert Fulton Drive — Phase I	JV	Howard Co. Perimeter	MD		M		105,850
71	14502 Greenview Drive	Owned	Laurel	MD	1988	M	71,926
72	14504 Greenview Drive	Owned	Laurel	MD	1985	M	69,194
73	6009—6011 Oxon Hill Road	Owned	Southern Prince George's County	MD	1990	M	181,768	—

	Total Baltimore / Washington Corridor						5,406,564	274,691


	Suburban Washington D.C.
1	11800 Tech Road	Owned	North Silver Spring	MD	1969/1989	M	235,866	—
	Forbes Boulevard — Phase II	JV	Lanham	MD		M	—	55,757

	Total Suburban Washington D.C.						235,866	55,757

	Northern Virginia
1	15000 Conference Center Drive	Owned	Chantilly	VA	1989	M	470,406	—
2	15059 Conference Center Drive	Owned	Chantilly	VA	2000	M	145,192	—
3	15049 Conference Center Drive	Owned	Chantilly	VA	1997	M	145,053	—

	Total Northern Virginia						760,651	—

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

	Total Greater Philadelphia						960,349	—

Operating Property Count		Owned or Joint Venture (JV)	Submarket	State	Year Built or Renovated	Single Story (S) or Multi-story (M)	Total Operational Square Feet	Total Square Feet Under Development
	Greater Harrisburg
1	2605 Interstate Drive	Owned	East Shore	PA	1990	M	81,187
2	6345 Flank Drive	Owned	East Shore	PA	1989	S	69,443
3	6340 Flank Drive	Owned	East Shore	PA	1988	S	68,200
4	2601 Market Place	Owned	East Shore	PA	1989	M	66,224
5	6400 Flank Drive	Owned	East Shore	PA	1992	S	52,439
6	6360 Flank Drive	Owned	East Shore	PA	1988	S	46,500
7	6385 Flank Drive	Owned	East Shore	PA	1995	S	32,921
8	6380 Flank Drive	Owned	East Shore	PA	1991	S	32,613
9	6405 Flank Drive	Owned	East Shore	PA	1991	S	32,000
10	95 Shannon Road	Owned	East Shore	PA	1999	S	21,976
11	75 Shannon Road	Owned	East Shore	PA	1999	S	20,887
12	6375 Flank Drive	Owned	East Shore	PA	2000	S	19,783
13	85 Shannon Road	Owned	East Shore	PA	1999	S	12,863
14	5035 Ritter Road	Owned	West Shore	PA	1988	S	56,556
15	5070 Ritter Road – Building A	Owned	West Shore	PA	1989	S	32,309
16	5070 Ritter Road – Building B	Owned	West Shore	PA	1989	S	28,039	—

	Total Greater Harrisburg						673,940	—

	Northern/Central New Jersey
1	431 Ridge Road	Owned	Exit 8A — Cranbury	NJ	1958/1998	S	170,000
2	429 Ridge Road	Owned	Exit 8A — Cranbury	NJ	1966/1996	M	142,385
3	68 Culver Road	Owned	Exit 8A — Cranbury	NJ	2000	M	57,280
4	104 Interchange Plaza	Owned	Exit 8A — Cranbury	NJ	1990	M	47,677
5	101 Interchange Plaza	Owned	Exit 8A — Cranbury	NJ	1985	M	43,621
6	47 Commerce	Owned	Exit 8A — Cranbury	NJ	1992/1998	S	41,398
7	437 Ridge Road	Owned	Exit 8A — Cranbury	NJ	1962/1996	S	30,000
8	7 Centre Drive	Owned	Exit 8A — Cranbury	NJ	1986	S	19,466
9	8 Centre Drive	Owned	Exit 8A — Cranbury	NJ	1989	S	16,199
10	2 Centre Drive	Owned	Exit 8A — Cranbury	NJ	1989	S	16,132
11	4301 Route 1	Owned	Monmouth Junction	NJ	1986	M	61,327
12	695 Route 46	Owned	Wayne	NJ	1990	M	157,394
13	710 Route 46	Owned	Wayne	NJ	1985	M	101,263	—

	Total Northern / Central New Jersey						904,142	—


110	TOTAL PORTFOLIO						8,941,512	330,448

Property Occupancy Rates by Region by Quarter

	Greater Philadelphia	Baltimore / Washington Corridor	Northern / Central New Jersey	Greater Harrisburg	Northern Virginia	Suburban Washington D.C.	Total Portfolio
December 31, 2002
Number of Buildings	4	73	13	16	3	1	110
Rentable Square Feet	960,349	5,406,564	904,142	673,940	760,651	235,866	8,941,512
Percent Occupied	100.00%	90.96%	93.67%	90.65%	98.32%	100.00%	93.05%
September 30, 2002
Number of Buildings	4	74	13	16	3	1	111
Rentable Square Feet	960,349	5,462,126	903,972	675,338	760,651	236,441	8,998,877
Percent Occupied	100.00%	92.37%	95.38%	91.46%	98.32%	94.69%	93.98%
June 30, 2002
Number of Buildings	4	74	13	16	1	—	108
Rentable Square Feet	960,349	5,394,356	903,972	675,338	470,406	—	8,404,421
Percent Occupied	100.00%	92.92%	94.82%	90.31%	99.56%	0.00%	94.10%
March 31, 2002
Number of Buildings	4	65	13	16	1	—	99
Rentable Square Feet	960,349	4,768,870	903,972	674,686	470,406	—	7,778,283
Percent Occupied	100.00%	92.73%	93.88%	89.83%	99.56%	0.00%	93.92%
December 31, 2001
Number of Buildings	4	64	13	16	1	—	98
Rentable Square Feet	960,349	4,791,139	903,972	674,686	470,406	—	7,800,552
Percent Occupied	100.00%	95.68%	95.80%	91.17%	99.56%	0.00%	96.07%

Top Twenty Office Tenants as of December 31, 2002
(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),(4)	26	1,207,747	14.5%	$	21,622	14.2%	5.0
AT&T Local Services	(5)	7	451,498	5.4%		9,172	6.0%	5.5
Unisys	(6)	3	741,284	8.9%		7,593	5.0%	6.5
Dyncorp Information Systems, LLC	(7)	1	244,522	2.9%		5,385	3.5%	8.0
Computer Sciences Corporation	(7)	2	182,625	2.2%		4,348	2.9%	8.3
General Dynamics Government Corp.		4	183,736	2.2%		4,290	2.8%	6.0
Booz Allen Hamilton		6	185,776	2.2%		3,967	2.6%	2.9
Ciena Corporation	(8)	4	278,749	3.4%		3,784	2.5%	3.4
The Aerospace Corporation		1	133,691	1.6%		3,446	2.3%	9.5
Northrop Grumman Systems		4	142,304	1.7%		3,328	2.2%	5.1
Magellan Behavioral Health, Inc.		2	150,622	1.8%		3,247	2.1%	1.1
Commonwealth of Pennsylvania	(5)	9	185,290	2.2%		2,661	1.8%	5.6
Merck & Co., Inc.	(6)	1	219,065	2.6%		2,281	1.5%	6.5
The Boeing Company		2	79,832	1.0%		2,081	1.4%	7.9
CareFirst, Inc. and Subsidiaries	(5)	3	94,223	1.1%		2,044	1.3%	5.0
Johns Hopkins University	(5)	4	81,935	1.0%		1,817	1.2%	4.6
Comcast Corporation		1	98,897	1.2%		1,613	1.1%	6.8
Ameritrade Holding Corporation		1	77,881	0.9%		1,564	1.0%	7.5
Sun Microsystems, Inc.		2	60,730	0.7%		1,484	1.0%	3.0
Lockheed Martin Corporation		2	75,829	0.9%		1,436	0.9%	2.1
Subtotal Top 20 Office Tenants		85	4,876,236	58.6%		87,163	57.4%	5.6
All remaining tenants		385	3,443,662	41.4%		64,573	42.6%	3.3

Total/Weighted Average		470	8,319,898	100.0%	$	151,736	100.0%	4.6

(1): Total Rental Revenue is the monthly contractual base rent as of December 31, 2002 multiplied by 12 plus the estimated annualized expense reimbursements under existing office leases. Refer to (4) below.
(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): Bookham Technology, Inc. terminated its lease effective December 31, 2002. This entire building has been retenanted to the United States of America under a ten-year lease term, subject to early termination provisions. This government lease which commenced January 1, 2003 and expires June 30, 2013, assuming no exercise of early termination rights, has been included in the above table.
(5): Includes affiliated organizations or agencies.
(6): Merck & Co., Inc. subleases 219,065 rentable square feet from Unisys' 960,349 leased rentable square feet.
(7): Computer Sciences Corporation has signed an agreement to acquire Dyncorp Information Systems, LLC.
(8): In addition to the 278,749 square feet directly leased, Ciena Corporation also subleases 44,890 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)

	2002								2001
	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		26,948		24,170		24,573		21,896		22,911
Northern/Central New Jersey		4,286		5,175		4,604		4,921		4,786
Greater Harrisburg		2,349		2,406		2,390		2,407		2,231
Northern Virginia		4,755		3,609		2,661		2,688		947
Suburban Washington D.C.		1,020		686		—		—		—

Total Regional Rental Revenue	$	41,864	$	38,552	$	36,734	$	34,418	$	33,381

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

Net Operating by Geographic Region by Quarter⁽¹⁾
(Dollars in thousands)

		2002								2001
		December 31		September 30		June 30		March 31		December 31
Office Properties:
Greater Philadelphia		$	2,468	$	2,468	$	2,473	$	2,466	$	2,478
Baltimore/Washington Corridor			18,852		16,145		17,689		15,140		15,745
Northern/Central New Jersey			2,774		3,145		2,930		3,213		2,890
Greater Harrisburg			1,640		1,802		1,738		1,810		1,640
Northern Virginia			2,966		2,136		1,550		1,598		527
Suburban Washington D.C.			784		496		—		—		—

Total Regional NOI		$	29,484	$	26,192	$	26,380	$	24,227	$	23,280
Other income / expenses, net			79		111		103		79		78

	Total NOI	$	29,563	$	26,303	$	26,483	$	24,306	$	23,358

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

		2002								2001
		December 31		September 30		June 30		March 31		December 31
Office Properties: ⁽²⁾
Greater Philadelphia		$	2,455	$	2,459	$	2,409	$	2,410	$	2,410
Baltimore/Washington Corridor			13,942		13,065		13,506		14,233		13,933
Northern/Central New Jersey			2,775		2,869		2,939		3,221		2,850
Greater Harrisburg			1,658		1,813		1,728		1,773		1,645

	Total Office Properties	$	20,830	$	20,206	$	20,582	$	21,637	$	20,838

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

		2002								2001
		December 31		September 30		June 30		March 31		December 31
Office Properties: ⁽²⁾
Greater Philadelphia		$	2,493	$	2,497	$	2,496	$	2,496	$	2,496
Baltimore/Washington Corridor			14,019		13,300		14,187		14,425		14,328
Northern/Central New Jersey			2,818		2,940		2,967		3,265		2,922
Greater Harrisburg			1,660		1,825		1,760		1,834		1,654

	Total Office Properties	$	20,990	$	20,562	$	21,410	$	22,020	$	21,400

(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. Net operating income presented in the tables above has been adjusted to remove the effect of certain lease termination fees and the related writeoff of straight-line rents. In addition, allocated general and administrative costs for asset management efforts have been excluded from same office GAAP and cash 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 2002 Average
Number of Buildings	4	61	13	16	94
Rentable Square Feet	960,349	4,609,617	904,094	674,446	7,148,506
Percent Occupied	100.00%	90.85%	94.16%	90.21%	92.44%
3rd Quarter 2002 Average
Number of Buildings	4	61	13	16	94
Rentable Square Feet	960,349	4,610,214	903,972	675,338	7,149,873
Percent Occupied	100.00%	90.35%	95.28%	90.69%	92.30%
2nd Quarter 2002 Average
Number of Buildings	4	61	13	16	94
Rentable Square Feet	960,349	4,606,821	903,972	674,916	7,146,058
Percent Occupied	100.00%	91.97%	94.28%	89.96%	93.15%
1st Quarter 2002 Average
Number of Buildings	4	61	13	16	94
Rentable Square Feet	960,349	4,602,623	903,972	674,686	7,141,630
Percent Occupied	100.00%	93.37%	94.46%	90.48%	94.13%
4th Quarter 2001 Average
Number of Buildings	4	61	13	16	94
Rentable Square Feet	960,349	4,601,180	903,972	675,758	7,141,259
Percent Occupied	100.00%	95.16%	95.82%	89.03%	95.31%

(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)
2003	101	758,936	9.1%	$	14,038	9.3%	$	18.50
2004	74	911,254	11.0%		17,616	11.6%		19.33
2005	86	854,941	10.3%		16,033	10.6%		18.75
2006	59	814,421	9.8%		14,917	9.8%		18.32
2007	73	1,389,010	16.7%		26,090	17.2%		18.78
2008	20	750,932	9.0%		16,071	10.6%		21.40
2009	17	1,357,102	16.3%		16,879	11.1%		12.44
2010	15	777,068	9.3%		16,611	10.9%		21.38
2011	3	71,501	0.9%		1,744	1.1%		24.40
2012	7	428,474	5.1%		9,772	6.4%		22.81
2013	1	150,000	1.8%		1,883	1.3%		12.55
Other ⁽³⁾	14	56,259	0.7%		81	0.1%		1.44

Total/Weighted Average	470	8,319,898	100.0%	$	151,736	100.0%	$	18.87

NOTE: As of December 31, 2002, 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. A lease for 150,000 square feet commenced January 1, 2003 and expires June 30, 2013, if the government does not exercise its right to terminate early. This 150,000 square foot lease has been included above as the previous lease with Bookham Technology, Inc., for the same 150,000 square feet, early terminated on December 31, 2002.
(2): Total Rental Revenue is the monthly contractual base rent as of December 31, 2002 multiplied by 12 plus the estimated annualized expense reimbursements under existing office leases. Refer to (1) for inclusion of government lease for 150,000 square feet as of December 31, 2002 despite lease commencement date of January 1, 2003.
(3): Other consists primarily of amenities, including cafeterias, concierge offices and property management space. In addition, month-to-month leases are included in this line item as the exact expiration date is unknown.

Annual Office Renewal Analysis

		Baltimore/ Washington Corridor		Northern/ Central New Jersey		Greater Harrisburg		Northern Virginia		Total Office
For Year Ended December 31, 2002:
	Expiring Square Feet		940,831		91,685		243,050		—		1,275,566
	Vacated Square Feet		323,179		49,221		58,452		—		430,852
	Renewed Square Feet		617,652		42,464		184,598		—		844,714
	Retention Rate (% based upon square feet)		65.65%		46.32%		75.95%		0.00%		66.22%
*Renewal & Retenanted Space:*
	Change in Base Rent — Straight-line		8.56%		11.43%		3.73%		29.72%		8.52%
	Change in Total Rent — Straight-line		7.64%		5.49%		-2.73%		29.72%		6.46%
	Change in Base Rent — Cash		5.12%		9.41%		0.18%		30.11%		5.22%
	Change in Total Rent — Cash		4.53%		3.69%		-5.60%		30.11%		3.50%
	Average Capital Cost per Square Foot	$	5.13	$	14.22	$	1.60	$	0.09	$	5.02
For Year 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)		68.43%		83.31%		81.03%		0.00%		72.47%
*Renewal & Retenanted Space:*
	Change in Base Rent — Straight-line		19.19%		32.17%		11.83%		0.00%		18.51%
	Change in Total Rent — Straight-line		15.76%		25.31%		10.34%		0.00%		15.24%
	Change in Base Rent — Cash		13.19%		27.78%		4.20%		0.00%		12.27%
	Change in Total Rent — Cash		10.31%		21.37%		3.55%		0.00%		9.60%
	Average Capital Cost per Square Foot	$	6.40	$	11.87	$	7.04	$	—	$	6.92
For Year 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)		68.31%		71.79%		73.67%		0.00%		69.57%
*Renewal & Retenanted Space:*
	Change in Base Rent — Straight-line		14.10%		20.80%		0.68%		0.00%		15.65%
	Change in Total Rent — Straight-line		10.10%		13.41%		2.22%		0.00%		10.42%
	Change in Base Rent — Cash		10.49%		14.22%		- -1.05%		0.00%		10.59%
	Change in Total Rent — Cash		6.64%		4.42%		0.62%		0.00%		5.71%
	Average Capital Cost per Square Foot	$	6.27	$	21.34	$	2.81	$	—	$	9.28

Note: No renewal or retenanting activity transpired in our Greater Philadelphia and Suburban Washington D.C. regions.

Quarterly Office Renewal Analysis

		Baltimore/ Washington Corridor		Northern/ Central New Jersey		Greater Harrisburg		Northern Virginia		Total Office
Quarter Ended December 31, 2002:
	Expiring Square Feet		417,227		19,099		103,860		—		540,186
	Vacated Square Feet		123,656		10,825		39,606		—		174,087
	Renewed Square Feet		293,571		8,274		64,254		—		366,099
	Retention Rate (% based upon square feet)		70.36%		43.32%		61.87%		0.00%		67.77%
*Renewal & Retenanted Space:*
	Change in Base Rent — Straight-line		6.27%		1.65%		-4.53%		0.00%		5.00%
	Change in Total Rent — Straight-line		4.53%		0.13%		-5.79%		0.00%		3.25%
	Change in Base Rent — Cash		2.27%		- -1.17%		- -7.63%		0.00%		1.14%
	Change in Total Rent — Cash		0.94%		-2.55%		-8.34%		0.00%		-0.20%
	Average Capital Cost per Square Foot	$	4.43	$	13.69	$	2.27	$	—	$	4.49
Quarter Ended September 30, 2002:
	Expiring Square Feet		211,614		49,489		80,037		—		341,140
	Vacated Square Feet		82,267		26,028		—		—		108,295
	Renewed Square Feet		129,347		23,461		80,037		—		232,845
	Retention Rate (% based upon square feet)		61.12%		47.41%		100.00%		0.00%		68.25%
*Renewal & Retenanted Space:*
	Change in Base Rent — Straight-line		24.90%		18.23%		0.34%		0.00%		19.34%
	Change in Total Rent — Straight-line		15.67%		9.58%		-0.25%		0.00%		11.92%
	Change in Base Rent — Cash		20.66%		19.09%		- -1.17%		0.00%		16.11%
	Change in Total Rent — Cash		12.16%		10.39%		-1.51%		0.00%		9.23%
	Average Capital Cost per Square Foot	$	8.48	$	11.41	$	1.96	$	—	$	7.23
Quarter Ended June 30, 2002:
	Expiring Square Feet		269,958		11,136		5,953		—		287,047
	Vacated Square Feet		96,131		2,376		3,566		—		102,073
	Renewed Square Feet		173,827		8,760		2,387		—		184,974
	Retention Rate (% based upon square feet)		64.39%		78.66%		40.10%		0.00%		64.44%
*Renewal & Retenanted Space:*
	Change in Base Rent — Straight-line		2.04%		25.04%		-7.04%		29.72%		5.60%
	Change in Total Rent — Straight-line		8.25%		20.24%		-5.35%		29.72%		10.39%
	Change in Base Rent — Cash		- -1.50%		21.74%		- -8.86%		30.11%		2.34%
	Change in Total Rent — Cash		4.79%		17.19%		-6.75%		30.11%		7.23%
	Average Capital Cost per Square Foot	$	3.20	$	22.94	$	2.25	$	0.09	$	4.35

Note: No renewal or retenanting activity transpired in our Greater Philadelphia and Suburban Washington D.C. regions.

Quarterly Office Renewal Analysis (continued)

		Baltimore/ Washington Corridor		Northern/ Central New Jersey		Greater Harrisburg		Northern Virginia		Total Office
Quarter Ended March 31, 2002:
	Expiring Square Feet		42,032		11,961		53,200		—		107,193
	Vacated Square Feet		21,125		9,992		15,280		—		46,397
	Renewed Square Feet		20,907		1,969		37,920		—		60,796
	Retention Rate (% based upon square feet)		49.74%		16.46%		71.28%		0.00%		56.72%
*Renewal & Retenanted Space:*
	Change in Base Rent — Straight-line		-4.35%		-2.70%		29.35%		0.00%		3.21%
	Change in Total Rent — Straight-line		0.55%		-12.76%		-2.02%		0.00%		-1.53%
	Change in Base Rent — Cash		- -3.11%		- -7.51%		20.16%		0.00%		1.71%
	Change in Total Rent — Cash		2.04%		-16.86%		-9.06%		0.00%		-3.05%
	Average Capital Cost per Square Foot	$	5.01	$	5.67	$	0.04	$	—	$	3.08
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)		70.77%		100.00%		90.60%		0.00%		79.09%
*Renewal & Retenanted Space:*
	Change in Base Rent — Straight-line		12.52%		17.24%		18.61%		0.00%		15.16%
	Change in Total Rent — Straight-line		9.42%		6.74%		17.70%		0.00%		12.58%
	Change in Base Rent — Cash		5.95%		11.02%		5.78%		0.00%		6.08%
	Change in Total Rent — Cash		3.10%		1.07%		5.08%		0.00%		3.80%
	Average Capital Cost per Square Foot	$	9.56	$	8.92	$	15.25	$	—	$	12.20

Note: No renewal or retenanting activity transpired in our Greater Philadelphia and Suburban Washington D.C. regions.

Year to Date Acquisition Summary as of December 31, 2002
(Dollars in thousands)

		Submarket	Acquisition Date	Square Feet	Occupied Sq. Ft. at Acquisition	Occupancy Percentage at Acquisition	December 31, 2002 Occupancy Percentage	Investment⁽¹⁾
Wholly Owned Portfolio:
9130 Guilford Road		Howard County Perimeter	4/4/2002	13,700	13,700	100.0%	100.0%	$	1,447
9140 Guilford Road		Howard County Perimeter	4/4/2002	41,813	38,757	92.7%	92.9%		4,392
9150 Guilford Road		Howard County Perimeter	4/4/2002	17,655	17,655	100.0%	100.0%		1,865
9160 Guilford Road		Howard County Perimeter	4/4/2002	36,528	36,528	100.0%	100.0%		3,859
7320 Parkway Drive		BWI Airport	4/4/2002	57,176	57,176	100.0%	77.1%		4,957
7000 Columbia Gateway Drive		Howard County Perimeter	5/31/2002	145,806	145,806	100.0%	100.0%		16,196
11800 Tech Road		North Silver Spring	8/1/2002	236,441	223,876	94.7%	100.0%		27,184
15049 Conference Center Drive		Chantilly	8/14/2002	145,053	145,053	100.0%	100.0%		27,593
15059 Conference Center Drive		Chantilly	8/14/2002	145,192	134,451	92.6%	92.6%		19,823

	Total			839,364	813,002	96.9%	96.7%	$	107,316

(1): Initial investment recorded by property as of December 31, 2002 for asset purchase.

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.

Year to Date Disposition Summary as of December 31, 2002
(Dollars in thousands)

		Submarket		Disposition Date		Square Feet		Gross Sales Proceeds			Debt Assumption or Repayment			Cash Proceeds After Debt Repayment
Individual Property:
8815 Centre Park Drive		Howard County Perimeter		7/17/2002		53,782		$	7,175		$	—		$	7,175

NOTE: Joint venture dispositions are not presented in the above table.

Development Summary as of December 31, 2002
(Dollars in thousands except square feet and per square foot data)

Property and Location		Submarket	Owned or Joint Venture (JV)	Total Rentable Square Feet	Square Feet Under Construction	Percentage Leased or Committed	Anticipated Total Cost		Cost to date		Outstanding Loan as of 12/31/2002		Anticipated Stabilization/ Delivery
Under Construction
6731 Columbia Gateway Drive Columbia, Maryland	(1)	Howard County Perimeter	Owned	123,743	49,841	63.45%	$	24,027	$	21,131	$	11,570	Lease-up March 2003
140 National Business Parkway Annapolis Junction, Maryland	(2)	BWI Airport	JV	119,000	119,000	0.00%		18,856		8,700		2,849	Construction August 2004
Forbes Boulevard — Phase II Lanham, Maryland	(3)	Lanham	JV	55,757	55,757	0.00%		5,280		2,231		1,031	Construction March 2004
Robert Fulton Drive — Phase I Columbia, Maryland	(4)	Howard County Perimeter	JV	105,850	105,850	20.78%		12,745		9,071		6,740	Lease-up December 2003

TOTAL / AVERAGE				404,350	330,448	24.86%	$	60,908	$	41,133	$	22,190

(1): Total loan commitment for this property is reduced to $14,000 and matures in December 2003.
(2): Total loan commitment for this property is $14,100.
(3): Total loan commitment for this property is $4,700.
(4): The total loan commitment of $14,000 and the outstanding loan balance covers phases I and II of this property.

Development Properties Placed into Service
For the period January 1, 2002 through December 31, 2002

Property and Location		Submarket	Owned or Joint Venture (JV)	Total Square Feet	Operational Square Feet Delivered	Square Feet Leased as of 12/31/2002		% Leased as of 12/31/2002
2711 Technology Drive		BWI Airport	Owned	152,000	152,000	152,000	^(a)	100.00%
1304 Concourse Drive		BWI Airport	Owned	102,964	102,964	64,745		62.88%
6731 Columbia Gateway Drive		Howard County Perimeter	Owned	123,743	73,902	78,516		63.45%
4260 Forbes Boulevard		Lanham	JV	54,692	54,692	54,692	^(b)	100.00%
6724 Alexander Bell Drive		Howard County Perimeter	Owned	28,420	28,420	28,420		100.00%

	TOTAL / AVERAGE			461,819	411,978	378,373		81.93%

(a): In June 2002, we acquired the remaining 50% joint venture interest. We now own 100% of this property.
(b): In December 2002, we acquired the remaining 20% joint venture interest and then sold this wholly owned property.

Joint Venture Summary as of December 31, 2002
(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 12/31/02		Recourse to COPT	Option to Acquire Partner's Interest
Forbes Boulevard (Phase II) Lanham, Maryland⁽¹⁾		80%	Construction	55,757	5 acres	$	712	$	1,031	Yes, 50%	Yes
Robert Fulton Drive (Phase I) Columbia, Maryland⁽²⁾		80%	Construction/ Development	105,850	4 acres		4,130		6,740	Yes, 80%	Yes
MOR Montpelier 3 LLC Laurel, Maryland		50%	Development		2 acres		455		—	N/A	Yes
Gateway 70 Columbia, Maryland		80%	Development		12 acres		2,472		—	N/A	Yes
140 NBP Annapolis Junction, Maryland		10%	Construction	119,000	13 acres		230		2,849	Yes, 100%	Yes

	TOTAL					$	7,999	$	10,620

(1): In December 2002, we acquired the remaining 20% interest in the joint venture which owned 4260 Forbes Boulevard (or Phase I), a 100% occupied 54,692 square foot building. We then sold this wholly owned property in December 2002 and realized a total gain of $800,000.
(2): The off-balance sheet debt covers phases I and II of these properties.

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