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Supplemental Information
(Unaudited)

June 30, 2003

Corporate Office Properties Trust
Index to Supplemental Information (Unaudited)
June 30, 2003

		Page
Highlights and Discussion
	Reporting Period Highlights—Second Quarter 2003	1
	Subsequent Events	2
	Forward-Looking Statements	3
Financial Statements
	Quarterly Selected Financial Summary Data	4
	Quarterly Consolidated Balance Sheets	5
	Quarterly Consolidated Statements of Operations	6
	Quarterly Consolidated Reconciliations of Funds From Operations (FFO), Adjusted Funds From Operations (AFFO) and Net (Loss) Income Available to Common Shareholders per diluted share, as adjusted	7
	Quarterly Consolidated Reconciliations of Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA), Combined Net Operating Income (NOI), Discontinued Operations and Gains on Sales of Real Estate	8
Selected Financial Analyses
	Quarterly Equity Analysis	9
	Quarterly Valuation Analysis	10
	Quarterly Debt Analysis	11
	Quarterly Operating Ratios	12
	Quarterly Dividend Analysis	13
	Investor Composition and Analyst Coverage	14
	Debt Maturity Schedule—June 30, 2003	15
Portfolio Summary
	Property Summary by Region—June 30, 2003	16
	Property Occupancy Rates by Region by Quarter	19
	Top Twenty Office Tenants as of June 30, 2003	20
	Combined Real Estate Revenue and Combined Net Operating Income by Geographic Region by Quarter	21
	Same Office Property Cash and GAAP Net Operating Income by Quarter	22
	Average Occupancy Rates by Region for Same Office Properties	23
	Office Lease Expiration Analysis by Year	24
	Quarterly Office Renewal Analysis	25
	Year to Date Acquisition and Disposition Summary as of June 30, 2003	27
	Development Summary as of June 30, 2003	28
	Year to Date Development Placed into Service as of June 30, 2003	29
	Joint Venture Summary as of June 30, 2003	30
	Reconciliations of Non GAAP Measurements	31
	Reclassifications and Definitions	32

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, furnished to the Securities and Exchange Commission ("SEC") 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. Reconciliations between GAAP and non GAAP measurements, along with reclassifications and definitions, have been provided on pages 31 and 32 for certain terms used herein.

Reporting Period Highlights—Second Quarter 2003

Financial Results

•: Reported Net (Loss) Income Available to Common Shareholders—diluted of ($7,520,000) or ($.30) per share for the second quarter of 2003 as compared to $3,350,000 or $.14 per share for the comparable 2002 period, representing a decrease of (314.3%) per share. Included in this net loss available to common shareholders of ($.30) per share is recognition of an accounting charge of $11.2 million associated with our repurchase of preferred units in excess of recorded book value which contributed ($.44) per share. Without this accounting charge of $11.2 million, our net income available to common shareholders—diluted, as adjusted, would have been $.14 per share, representing no change over the comparable 2002 period.
•: Reported FFO—diluted of $14,909,000 or $.38 per share/unit for the second quarter of 2003 as compared to $13,499,000 or $.37 per share/unit for the comparable 2002 period, as recomputed for the effects of Statement of Financial Accounting Standards No. 141, "Business Combinations" or ("SFAS 141") and Statement of Financial Accounting Standards No. 145, "Recission of FASB Statements No. 4, 44 and 64, Amendment of FASB Statement No. 13 and Technical Corrections" or ("SFAS 145"), representing an increase of 2.7% per share/unit. Our reported FFO for the second quarter of 2003 excludes the effect of the $11.2 million accounting charge associated with the repurchase of the preferred units. Excluding the effects of SFAS 141 described below, our FFO per share would have been $.37 per share for the second quarter of 2003 as compared to $.33 per share for the comparable 2002 period, representing an increase of 12.1% per share.
•: Recorded SFAS 141 accretion of intangible assets and liabilities classified as revenues of $569,000 and $1,324,000 in the second quarter of 2003 and 2002, respectively, which increased FFO.
•: Reported AFFO—diluted of $11,167,000 for the second quarter of 2003 as compared to $9,802,000 for the comparable 2002 period, representing an increase of 13.9%.
•: Our FFO payout ratio was 60.3% for the second quarter of 2003 as compared to 55.3% for the comparable 2002 period. Our AFFO payout ratio was 80.5% as compared to 76.1% for the comparable 2002 period.

Financing Activity and Capital Transactions

•: On May 20, 2003, we sold 5,290,000 common shares at $15.03 per share to certain underwriters, generating net proceeds of $79.4 million.
•: On June 16, 2003, we repurchased 100% of the 1,016,662 outstanding Series C convertible preferred units for $36.1 million or $14.90 per unit, on an as-if converted basis.

•: During the quarter, we closed a $50.5 million loan that bears interest at LIBOR plus 1.85% and matures in January 2005, subject to our ability to exercise two six-month extension options and extend the maturity date to January 2006. The initial loan proceeds of $40.0 million funded the repurchase of the Series C preferred units and repaid outstanding debt under our secured revolving credit facility. The remaining $10.5 million of capacity under the loan will fund future tenant improvements and leasing commissions for the property located at 13200 Woodland Park Drive.
•: As of June 30, 2003, our debt to market capitalization was 49.4% and our debt to undepreciated book value of real estate assets was 60.4%. We achieved an EBITDA interest coverage ratio of 2.8x and an EBITDA fixed charge coverage ratio of 2.1x for this quarter.

Operations

•: Overall occupancy was 91.6% and our portfolio was 92.0% leased as of June 30, 2003.
•: Our same property cash NOI decreased by 2.7% as compared to the quarter ended June 30, 2002. This drop in cash NOI for our same property portfolio was primarily caused by the reduction in lease termination revenues of $.9 million. Our same property portfolio consists of 94 properties and represents 76.9% of our total square feet owned as of June 30, 2003.
•: Weighted average lease term of our office portfolio is 4.0 years as of June 30, 2003, with an average contractual rental rate (including tenant reimbursements of operating costs) of $19.33 per square foot.
•: We renewed 229,000 square feet or 63.8% of our office leases (based upon square footage) with an average capital cost of $3.48 per square foot during the second quarter. For our renewed and retenanted space of 420,000 square feet, we realized changes in base rent and total rent, on a straight-line basis, of 3.67% and (0.11%), respectively, as measured from the GAAP straight-line rent in effect preceding the renewal date. Base rent and total rent on a cash basis decreased (0.28%) and (3.61%), respectively, on this same space.

Acquisitions / Dispositions

•: In June 2003, we expanded our Northern Virginia market presence through the purchase of a 404,665 square foot building located in Herndon, Virginia for $71.4 million. This property is 100% leased by VeriSign, Inc., a provider of infrastructure services for the Internet and telecommunications networks. VeriSign, Inc. may terminate the lease with respect to a maximum of 232,268 rentable square feet at designated times from June 2005 through September 2006.

Subsequent Events

•: On July 24, 2003, we executed a ten-year lease for 88,094 square feet with The Aerospace Corporation for our development property, 4851 Stonecroft Boulevard (known as Greens III). This property is adjacent to our Greens I & II buildings located in Chantilly, Virginia. We anticipate building completion in the third quarter of 2004 with rent commencing in the fourth quarter of 2004.
•: On July 25, 2003, we acquired a 96.3% leased portfolio of five office properties located in Northern Virginia aggregating 433,814 rentable square feet for $75.2 million. We simultaneously closed a $45.0 million loan that bears interest at LIBOR plus 2.00% and matures in July 2004, subject to our ability to exercise the one-year extension option which extends the maturity date to July 2005. We utilized borrowings on our secured revolving credit facility and cash reserves to fund the remaining purchase price.

Forward-Looking Statements

This supplemental information contains "forward-looking" statements, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that are based on our current expectations, estimates and projections about future events and financial trends affecting us. Forward-looking statements can be identified by the use of words such as "may", "will", "should", "expect", "estimate" or other comparable terminology. Forward-looking statements are inherently subject to risks and uncertainties, many of which we cannot predict with accuracy and some of which we might not even anticipate. Accordingly, we can give no assurance that these expectations, estimates and projections will be achieved. Future events and actual results may differ materially from those discussed in the forward-looking statements.

Important factors that may affect these expectations, estimates, and projections include, but are not limited to:

•: our ability to borrow on favorable terms;
•: general economic and business conditions, which will, among other things, affect office property demand and rents, tenant creditworthiness, interest rates and financing availability;
•: adverse changes in the real estate markets including, among other things, increased competition with other companies;
•: risk of real estate acquisition and development, including, among other things, risks that development projects may not be completed on schedule, that tenants may not take occupancy or pay rent or that development or operating costs may be greater than anticipated;
•: risks of investing through joint venture structures, including risks that our joint venture partners may not fulfill their financial obligations as investors or may take actions that are inconsistent with our objectives;
•: governmental actions and initiatives; and
•: environmental requirements.

We undertake no obligation to update or supplement any forward-looking statements. For further information, please refer to our filings with the Securities and Exchange Commission, particularly the section entitled "Risk Factors" in Item 1 of our Annual Report on Form 10-K for the year ended December 31, 2002.

Quarterly Selected Financial Summary Data
(Dollars in thousands)

		2003						2002
		June 30			March 31			December 31			September 30			June 30
Total Revenues from Real Estate Operations		$	40,880		$	42,412		$	42,367		$	39,030		$	38,162
Combined Net Operating Income			29,755			28,410			29,987			26,670			27,808
EBITDA			27,876			26,808			28,235			26,789			25,744
Net Income			6,238			7,987			5,960			6,162			5,884
Preferred Share dividends			(2,534	)		(2,533	)		(2,534	)		(2,533	)		(2,534	)
Repurchase of preferred units in excess of recorded book value			(11,224	)		—			—			—			—

Net (Loss) Income Available to Common Shareholders		$	(7,520	)	$	5,454		$	3,426		$	3,629		$	3,350

Net (Loss) Income Available to Common Shareholders—per diluted share		$	(0.30	)	$	0.22		$	0.14		$	0.15		$	0.14
Funds From Operations (FFO)—Diluted		$	14,909		$	13,621		$	14,298		$	13,356		$	13,499
FFO per diluted share		$	0.38		$	0.37		$	0.39		$	0.36		$	0.37
FFO—Diluted, excluding SFAS 141		$	14,340		$	13,072		$	13,873		$	12,990		$	12,175
FFO per diluted share, excluding SFAS 141		$	0.37		$	0.35		$	0.37		$	0.35		$	0.33
Adjusted FFO—Diluted		$	11,167		$	9,139		$	11,565		$	10,474		$	9,802
Payout Ratios:
	FFO—Diluted(A)		60.32	%		58.06	%		55.06	%		58.89	%		55.26	%
	AFFO—Diluted(B)		80.53	%		86.53	%		68.08	%		75.09	%		76.11	%
Total Dividends/Distributions		$	11,301		$	10,222		$	10,196		$	10,191		$	9,857

(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 and 1st and 2nd quarters of 2003) 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 and 1st and 2nd quarters of 2003) by AFFO diluted.

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

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

			2003						2002
			June 30			March 31			December 31			September 30			June 30
Assets
Investment in real estate:
	Land—operational		$	203,797		$	192,849		$	195,257		$	194,281		$	180,444
	Land—development			43,357			43,233			24,998			25,014			22,891
	Construction in progress			6,847			5,334			9,926			10,536			14,990
	Buildings and improvements			954,298			897,825			907,425			902,246			840,027
	Investment in and advances to unconsolidated real estate joint ventures			9,817			9,679			7,999			8,656			11,508
	Less: accumulated depreciation			(88,174	)		(80,513	)		(78,069	)		(70,617	)		(64,476	)

		Net investment in real estate		1,129,942			1,068,407			1,067,536			1,070,116			1,005,384
	Cash and cash equivalents			8,367			6,282			5,991			7,664			4,256
	Restricted cash			9,547			14,569			9,739			8,149			6,596
	Accounts receivable, net			6,129			7,359			3,509			5,197			3,953
	Investment in and advances to other unconsolidated entities			1,621			1,621			1,621			2,092			2,107
	Deferred rent receivable			15,535			14,278			13,698			13,395			12,636
	Deferred charges, net			27,585			21,250			23,199			23,459			21,407
	Prepaid and other assets			16,403			12,516			11,260			9,878			4,821
	Furniture, fixtures and equipment, net of accumulated depreciation			1,745			1,565			1,676			1,758			1,783

		Total assets	$	1,216,874		$	1,147,847		$	1,138,229		$	1,141,708		$	1,062,943

Liabilities and shareholders' equity
Liabilities:
	Mortgage loans payable		$	736,117		$	707,990		$	705,056		$	710,033		$	633,498
	Accounts payable and accrued expenses			13,756			12,040			11,670			8,448			7,943
	Rents received in advance and security deposits			7,060			9,168			8,253			7,467			5,514
	Deferred revenue associated with acquired properties			10,449			11,147			11,758			12,386			11,603
	Dividends/distributions payable			10,421			9,819			9,794			9,789			9,455
	Fair value of derivatives			921			793			494			1,044			1,970
	Other liabilities			6,633			6,157			1,821			1,673			873

		Total liabilities		785,357			757,114			748,846			750,840			670,856

Minority interests:
	Preferred Units in the Operating Partnership			—			24,367			24,367			24,367			24,367
	Common Units in the Operating Partnership			81,274			76,687			76,519			76,518			79,150
	Other consolidated partnerships			—			—			—			—			229

		Total minority interests		81,274			101,054			100,886			100,885			103,746

		Commitments and contingencies		—			—			—			—			—
Shareholders' equity:
	Preferred Shares ($0.01 par value; 10,000,000 authorized); 1,725,000 designated as Series B Cumulative Redeemable Preferred Shares of beneficial interest (1,250,000 shares issued as of June 30, 2003)			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 June 30, 2003)			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 June 30, 2003)			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 June 30, 2003)			14			14			14			14			14
	Common Shares of beneficial interest ($0.01 par value; 45,000,000 authorized, 29,344,231 shares issued as of June 30, 2003)			293			239			238			237			234
	Treasury Shares, at cost (166,600 shares as of June 30, 2003)			(1,415	)		(1,415	)		(1,415	)		(1,415	)		(1,415	)
Additional paid-in capital				390,794			315,781			313,786			313,862			311,391
Cumulative distributions in excess of net income				(34,595	)		(20,752	)		(21,067	)		(19,379	)		(17,899	)
Value of unearned restricted common share grants				(4,185	)		(3,657	)		(2,739	)		(2,739	)		(2,739	)
Accumulated other comprehensive loss				(692	)		(560	)		(349	)		(626	)		(1,274	)

		Total shareholders' equity		350,243			289,679			288,497			289,983			288,341

		Total shareholders' equity and minority interests		431,517			390,733			389,383			390,868			392,087

		Total liabilities and shareholders' equity	$	1,216,874		$	1,147,847		$	1,138,229		$	1,141,708		$	1,062,943

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

			2003						2002
			June 30			March 31			December 31			September 30			June 30
Real Estate Operations
Revenues
	Rental revenue		$	36,722		$	35,989		$	37,093		$	33,768		$	33,668
	Tenant recoveries and other revenue			4,156			5,529			4,283			4,297			3,516

		Revenues from Real Estate Operations		40,878			41,518			41,376			38,065			37,184
Expenses
	Property operating			11,101			13,654			12,034			11,994			10,026
	Interest			10,037			10,135			10,995			10,489			9,008
	Amortization of deferred financing costs			595			589			708			559			706
	Depreciation and amortization			9,229			8,044			8,919			7,356			7,869

		Expenses from Real Estate Operations		30,962			32,422			32,656			30,398			27,609
Earnings from real estate operations before equity in (loss) income of unconsolidated real estate joint ventures				9,916			9,096			8,720			7,667			9,575
Equity in (loss) income of unconsol. real estate joint ventures				(33	)		(153	)		35			138			(22	)

		Earnings from real estate operations		9,883			8,943			8,755			7,805			9,553
(Losses) income from service operations				(81	)		(81	)		(696	)		15			(104	)
General and administrative				(1,766	)		(1,948	)		(1,772	)		(815	)		(1,940	)

Income before gain on sales of real estate, minority interests, income taxes and discontinued operations				8,036			6,914			6,287			7,005			7,509
Gains on sales of real estate				21			404			822			796			—

Income before minority interests, income taxes and discontinued operations				8,057			7,318			7,109			7,801			7,509
Minority interests				(1,815	)		(1,787	)		(1,752	)		(1,898	)		(1,935	)

Income before income taxes and discontinued operations				6,242			5,531			5,357			5,903			5,574
Income tax benefit (expense), net				19			21			199			(9	)		25

Income before discontinued operations				6,261			5,552			5,556			5,894			5,599
Discontinued operations, net				(23	)		2,435			404			268			285

Net Income				6,238			7,987			5,960			6,162			5,884
Preferred share dividends				(2,534	)		(2,533	)		(2,534	)		(2,533	)		(2,534	)
Repurchase of preferred units in excess of recorded book value				(11,224	)		—			—			—			—

Net (Loss) Income Available to Common Shareholders			$	(7,520	)	$	5,454		$	3,426		$	3,629		$	3,350

For EPS Computations:
Numerator:
Net (Loss) Income Available to Common Shareholders			$	(7,520	)	$	5,454		$	3,426		$	3,629		$	3,350
Dividends on convertible preferred shares				—			136			136			136			136
Expense on dilutive options				—			—			—			(6	)		—

Numerator for Dilutive EPS Computation			$	(7,520	)	$	5,590		$	3,562		$	3,759		$	3,486
Denominator:
Weighted Average Common Shares—Basic				25,443			23,323			23,234			23,029			22,704
Dilutive options				—			972			898			923			971
Preferred shares outstanding assuming conversion				—			1,197			1,197			1,197			1,197

Weighted Average Common Shares—Diluted				25,443			25,492			25,329			25,149			24,872
Net (Loss) Income Available to Common Shareholders per diluted share			$	(0.30	)	$	0.22		$	0.14		$	0.15		$	0.14

Quarterly Consolidated Reconciliations of Funds From Operations (FFO), Adjusted Funds From
Operations (AFFO) and Net (Loss) Income Available to Common Shareholders per diluted share, as adjusted
(Dollars and shares in thousands)

		2003						2002
		June 30			March 31			December 31			September 30			June 30
Net (Loss) Income Available to Common Shareholders		$	(7,520	)	$	5,454		$	3,426		$	3,629		$	3,350
	Combined real estate related depreciation and other amortization		9,108			7,944			8,765			7,384			7,918
	Depreciation and amortization of unconsolidated real estate entities		61			36			40			39			22
	Minority interest—common units, gross		1,338			2,233			1,433			1,541			1,489
	Gain on sale of real estate properties, excluding redevelopment		(8	)		(2,843	)		(156	)		(19	)		—
	Repurchase of preferred units in excess of recorded book value		11,224			—			—			—			—

Funds From Operations (FFO)—basic			14,203			12,824			13,508			12,574			12,779
	Minority interest—preferred units		477			572			571			572			572
	Convertible preferred share dividends		136			136			136			136			136
	Restricted common share dividends		90			83			75			71			—
	Expense on dilutive options		3			6			8			3			12

Funds From Operations (FFO)—Diluted		$	14,909		$	13,621		$	14,298		$	13,356		$	13,499
	Straight line rents		(1,309	)		(1,177	)		(317	)		(867	)		(991	)
	Accretion of intangible assets and liabilities classified as revenues		(569	)		(549	)		(425	)		(366	)		(1,324	)
	Recurring capital improvements		(1,864	)		(2,756	)		(1,991	)		(1,649	)		(1,382	)

Adjusted Funds from Operations—Diluted		$	11,167		$	9,139		$	11,565		$	10,474		$	9,802

	Preferred dividends/distributions(1)		3,011			3,105			3,105			3,105			3,105
	Common distributions		1,968			1,978			1,978			1,978			1,948
	Common dividends(2)		6,322			5,139			5,113			5,108			4,804

Total Dividends/Distributions		$	11,301		$	10,222		$	10,196		$	10,191		$	9,857

Denominator for earnings per share—diluted			25,443			25,492			25,329			25,149			24,872
	Preferred shares outstanding assuming conversion		1,197			—			—			—			—
	Common units		8,963			8,990			8,990			9,149			9,391
	Restricted shares		334			330			326			317			—
	Dilutive options		1,274			43			46			55			69
	Convertible preferred units		2,022			2,421			2,421			2,421			2,421

Denominator for funds from operations per share—diluted			39,233			37,276			37,112			37,091			36,753

Funds From Operations (FFO)—Diluted		$	14,909		$	13,621		$	14,298		$	13,356		$	13,499
	Less: reclassification of accretion of intangible assets and liabilities classified as revenues		(569	)		(549	)		(425	)		(366	)		(1,324	)

Funds From Operations (FFO)—Diluted, excluding SFAS 141		$	14,340		$	13,072		$	13,873		$	12,990		$	12,175

Numerator for Dilutive EPS Computation		$	(7,520	)	$	5,590		$	3,562		$	3,759		$	3,486
	Add: Dividends on convertible preferred shares		136			—			—			—			—
	Add: Expense on dilutive options		3			—			—			—			—
	Less: Repurchase of preferred units in excess of recorded book value(3)		11,224			n/a			n/a			n/a			n/a

Numerator for Dilutive EPS Computation, as adjusted		$	3,843		$	5,590		$	3,562		$	3,765		$	3,486

Weighted Average Common Shares—Diluted			25,443			25,492			25,329			25,149			24,872
	Add: dilutive options		1,274			n/a			n/a			n/a			n/a
	Add: preferred shares assuming conversion		1,197			n/a			n/a			n/a			n/a

Weighted Average Common Shares—Diluted, as adjusted			27,914			25,492			25,329			25,149			24,872

Net Income Available to Common Shareholders per diluted share, as adjusted for repurchase of preferred units in excess of recorded book value		$	0.14		$	0.22		$	0.14		$	0.15		$	0.14

(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 and the 1st and 2nd quarters of 2003.
(3): Net Income Available to Common Shareholders per diluted share has been adjusted to exclude the effect of the repurchase of preferred units in excess of recorded book value.

Quarterly Consolidated Reconciliations of Earnings Before Interest, Income Taxes, Depreciation and Amortization
(EBITDA), Combined Net Operating Income (NOI), Discontinued Operations and Gains on Sales of Real Estate
(Dollars and shares in thousands)

		2003						2002
		June 30			March 31			December 31			September 30			June 30
Net (Loss) Income Available to Common Shareholders		$	(7,520	)	$	5,454		$	3,426		$	3,629		$	3,350
	Combined interest expense		10,037			10,235			11,065			10,563			9,082
	Amortization of deferred financing costs		595			589			708			559			706
	Income tax (expense) benefit, gross		(30	)		(29	)		(282	)		11			(36	)
	Depreciation of furniture, fixtures and equipment		121			120			171			120			115
	Combined real estate related depreciation and other amortization		9,108			7,944			8,765			7,384			7,918
	Gain on sale of depreciated real estate properties		(8	)		(2,843	)		(156	)		(19	)		—
	Repurchase of preferred units in excess of recorded book value		11,224			—			—			—			—
	Minority interest—preferred units		477			572			571			572			572
	Minority interest—common units, gross		1,338			2,233			1,433			1,541			1,489
	Other consolidated entities		—			—			—			(104	)		14
	Preferred share dividends		2,534			2,533			2,534			2,533			2,534

Earnings Before Interest, Income Taxes, Depreciation and Amortization (EBITDA)		$	27,876		$	26,808		$	28,235		$	26,789		$	25,744
	General and administrative		1,766			1,948			1,772			815			1,940
	(Losses) income from service operations		81			81			696			(15	)		104
	Equity in (loss) income of unconsol. real estate joint ventures		33			153			(35	)		(138	)		22
	Merchant sales and real estate services		(1	)		(580	)		(681	)		(781	)		(2	)

Combined Net Operating Income (NOI)		$	29,755		$	28,410		$	29,987		$	26,670		$	27,808

Discontinued Operations:
	Revenues from real estate operations	$	6		$	902		$	1,008		$	970		$	976
	Property operating expenses		(24	)		(348	)		(347	)		(367	)		(326	)
	Depreciation and amortization		—			(19	)		(19	)		(147	)		(162	)
	Interest		—			(100	)		(70	)		(74	)		(74	)
	Gain on sale of real estate		(16	)		3,011			—			—			—

	Income from discontinued operations		(34	)		3,446			572			382			414
	Minority interests in discontinued operations		11			(1,011	)		(168	)		(114	)		(129	)

Income from discontinued operations, net of minority interests		$	(23	)	$	2,435		$	404		$	268		$	285

Gains on sales of real estate per statement of operations		$	21		$	404		$	822		$	796		$	—
	Gain on sale of real estate from discontinued operations		(16	)		3,011			—			—			—

Combined gains on sale of real estate			5			3,415			822			796			—
	Other		4			8			15			4			2
	Merchant sales and real estate services		(1	)		(580	)		(681	)		(781	)		(2	)

Gain on sale of depreciated real estate properties		$	8		$	2,843		$	156		$	19		$	—

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

		2003						2002
		June 30			March 31			December 31			September 30			June 30
Common Equity—End of Quarter
	Common Shares(1)		29,178			23,766			23,606			23,583			23,236
	Common Units		8,947			8,990			8,990			8,990			9,278

Total			38,125			32,756			32,596			32,573			32,514

	End of Quarter Common Share Price	$	16.93		$	14.90		$	14.03		$	13.55		$	14.59
	Market Value of Common Shares/Units	$	645,456		$	488,064		$	457,322		$	441,364		$	474,379
Common Shares Trading Volume
	Average Daily Volume (Shares)		121			73			70			95			76
	Average Daily Volume (Dollars in thousands)	$	1,919.19		$	1,027.57		$	948.95		$	1,291.31		$	1,042.19
	As a Percentage of Common Shares		0.5	%		0.3	%		0.3	%		0.4	%		0.3	%
Common Share Price Range
	Quarterly High	$	16.96		$	15.07		$	14.16		$	14.50		$	14.69
	Quarterly Low	$	14.75		$	13.50		$	11.60		$	11.97		$	12.95
	Quarterly Average	$	15.92		$	14.00		$	13.49		$	13.56		$	13.78
	End of Quarter	$	16.93		$	14.90		$	14.03		$	13.55		$	14.59
Convertible Preferred Equity—End of Quarter
	Convertible Series D Preferred Shares Outstanding		544			544			544			544			544
	Conversion Ratio		2.200			2.200			2.200			2.200			2.200
	Common Shares Issued Assuming Conversion		1,197			1,197			1,197			1,197			1,197
	Convertible Series C Preferred Units Outstanding(2)		n/a			1,017			1,017			1,017			1,017
	Conversion Ratio		n/a			2.381			2.381			2.381			2.381
	Common Units Issued Assuming Conversion		n/a			2,421			2,421			2,421			2,421
Nonconvertible Preferred Equity—End of Quarter
	Redeemable Series B Shares Outstanding		1,250			1,250			1,250			1,250			1,250
	Redeemable Series E Shares Outstanding		1,150			1,150			1,150			1,150			1,150
	Redeemable Series F Shares Outstanding		1,425			1,425			1,425			1,425			1,425

Total Nonconvertible Preferred Equity			3,825			3,825			3,825			3,825			3,825
Total Convertible Preferred Equity			544			1,561			1,561			1,561			1,561

Total Preferred Equity			4,369			5,386			5,386			5,386			5,386
	Preferred Share recorded book value	$	25.00		$	25.00		$	25.00		$	25.00		$	25.00

Recorded Book Value of Preferred Equity		$	109,225		$	134,642		$	134,642		$	134,642		$	134,642
Weighted Average Shares:
	Common Shares Outstanding		25,443			23,323			23,234			23,029			22,704
	Restricted Shares Outstanding		334			330			326			317			—
	Preferred Shares Outstanding Assuming Conversion		1,197			1,197			1,197			1,197			1,197
	Dilutive Options		1,274			1,015			944			978			1,040
	Common Units		8,963			8,990			8,990			9,149			9,391
	Preferred Units Assuming Conversion		2,022			2,421			2,421			2,421			2,421

Denominator for funds from operations per share—diluted			39,233			37,276			37,112			37,091			36,753

Capitalization
	Recorded Book Value of Preferred Shares	$	109,225		$	134,642		$	134,642		$	134,642		$	134,642
	Market Value of Common Shares/Units		645,456			488,064			457,322			441,364			474,379

	Total Equity Market Capitalization	$	754,681		$	622,706		$	591,963		$	576,006		$	609,021

	Total Debt	$	736,117		$	707,990		$	705,056		$	710,033		$	633,498

	Total Market Capitalization	$	1,490,798		$	1,330,696		$	1,297,019		$	1,286,039		$	1,242,519

Debt to Total Market Capitalization			49.4	%		53.2	%		54.4	%		55.2	%		51.0	%
Debt to Undepreciated Book Value of Real Estate Assets			60.4	%		61.6	%		61.5	%		62.2	%		59.2	%

(1): Net of 166,600 treasury shares.
(2): On June 16, 2003, we repurchased 100% of the outstanding 1,016,662 shares of Series C preferred units.

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

	2003						2002
	June 30			March 31			December 31			September 30			June 30
PRICING MULTIPLES
Quarter End Common Stock Price	$	16.93		$	14.90		$	14.03		$	13.55		$	14.59
Dividend Yield		5.20	%		5.91	%		6.27	%		6.49	%		5.76	%
Price / Earnings (P / E) Multiple—includes discontinued operations (Quarter End Common Share Price / Annualized Net (Loss) Income Available to Common Shareholders per diluted share)		n/a			16.99	x		24.94	x		22.66	x		26.02	x
Combined NOI Multiple—includes discontinued operations (Market value of Common Equity + Recorded Book Value of Avg. Preferred Share/Units+ Avg. Total Debt) / Annualized Combined NOI		12.43	x		11.85	x		10.84	x		11.78	x		10.94	x
EBITDA Multiple—includes discontinued operations (Market value of Common Equity + Recorded Book Value of Avg. Preferred Share/Units + Avg. Total Debt) / Annualized EBITDA		13.27	x		12.56	x		11.52	x		11.73	x		11.81	x
FFO Multiple (Quarter End Common Share Price / Ann. FFO—diluted per share)		11.14	x		10.19	x		9.10	x		9.41	x		9.93	x
Combined NOI Yield—includes discontinued operations (Annualized Combined NOI / (Market value of Common Equity + Recorded Book Value of Avg. Preferred Share/Units + Avg. Debt))		8.05	%		8.44	%		9.22	%		8.49	%		9.14	%
EBITDA Yield—includes discontinued operations (Annualized EBITDA / (Market value of Common Equity + Recorded Book Value of Avg. Preferred Share/Units + Avg. Debt))		7.54	%		7.96	%		8.68	%		8.53	%		8.46	%
Total Market Capitalization Per Square Foot ((Market Value of Common Stock + Recorded Book Value of Preferred Share/Units + Total Debt) / GLA)(1)	$	157.36		$	146.75		$	145.06		$	142.91		$	147.84
RETURNS
Return on Assets—includes discontinued operations (Net (Loss) Income Available to Common Shareholders / Average Total Assets)		n/a			..48	%		..30	%		..33	%		..32	%
Yield on Real Estate Owned—Combined NOI—includes discontinued operations (Ann. Combined NOI / Avg. Adjusted Gross Real Estate Investment)(2)		10.59	%		10.36	%		10.91	%		10.08	%		10.70	%
Yield on Real Estate Owned—EBITDA—includes discontinued operations (Ann. EBITDA / Avg. Adjusted Gross Real Estate Investment)(2)		9.92	%		9.78	%		10.27	%		10.12	%		9.91	%

(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 real estate joint ventures as these assets do not generate net operating income.

Quarterly Debt Analysis
(Dollars in thousands)

		2003						2002
		June 30			March 31			December 31			September 30			June 30
Debt Outstanding
	Mortgage Loans	$	615,441		$	577,380		$	565,486		$	564,522		$	489,145
	Construction Loans		12,776			12,710			11,570			20,511			18,553
	Revolving Credit Facility		18,900			18,900			—			—			—
	Secured Revolving Credit Facility		89,000			99,000			128,000			125,000			125,800

		$	736,117		$	707,990		$	705,056		$	710,033		$	633,498

Average Outstanding Balance
	Mortgage Loans	$	583,012		$	575,078		$	563,904		$	537,954		$	467,885
	Construction Loans		12,754			12,353			18,011			20,144			18,273
	Revolving Credit Facility		18,900			9,574			—			—			—
	Secured Revolving Credit Facility		97,194			127,052			126,645			122,685			121,403

		$	711,860		$	724,057		$	708,560		$	680,783		$	607,561

Interest Rate Structure
	Fixed	$	494,194		$	496,084		$	481,121		$	433,931		$	391,906
	Variable		141,923			111,906			123,935			176,102			141,592
	Variable Subject to Interest Rate Protection (1-3)		100,000			100,000			100,000			100,000			100,000

		$	736,117		$	707,990		$	705,056		$	710,033		$	633,498

	% of Fixed Rate Loans(4)		80.72	%		84.19	%		82.42	%		75.20	%		77.65	%
	% of Variable Rate Loans		19.28	%		15.81	%		17.58	%		24.80	%		22.35	%

			100.00	%		100.00	%		100.00	%		100.00	%		100.00	%

Average Interest Rates
	Mortgage & Construction Loans		6.32	%		6.38	%		6.36	%		6.40	%		6.40	%
	Revolving Credit Facility		3.20	%		3.25	%		n/a			n/a			n/a
	Secured Revolving Credit Facility		3.67	%		3.58	%		6.64	%		6.79	%		6.86	%
	Total Weighted Average		6.06	%		6.01	%		6.41	%		6.51	%		6.47	%
Debt Ratios
Debt to Total Market Capitalization			49.4	%		53.2	%		54.4	%		55.2	%		51.0	%
Debt to Undepreciated Book Value of Real Estate Assets			60.4	%		61.6	%		61.5	%		62.2	%		59.2	%
Coverage Ratios (excluding capitalized interest)—All coverage computations include the effect of discontinued operations
Interest Coverage—Combined NOI (Combined NOI / Combined Interest)			2.96	x		2.78	x		2.71	x		2.52	x		3.06	x
Interest Coverage—EBITDA (EBITDA / Combined Interest)			2.78	x		2.62	x		2.55	x		2.54	x		2.83	x
Interest Coverage—EBITDA—YTD (EBITDA / Combined Interest—Year-to-date)			2.70	x		2.62	x		2.64	x		2.67	x		2.76	x
Debt Service Coverage—Combined NOI (Combined NOI / (Combined Interest + Principal Amortization))			2.46	x		2.30	x		2.31	x		2.02	x		2.62	x
Debt Service Coverage—EBITDA (EBITDA / (Combined Interest + Principal Amortization))			2.31	x		2.17	x		2.18	x		2.03	x		2.42	x
Fixed Charge Coverage—Combined NOI (Combined NOI / (Combined Interest + Preferred Distribution))			2.28	x		2.13	x		2.12	x		1.95	x		2.28	x
Fixed Charge Coverage—EBITDA (EBITDA / (Combined Interest + Preferred Distribution))			2.14	x		2.01	x		1.99	x		1.96	x		2.11	x

(1): We executed a $100 million notional amount swap exchanging 30-day floating LIBOR for LIBOR of 5.76% which expired January 2, 2003.
(2): We executed a $50 million notional amount swap exchanging 30-day floating LIBOR for LIBOR of 2.308% which expires January 3, 2005.
(3): We executed a $50 million notional amount swap exchanging 30-day floating LIBOR for LIBOR of 1.52% which expires January 7, 2004.
(4): Includes interest rate protection agreements.

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

	2003						2002
	June 30			March 31			December 31			September 30			June 30
OPERATING RATIOS—All computations include the effect of discontinued operations
Net (Loss) Income as a % of Combined Real Estate Revenues (Net (Loss) Income Available to Common Shareholders/Combined Real Estate Revenues)		n/a			12.86	%		8.09	%		9.30	%		8.78	%
Combined NOI as a % of Combined Real Estate Revenues (Combined NOI/Combined Real Estate Revenues)		72.79	%		66.99	%		70.78	%		68.33	%		72.87	%
EBITDA as a % of Combined Real Estate Revenues (EBITDA/Combined Real Estate Revenues)		68.19	%		63.21	%		66.64	%		68.64	%		67.46	%
G&A as a % of Net (Loss) Income (G&A/Net (Loss) Income Available to Common Shareholders)		n/a			35.72	%		51.72	%		22.46	%		57.91	%
G&A as a % of Combined Real Estate Revenues (G&A/Combined Real Estate Revenues)		4.32	%		4.59	%		4.18	%		2.09	%		5.08	%
G&A as a % of EBITDA (G&A/EBITDA)		6.34	%		7.27	%		6.28	%		3.04	%		7.54	%
Quarter end occupancy for operating portfolio		91.58	%		90.85	%		93.05	%		93.98	%		94.10	%
Quarter end % leased for operating portfolio		92.04	%		92.77	%		93.75	%		94.37	%		95.07	%
Recurring Capital Expenditures	$	1,864		$	2,756		$	1,991		$	1,649		$	1,382
Recurring Capital Expenditures per average square foot	$	0.20		$	0.31		$	0.22		$	0.19		$	0.33
Recurring Capital Expenditures as a % of NOI (Combined NOI)		6.26	%		9.70	%		6.64	%		6.18	%		4.97	%

Quarterly Dividend Analysis

		2003						2002
		June 30			March 31			December 31			September 30			June 30
Common Share Dividends
	Dividends per share/unit	$	0.22		$	0.22		$	0.22		$	0.22		$	0.21
	Increase over prior quarter		0.0	%		0.0	%		0.0	%		4.8	%		0.0	%
	Increase over prior year		4.8	%		4.8	%		4.8	%		4.8	%		5.0	%
Common Dividend Payout Ratios
	Payout—Earnings ((Common Dividend + Common Distributions + Convertible Preferred Share Dividends)/ Numerator for Dilutive EPS Computation)		n/a			131.2	%		205.0	%		194.0	%		197.6	%
	Payout—FFO—Diluted ((Common Dividend + Total Distributions + Convertible Preferred Share Dividends)/FFO)		60.3	%		58.1	%		55.1	%		58.9	%		55.3	%
Payout—AFFO—Diluted ((Common Dividend + Total Distributions + Convertible Preferred Share Dividends) /AFFO)			80.5	%		86.5	%		68.1	%		75.1	%		76.1	%
Dividend Coverage—FFO—Diluted (FFO /(Common Dividend + Total Distributions + Convertible Preferred Share Dividends))			1.66	x		1.72	x		1.82	x		1.70	x		1.81	x
Dividend Coverage—AFFO—Diluted (AFFO /(Common Dividend + Total Distributions + Convertible Preferred Share Dividends))			1.24	x		1.16	x		1.47	x		1.33	x		1.31	x
Common Dividend Yields
	Dividend Yield		5.20	%		5.91	%		6.27	%		6.49	%		5.76	%
Series C Preferred Unit Distributions(1)
	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 Recorded Book Value	$	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 Recorded Book Value	$	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 Recorded Book Value	$	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 Recorded Book Value	$	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 Recorded Book Value	$	25.00		$	25.00		$	25.00		$	25.00		$	25.00

(1): On June 16, 2003, we repurchased all of the 1,016,662 outstanding Series C convertible preferred units for $36.1 million or $14.90 per common share, on an as-if converted basis.

Investor Composition and Analyst Coverage
(as of June 30, 2003)

SHAREHOLDER CLASSIFICATION	Common Shares	Common Units	As if Converted Preferred Shares / Units	Total	Fully Diluted Ownership % of Total
Insiders	928,317	7,734,558	—	8,662,875	22.03	%
Institutional Ownership	19,258,688	—	1,196,800	20,455,488	52.02	%
Other / Retail	8,990,626	1,212,311	—	10,202,937	25.95	%

	29,177,631	8,946,869	1,196,800	39,321,300	100.00	%

RESEARCH COVERAGE	June 30, 2003	March 31, 2003	December 31, 2002	September 30, 2002	June 30, 2002
A. G. Edwards	x	x	x	x	x
BB&T Capital Markets	n/a	n/a	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	x
Legg Mason Wood Walker, Inc.	x	x	x	x	x
McDonald Investments	x	x	x	x	x
Mercury Partners, LLC	x	x	x	x	x
Raymond James	x	x	x	n/a	n/a
Wachovia Securities	x	x	x	n/a	n/a

Source: Institutional ownership was obtained from filed Forms 13(f) as of March 31, 2003 per Vickers Stock Research Corporation.
Institutional ownership has been increased by 4,290,000 common shares based on our May 27, 2003 issuance of 5,290,000 common shares.
Other / retail was increased by the remaining 1,000,000 common shares as a result of the May 27, 2003 offering.

Debt Maturity Schedule—June 30, 2003
(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		$25,000 Revolving Credit Facility(3)		$150,000 Secured Revolving Credit Facility(4)		Total Scheduled Payments
July - December 2003		$	4,848	$	6,339	$	—	$	12,776	$	—	$	—	$	23,963
	2004		13,851		73,879		—		—		18,900		—		106,630
	2005		13,558		41,641		—		—		—		89,000		144,199
	2006		13,306		99,975		—		—		—		—		113,281
	2007		10,752		55,146		—		—		—		—		65,898
	2008		6,531		142,903		—		—		—		—		149,434
	2009		3,093		52,112		—		—		—		—		55,205
	2010		2,148		12,465		—		—		—		—		14,613
	2011		2,226		—		—		—		—		—		2,226
	2012		2,006		21,586		—		—		—		—		23,592
	2013		—		37,076		—		—		—		—		37,076

		$	72,319	$	543,122	$	—	$	12,776	$	18,900	$	89,000	$	736,117

Notes:

(1): Certain mortgages contain extension options, generally either for a period of six months or one year, subject to certain conditions. The maturity dates presented above in the table assume that the extension options have already been exercised.
(2): The construction loan commitment is $14,000 and $12,776 is the outstanding balance as of June 30, 2003.
(3): The Revolving Credit Facility matures January 23, 2005. However, each individual draw matures one year from the date of the advance.
(4): 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 maturity date presented in the above table assumes that the extension option has already been exercised.

We have the following interest rate protection agreements in place:

$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—June 30, 2003

Operating Property Count		Submarket	Business Park	Year Built or Renovated	Single Story (S) or Multi- story (M)	Total Operational Square Feet	Total Square Feet Under Construction
	Office Properties
	*Baltimore /Washington Corridor*
1	2730 Hercules Road	BWI Airport	NBP	1990	M	240,336
	2720 Technology Drive (220 NBP)	BWI Airport	NBP		M		156,730
2	2711 Technology Drive (211 NBP)	BWI Airport	NBP	2002	M	152,000
	140 National Business Parkway	BWI Airport	NBP		M		119,904
3	132 National Business Parkway	BWI Airport	NBP	2000	M	118,456
4	2721 Technology Drive (221 NBP)	BWI Airport	NBP	2000	M	118,093
5	2701 Technology Drive (201 NBP)	BWI Airport	NBP	2001	M	117,450
6	134 National Business Parkway	BWI Airport	NBP	1999	M	93,482
7	133 National Business Parkway	BWI Airport	NBP	1997	M	88,666
8	141 National Business Parkway	BWI Airport	NBP	1990	M	87,318
9	135 National Business Parkway	BWI Airport	NBP	1998	M	86,863
10	131 National Business Parkway	BWI Airport	NBP	1990	M	69,039
11	114 National Business Parkway	BWI Airport	NBP	2002	S	9,717

						1,181,420	276,634
1	1306 Concourse Drive	BWI Airport	APS	1990	M	114,046
2	1304 Concourse Drive	BWI Airport	APS	2002	M	102,964
3	870-880 Elkridge Landing Road	BWI Airport	APS	1981	M	101,785
4	900 Elkridge Landing Road	BWI Airport	APS	1982	M	97,261
5	1199 Winterson Road	BWI Airport	APS	1988	M	96,636
6	920 Elkridge Landing Road	BWI Airport	APS	1982	M	96,566
7	1302 Concourse Drive	BWI Airport	APS	1996	M	84,607
8	881 Elkridge Landing Road	BWI Airport	APS	1986	M	73,572
9	1099 Winterson Road	BWI Airport	APS	1988	M	71,076
10	849 International Drive	BWI Airport	APS	1988	M	68,758
11	1190 Winterson Road	BWI Airport	APS	1987	M	68,567
12	911 Elkridge Landing Road	BWI Airport	APS	1985	M	68,296
13	1201 Winterson Road	BWI Airport	APS	1985	M	67,903
14	999 Corporate Boulevard	BWI Airport	APS	2000	M	67,351
15	901 Elkridge Landing Road	BWI Airport	APS	1984	M	57,308
16	900 International Drive	BWI Airport	APS	1986	S	57,140
17	930 International Drive	BWI Airport	APS	1986	S	57,140
18	891 Elkridge Landing Road	BWI Airport	APS	1984	M	56,489
19	921 Elkridge Landing Road	BWI Airport	APS	1983	M	54,175
20	939 Elkridge Landing Road	BWI Airport	APS	1983	M	53,031
21	938 Elkridge Landing Road	BWI Airport	APS	1984	M	52,988
22	940 Elkridge Landing Road	BWI Airport	APS	1984	M	51,704
23	800 International Drive	BWI Airport	APS	1988	S	50,979

						1,670,342	—
1	7467 Ridge Road	BWI Airport	Comm./Pkwy.	1990	M	74,273
2	7240 Parkway Drive	BWI Airport	Comm./Pkwy.	1985	M	74,156
3	7318 Parkway Drive	BWI Airport	Comm./Pkwy.	1984	M	59,204
4	7320 Parkway Drive	BWI Airport	Comm./Pkwy.	1983	S	58,453
5	1340 Ashton Road	BWI Airport	Comm./Pkwy.	1989	S	46,400
6	7321 Parkway Drive	BWI Airport	Comm./Pkwy.	1984	S	39,822
7	1334 Ashton Road	BWI Airport	Comm./Pkwy.	1989	S	37,565
8	1331 Ashton Road	BWI Airport	Comm./Pkwy.	1989	S	29,936
9	1350 Dorsey Road	BWI Airport	Comm./Pkwy.	1989	S	19,992
10	1341 Ashton Road	BWI Airport	Comm./Pkwy.	1989	S	15,841
11	1344 Ashton Road	BWI Airport	Comm./Pkwy.	1989	M	17,061
12	1343 Ashton Road	BWI Airport	Comm./Pkwy.	1989	S	9,962

						482,665	—
46	Subtotal (continued on next page)					3,334,427	276,634

Property Summary by Region—June 30, 2003

Operating Property Count		Submarket	Business Park	Year Built or Renovated	Single Story (S) or Multi- story (M)	Total Operational Square Feet	Total Square Feet Under Construction
46	Subtotal (continued from prior page)					3,334,427	276,634
1	2500 Riva Road	BWI Airport	Other	2000	M	155,000
1	9140 Route 108	Howard Co. Perimeter	Oakland Ridge	1985	S	150,000
1	7000 Columbia Gateway Drive	Howard Co. Perimeter	Columbia Gateway	1999	M	145,806
2	6731 Columbia Gateway Drive	Howard Co. Perimeter	Columbia Gateway	2002	M	123,743
3	6940 Columbia Gateway Drive	Howard Co. Perimeter	Columbia Gateway	1999	M	108,847
4	6950 Columbia Gateway Drive	Howard Co. Perimeter	Columbia Gateway	1998	M	107,778
5	7067 Columbia Gateway Drive	Howard Co. Perimeter	Columbia Gateway	2001	M	82,953
6	6750 Alexander Bell Drive	Howard Co. Perimeter	Columbia Gateway	2001	M	78,460
7	6700 Alexander Bell Drive	Howard Co. Perimeter	Columbia Gateway	1988	M	75,655
8	6740 Alexander Bell Drive	Howard Co. Perimeter	Columbia Gateway	1992	M	61,957
9	8671 Robert Fulton Drive	Howard Co. Perimeter	Columbia Gateway	2002	M	56,350
10	6716 Alexander Bell Drive	Howard Co. Perimeter	Columbia Gateway	1990	M	52,002
11	8661 Robert Fulton Drive	Howard Co. Perimeter	Columbia Gateway	2002	M	49,500
12	7065 Columbia Gateway Drive	Howard Co. Perimeter	Columbia Gateway	2000	S	38,560
13	7063 Columbia Gateway Drive	Howard Co. Perimeter	Columbia Gateway	2000	S	36,936
14	6760 Alexander Bell Drive	Howard Co. Perimeter	Columbia Gateway	1991	M	36,309
15	6708 Alexander Bell Drive	Howard Co. Perimeter	Columbia Gateway	1988	M	35,040
16	7061 Columbia Gateway Drive	Howard Co. Perimeter	Columbia Gateway	2000	M	29,604
17	6724 Alexander Bell Drive	Howard Co. Perimeter	Columbia Gateway	2002	M	28,420

						1,147,920	—
1	7200 Riverwood Drive	Howard Co. Perimeter	Rivers 95	1986	S	160,000
2	9140 Guilford Road	Howard Co. Perimeter	Rivers 95	1983	S	41,704
3	9160 Guilford Road	Howard Co. Perimeter	Rivers 95	1984	M	36,528
4	9150 Guilford Road	Howard Co. Perimeter	Rivers 95	1984	S	17,655
5	9130 Guilford Road	Howard Co. Perimeter	Rivers 95	1984	S	13,700

						269,587	—

70	Total Baltimore / Washington Corridor					5,056,934	276,634

	*Suburban Maryland*
1	11800 Tech Road	North Silver Spring	Montgomery Industrial	1989	M	235,866
2	14502 Greenview Drive	Laurel		1988	M	71,926
3	14504 Greenview Drive	Laurel		1985	M	69,194
	4230 Forbes Boulevard	Lanham	Forbes 50		S	—	55,866

3	Total Suburban Maryland					376,986	55,866

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

						760,651	—
1	13200 Woodland Park Drive	Herndon	Woodlands			404,665

						404,665	—

4	Total Northern Virginia					1,165,316	—

	*Other*
1	9690 Deereco Road	North Baltimore Co.		1988	M	133,737
2	375 West Padonia Road	North Baltimore Co.		1986	M	101,133
3	1615 and 1629 Thames Street	Baltimore City		1989	M	101,115

	Total Other					335,985	—

	*Greater Philadelphia*
1	753 Jolly Road	Blue Bell	Unisys campus	1992	M	419,472
2	785 Jolly Road	Blue Bell	Unisys campus	1996	M	219,065
3	760 Jolly Road	Blue Bell	Unisys campus	1994	M	208,854
4	751 Jolly Road	Blue Bell	Unisys campus	1991	M	112,958

	Total Greater Philadelphia					960,349	—

Property Summary by Region—June 30, 2003

Operating Property Count		Submarket	Business Park	Year Built or Renovated	Single Story (S) or Multi- story (M)	Total Operational Square Feet	Total Square Feet Under Construction
	*Greater Harrisburg*
1	2605 Interstate Drive	East Shore	Commerce Park	1990	M	81,187
2	2601 Market Place	East Shore	Commerce Park	1989	M	66,224

						147,411	—
1	6345 Flank Drive	East Shore	Gtwy Corp. Ctr.	1989	S	69,443
2	6340 Flank Drive	East Shore	Gtwy Corp. Ctr.	1988	S	68,200
3	6400 Flank Drive	East Shore	Gtwy Corp. Ctr.	1992	S	52,439
4	6360 Flank Drive	East Shore	Gtwy Corp. Ctr.	1988	S	46,500
5	6385 Flank Drive	East Shore	Gtwy Corp. Ctr.	1995	S	32,921
6	6380 Flank Drive	East Shore	Gtwy Corp. Ctr.	1991	S	32,613
7	6405 Flank Drive	East Shore	Gtwy Corp. Ctr.	1991	S	32,000
8	95 Shannon Road	East Shore	Gtwy Corp. Ctr.	1999	S	21,976
9	75 Shannon Road	East Shore	Gtwy Corp. Ctr.	1999	S	20,887
10	6375 Flank Drive	East Shore	Gtwy Corp. Ctr.	2000	S	19,783
11	85 Shannon Road	East Shore	Gtwy Corp. Ctr.	1999	S	12,863

						409,625	—
1	5035 Ritter Road	West Shore	Rossmoyne Bus. Ctr.	1988	S	56,556
2	5070 Ritter Road—Building A	West Shore	Rossmoyne Bus. Ctr.	1989	S	32,309
3	5070 Ritter Road—Building B	West Shore	Rossmoyne Bus. Ctr.	1989	S	28,039

						116,904	—

16	Total Greater Harrisburg					673,940	—

	*Northern/Central New Jersey*
1	431 Ridge Road	Exit 8A—Cranbury	Princeton Tech Cntr.	1998	S	170,000
2	429 Ridge Road	Exit 8A—Cranbury	Princeton Tech Cntr.	1996	M	142,385
3	68 Culver Road	Exit 8A—Cranbury	Princeton Tech Cntr.	2000	M	57,280
4	437 Ridge Road	Exit 8A—Cranbury	Princeton Tech Cntr.	1996	S	30,000

						399,665	—
1	104 Interchange Plaza	Exit 8A—Cranbury	Interchange Plaza	1990	M	47,677
2	101 Interchange Plaza	Exit 8A—Cranbury	Interchange Plaza	1985	M	43,621

						91,298	—
1	47 Commerce	Exit 8A—Cranbury	Centrepoint North	1998	S	41,398

						41,398	—
1	7 Centre Drive	Exit 8A—Cranbury	Monroe Center	1986	S	19,468
2	8 Centre Drive	Exit 8A—Cranbury	Monroe Center	1989	S	16,199
3	2 Centre Drive	Exit 8A—Cranbury	Monroe Center	1989	S	16,132

						51,799	—
1	4301 Route 1	Monmouth Junction	Princeton Exec. Campus	1986	M	61,311

						61,311	—
1	695 Route 46	Wayne	Fairfield Corp. Cntr.	1990	M	157,394
2	710 Route 46	Wayne	Fairfield Corp. Cntr.	1985	M	101,263

						258,657	—

13	Total Northern / Central New Jersey					904,128	—

113	TOTAL PORTFOLIO					9,473,638	332,500

Property Occupancy Rates by Region by Quarter

	Greater Philadelphia		Baltimore / Washington Corridor		Northern / Central New Jersey		Greater Harrisburg		Northern Virginia		Suburban Maryland		Other		Total Portfolio
*June 30, 2003*
Number of Buildings	4		70		13		16		4		3		3		113
Rentable Square Feet	960,349		5,056,934		904,128		673,940		1,165,316		376,986		335,985		9,473,638
Percent Occupied	100.00	%	90.27	%	92.24	%	91.50	%	93.52	%	81.17	%	90.64	%	91.58	%
*March 31, 2003*
Number of Buildings	4		70		13		16		3		3		3		112
Rentable Square Feet	960,349		5,055,658		904,128		673,940		760,651		376,986		335,985		9,067,697
Percent Occupied	100.00	%	87.47	%	93.02	%	91.14	%	99.12	%	89.14	%	92.45	%	90.85	%
*December 31, 2002*
Number of Buildings	4		67		13		16		3		4		3		110
Rentable Square Feet	960,349		4,744,691		904,142		673,940		760,651		558,754		338,985		8,941,512
Percent Occupied	100.00	%	91.30	%	93.67	%	90.65	%	98.32	%	93.24	%	88.75	%	93.05	%
*September 30, 2002*
Number of Buildings	4		68		13		16		3		4		3		111
Rentable Square Feet	960,349		4,800,253		903,972		675,338		760,651		559,329		338,985		8,998,877
Percent Occupied	100.00	%	92.60	%	95.38	%	91.46	%	98.32	%	93.53	%	88.75	%	93.98	%
*June 30, 2002*
Number of Buildings	4		68		13		16		1		3		3		108
Rentable Square Feet	960,349		4,732,483		903,972		675,338		470,406		322,888		338,985		8,404,421
Percent Occupied	100.00	%	93.30	%	94.82	%	90.31	%	99.56	%	92.03	%	88.45	%	94.10	%

Top Twenty Office Tenants as of June 30, 2003
(Dollars and square feet in thousands)

Tenant	Number of Leases	Total Occupied Square Feet	Percentage of Total Occupied Square Feet		Total Annualized Rental Revenue(1)		Percentage of Total Annualized Rental Revenue		Weighted Average Remaining Lease Term(2)
United States of America(3)	26	1,141,439	13.2	%	$	22,104	13.6	%	5.2
Computer Sciences Corporation(4)	4	447,551	5.2	%		10,600	6.5	%	7.3
AT&T Local Services(4)	7	451,498	5.2	%		9,100	5.6	%	5.1
VeriSign, Inc.	2	404,665	4.7	%		8,985	5.5	%	11.1
Unisys(5)	3	741,284	8.5	%		7,593	4.7	%	6.0
General Dynamics Government Corp.	5	247,248	2.8	%		5,709	3.5	%	5.3
Northrop Grumman Corporation	4	192,206	2.2	%		4,362	2.7	%	4.2
Booz Allen Hamilton	6	185,776	2.1	%		4,042	2.5	%	2.4
Ciena Corporation(6)	4	278,749	3.2	%		3,890	2.4	%	2.9
The Boeing Company(4)	7	148,099	1.7	%		3,600	2.2	%	5.7
The Aerospace Corporation	1	133,691	1.5	%		3,361	2.1	%	9.0
Magellan Health Services, Inc.	2	150,622	1.7	%		3,282	2.0	%	1.6
Commonwealth of Pennsylvania(4)	9	185,290	2.1	%		2,661	1.6	%	5.1
Merck & Co., Inc.(5)	1	219,065	2.5	%		2,281	1.4	%	6.0
Johns Hopkins University(4)	5	96,152	1.1	%		2,159	1.3	%	4.1
CareFirst, Inc. and Subsidiaries(4)	3	94,223	1.1	%		2,098	1.3	%	4.5
USinternetworking, Inc.	1	155,000	1.8	%		1,935	1.2	%	14.8
Comcast Corporation	1	98,897	1.1	%		1,577	1.0	%	6.3
Sun Microsystems, Inc.	2	60,730	0.7	%		1,559	1.0	%	2.5
First American Credit Management Solutions	1	70,982	0.8	%		1,416	0.9	%	5.4
Subtotal Top 20 Office Tenants	94	5,503,167	63.4	%		102,315	63.2	%	5.9
All remaining tenants	364	3,172,755	36.6	%		59,691	36.8	%	0.6

Total/Weighted Average	458	8,675,922	100.0	%	$	162,006	100.0	%	4.0

(1): Total Annualized Rental Revenue is the monthly contractual base rent as of June 30, 2003 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): Merck & Co., Inc. subleases 219,065 rentable square feet from Unisys' 960,349 leased rentable square feet.
(6): 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.

Combined Real Estate Revenue by Geographic Region by Quarter(1)
(Dollars in thousands)

	2003				2002
	June 30		March 31		December 31		September 30		June 30
Office Properties:
Baltimore/Washington Corridor	$	23,743	$	22,848	$	23,973	$	21,152	$	22,721
Northern Virginia		5,246		5,860		4,964		3,777		2,741
Northern/Central New Jersey		3,657		4,522		4,286		5,175		4,604
Greater Philadelphia		2,506		2,506		2,506		2,506		2,506
Greater Harrisburg		2,658		2,493		2,349		2,406		2,390
Suburban Maryland		1,296		2,482		2,586		2,339		1,563
Other		1,633		1,604		1,624		1,563		1,534

Combined Regional Real Estate Revenue	$	40,739	$	42,315	$	42,288	$	38,918	$	38,059

(1): Combined regional real estate revenue represents GAAP revenue including operating expense reimbursements, straight line rent adjustments, SFAS 141 revenues and tenant services income. Includes the effect of discontinued operations.

Combined Net Operating Income by Geographic Region by Quarter(2)
(Dollars in thousands)

		2003				2002
		June 30		March 31		December 31		September 30		June 30
Office Properties:
Baltimore/Washington Corridor		$	17,413	$	14,821	$	17,216	$	14,382	$	17,038
Northern Virginia			3,595		3,977		3,175		2,304		1,630
Northern/Central New Jersey			2,392		2,893		2,774		3,145		2,930
Greater Philadelphia			2,470		2,472		2,468		2,468		2,473
Greater Harrisburg			1,975		1,746		1,640		1,802		1,738
Suburban Maryland			706		1,458		1,621		1,425		885
Other			1,061		945		1,017		1,032		1,010

Combined Regional NOI		$	29,612	$	28,312	$	29,911	$	26,558	$	27,704
Other income / expenses, net			143		98		76		112		104

	Combined NOI	$	29,755	$	28,410	$	29,987	$	26,670	$	27,808

(2): Combined regional NOI represents GAAP revenue including operating expense reimbursements, straight line rent adjustments, SFAS 141 revenues and tenant services income. Includes the effect of discontinued operations.

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

		2003				2002
		June 30		March 31		December 31		September 30		June 30
Office Properties:(1)
Greater Philadelphia		$	2,432	$	2,434	$	2,430	$	2,430	$	2,387
Baltimore/Washington Corridor			12,799		10,948		14,466		11,328		13,394
Northern/Central New Jersey			2,380		2,454		2,208		2,629		2,418
Greater Harrisburg			1,958		1,731		1,638		1,788		1,709
Suburban Maryland			173		217		207		374		315
Northern Virginia			1,369		2,696		1,701		1,542		1,538
Other			1,018		933		1,005		1,011		988

	Total Office Properties	$	22,129	$	21,413	$	23,655	$	21,102	$	22,749

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

		2003				2002
		June 30		March 31		December 31		September 30		June 30
Office Properties:(1)
Greater Philadelphia		$	2,470	$	2,472	$	2,468	$	2,468	$	2,473
Baltimore/Washington Corridor			13,721		11,772		14,335		11,429		14,987
Northern/Central New Jersey			2,416		2,495		2,250		2,671		2,438
Greater Harrisburg			1,974		1,745		1,639		1,801		1,741
Suburban Maryland			130		218		203		369		320
Northern Virginia			1,537		2,851		1,762		1,604		1,630
Other			1,061		945		1,017		1,032		1,010

	Total Office Properties	$	23,309	$	22,498	$	23,674	$	21,374	$	24,599

(1): 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		Suburban Maryland		Northern Virginia		Other		Total Office
*2nd Quarter 2003 Average*
Number of Buildings	4		56		12		16		2		1		3		94
Rentable Square Feet	960,349		3,957,656		746,734		673,940		141,120		470,406		335,985		7,286,190
Percent Occupied	100.00	%	90.41	%	92.88	%	91.39	%	72.01	%	85.77	%	91.09	%	91.39	%
*1st Quarter 2003 Average*
Number of Buildings	4		56		12		16		2		1		3		94
Rentable Square Feet	960,349		3,958,001		746,734		673,940		141,120		470,406		336,985		7,287,535
Percent Occupied	100.00	%	89.90	%	93.04	%	90.52	%	71.74	%	99.56	%	90.08	%	91.88	%
*4th Quarter 2002 Average*
Number of Buildings	4		56		12		16		2		1		3		94
Rentable Square Feet	960,349		3,957,461		746,700		674,446		141,120		470,406		338,985		7,289,467
Percent Occupied	100.00	%	91.26	%	93.84	%	90.21	%	73.25	%	99.56	%	88.75	%	90.65	%
*3rd Quarter 2002 Average*
Number of Buildings	4		56		12		16		2		1		3		94
Rentable Square Feet	960,349		3,958,058		746,578		675,338		141,120		470,406		338,985		7,290,834
Percent Occupied	100.00	%	90.29	%	95.19	%	90.69	%	83.24	%	99.56	%	89.27	%	90.52	%
*2nd Quarter 2002 Average*
Number of Buildings	4		56		12		16		2		1		3		94
Rentable Square Feet	960,349		3,954,988		746,578		674,916		141,085		470,406		338,697		7,287,019
Percent Occupied	100.00	%	92.17	%	93.98	%	89.96	%	85.35	%	99.56	%	88.50	%	91.35	%

(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 Annualized Rental Revenue of Expiring Leases(2)		Percentage of Total Annualized Rental Revenue Expiring		Total Annual. Rental Revenue of Expiring Leases per Occupied Square Foot
						(000s)
July - December 2003		42	197,715	2.3	%	$	3,646	2.3	%	$	18.44
	2004	77	822,676	9.5	%		15,244	9.4	%		18.53
	2005	82	911,525	10.5	%		17,813	11.0	%		19.54
	2006	68	969,567	11.2	%		18,018	11.1	%		18.58
	2007	70	1,223,115	14.1	%		24,349	15.0	%		19.91
	2008	42	945,928	10.9	%		19,962	12.3	%		21.10
	2009	19	1,373,507	15.8	%		17,192	10.6	%		12.52
	2010	17	779,390	9.0	%		17,119	10.6	%		21.96
	2011	3	71,501	0.8	%		1,770	1.1	%		24.75
	2012	9	526,669	6.1	%		11,592	7.2	%		22.01
	2013	2	157,610	1.8	%		2,735	1.7	%		17.35
	2014	2	404,665	4.7	%		8,985	5.5	%		22.20
	2015	—	—	0.0	%		—	0.0	%		0.00
	2016	—	—	0.0	%		—	0.0	%		0.00
	2017	—	—	0.0	%		—	0.0	%		0.00
	2018	1	155,000	1.8	%		1,935	1.2	%		12.48
Other(3)		24	137,054	1.6	%		1,646	1.0	%		12.01

Total/Weighted Average		458	8,675,922	100.0	%	$	162,006	100.0	%	$	19.33

NOTE: As of June 30, 2003, the weighted average lease term is 4.0 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 Annualized Rental Revenue is the monthly contractual base rent as of June 30, 2003 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. In addition, month-to-month leases and leases which have expired but the tenant remains in holdover are included in this line item as the exact expiration date is unknown.

Quarterly Office Renewal Analysis

		Baltimore/ Washington Corridor			Northern/ Central New Jersey			Greater Harrisburg			Suburban Maryland			Other			Northern Virginia			Total Office
Quarter Ended June 30, 2003:
	Expiring Square Feet		278,730			14,155			28,143			8,221			2,272			27,662			359,183
	Vacated Square Feet		109,758			—			2,392			8,221			2,272			7,258			129,901
	Renewed Square Feet		168,972			14,155			25,751			—			—			20,404			229,282
	Retention Rate (% based upon square feet)		60.62	%		100.00	%		91.50	%		0.00	%		0.00	%		73.76	%		63.83	%
Renewed Space Only:
	Change in Base Rent—Straight-line		-0.79	%		14.65	%		-3.78	%		0.00	%		0.00	%		-11.20	%		-1.53	%
	Change in Total Rent—Straight-line		-1.25	%		7.27	%		-3.16	%		0.00	%		0.00	%		-8.77	%		-2.08	%
	Change in Base Rent—Cash		- -3.91	%		9.67	%		- -12.46	%		0.00	%		0.00	%		- -5.26	%		- -3.86	%
	Change in Total Rent—Cash		-4.27	%		3.04	%		-10.48	%		0.00	%		0.00	%		-4.05	%		-4.23	%
	Average Capital Cost per Square Foot	$	2.16		$	11.16		$	10.63		$	—		$	—		$	—		$	3.48
Renewed & Retenanted Space:
	Change in Base Rent—Straight-line		7.75	%		16.05	%		-4.65	%		17.30	%		0.00	%		-16.82	%		3.67	%
	Change in Total Rent—Straight-line		5.17	%		9.43	%		-3.87	%		9.45	%		0.00	%		-22.43	%		-0.11	%
	Change in Base Rent—Cash		3.51	%		12.18	%		- -12.74	%		8.34	%		0.00	%		- -18.51	%		- -0.28	%
	Change in Total Rent—Cash		1.24	%		6.05	%		-10.65	%		1.23	%		0.00	%		-23.78	%		-3.61	%
	Average Capital Cost per Square Foot	$	5.92		$	13.76		$	10.07		$	11.23		$	—		$	1.60		$	6.15
Quarter Ended March 31, 2003:
	Expiring Square Feet		63,755			13,259			13,824			11,926			10,320			—			113,084
	Vacated Square Feet		46,462			9,927			2,501			11,926			—			—			70,816
	Renewed Square Feet		17,293			3,332			11,323			—			10,320			—			42,268
	Retention Rate (% based upon square feet)		27.12	%		25.13	%		81.91	%		0.00	%		100.00	%		0.00	%		37.38	%
Renewed Space Only:
	Change in Base Rent—Straight-line		7.89	%		14.22	%		-5.67	%		0.00	%		-2.39	%		0.00	%		2.71	%
	Change in Total Rent—Straight-line		2.61	%		9.08	%		-4.96	%		0.00	%		-2.39	%		0.00	%		0.08	%
	Change in Base Rent—Cash		1.03	%		3.71	%		- -6.10	%		0.00	%		- -9.33	%		0.00	%		- -3.35	%
	Change in Total Rent—Cash		-3.64	%		-0.74	%		-5.29	%		0.00	%		-9.33	%		0.00	%		-5.50	%
	Average Capital Cost per Square Foot	$	2.22		$	6.99		$	0.17		$	—		$	11.51		$	—		$	4.32
Renewed & Retenanted Space:
	Change in Base Rent—Straight-line		4.60	%		14.22	%		-15.98	%		0.00	%		-4.91	%		0.00	%		0.09	%
	Change in Total Rent—Straight-line		2.01	%		9.08	%		-15.22	%		0.00	%		-2.51	%		0.00	%		-1.42	%
	Change in Base Rent—Cash		- -7.77	%		3.71	%		- -17.19	%		0.00	%		- -9.81	%		0.00	%		- -9.12	%
	Change in Total Rent—Cash		-9.95	%		-0.74	%		-16.21	%		0.00	%		-6.97	%		0.00	%		-10.02	%
	Average Capital Cost per Square Foot	$	12.68		$	6.99		$	5.78		$	—		$	11.23		$	—		$	10.76

Note: No renewal or retenanting activity transpired in our Greater Philadelphia region. Prior to January 1, 2003, our Suburban Maryland and Other regions were grouped within the Baltimore / Washington Corridor. Historically, this data has not been separately reported.

Quarterly Office Renewal Analysis (continued)

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

Year to Date Acquisition Summary as of June 30, 2003
(Dollars in thousands)

		Submarket	Acquisition Date	Square Feet	Occupancy Percentage at Acquisition		June 30, 2003 Occupancy Percentage		Investment(1)
*Individual Property:*
2500 Riva Road		BWI Airport	3/4/2003	155,000	100.0	%	100.0	%	$	18,038
13200 Woodland Park Drive		Herndon	6/2/2003	404,665	100.0	%	100.0	%		71,435

	Total			559,665	100.0	%	100.0	%	$	89,473

(1): Initial investment recorded by property as of June 30, 2003 for asset purchase.

Year to Date Disposition Summary as of June 30, 2003
(Dollars in thousands)

		Submarket	Disposition Date	Square Feet	Gross Sales Proceeds		Debt Assumption or Repayment		Cash Proceeds After Debt Repayment
*Individual Property:*
695 Route 46(1)		Wayne	3/14/2003	157,394	$	19,960	$	12,675	$	7,285
6009—6011 Oxon Hill Road(2)		Southern Prince George's County	3/30/2003	181,768		20,188		13,000		7,188

	Total			339,162	$	40,148	$	25,675	$	14,473

(1): This property was contributed to a joint venture in exchange for $19,960 and a 20% joint venture interest. Refer to joint venture summary. The gain on this disposition has been deferred due to our retained 20% interest in this property.
(2): In addition, we sold two adjacent land parcels for $1,100 and realized a gain of $3,388 on the total sale proceeds of $21,288.

Development Summary as of June 30, 2003
(Dollars in thousands except square feet)

Property and Location	Submarket	Wholly Owned or Joint Venture (JV)	Total Rentable Square Feet	Percentage Leased or Committed		Anticipated Total Cost		Cost to date		Outstanding Loan as of 6/30/2003		Anticipated Date of Operations
*Under Construction*
140 National Business Parkway Annapolis Junction, Maryland(1)	BWI Airport	JV	119,904	0.00	%	$	17,601	$	13,086	$	6,045	Construction 4Q 03
4230 Forbes Boulevard Lanham, Maryland(2)	Lanham	JV	55,866	20.61	%		6,124		3,218		2,497	Construction 2Q 04
2720 Technology Drive (220 NBP) Annapolis Junction, Maryland(3)	BWI Airport	JV	156,730	100.00	%		26,598		6,456		—	Construction 4Q 04

Total Under Construction			332,500	50.60	%	$	50,323	$	22,760	$	8,542

(1): Total loan commitment for this property is $14,100.
(2): Total loan commitment for this property is $4,700. A lease for 11,513 rentable square feet was executed in July 2003.
(3): Total loan commitment for this property is $20,000.

*Under Development*
4851 Stonecroft Boulevard (Greens III) Chantilly, Virginia	Chantilly	Owned	88,094	100.00	%	$	15,410	$	881	$	—	Development 4Q 2004

Total Under Development			88,094	100.00	%	$	15,410	$	881	$	—

Year To Date Development Placed into Service
For the period January 1, 2003 through June 30, 2003

			Year 2002	Year 2003
	Wholly Owned or Joint Venture (JV)		Year 2002	Year 2003
Property and Location	Wholly Owned or Joint Venture (JV)	Total Square Feet	Development Square Feet Placed into Service		Percentage Leased as of 6/30/03
6731 Columbia Gateway Drive	Wholly Owned	123,743	73,902	49,841	66.51	%
8661 Robert Fulton Drive	JV	49,500	—	49,500	46.54	%
8671 Robert Fulton Drive	JV	56,350	—	56,350	50.92	%

TOTAL/AVERAGE		229,593	73,902	155,691	58.38	%

Joint Venture Summary as of June 30, 2003
(Dollars in thousands)

Property and Location		Joint Venture Interest Held By COPT	Status	Square Feet	Acreage	COPT Investment		Off-Balance Sheet Debt as of 6/30/03		Recourse to COPT		Option to Acquire Partner's Interest
4230 Forbes Boulevard Lanham, Maryland		80%	Construction	55,866	5 acres	$	730	$	2,497	Yes, 50	%	Yes
Robert Fulton Drive (Phase I) Columbia, Maryland(1)		80%	Operating	105,850	4 acres		4,423		7,971	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		2,431		—	N/A		Yes
140 NBP Annapolis Junction, Maryland		10%	Construction	119,904	13 acres		833		6,045	Yes, 100	%	Yes
220 NBP Annapolis Junction, Maryland(2)		20%	Construction	156,730	11 acres		—		—	N/A		Yes
695 Route 46 Wayne, New Jersey(3)		20%	Operating	157,394	13 acres		945		14,458	No		No

	TOTAL					$	9,817	$	30,971

(1): The off-balance sheet debt covers phases I and II of these properties.
(2): Upon formation of this joint venture in January 2003, we contributed land and have recorded our investment as land, construction in progress and buildings and improvements on our balance sheet. In addition, we have obtained an option to purchase the joint venture partner's interest for a pre-determined price. Accordingly, we have recorded a liability and have been accreting towards the pre-determined purchase price over the respective time period.
(3): Effective March 14, 2003, we contributed our wholly-owned property into a joint venture in exchange for a 20% joint venture interest and a cash payment of $19,960. The joint venture borrowed a $14,500, ten-year, 5.97% fixed interest rate loan from Allstate Life Insurance Company.

Reconciliations of Non GAAP Measurements
(Dollars in thousands)

		2003						2002
		June 30			March 31			December 31			September 30			June 30
Net investment in real estate		$	1,129,942		$	1,068,407		$	1,067,536		$	1,070,116		$	1,005,384
	Addback: accumulated depreciation		88,174			80,513			78,069			70,617			64,476

Gross investment in real estate		$	1,218,116		$	1,148,920		$	1,145,605		$	1,140,733		$	1,069,860
Less: land—development			(43,357	)		(43,233	)		(24,998	)		(25,014	)		(22,891	)
Less: construction in progress			(6,847	)		(5,334	)		(9,926	)		(10,536	)		(14,990	)
Less: investment in and advances to unconsolidated real estate joint ventures			(9,817	)		(9,679	)		(7,999	)		(8,656	)		(11,508	)

Gross investment in operating real estate		$	1,158,095		$	1,090,674		$	1,102,682		$	1,096,527		$	1,020,471
Average gross investment in operating real estate		$	1,124,385		$	1,096,678		$	1,099,605		$	1,058,499		$	1,039,442
GAAP Revenues from Real Estate Operations		$	40,878		$	41,518		$	41,376		$	38,065		$	37,184
Revenues from discontinued operations			6			902			1,008			970			976
Other income (expense)			(4	)		(8	)		(17	)		(5	)		2

Combined Real Estate Revenues		$	40,880		$	42,412		$	42,367		$	39,030		$	38,162
Interest income			(141	)		(97	)		(79	)		(113	)		(101	)

Combined Regional Rental Revenues		$	40,739		$	42,315		$	42,288		$	38,917		$	38,061
GAAP Property Operating		$	11,101		$	13,654		$	12,034		$	11,994		$	10,026
Property operating from discontinued operations			24			348			347			367			326

Combined Property Operating Expenses from Real Estate Operations		$	11,125		$	14,002		$	12,381		$	12,361		$	10,352
GAAP Revenues from Real Estate Operations		$	40,878		$	41,518		$	41,376		$	38,065		$	37,184
Property operating			(11,101	)		(13,654	)		(12,034	)		(11,994	)		(10,026	)
Revenues from discontinued operations			6			902			1,008			970			976
Property operating from discontinued operations			(24	)		(348	)		(347	)		(367	)		(326	)
Other revenue			(4	)		(8	)		(17	)		(5	)		2

Combined Net Operating Income		$	29,755		$	28,410		$	29,986		$	26,669		$	27,810
Interest income and other income (expense), net			(143	)		(98	)		(76	)		(112	)		(104	)

Combined Regional Net Operating Income		$	29,612		$	28,312		$	29,910		$	26,557		$	27,706
GAAP Net Operating Income for Same Office Properties		$	23,309		$	22,498		$	23,674		$	21,374		$	24,599
Less: straight-line rent			(708	)		(699	)		167			(80	)		(568	)
Less: accretion of intangible assets and liabilities classified as revenues			(472	)		(385	)		(186	)		(192	)		(1,281	)

Cash Net Operating Income for Same Office Properties		$	22,129		$	21,414		$	23,655		$	21,102		$	22,750
Interest expense from continuing operations		$	10,037		$	10,135		$	10,995		$	10,489		$	9,008
Interest expense from discontinued operations			—			100			70			74			74

Combined interest expense		$	10,037		$	10,235		$	11,065		$	10,563		$	9,082
Depreciation and amortization		$	9,229		$	8,044		$	8,919		$	7,356		$	7,869
Depreciation of furniture, fixtures and equipment			(121	)		(120	)		(171	)		(120	)		(115	)
Depreciation and amortization from discontinued operations			—			19			19			147			162

Combined real estate related depreciation and other amortization		$	9,108		$	7,943		$	8,767		$	7,383		$	7,916
Components of Debt Service Ratio:
Interest expense from continuing operations		$	10,037		$	10,135		$	10,995		$	10,489		$	9,008
Interest expense from discontinued operations			—			100			70			74			74
Scheduled principal amortization			2,056			2,108			1,905			2,662			1,536

Total		$	12,093		$	12,343		$	12,970		$	13,225		$	10,618

Reclassifications and Definitions

Reclassifications:		Funds from operations as reported for 2002 changed due to our reclassification of certain items in connection with our accounting under Statement of Financial Accounting Standards No. 141 "Business Combinations" or ("SFAS 141"). Funds from operations for 1999 through 2002 changed due to our reclassification of losses on early retirement of debt in connection with our adoption of Statement of Financial Accounting Standards No. 145, "Rescission of FASB Statements No. 4, 44 and 64, Amendment of FASB Statement No. 13 and Technical Corrections" on January 1, 2003.
NAREIT		National Association of Real Estate Investment Trusts.
GAAP		Generally accepted accounting principles.
Funds from Operations (FFO)		Under NAREIT's definition, FFO means net income (loss) available to common shareholders computed using GAAP, excluding gains (or losses) and sales of real estate, plus real estate-related depreciation and amortization and after adjustments for unconsolidated partnerships and joint ventures. Gains from sales of newly-developed properties less accumulated depreciation, if any, required under GAAP are included in FFO on the basis that development services are the primary revenue generating activity; we believe that inclusion of these development gains is in compliance with the NAREIT definition of FFO, although others may interpret the definition differently. Additionally, the repurchase of the preferred units in excess of recorded book value was not contemplated in the NAREIT definition of FFO; we believe that the exclusion of such amount is appropriate. The FFO we present may not be comparable to the FFO of other REITs since they may interpret the current NAREIT definition of FFO differently or they may not use the current NAREIT definition of FFO.
Adjusted Funds from Operations (AFFO)		FFO adjusted for the following: straight-line rents, SFAS 141 revenues, and recurring capital expenditures.
Combined Net Operating Income (NOI)		Total revenues from real estate operations less total property expenses from real estate operations, including discontinued operations.
Cash Net Operating Income		Net Operating Income adjusted to remove the effect of straight-line rents and SFAS 141 revenues, which are non cash revenue items.
Earnings Before Interest, Income Taxes and Depreciation and Amortization (EBITDA)		Net Operating Income adjusted for the following: general and administrative expenses, equity in (loss) income of unconsolidated real estate joint ventures, earnings from service companies and merchant sales and real estate services revenue.
Combined Real Estate Revenues		Total revenues from real estate operations, including discontinued operations.

Earnings Payout Ratio		Total dividends / distributions, exclusive of dividends for non-convertible preferred equity which are deducted to calculate Net (Loss) Income Available to Common Shareholders—diluted and inclusive of dividends on restricted shares for certain periods, divided by Net (Loss) Income Available to Common Shareholders plus dividends on convertible preferred shares.
FFO Payout Ratio		Total dividends / distributions, exclusive of dividends for non-convertible preferred equity which are deducted to calculate FFO and inclusive of dividends on restricted shares for certain periods, divided by FFO.
AFFO Payout Ratio		Total dividends / distributions, exclusive of dividends for non-convertible preferred equity which are deducted to calculate AFFO and inclusive of dividends on restricted shares for certain periods, divided by AFFO.
Debt to Undepreciated Book Value of Real Estate Assets		Mortgage loans payable divided by gross investment in real estate as computed by adding accumulated depreciation to the net investment in real estate as presented on our balance sheet.
Base rent—straight-line or straight-line rent		Contractual minimum rent under leases recorded into rental revenue using the average contractual rent over the lease term in accordance with GAAP.
Total rent—straight-line		Contractual minimum rent under leases recorded into rental revenue using the average contractual rent over the lease term in accordance with GAAP plus estimated operating expense reimbursesments, or total rent.
Base rent—cash		Contractual minimum rent under leases remitted by the replacement tenant at lease commencement or the predecessor tenant at date of lease expiration.
Total rent—cash		Contractual minimum rent under leases plus estimated operating expense reimbursesments, or total rent, as remitted by the replacement tenant at lease commencement or the predecessor tenant at date of lease expiration.

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Corporate Office Properties Trust Index to Supplemental Information (Unaudited) June 30, 2003
Quarterly Selected Financial Summary Data (Dollars in thousands)
Quarterly Consolidated Balance Sheets (Dollars in thousands except per share data)
Quarterly Consolidated Statements of Operations (Dollars and units in thousands)
Quarterly Consolidated Reconciliations of Funds From Operations (FFO), Adjusted Funds From Operations (AFFO) and Net (Loss) Income Available to Common Shareholders per diluted share, as adjusted (Dollars and shares in thousands)
Quarterly Consolidated Reconciliations of Earnings Before Interest, Income Taxes, Depreciation and Amortization (EBITDA), Combined Net Operating Income (NOI), Discontinued Operations and Gains on Sales of Real Estate (Dollars and shares in thousands)
Quarterly Equity Analysis (Amounts in thousands except per share data, share prices and ratios)
Quarterly Valuation Analysis (Dollars in thousands except per share data and ratios)
Quarterly Debt Analysis (Dollars in thousands)
Quarterly Operating Ratios (Dollars in thousands except per share data and ratios)
Quarterly Dividend Analysis
Investor Composition and Analyst Coverage (as of June 30, 2003)
Debt Maturity Schedule—June 30, 2003 (Dollars in thousands)
Property Summary by Region—June 30, 2003
Property Summary by Region—June 30, 2003
Property Summary by Region—June 30, 2003
Property Occupancy Rates by Region by Quarter
Top Twenty Office Tenants as of June 30, 2003 (Dollars and square feet in thousands)
Combined Real Estate Revenue by Geographic Region by Quarter(1) (Dollars in thousands)
Combined Net Operating Income by Geographic Region by Quarter(2) (Dollars in thousands)
Same Office Property Cash Net Operating Income by Quarter (Dollars in thousands)
Same Office Property GAAP Net Operating Income by Quarter (Dollars in thousands)
Average Occupancy Rates by Region for Same Office Properties(1)
Office Lease Expiration Analysis by Year
Quarterly Office Renewal Analysis
Quarterly Office Renewal Analysis (continued)
Year to Date Acquisition Summary as of June 30, 2003 (Dollars in thousands)
Year to Date Disposition Summary as of June 30, 2003 (Dollars in thousands)
Development Summary as of June 30, 2003 (Dollars in thousands except square feet)
Year To Date Development Placed into Service For the period January 1, 2003 through June 30, 2003
Joint Venture Summary as of June 30, 2003 (Dollars in thousands)
Reconciliations of Non GAAP Measurements (Dollars in thousands)
Reclassifications and Definitions