Exhibit 99.1

Supplemental Information

(Unaudited)

 

 

December 31, 2006

Corporate Office Properties Trust
Index to Supplemental Information (Unaudited)
December 31, 2006

	Page
Highlights and Discussion
Shareholder Return	1
Reporting Period Highlights – Year Ended December 31, 2006	1
Reporting Period Highlights – Fourth Quarter 2006	3
Forward-Looking Statements	5
Financial Statements
Quarterly Selected Financial Summary Data	7
Quarterly Consolidated Balance Sheets	8
Quarterly Consolidated Statements of Operations	9
Quarterly Consolidated Reconciliations of Funds From Operations (FFO), Adjusted Funds From Operations (AFFO) and Earnings per diluted share, as adjusted	10
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	11
Annual Selected Financial Summary Data	12
Annual Consolidated Balance Sheets	13
Annual Consolidated Statements of Operations	14
Annual Consolidated Reconciliations of Funds From Operations (FFO), Adjusted Funds From Operations (AFFO) and Earnings per diluted share, as adjusted	15
Annual Consolidated Reconciliations of Earnings Before Interest, Income Taxes, Depreciation and Amortization (EBITDA)	16
Selected Financial Analyses
Quarterly Equity Analysis	17
Quarterly Debt Analysis	18
Quarterly Operating Ratios	19
Quarterly Dividend Analysis	20
Investor Composition and Analyst Coverage	21
Debt Maturity Schedule – December 31, 2006	22
Portfolio Summary
Property Summary by Region – December 31, 2006 – Wholly Owned Properties	23
Property Summary by Region – December 31, 2006 – Joint Venture Properties	28
Property Occupancy Rates by Region by Quarter – Wholly Owned Properties	29
Property Occupancy Rates by Region by Quarter – Joint Venture Properties	30
Top Twenty Office Tenants of Wholly Owned Properties as of December 31, 2006	31
Combined Real Estate Revenue and Combined Net Operating Income by Geographic Region by Quarter	32
Same Office Property Cash and GAAP Net Operating Income by Quarter	33
Average Occupancy Rates by Region for Same Office Properties	34
Office Lease Expiration Analysis by Year for Wholly Owned Properties	35
Annual Office Renewal Analysis	36
Quarterly Office Renewal Analysis for Wholly Owned Properties as of December 31, 2006	38
Year to Date Wholly Owned Acquisition Summary as of December 31, 2006	39
Year to Date Wholly Owned Disposition Summary as of December 31, 2006	40
Development Summary as of December 31, 2006	41
Development Placed into Service for the Year Ended December 31, 2006	43
Joint Venture Summary as of December 31, 2006	44
Land Inventory as of December 31, 2006	45
Reconciliations of Non GAAP Measurements	46

 

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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 and Treasurer at (443) 285-5450 or maryellen.fowler@copt.com.  Reconciliations between GAAP and non GAAP measurements have been provided on page 46.  Refer to our Form 8-K for definitions of certain terms used herein.

Shareholder Return

·                  Our shareholders earned a total return of 45.8% for the year 2006 and 426.0% for the past five years on the basis of numbers compiled by the National Association of Real Estate Investment Trusts as of December 31, 2006.  These return computations include the re-investment of dividends on the ex-dividend date and share price appreciation.

Reporting Period Highlights – Year Ended December 31, 2006

Financial Results

·                  Reported Net Income Available to Common Shareholders of $29,927,000 or $.69 per diluted share for the year ended December 31, 2006 as compared to $24,416,000 or $.63 per diluted share for the comparable 2005 period, representing an increase of 9.5% per share.  Included in 2006 net income is a gain on sale of real estate of approximately $14.8 million, net of minority interests, as compared to a gain on sale of real estate of approximately $3.8 million, net of minority interests, in 2005 net income.  Also included in 2006 net income is an accounting charge of $3.9 million, or $.09 per share, for the write-off of initial issuance costs related to the Series E and Series F preferred share redemptions.

·                  Reported FFO – diluted of $98,937,000 or $1.91 per share/unit for the year ended December 31, 2006 as compared to $88,801,000 or $1.86 per share/unit for the comparable 2005 period, representing an increase of 2.7% per share/unit.  Included in our 2006 FFO – diluted is a $3.9 million accounting charge associated with the Series E and Series F preferred share redemptions.  Without this accounting charge, our 2006 FFO – diluted, as adjusted, would have been $1.99 per share, representing an increase of 7.0% per share/unit.

·                  Reported AFFO – diluted of $74,679,000 for the year ended December 31, 2006 as compared to $63,414,000 for the comparable 2005 period, representing an increase of 17.8%. 

·                  Our FFO payout ratio was 60.3% for the year ended December 31, 2006 as compared to 56.3% for the comparable 2005 period.  Our AFFO payout ratio was 79.9% for the year ended December 31, 2006 as compared to 78.8% for the comparable 2005 period.

Financing Activity and Capital Transactions

·                  During the year, we issued 2.0 million common shares and generated proceeds of $82.6 million, or $41.31 per share. 

·                  We redeemed our 10.25% Series E Cumulative Redeemable Preferred Shares and our 9.875% Series F Cumulative Redeemable Preferred Shares for an aggregate of $64.4 million.  We recognized a total of $3.9 million for the write-off of original issuance costs related to these two preferred share redemptions.

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·                  We issued 7.625% Series J Cumulative Redeemable Preferred Shares and generated net proceeds of $82.1 million after payment of the underwriters’ discount but before offering expenses. 

·                  We issued $200 million of 3.5% Exchangeable Senior Notes with an initial exchange rate of 18.4162 COPT common shares per $1,000 principal amount of notes. 

·                  We increased our quarterly dividend 10.7% from $.28 to $.31 per share.

·                  We raised our borrowing capacity in our unsecured line of credit from $400 to $500 million. The revolver can be further increased to $600 million and matures March 9, 2008, with the right to extend for an additional one year period, subject to certain conditions.

·                  We closed a $146.5 million, ten year non-recourse secured loan, requiring interest only payments at a fixed rate of 5.43%.  As a result, we reduced our variable rate debt exposure to 11.7% of total debt as of December 31, 2006 compared to 31.6% as of December 31, 2005.

Acquisitions / Dispositions

During 2006, we executed our strategy of reducing our position in non-core markets and redeploying funds into our core and expansion markets.  We disposed of seven wholly owned properties aggregating 531,345 square feet for $79.5 million.   We acquired over one million square feet for $128.9 million coupled with a $47.3 million investment in over 750 acres of land, developable into approximately 4.0 million rentable square feet.  Through joint ventures, we obtained control of over 150 acres of land, developable into 720,000 rentable square feet, for $3.9 million.

Some highlights follow:

·                  Core markets — We strengthened our dominant position in the Baltimore/Washington Corridor with our purchase of 611,379 operational square feet and 222 acres of land, developable into 1.4 million square feet, for $106.7 million.

·                  Expansion markets — We acquired 400,334 operational square feet and 44 acres of land, developable into approximately 525,000 square feet, in Colorado Springs market for $58.0 million.  In our San Antonio, Texas market, we purchased 31 acres of land, developable into approximately 375,000 square feet, for $7.2 million.

·                  Strategic new market — We created a long-term development opportunity with the $5.0 million acquisition, reduced proportionally for the 91 acre holdback of the former Fort Ritchie United States Army base which includes 500 acres of land, with an approved development plan of 1.7 million square feet of office space and 673 residential units.

·                  Dispositions — We sold four buildings totaling 335,405 square feet in our Northern / Central New Jersey market, including one property held through a 20% joint venture interest, for $33.9 million.  We now own 417,314 operational square feet in Northern / Central New Jersey.

Development

·                  We placed into service 792,762 square feet in seven buildings, two of which were partially placed into service during 2005.  This space was 94.6% leased as of December 31, 2006.

·                  During 2006, we increased our land control by over 850 acres which can support development of approximately 5.0 million square feet for an investment of $51.2 million.

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Operations

·                  During 2006, we leased 2.9 million square feet including 1.8 million square feet of renewed and retenanted space, 250,000 square feet of previously unoccupied space and 922,000 square feet of new development space.

·                  We renewed 1,080,005 square feet, or 55.36%, of our expiring office leases (based upon square footage) with an average capital cost of $3.27 per square foot during the year ended December 31, 2006.  For our renewed and retenanted space of 1.8 million square feet, we realized an increase in total rent of 7.60%, as measured from the GAAP straight-line rent in effect preceding the renewal date, and an increase of 0.51% in total cash rent.  We incurred an average committed cost of $11.04 per square foot for our renewed and retenanted space for the year.

Reporting Period Highlights – Fourth Quarter 2006

Financial Results

·                  Reported Net Income Available to Common Shareholders of $3,730,000, or $.08 per diluted share, for the fourth quarter of 2006 as compared to $6,628,000, or $.16 per diluted share, for the comparable 2005 period.  Included in fourth quarter 2006 net income is an accounting charge of $2.1 million, or $.05 per share, for the write-off of initial issuance costs related to the Series F preferred share redemption.

·                  Reported FFO – diluted of $25,077,000, or $.48 per share/unit, for the fourth quarter of 2006 as compared to $23,804,000, or $.48 per share/unit, for the comparable 2005 period, representing no change per share/unit.  Included in our FFO – diluted is a $2.1 million accounting charge associated with the Series F preferred share redemption.  Without this accounting charge, our FFO – diluted, as adjusted, would have been $.52 per share, representing an increase of 8.3% per share/unit, for the comparable 2005 period.

·                  Reported AFFO – diluted of $17,695,000 for the fourth quarter of 2006 as compared to $15,892,000 for the comparable 2005 period, representing an increase of 11.3%. 

·                  Our FFO payout ratio was 63.5% for the fourth quarter of 2006 as compared to 57.0% for the comparable 2005 period.  Our AFFO payout ratio was 89.9% for the fourth quarter of 2006 as compared to 85.3% for the comparable 2005 period. 

Financing Activity and Capital Transactions

·                  On October 15, 2006, we redeemed all of our 1,425,000 outstanding 9.875% Series F Cumulative Redeemable Preferred Shares at a price of $25.00 per share, or $35,625,000, and recognized a $2.1 million accounting charge to net income available to common shareholders related to original issuance costs.

·                  On December 28, 2006, we obtained a $146.5 million, ten year loan, requiring interest only payments at a fixed rate of 5.43% and maturing in January 2017.  We used the loan proceeds to repay $146.0 million of borrowings outstanding under our unsecured revolving credit facility.

·                  As of December 31, 2006, our ratio of debt to market capitalization was 34.9%, and our ratio of debt to undepreciated book value of real estate assets was 62.0%.  We achieved an EBITDA interest coverage ratio of 2.71x and an EBITDA fixed charge coverage ratio of 2.24x for this quarter.

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Acquisitions

·                  On October 5, 2006, we acquired approximately 500 acres of the 591-acre former Fort Ritchie United States Army base located in Cascade, Washington County, Maryland, for $5.0 million.  This price was reduced proportionately for deferral of 91 acres.  This site has 306,038 square feet of existing space and an approved plan for 1.7 million square feet of office space and 673 residential units.

Development

·                  During the fourth quarter, we placed into service 447,447 square feet within our development properties including two entire buildings, 322 Sentinel Drive (known as 322 NBP) and 15010 Conference Center Drive (known as WTP II).

·                  In the fourth quarter, we executed several long term leases for 416,976 square feet of development space including: 59,763 square feet at 1055 North Newport Road, located within the Aerotech Commerce Park in Colorado Springs, Colorado; 102,842 square feet at 201 Technology Park Drive in Lebanon, Virginia; 125,681 square feet at 320 Sentinel Drive (known as 320 NBP) in Annapolis Junction, Maryland; 53,941 square feet at 940 Elkridge Landing Road (known as Airport Square VII) in Linthicum, Maryland; and 74,749 square feet at 9965 Federal Drive in Colorado Springs, Colorado.  All of these properties are now 100% leased.

Operations

·                  Our wholly owned portfolio was 92.78% occupied and 95.46% leased, as of December 31, 2006.  Our entire portfolio was 92.58% occupied and 95.14% leased, as of December 31, 2006.

·                  Our same office property cash NOI for the quarter ended December 31, 2006 increased by 4.6%, or $2.0 million, as compared to the quarter ended December 31, 2005.  Our same office property cash NOI was positively impacted by an increase of $2.5 million in termination fees and negatively impacted by the major retenanting of 161,305 square feet in our Northern Virginia portfolio.  Our same office portfolio consists of 133 properties and represents 78.8% of our wholly owned portfolio, as of December 31, 2006.

·                  Weighted average lease term of our wholly owned portfolio is 5.0 years, as of December 31, 2006, with an average contractual rental rate (including tenant reimbursements of operating costs) of $20.90 per square foot.

·                  We renewed 180,658 square feet, or 34.34%, of our expiring office leases (based upon square footage) with an average committed cost of $5.49 per square foot during the fourth quarter.  For our renewed space only, we realized a decrease in total rent of (6.49%), as measured from the GAAP straight-line rent in effect preceding the renewal date, and a decrease of (13.19%) in total cash rent.  For our renewed and retenanted space of 291,295 square feet, we realized an increase in total rent of 1.03%, as measured from the GAAP straight-line rent in effect preceding the renewal date.  We incurred an average committed cost of $4.78 per square foot for our renewed and retenanted space in the fourth quarter.

·                  We recognized $3.4 million in lease termination fees, net of write-offs of related straight-line rents and accretion of intangible assets and liabilities (i.e., SFAS 141 revenues) in the quarter ended December 31, 2006, as compared to $1.1 million in the quarter ended December 31, 2005.

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Subsequent Events

·                  On January 9 and 10, 2007, we acquired 56 operating properties containing approximately 2.4 million square feet and 187 acres of land in the submarkets of White Marsh, Columbia, BWI, Towson and Hunt Valley, Maryland, for $362.5 million, plus approximately $1.4 million in transaction costs.  The 187 acres are developable into a minimum of two million square feet.  The total acquisition price was funded through $182.4 million in debt and cash, with the seller receiving $154.9 million in the form of common shares issued at a deemed value of $49.00 per share and $26.6 million in Series K convertible preferred shares with a fixed coupon of 5.6%.

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;

·                  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.

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

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the section entitled “Risk Factors” in Item 1 of our Annual Report on Form 10-K for the year ended December 31, 2005.

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Quarterly Selected Financial Summary Data

(Dollars in thousands)

		2006												2005
		December 31			September 30			June 30			March 31			December 31
Revenues from Real Estate Operations		$	81,467		$	78,136		$	71,549		$	70,167		$	64,948
Total Revenues		96,311			92,927			85,689			86,476			78,837
Combined Net Operating Income		55,636			53,331			50,680			50,112			46,938
EBITDA		51,095			65,379			47,614			49,301			43,386
Net Income		9,587			20,587			9,116			9,937			10,282
Preferred Share dividends		(3,790		)	(4,307		)	(3,653		)	(3,654		)	(3,654		)
Issuance costs associated with redeemed preferred shares		(2,067		)	(1,829		)	—			—			—
Net Income Available to Common Shareholders		$	3,730		$	14,451		$	5,463		$	6,283		$	6,628
Earnings per diluted share		$	0.08		$	0.33		$	0.13		$	0.15		$	0.16
Earnings per diluted share, as adjusted for issuance costs associated with redeemed preferred shares		$	0.13		$	0.37		$	0.13		$	0.15		$	0.16
Funds From Operations (FFO) - Diluted		$	25,077		$	24,329		$	25,181		$	24,350		$	23,804
FFO per diluted share		$	0.48		$	0.46		$	0.49		$	0.49		$	0.48
FFO per diluted share, as adjusted for issuance costs associated with redeemed preferred shares		$	0.52		$	0.50		$	0.49		$	0.49		$	0.48
Adjusted FFO - Diluted		$	17,695		$	19,173		$	18,946		$	18,865		$	15,892
Payout Ratios:
Earnings Payout		356.4		%	91.8		%	217.0		%	179.2		%	167.0		%
FFO - Diluted		63.5		%	65.4		%	56.4		%	56.0		%	57.0		%
AFFO - Diluted		89.9		%	83.0		%	75.0		%	72.3		%	85.3		%
Total Dividends/Distributions		$	19,869		$	20,380		$	18,028		$	17,453		$	17,274

 

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

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

		2006												2005
		December 31			September 30			June 30			March 31			December 31
Assets
Investment in real estate:
Land - operational		$	343,098		$	334,430		$	337,866		$	314,550		$	314,720
Land - development		153,436			155,232			158,096			126,738			117,434
Construction in progress		144,991			160,128			152,099			140,607			138,183
Buildings and improvements		1,689,359			1,611,425			1,613,341			1,501,426			1,491,253
Investment in and advances to unconsolidated real estate joint ventures		—			—			1,509			1,439			1,451
Less: accumulated depreciation		(219,574		)	(205,529		)	(197,395		)	(183,920		)	(174,935		)
Net investment in real estate		2,111,310			2,055,686			2,065,516			1,900,840			1,888,106
Cash and cash equivalents		7,923			10,810			5,748			20,169			10,784
Restricted cash		52,856			51,784			21,073			23,793			21,476
Accounts receivable, net		32,649			26,778			15,446			16,729			15,606
Deferred rent receivable		41,643			39,033			36,638			34,247			32,579
Deferred charges, net		43,710			40,091			34,802			33,731			35,046
Intangible assets on real estate acquisitions, net		87,325			92,061			100,132			85,699			90,984
Prepaid and other assets		48,467			39,679			28,930			27,557			35,178
Fair value of derivatives		—			—			833			110			—
Total assets		$	2,425,883		$	2,355,922		$	2,309,118		$	2,142,875		$	2,129,759
Liabilities and shareholders’ equity
Liabilities:
Mortgage and other loans payable		$	1,298,537		$	1,206,682		$	1,433,718		$	1,360,638		$	1,348,351
3.5% Exchangeable senior notes		200,000			200,000			—			—			—
Accounts payable and accrued expenses		67,403			55,487			46,040			42,792			41,693
Rents received in advance and security deposits		27,306			20,842			18,124			16,394			14,774
Deferred revenue associated with acquired operating leases		11,120			12,074			13,906			11,721			12,707
Distributions in excess of investment in unconsolidated real estate joint ventures		3,614			3,103			3,067			3,010			3,081
Dividends and distributions payable		19,164			19,810			17,450			16,878			16,703
Fair value of derivatives		308			473			—			—			—
Other liabilities		7,941			5,526			5,135			5,314			4,727
Total liabilities		1,635,393			1,523,997			1,537,440			1,456,747			1,442,036
Minority interests:
Preferred units in the Operating Partnership		8,800			8,800			8,800			8,800			8,800
Common units in the Operating Partnership		104,934			107,212			105,452			92,903			95,014
Other consolidated real estate joint ventures		2,453			1,760			1,778			1,190			1,396
Total minority interests		116,187			117,772			116,030			102,893			105,210
Commitments and contingencies		—			—			—			—			—
Shareholders’ equity:
Preferred Shares ($0.01 par value; 15,000,000 authorized)		76			90			67			67			67
Common Shares of beneficial interest ($0.01 par value; 75,000,000 authorized, 42,897,639 shares issued as of December 31, 2006)		429			425			421			400			399
Additional paid-in capital		758,032			790,525			733,996			655,818			657,339
Cumulative distributions in excess of net income		(83,541		)	(76,046		)	(79,062		)	(72,670		)	(67,697		)
Value of unearned restricted common share grants		—			—			—			—			(7,113		)
Accumulated other comprehensive (loss) gain		(693		)	(841		)	226			(380		)	(482		)
Total shareholders’ equity		674,303			714,153			655,648			583,235			582,513
Total shareholders’ equity and minority interests		790,490			831,925			771,678			686,128			687,723
Total liabilities and shareholders’ equity		$	2,425,883		$	2,355,922		$	2,309,118		$	2,142,875		$	2,129,759

 

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Quarterly Consolidated Statements of Operations

(Dollars and units in thousands)

		2006												2005
		December 31			September 30			June 30			March 31			December 31
Revenues
Rental revenue		$	70,327		$	66,550		$	62,344		$	61,272		$	56,203
Tenant recoveries and other real estate operations revenue		11,140			11,586			9,205			8,895			8,745
Construction contract revenues		12,263			13,219			12,156			14,544			12,708
Other service operations revenues		2,581			1,572			1,984			1,765			1,181
Total Revenues		96,311			92,927			85,689			86,476			78,837
Expenses
Property operating		25,806			25,430			21,914			21,354			19,313
Depreciation and amortization associated with real estate operations		20,081			21,680			18,189			18,762			15,106
Construction contract expenses		11,827			12,465			11,643			14,026			12,341
Other service operations expenses		2,393			1,495			1,818			1,678			1,254
General and administrative expenses		5,041			4,226			3,706			3,963			3,774
Total Operating Expenses		65,148			65,296			57,270			59,783			51,788
Operating Income		31,163			27,631			28,419			26,693			27,049
Interest expense		(18,885		)	(17,974		)	(17,298		)	(17,221		)	(14,912		)
Amortization of deferred financing costs		(948		)	(736		)	(606		)	(557		)	(729		)
Income from continuing operations before equity in income (loss) of unconsolidated entities, income taxes and minority interests		11,330			8,921			10,515			8,915			11,408
Equity in income (loss) of unconsolidated entities		(52		)	15			(32		)	(23		)	(88		)
Income tax (expense) benefit		(264		)	(202		)	(206		)	(215		)	265
Income from continuing operations before minority interests		11,014			8,734			10,277			8,677			11,585
Minority interest in income from continuing operations
Common units in the Operating Partnership		(1,221		)	(808		)	(1,138		)	(893		)	(1,454		)
Preferred units in the Operating Partnership		(165		)	(165		)	(165		)	(165		)	(165		)
Other consolidated entities		40			38			25			33			27
Income from continuing operations		9,668			7,799			8,999			7,652			9,993
(Loss) income from discontinued operations, net of minority interests		(81		)	12,191			92			2,175			268
Income before gain on sales of real estate		9,587			19,990			9,091			9,827			10,261
Gain on sales of real estate, net of minority interests		—			597			25			110			21
Net Income		9,587			20,587			9,116			9,937			10,282
Preferred share dividends		(3,790		)	(4,307		)	(3,653		)	(3,654		)	(3,654		)
Issuance costs associated with redeemed preferred shares		(2,067		)	(1,829		)	—			—			—
Net Income Available to Common Shareholders		$	3,730		$	14,451		$	5,463		$	6,283		$	6,628
For EPS Computations:
Numerator for Dilutive EPS		$	3,730		$	14,451		$	5,463		$	6,283		$	6,628
Denominator:
Weighted Average Common Shares - Basic		42,439			42,197			41,510			39,668			39,297
Dilutive effect of share-based compensation awards		1,641			1,649			1,721			1,842			1,678
Weighted Average Common Shares - Diluted		44,080			43,846			43,231			41,510			40,975
Earnings per diluted share		$	0.08		$	0.33		$	0.13		$	0.15		$	0.16

 

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Quarterly Consolidated Reconciliations of Funds From Operations (FFO), Adjusted Funds From

Operations (AFFO) and Earnings per diluted share, as adjusted

(Dollars in thousands)

		2006												2005
		December 31			September 30			June 30			March 31			December 31
Net Income		$	9,587		$	20,587		$	9,116		$	9,937		$	10,282
Issuance costs associated with redeemed preferred shares (1)		(2,067		)	(1,829		)	—			—			—
Combined real estate related depreciation and other amortization		19,768			21,305			18,490			19,068			15,410
Depreciation and amortization of unconsolidated real estate entities		345			362			109			94			182
Depreciation and amortization allocable to minority interests in other consol. entities		(41		)	(36		)	(44		)	(42		)	(29		)
(Gain)/loss on sales of real estate properties, excluding development		71			(15,262		)	6			(2,459		)	(14		)
Funds From Operations (FFO)		27,663			25,127			27,677			26,598			25,831
Minority interest - common units, gross		1,204			3,509			1,157			1,406			1,520
Preferred share dividends		(3,790		)	(4,307		)	(3,653		)	(3,654		)	(3,654		)
Funds From Operations (FFO) - Basic		25,077			24,329			25,181			24,350			23,697
Restricted share dividends		—			—			—			—			107
Funds From Operations (FFO) -Diluted		$	25,077		$	24,329		$	25,181		$	24,350		$	23,804
Straight line rent adjustments		(2,484		)	(2,819		)	(2,315		)	(2,122		)	(2,292		)
Amortization of deferred market rental revenue		(578		)	(276		)	(495		)	(555		)	(394		)
Issuance costs associated with redeemed preferred shares (1)		2,067			1,829			—			—			—
Recurring capital expenditures		(6,387		)	(3,890		)	(3,425		)	(2,808		)	(5,226		)
Adjusted Funds From Operations (AFFO) - Diluted		$	17,695		$	19,173		$	18,946		$	18,865		$	15,892
Preferred dividends - redeemable non-convertible		3,790			4,307			3,653			3,654			3,654
Preferred distributions		165			165			165			165			165
Common distributions		2,622			2,643			2,357			2,374			2,386
Common dividends		13,292			13,265			11,853			11,260			11,069
Total Dividends/Distributions		$	19,869		$	20,380		$	18,028		$	17,453		$	17,274
Denominator for earnings per share - Diluted		44,080			43,846			43,231			41,510			40,975
Additional share-based compensation awards		—			—			—			—			224
Common units		8,495			8,562			8,465			8,520			8,688
Denominator for funds from operations per share - Diluted		52,575			52,408			51,696			50,030			49,887
Funds From Operations (FFO) - Diluted		$	25,077		$	24,329		$	25,181		$	24,350		$	23,804
Issuance costs associated with redeemed preferred shares (1)		2,067			1,829			n/a			n/a			n/a
FFO - Diluted , as adjusted for issuance costs associated with redeemed preferred shares		$	27,144		$	26,158		$	25,181		$	24,350		$	23,804
Numerator for Dilutive EPS Computation		$	3,730		$	14,451		$	5,463		$	6,283		$	6,628
Issuance costs associated with redeemed preferred shares (1)		2,067			1,829			n/a			n/a			n/a
Numerator for Dilutive EPS Computation, as adjusted		$	5,797		$	16,280		$	5,463		$	6,283		$	6,628
Earnings per diluted share, as adjusted for issuance costs associated with redeemed preferred shares		$	0.13		$	0.37		$	0.13		$	0.15		$	0.16

 

(1)             Earnings per diluted share and FFO per diluted share have been adjusted to exclude the issuance costs associated with our Series E and Series F redeemed preferred shares.

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