Exhibit 99.1
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8815 Centre Park Drive,
Suite 400
Columbia, Maryland
21045-2272
Telephone 410-730-9092
Facsimile 410-740-1174
www.copt.com
NYSE:
OFC
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NEWS RELEASE
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FOR IMMEDIATE RELEASE
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Contact:
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Mary
Ellen Fowler
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Vice
President - Finance & Investor Relations
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410-992-7324
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maryellen.fowler@copt.com
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CORPORATE OFFICE PROPERTIES TRUST REPORTS
STRONG FIRST QUARTER 2006 RESULTS
COLUMBIA, MD May 1, 2006 - Corporate Office
Properties Trust (COPT) (NYSE: OFC) announced today financial and operating results
for the quarter ended March 31, 2006.
Highlights
• Earnings
per diluted share (“EPS”) of $.15 for the first quarter 2006 compared to $.14
per diluted share for the first quarter 2005.
• 8.9%
increase in FFO per diluted share to $.49 or $24.4 million for first quarter
2006 from $.45 or $21.1 million for first quarter 2005.
• $12.9 million in acquisitions for 60,000
square foot redevelopment property and 57 acres of land acquired year to date.
• $29.2 million in dispositions for 199,000
square feet and 2 acres of land sold year to date.
• 1.1
million square feet under construction, 780,000 square feet under development
and 727,000 square feet under redevelopment.
• 93.3% occupied and 94.4% leased for our
wholly-owned portfolio as of March 31, 2006.
• 5.5%
increase in same property cash NOI for the quarter.
• 64.9%
of leases expiring during the quarter were renewed, with a 14.11% increase in
total straight line rent for renewed and retenanted space.
“The Company experienced improvement in our
core markets as demonstrated by increases in rental rates on renewed and
retenanted space, lower capital expenditures on renewals and positive same
property NOI growth,” stated Randall M. Griffin, President and
Chief Executive Officer.
Financial Results
EPS for the quarter ended March 31, 2006 totaled $.15 per diluted
share, or $6.3 million of net income available to common shareholders, as
compared to $.14 per diluted share, or $5.4 million for the quarter ended March
31, 2005. Revenues from real estate operations for the quarter ended March 31,
2006 were $71.7 million, as compared to revenue for the quarter ended March 31,
2005 of $58.9 million.
Diluted FFO for the
quarter ended March 31, 2006 totaled $24.4 million, or $.49 per diluted share,
as compared to $21.1 million, or $.45 per diluted share, for the quarter ended
March 31, 2005, representing an 8.9% increase on a per share basis. FFO Payout
ratio was 56.0% for first quarter 2006 compared to 54.5% for the comparable
2005 period.
Adjusted funds from operations (“AFFO”) diluted increased 27.8% to
$18.9 million for first quarter 2006 as compared to $14.8 million for first
quarter 2005. The Company’s AFFO payout ratio was 72.3% for first quarter 2006
compared to 78.1% for first quarter 2005.
As of March 31, 2006, the Company had a total market capitalization of
$3.8 billion, with $1.4 billion in debt outstanding, equating to a 36.1%
debt-to-total market capitalization ratio. Debt to undepreciated book value of
real estate assets was 62.7% at quarter end. The Company’s total quarterly
weighted average interest rate was 6.1% and 71% of total debt is subject to
fixed interest rates. For the first quarter 2006, EBITDA interest coverage
ratio was 2.78x and EBITDA fixed charge coverage was 2.29x.
Operating Results
At March 31, 2006, the Company’s wholly-owned portfolio of 163 office
properties totaling 13.7 million square feet was 93.3% occupied and 94.4%
leased.
The weighted average remaining lease term for the portfolio was 5.0
years and the average rental rate (including tenant reimbursements) was $20.72
per square foot.
During the quarter, 421,000 square feet renewed equating to a 64.9%
renewal rate, at an average capital cost of $2.80 per square foot. The Company
achieved a 14.1% increase in total straight line rent and a 4.8% increase in
total cash rent for 492,000 square feet of renewed and retenanted space. The
average capital cost for renewed and retenanted space was $4.11 per square
foot.
Same
property cash NOI increased by 5.5% for the quarter compared to the quarter
ended March 31, 2005. The primary driver of the increase in cash NOI for the
same property portfolio was higher rental rates and improved occupancy in our
Baltimore/Washington Corridor portfolio. The Company’s same property portfolio
consists of 120 buildings and represents 78.7% of the total square feet owned
as of March 31, 2006.
Significant leases signed during the quarter include 32,000 square feet
with a defense contractor at 302 Sentinel Drive (known as 302 NBP). This
building is under construction with an anticipated occupancy in the second
quarter of 2008. Within the Northern Virginia portfolio, the Company signed a
long-term lease for 78,000 square feet with CH2M HILL at Washington Technology
Park II in the Westfields Corporate Center in Chantilly, Virginia.
Development Activity
At quarter end March 31, the Company’s development pipeline consisted
of:
• Nine buildings
under construction totaling 1.1 million square feet for a total cost of $199.2
million, that are 41% leased.
• Seven buildings
under development totaling 780,000 square feet at a total projected cost of
$155.3 million. Included in this total is a 23,500 square foot building to be
built at The UMBC Research Park under a long-term ground sublease agreement.
• Four projects
under redevelopment totaling 727,000 square feet, two of which are owned in
joint ventures with a total projected cost of $74.4 million, and the other two
which are wholly-owned buildings, Airport Square VII and 9965 Federal Drive,
totaling 115,000 square feet at a cost of $10.2 million.
The Company’s land inventory (wholly-owned and joint venture) at
quarter end totaled 576 acres that can support 8.1 million square feet of
development.
During the quarter the Company placed one building, 304 Sentinel Drive
(known as 304 NBP) with 162,500 square feet into service. This building is 100%
leased.
Acquisition Activity
During the quarter, the Company acquired the following:
• A 60,000 square
foot building on an 11 acre parcel of land in Colorado Springs, Colorado for a
total cost of $2.6 million. The land parcel can support up to 30,000 square
feet of future office development.
• A 31 acre
parcel of land in San Antonio, Texas for $7.2 million that can support
approximately 375,000 developable square feet. This parcel of land is
contiguous to the 27 acre parcel of land and the 470,000 square foot building
the Company acquired during 2005.
• A 50% interest
in a joint venture for $1.8 million, which has under construction a 44,000
square foot office building located on a 3 acre parcel of land in Hanover,
Maryland.
• A 6 acre parcel
of land for $2.1 million located in Hanover, Maryland that can support up to
60,000 square feet of office development.
Disposition Activity
During the quarter, the Company disposed of
the following assets:
• Two office properties containing 142,000 rentable square feet for $17.0
million in Laurel, Maryland.
• A 57,000 rentable square foot building in Northern/Central New Jersey for
$9.7 million.
Financing and Capital Transactions
The Company executed the following
transactions during the quarter:
• An interest rate hedge for a notional amount of $50.0 million to swap
floating rate debt to a fixed rate of 5.04%, for a three year term which commenced
on March 28, 2006 and expires on March 30, 2009.
Subsequent Events
The Company executed the following
transactions subsequent to quarter end:
• Entered into a long-term ground sublease agreement with The UMBC Research
Park Corporation on a 6 acre parcel of land located at the UMBC Research Park,
on which the Company will build a 110,000 square foot office building.
• Issued 2.0 million common shares, generating proceeds of $82.6 million
before offering expenses. The Company used the net proceeds of the sale to repay
borrowings under its unsecured revolving credit facility, and will subsequently
fund the planned redemption of all of its outstanding 10.25% Series E
Cumulative Redeemable Preferred Shares, as well as its outstanding 9.875%
Series F Cumulative Redeemable Preferred Shares.
• Acquired a 20 acre land parcel with approximately 300,000 developable
square feet in Colorado Springs, Colorado for $1.1 million. The parcel is
adjacent to our 64 acre Patriot Park Business Park acquired in 2005.
• The Company executed two interest rate hedges, each in a notional amount
of $25.0 million, to convert a total of $50.0 million of floating rate debt to
a fixed rate of 5.23%, commencing on May 1, 2006 and expiring May 1, 2009.
Earnings
Guidance
The Company’s 2006 EPS
guidance is $.50 – $.57 per diluted share. The 2006 FFO guidance of $1.98 –
$2.05 per diluted share remains unchanged. Both FFO and EPS guidance exclude
the impact of preferred share redemptions.
Conference Call
The Company will hold an investor/analyst conference
call:
Conference Call and Webcast Date: Tuesday, May 2, 2006
Time: 4:00 p.m.
EDT
Dial In Number: 800-289-0730
Confirmation Code for the call: 3409103
A replay of this call will be available
beginning Tuesday, May 2, 2006 at 7:30 p.m. EDT through Tuesday, May 16, 2006
at midnight EDT. To access the replay, please call 888-203-1112 and use
confirmation code 3409103.
The conference call will also be available
via live webcast in the Investor Relations section of the Company’s website at
www.copt.com. A replay of the conference call will be immediately available via
webcast in the Investor Relations section of the Company’s website.
Definitions
Please refer to our Form 8-K or our website (www.copt.com) for
definitions of certain terms used in this press release. Reconciliations of
GAAP and non-GAAP measurements are included in the attached tables.
Company Information
Corporate Office Properties Trust (COPT) is a
fully integrated, self-managed real estate investment trust (REIT) that focuses
on the ownership, management, leasing, acquisition and development of suburban
office properties located primarily in submarkets within the Greater
Washington, DC region. As of March 31, 2006, the Company’s wholly owned
portfolio totaled 163 office properties totaling 13.7 million rentable square
feet. The Company has implemented a core customer expansion strategy that is
built around meeting, through acquisitions and development, the multi-location
requirements of the Company’s existing strategic tenants. The Company’s
property management services team provides comprehensive property and asset
management to company owned properties and select third party clients. The
Company’s development and construction services team provides a wide range of
development and construction management services for company owned properties,
as well as land planning, design/build services, consulting, and merchant
development to select third party clients. The Company’s shares are traded on
the New York Stock Exchange under the symbol OFC. More information on Corporate
Office Properties Trust can be found on the Internet at www.copt.com.
Forward-Looking Information
This press release may contain “forward-looking” statements, as defined
in Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934, that are based on the Company’s current expectations,
estimates and projections about future events and financial trends affecting
the Company. Forward-looking statements can be identified by the use of words
such as “may”, “will”, “should”, “expect”, “estimate” or other comparable
terminology. Forward-looking statements are inherently subject to risks and
uncertainties, many of which the Company cannot predict with accuracy and some
of which the Company might not even anticipate. Accordingly, the Company can
give no assurance that these expectations, estimates and projections will be
achieved. Future events and actual results may differ materially from those
discussed in the forward-looking statements.
Important factors that may affect these expectations, estimates, and
projections include, but are not limited to:
• the Company’s 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 the Company’s joint venture partners
may not fulfill their financial obligations as investors or may take actions
that are inconsistent with the Company’s objectives;
• our ability to satisfy and
operate effectively under federal income tax rules relating to real estate
investment trusts and partnerships;
• governmental actions and
initiatives; and
• environmental requirements.
The Company undertakes no obligation to update or supplement any forward-looking
statements. For further information, please refer to the Company’s filings with
the Securities and Exchange Commission, particularly the section entitled “Risk
Factors” in Item 1 of the Company’s Annual Report on Form 10-K for the year
ended December 31, 2005.
Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(Amounts in thousands, except per share data)
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Three Months Ended
March 31,
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2006
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2005
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Revenues
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Real estate revenues
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$
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71,700
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$
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58,928
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Service operations revenues
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16,309
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17,097
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Total revenues
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88,009
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76,025
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Expenses
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Property operating expenses
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21,885
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18,169
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Depreciation and other amortization
associated with real estate operations
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19,313
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14,169
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Service operations expenses
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15,704
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16,188
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General and administrative expenses
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3,963
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3,276
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Total operating expenses
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60,865
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51,802
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Operating income
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27,144
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24,223
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Interest expense
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(17,584
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)
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(12,962
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)
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Amortization of deferred financing costs
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(559
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)
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(396
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)
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Income from continuing operations before
equity in loss of unconsolidated entities, income taxes and minority
interests
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9,001
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10,865
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Equity in loss of unconsolidated entities
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(23
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)
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—
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Income tax expense
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(215
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)
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(457
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)
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Income from continuing operations before
minority interests
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8,763
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10,408
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Minority interests in income from
continuing operations
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(1,041
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)
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(1,433
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)
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Income from continuing operations
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7,722
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8,975
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Income from discontinued operations, net of
minority interests
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2,105
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46
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Income before gain on sales of real estate
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9,827
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9,021
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Gain on sales of real estate, net
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110
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19
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Net income
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9,937
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9,040
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Preferred share dividends
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(3,654
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)
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(3,654
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)
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Net income available to common shareholders
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$
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6,283
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$
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5,386
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Earnings per share “EPS” computation
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Numerator:
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$
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6,283
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$
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5,386
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Denominator:
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Weighted average common shares - basic
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39,668
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36,555
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Assumed conversion of dilutive options
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1,658
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1,537
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Dilutive restricted shares
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184
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—
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Weighted average common shares - diluted
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41,510
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38,092
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EPS
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Basic
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$
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0.16
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$
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0.15
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Diluted
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$
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0.15
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$
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0.14
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Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(Amounts in thousands, except per share data and ratios)
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Three Months Ended
March 31,
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2006
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2005
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Net income
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$
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9,937
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$
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9,040
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Add: Real estate-related depreciation and
amortization
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19,068
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14,505
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Add: Depreciation and amortization on
unconsolidated real estate entities
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85
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—
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Less: Depreciation and amortization
allocable to minority interests in other consolidated entities
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(33
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)
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(32
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)
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Less: Gain on sales of real estate,
excluding development portion
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(2,459
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)
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(24
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)
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Funds from operations (“FFO”)
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26,598
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23,489
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Add: Minority interests-common units in the
Operating Partnership
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1,406
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1,308
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Less: Preferred share dividends
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(3,654
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)
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(3,654
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)
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Funds from Operations - basic and diluted
(“Basic and Diluted FFO”)
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24,350
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21,143
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Less: Straight-line rent adjustments
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(2,122
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)
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(1,583
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)
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Less: Recurring capital expenditures
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(2,808
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)
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(4,734
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)
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Less: Amortization of deferred market
rental revenue
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(555
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)
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(70
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)
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Adjusted Funds from Operations - diluted
(“Diluted AFFO”)
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$
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18,865
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$
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14,756
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Weighted average shares
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Weighted average common shares
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39,668
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36,555
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Conversion of weighted average common units
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8,520
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8,544
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Weighted average common shares/units -
basic FFO per share
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48,188
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45,099
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Assumed conversion of share options
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1,658
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1,537
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Dilutive restricted shares
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184
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—
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Weighted average common shares/units -
diluted FFO per share
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50,030
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46,636
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Diluted FFO per common share
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$
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0.49
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$
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0.45
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Dividends/distributions per common
share/unit
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$
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0.28
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$
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0.255
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Earnings payout ratio
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179.2
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%
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173.4
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%
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Diluted FFO payout ratio
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56.0
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%
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54.5
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%
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Diluted AFFO payout ratio
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72.3
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%
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78.1
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%
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EBITDA interest coverage ratio
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2.78
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x
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2.95
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x
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EBITDA fixed charge coverage ratio
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2.29
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x
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2.29
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x
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|
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|
|
|
|
|
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Reconciliation of denominators for diluted
EPS and diluted FFO per share
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Denominator for diluted EPS
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41,510
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38,092
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Weighted average common units
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|
8,520
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8,544
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Denominator for diluted FFO per share
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50,030
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46,636
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Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(Dollars and shares in thousands, except per share data)
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March 31,
|
|
December 31,
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2006
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2005
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Balance Sheet Data (in thousands) (as of
period end):
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|
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Investment in real estate, net of
accumulated depreciation
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|
$
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1,900,840
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$
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1,888,106
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|
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Total assets
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2,142,875
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|
2,129,759
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|
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Mortgage and other loans payable
|
|
1,360,638
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|
1,348,351
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|
|
Total liabilities
|
|
1,457,197
|
|
1,442,036
|
|
|
Minority interests
|
|
102,893
|
|
105,210
|
|
|
Beneficiaries’ equity
|
|
582,785
|
|
582,513
|
|
|
|
|
|
|
|
|
|
Debt to Total Assets
|
|
63.5
|
%
|
63.3
|
%
|
|
Debt to Undepreciated Book Value of Real
Estate Assets
|
|
62.7
|
%
|
62.6
|
%
|
|
Debt to Total Market Capitalization
|
|
36.1
|
%
|
41.5
|
%
|
|
|
|
|
|
|
|
|
Property Data (wholly owned properties) (as
of period ended):
|
|
|
|
|
|
|
Number of operating properties owned
|
|
163
|
|
165
|
|
|
Total net rentable square feet owned (in
thousands)
|
|
13,671
|
|
13,708
|
|
|
Occupancy
|
|
93.3
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%
|
94.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2006
|
|
2005
|
|
|
Reconciliation of tenant improvements and
incentives, capital improvements and leasing costs for operating properties
to recurring capital expenditures
|
|
|
|
|
|
|
Total tenant improvements and incentives on
operating properties
|
|
$
|
2,873
|
|
$
|
13,163
|
|
|
Total capital improvements on operating
properties
|
|
3,123
|
|
2,105
|
|
|
Total leasing costs on operating properties
|
|
946
|
|
668
|
|
|
Less: Nonrecurring tenant improvements and
incentives on operating properties
|
|
(1,281
|
)
|
(9,551
|
)
|
|
Less: Nonrecurring capital improvements on
operating properties
|
|
(2,519
|
)
|
(1,630
|
)
|
|
Less: Nonrecurring leasing costs incurred
on operating properties
|
|
(358
|
)
|
(21
|
)
|
|
Add: Recurring improvements on operating
properties held through joint ventures
|
|
24
|
|
—
|
|
|
Recurring capital expenditures
|
|
$
|
2,808
|
|
$
|
4,734
|
|
Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(Dollars in thousands)
|
|
|
Three Months Ended
|
|
|
|
|
March 31,
|
|
|
|
|
2006
|
|
2005
|
|
|
Reconciliation of dividends for Earnings
Payout Ratio to dividends and distributions for FFO & AFFO Payout Ratio
|
|
|
|
|
|
|
Common share dividends for earnings payout
ratio
|
|
$
|
11,257
|
|
$
|
9,339
|
|
|
Common unit distributions
|
|
2,374
|
|
2,179
|
|
|
Dividends and distributions for FFO &
AFFO payout ratio
|
|
$
|
13,631
|
|
$
|
11,518
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP net income to
earnings before interest, income taxes, depreciation and amortization
(“EBITDA”)
|
|
|
|
|
|
|
Net income
|
|
$
|
9,937
|
|
$
|
9,040
|
|
|
Interest expense on continuing operations
|
|
17,584
|
|
12,962
|
|
|
Interest expense on discontinued operations
|
|
131
|
|
396
|
|
|
Income tax expense
|
|
215
|
|
457
|
|
|
Real estate-related depreciation and
amortization
|
|
19,068
|
|
14,505
|
|
|
Amortization of deferred financing costs
|
|
559
|
|
396
|
|
|
Other depreciation and amortization
|
|
270
|
|
161
|
|
|
Minority interests
|
|
1,538
|
|
1,449
|
|
|
EBITDA
|
|
$
|
49,302
|
|
$
|
39,366
|
|
|
|
|
|
|
|
|
|
Reconciliation of interest expense from
continuing operations to the denominators for interest coverage-EBITDA and
fixed charge coverage-EBITDA
|
|
|
|
|
|
|
Interest expense from continuing operations
|
|
$
|
17,584
|
|
$
|
12,962
|
|
|
Interest expense from discontinued
operations
|
|
131
|
|
396
|
|
|
Denominator for interest coverage-EBITDA
|
|
17,715
|
|
13,358
|
|
|
Preferred share dividends
|
|
3,654
|
|
3,654
|
|
|
Preferred unit distributions
|
|
165
|
|
165
|
|
|
Denominator for fixed charge
coverage-EBITDA
|
|
$
|
21,534
|
|
$
|
17,177
|
|
|
|
|
|
|
|
|
|
Reconciliation of same property net operating
income to same property cash net operating income
|
|
|
|
|
|
|
Same property net operating income
|
|
$
|
40,053
|
|
$
|
38,535
|
|
|
Less: Straight-line rent adjustments
|
|
(976
|
)
|
(1,556
|
)
|
|
Less: Amortization of deferred market
rental revenue
|
|
(116
|
)
|
(44
|
)
|
|
Same property cash net operating income
|
|
$
|
38,961
|
|
$
|
36,935
|
|
Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(Amounts in thousands, except per share data)
|
|
|
March 31,
|
|
December 31,
|
|
|
|
|
2006
|
|
2005
|
|
|
Reconciliation of denominator for debt to
total assets to denominator for debt to undepreciated book value of real
estate assets
|
|
|
|
|
|
|
Denominator for debt to total assets
|
|
$
|
2,142,875
|
|
$
|
2,129,759
|
|
|
Assets other than assets included in
investment in real estate
|
|
(242,035
|
)
|
(241,653
|
)
|
|
Accumulated depreciation on real estate
assets
|
|
183,920
|
|
174,935
|
|
|
Intangible assets on real estate
acquisitions, net
|
|
85,699
|
|
90,984
|
|
|
Denominator for debt to undepreciated book
value of real estate assets
|
|
$
|
2,170,459
|
|
$
|
2,154,025
|
|
|
|
|
|
|
|
|
|
|
|
Year Ending
|
|
|
|
|
December 31, 2006
|
|
|
|
|
Low
|
|
High
|
|
|
Reconciliation of projected EPS-diluted to
projected diluted FFO per share
|
|
|
|
|
|
|
Reconciliation of numerators
|
|
|
|
|
|
|
Numerator for projected EPS-diluted
|
|
$
|
21,450
|
|
$
|
24,450
|
|
|
Gain on sales of real estate, excluding
development portion
|
|
(2,484
|
)
|
(2,484
|
)
|
|
Real estate-related depreciation and
amortization
|
|
78,539
|
|
78,539
|
|
|
Minority interests-common units
|
|
4,610
|
|
5,255
|
|
|
Numerator for projected diluted FFO per
share
|
|
$
|
102,115
|
|
$
|
105,760
|
|
|
|
|
|
|
|
|
|
Reconciliation of denominators
|
|
|
|
|
|
|
Denominator for projected EPS-diluted
|
|
43,194
|
|
43,194
|
|
|
Weighted average common units
|
|
8,490
|
|
8,490
|
|
|
Denominator for projected diluted FFO per
share
|
|
51,684
|
|
51,684
|
|
|
|
|
|
|
|
|
|
EPS - diluted
|
|
$
|
0.50
|
|
$
|
0.57
|
|
|
FFO per share - diluted
|
|
$
|
1.98
|
|
$
|
2.05
|
|
This projection excludes any impact on earnings per
share - diluted and funds from operations - diluted from the write-off of
issuance costs associated with the potential redemptions of our Series E &
F Preferred Shares.
Top Twenty Office Tenants of Wholly Owned
Properties as of March 31, 2006
(Dollars and square feet in thousands)
|
|
|
|
|
|
|
|
|
Percentage of
|
|
Total
|
|
Percentage
|
|
Weighted
|
|
|
|
|
|
|
|
|
Total
|
|
Total
|
|
Annualized
|
|
of Total
|
|
Average
|
|
|
|
|
|
|
Number of
|
|
Occupied
|
|
Occupied
|
|
Rental
|
|
Annualized Rental
|
|
Remaining
|
|
|
Tenant
|
|
|
|
Leases
|
|
Square Feet
|
|
Square Feet
|
|
Revenue (1) (6)
|
|
Revenue
|
|
Lease Term (2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States of America
|
|
(3
|
)
|
43
|
|
2,037,616
|
|
16.0
|
%
|
$
|
39,964
|
|
15.1
|
%
|
6.1
|
|
|
Booz Allen Hamilton, Inc.
|
|
|
|
11
|
|
680,815
|
|
5.3
|
%
|
17,247
|
|
6.5
|
%
|
7.6
|
|
|
Northrop Grumman Corporation
|
|
|
|
14
|
|
536,167
|
|
4.2
|
%
|
11,994
|
|
4.5
|
%
|
3.0
|
|
|
Computer Sciences Corporation
|
|
(4
|
)
|
4
|
|
454,645
|
|
3.6
|
%
|
10,981
|
|
4.2
|
%
|
5.2
|
|
|
L-3 Communications Holdings, Inc.
|
|
(4
|
)
|
5
|
|
239,153
|
|
1.9
|
%
|
8,906
|
|
3.4
|
%
|
7.4
|
|
|
Unisys
|
|
(5
|
)
|
3
|
|
741,284
|
|
5.8
|
%
|
8,060
|
|
3.0
|
%
|
3.3
|
|
|
General Dynamics Corporation
|
|
|
|
9
|
|
278,239
|
|
2.2
|
%
|
7,003
|
|
2.6
|
%
|
3.7
|
|
|
The Aerospace Corporation
|
|
|
|
2
|
|
221,785
|
|
1.7
|
%
|
6,139
|
|
2.3
|
%
|
8.7
|
|
|
Wachovia Bank
|
|
|
|
4
|
|
183,641
|
|
1.4
|
%
|
5,697
|
|
2.2
|
%
|
12.4
|
|
|
AT&T Corporation
|
|
(4
|
)
|
6
|
|
243,335
|
|
1.9
|
%
|
5,331
|
|
2.0
|
%
|
2.2
|
|
|
The Boeing Company
|
|
(4
|
)
|
5
|
|
162,279
|
|
1.3
|
%
|
4,340
|
|
1.6
|
%
|
3.0
|
|
|
Ciena Corporation
|
|
|
|
3
|
|
221,609
|
|
1.7
|
%
|
3,541
|
|
1.3
|
%
|
4.5
|
|
|
VeriSign, Inc.
|
|
|
|
1
|
|
99,121
|
|
0.8
|
%
|
3,064
|
|
1.2
|
%
|
8.3
|
|
|
Magellan Health Services, Inc.
|
|
|
|
2
|
|
142,199
|
|
1.1
|
%
|
2,867
|
|
1.1
|
%
|
5.3
|
|
|
Lockheed Martin Corporation
|
|
|
|
6
|
|
159,677
|
|
1.3
|
%
|
2,777
|
|
1.1
|
%
|
3.2
|
|
|
Johns Hopkins University
|
|
(4
|
)
|
7
|
|
106,473
|
|
0.8
|
%
|
2,565
|
|
1.0
|
%
|
1.5
|
|
|
Merck & Co., Inc. (Unisys)
|
|
(5
|
)
|
1
|
|
219,065
|
|
1.7
|
%
|
2,419
|
|
0.9
|
%
|
3.3
|
|
|
Wyle Laboratories, Inc.
|
|
|
|
4
|
|
174,792
|
|
1.4
|
%
|
2,398
|
|
0.9
|
%
|
6.3
|
|
|
BAE Systems PLC
|
|
(4
|
)
|
7
|
|
199,212
|
|
1.6
|
%
|
2,340
|
|
0.9
|
%
|
0.9
|
|
|
Comcast Corporation
|
|
|
|
3
|
|
107,437
|
|
0.8
|
%
|
2,236
|
|
0.8
|
%
|
3.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subtotal Top 20 Office Tenants
|
|
|
|
140
|
|
7,208,544
|
|
56.5
|
%
|
149,866
|
|
56.7
|
%
|
5.6
|
|
|
All remaining tenants
|
|
|
|
478
|
|
5,547,792
|
|
43.5
|
%
|
114,437
|
|
43.3
|
%
|
4.3
|
|
|
Total/Weighted Average
|
|
|
|
618
|
|
12,756,336
|
|
100.0
|
%
|
$
|
264,302
|
|
100.0
|
%
|
5.0
|
|
|
(1)
|
|
Total
Annualized Rental Revenue is the monthly contractual base rent as of March
31, 2006 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)
|
|
Order
of tenants is based on Annualized Rent.
|