Exhibit 99.2

 

 

Supplemental Information

(Unaudited)

 

 

December 31, 2009

 

 

 

 

Corporate Office Properties Trust

Index to Supplemental Information (Unaudited)

December 31, 2009

 

	Page
Highlights and Discussion
Reporting Period Highlights — Periods Ended December 31, 2009	1
Forward-Looking Statements	4
Financial Statements
Selected Financial Summary Data	5
Quarterly Consolidated Balance Sheets	6
Consolidated Statements of Operations	7
Consolidated Reconciliations of Funds From Operations (FFO), Adjusted FFO (AFFO), Earnings Per Share (EPS)	8
Consolidated Reconciliations of Earnings Before Interest, income Taxes, Depreciation and Amortization (EBITDA), Net Operating Income (NOI), Discontinued Operations, Gains on Sales of Real Estate and Certain Non-GAAP Measures	9
Reconciliations of Non GAAP Measurements	10
Selected Financial Analyses
Real Estate Revenues from Continuing and Discontinued Operations and Net Operating Income by Geographic Region	11
Same Office Property Cash and GAAP Net Operating Income by Year to Date Period	12
Same Office Property Cash and GAAP Net Operating Income by Quarter	13
Quarterly Operating Ratios	14
Debt Analysis	15
Debt Maturity Schedule — December 31, 2009	16
Quarterly Equity Analysis	17
Quarterly Dividend Analysis	18
Investor Composition and Analyst Coverage	19
Portfolio Summary
Property Summary by Region — December 31, 2009 — Wholly Owned Properties	20
Property Summary by Region — December 31, 2009 — Joint Venture Properties	26
Property Occupancy Rates by Region by Quarter — Wholly Owned Properties	27
Property Occupancy Rates by Region by Quarter — Joint Venture Properties	28
Top Twenty Office Tenants of Wholly Owned Properties as of December 31, 2009	29
Average Occupancy Rates by Region for Same Office Properties for Quarter	30
Office Lease Expiration Analysis by Year for Wholly Owned Properties	31
Quarterly Office Renewal Analysis for Wholly Owned Properties as of December 31, 2009	32
Year to Date Wholly Owned Acquisition Summary	33
Development Summary as of December 31, 2009	34
Total Development Placed into Service as of December 31, 2009	36
Land Inventory as of December 31, 2009	37
Joint Venture Summary as of December 31, 2009	38

 

 

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

 

Corporate Office Properties Trust (COPT) (NYSE: OFC) is a specialty office real estate investment trust (REIT) that focuses primarily on strategic customer relationships and specialized tenant requirements in the U.S. Government, Defense Information Technology and Data sectors.  The Company acquires, develops, manages and leases properties that are typically concentrated in large office parks primarily located adjacent to government demand drivers and/or in growth corridors.  More information on COPT can be found at www.copt.com.

 

Reporting Period Highlights — Year Ended December 31, 2009

 

Financial Results

·                  We reported net income attributable to COPT common shareholders of $40.2 million, or $0.70 per diluted share, for the year ended December 31, 2009 as compared to $37.9 million, or $0.76 per diluted share, for the year ended December 31, 2008, representing a decrease of 8% per share.

·                  We reported FFO, excluding the effect of operating property acquisition costs and gain on early extinguishment of debt, of $173.3 million, or $2.49 per diluted share, for the year ended December 31, 2009 as compared to $154.0 million, or $2.38 per diluted share, for the year ended December 31, 2008, representing an increase of 5% per share.  Without these adjustments, we reported FFO of $171.3 million, or $2.46 per diluted share, for the year ended December 31, 2009 as compared to $162.1 million, or $2.52 per diluted share, for the year ended December 31, 2008.

·                  We reported diluted AFFO available to common share and common unit holders of $117.9 million for the year ended December 31, 2009 as compared to $100.1 million for the year ended December 31, 2008, representing an increase of 18%.

·                  Our diluted FFO payout ratio was 63% for the year ended December 31, 2009 as compared to 57% for the year ended December 31, 2008.  Our diluted AFFO payout ratio was 81% for the year ended December 31, 2009 as compared to 82% for the year ended December 31, 2008.

 

Acquisitions

·                  In 2009, we completed the following acquisitions:

·                  12515 Academy Ridge, a recently constructed 61,000 square foot operating property located in Colorado Springs, Colorado that we believe can also support up to 90,000 additional developable square feet for $12.5 million on June 26, 2009.  The operating property is 100% leased for a 12 year term to Real Time Logic, Inc., a wholly owned subsidiary of Integral Systems, Inc.;

·                  a 474,000 square foot office tower, a parking lot, a utility distribution center, four waterfront lots and riparian rights, all of which are part of the Canton Crossing planned unit development in Baltimore, Maryland for $123.2 million on October 26, 2009.  The office tower was 90% leased on the date of acquisition; and

·                  1550 West Nursery Road, a newly constructed 162,000 square foot office property in Linthicum, Maryland, and a 0.9 acre adjacent land parcel that we believe can support a retail or bank pad for $38.0 million on October 28, 2009.  The operating property is 100% leased to Northrop Grumman Corporation for a ten-year term.

 

Development Activities

·                  We placed into service an aggregate of 759,000 square feet in newly-constructed space in ten properties during the year ended December 31, 2009.  The space placed in service in these properties as of December 31, 2009 was 65% leased.

 

1

 

Operations

·                  Same office property cash NOI for the year ended December 31, 2009, including gross lease termination fees, increased by $11.9 million, or 5%, as compared to the year ended December 31, 2008.  Excluding gross lease termination fees, our same office property cash NOI increased $6.9 million, or 3%, as compared to the year ended December 31, 2008.  Our same office portfolio for the year consists of 220 properties and represents 83% of the rentable square footage of our consolidated properties as of December 31, 2009.

·                  We renewed 1,759,000 square feet, or 73%, of our expiring office leases for the year ended December 31, 2009 (based upon square footage), with an average committed cost of $7.76 per square foot.

·                  We recognized $4.6 million in lease termination fees for the year ended December 31, 2009, net of write-offs of related straight-line rents and accretion of intangible assets and liabilities, as compared to $481,000 in the year ended December 31, 2008.

 

Financing Activity and Capital Transactions

·                  In April 2009, we issued approximately 3.0 million common shares in an underwritten public offering made in conjunction with our inclusion in the S&P MidCap 400 Index effective April 1, 2009.  The shares were issued at a public offering price of $24.35 per share for net proceeds of $72.1 million after underwriting discounts but before offering expenses.  The net proceeds were used to pay down our Revolving Credit Facility and for general corporate purposes.

·                  In 2009, we closed on the following borrowings, using the proceeds primarily to repay maturing debt and pay down our revolving credit facilities:

·                  a $23.4 million joint venture construction loan in May 2009 with a two-year term and the right to extend for an additional year that bears interest at LIBOR plus 2.75%;

·                  a $50.0 million secured loan in June 2009 with a five-year term that bears interest at LIBOR plus 3.0% (subject to a LIBOR floor of 2.5%);

·                  a $90.0 million secured loan in July 2009 with a five-year term that bears interest at 7.25%; and

·                  a $185.0 million secured loan in September 2009 with a seven-year term that bears interest at 7.25%.

·                  For the year ended December 31, 2009, we achieved an EBITDA interest coverage ratio of 3.27x and an EBITDA fixed charge coverage ratio of 2.69x.

 

Reporting Period Highlights — Quarter Ended December 31, 2009

 

Financial Results:

·                  We reported net income attributable to COPT common shareholders of $5.1 million, or $0.08 per diluted share, for the quarter ended December 31, 2009 as compared to $14.8 million, or $0.28 per diluted share, for the quarter ended December 31, 2008, representing a decrease of 71% per share.

·                  We reported FFO, excluding the effect of operating property acquisition costs and gain on early extinguishment of debt, of $39.1 million, or $0.55 per diluted share, for the quarter ended December 31, 2009 as compared to $40.8 million, or $0.61 per diluted share, for the quarter ended December 31, 2008, representing a decrease of 10% per share.  Without these adjustments, we reported FFO of $37.2 million, or $0.52 per diluted share, for the quarter ended December 31, 2009 as compared to $48.9 million, or $0.74 per diluted share, for the quarter ended December 31, 2008.

·                  We reported diluted AFFO available to common share and common unit holders of $20.5 million for the quarter ended December 31, 2009 as compared to $25.6 million for the quarter ended December 31, 2008, representing a decrease of 20%.

 

Operations

·                  Our wholly owned portfolio was 90.7% occupied and 91.3% leased as of December 31, 2009.  Our entire portfolio was 89.6% occupied and 90.2% leased as of December 31, 2009.

·                  The weighted average remaining lease term of our wholly owned portfolio was 4.8 years as of December 31, 2009, with an average contractual rental rate (including tenant reimbursements of operating costs) of $24.63 per square foot.

·                  Same office property cash NOI, including gross lease termination fees, for the quarter ended December 31, 2009 increased by $1.6 million, or 3%, as compared to the quarter ended December 31, 2008.  Excluding gross lease termination fees, our same office property cash NOI increased $1.5 million, or

 

2

 

2%, as compared to the quarter ended December 31, 2008.  Our same office portfolio for the quarter consists of 232 properties and represents 89% of the rentable square footage of our consolidated properties as of December 31, 2009.

·                  We renewed 408,000 square feet, or 79%, of our expiring office leases (based upon square footage), with an average committed cost of $13.12 per square foot.  For our renewed space during the quarter ended December 31, 2009, we realized an increase of 5% in total rent, as measured from the GAAP straight-line rent in effect preceding the renewal date, and a decrease of 4% in total cash rent.  For our renewed and retenanted space of 509,000 square feet during the quarter ended December 31, 2009, we realized an increase of 3% in total rent, as measured from the GAAP straight-line rent in effect preceding the renewal date, and a decrease of 6% in total cash rent.  The average committed cost for our space renewed and retenanted during the quarter ended December 31, 2009 totaled $14.14 per square foot.

·                  We recognized $236,000 in lease termination fees for the quarter ended December 31, 2009, net of write-offs of related straight-line rents and accretion of intangible assets and liabilities, as compared to $183,000 in the quarter ended December 31, 2008.

 

Financing Activity and Capital Transactions

·                  As of December 31, 2009, our ratio of debt to total market capitalization was 45% and our ratio of debt to undepreciated book value of real estate assets was 58%.

·                  For the quarter ended December 31, 2009, we achieved an EBITDA interest coverage ratio of 2.75x and an EBITDA fixed charge coverage ratio of 2.31x.

·                  As of December 31, 2009, 75.2% of our debt had fixed interest rates, including the effect of interest rate swaps in effect.

 

Development Activities

·                  During the quarter ended December 31, 2009, we placed into service 100% of our fully leased 123,000 square feet property at 5850 University Research Court in College Park, Maryland.

 

Subsequent Events

·                  Subsequent to December 31, 2009, we completed leasing on 100% of the following properties that were under construction at period end:

·                  324 Sentinel Way, a 125,000 square foot property in Annapolis Junction, Maryland, for a ten year term; and

·                  8000 and 8030 Potranco Road, two properties in San Anonio, Texas totaling 250,000 square feet, each for ten year terms.

 

3

 

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 the section entitled “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2008.

 

4

 

Selected Financial Summary Data

(dollars in thousands, except per share data)

 

		Three Months Ended															Year Ended
		12/31/09			9/30/09			6/30/09			3/31/09			12/31/08			12/31/09			12/31/08
Real estate revenues from continuing operations		$	108,850		$	104,243		$	105,117		$	106,222		$	102,961		$	424,432		$	397,220
Total revenues from continuing operations		$	178,403		$	199,564		$	208,441		$	181,111		$	168,306		$	767,519		$	585,605
NOI		$	66,822		$	66,260		$	68,556		$	67,811		$	66,813		$	269,449		$	258,642
EBITDA		$	61,056		$	63,918		$	66,062		$	64,690		$	70,664		$	255,726		$	253,984
Net income		$	9,546		$	15,536		$	18,051		$	18,166		$	21,437		$	61,299		$	61,316
Net income attributable to noncontrolling interests		(458		)	(1,081		)	(1,412		)	(2,019		)	(2,594		)	(4,970		)	(7,351		)
Preferred share dividends		(4,026		)	(4,025		)	(4,026		)	(4,025		)	(4,026		)	(16,102		)	(16,102		)
Net income attributable to to COPT common shareholders		$	5,062		$	10,430		$	12,613		$	12,122		$	14,817		$	40,227		$	37,863
Diluted EPS		$	0.08		$	0.18		$	0.22		$	0.23		$	0.28		$	0.70		$	0.76
FFO		$	37,180		$	42,408		$	46,920		$	44,817		$	48,886		$	171,325		$	162,106
FFO, excluding operating property acquisition costs and gain on early extinguishment of debt		$	39,147		$	42,408		$	46,920		$	44,817		$	40,785		$	173,292		$	154,005
Basic and diluted FFO available to common share and common unit holders		$	32,586		$	37,772		$	42,197		$	40,071		$	44,176		$	152,626		$	143,592
Diluted FFO per share		$	0.52		$	0.60		$	0.67		$	0.67		$	0.74		$	2.46		$	2.52
Diluted FFO per share, excluding operating property acquisition costs and gain on early extinguishment of debt		$	0.55		$	0.60		$	0.67		$	0.67		$	0.61		$	2.49		$	2.38
Diluted AFFO available to common share and common unit holders (“diluted AFFO”)		$	20,455		$	27,846		$	36,203		$	33,366		$	25,638		$	117,870		$	100,147
Payout ratios:
Earnings payout ratio		452.1		%	219.1		%	171.2		%	167.2		%	130.1		%	217.8		%	187.1		%
Diluted FFO payout ratio		76.3		%	65.8		%	55.7		%	55.8		%	50.3		%	62.6		%	57.3		%
Diluted AFFO payout ratio		121.6		%	89.2		%	64.9		%	67.0		%	86.7		%	81.1		%	82.2		%
Total dividends/distributions		$	29,063		$	29,036		$	27,682		$	26,539		$	26,420		$	112,320		$	99,108

 

5

 

Quarterly Consolidated Balance Sheets

(dollars in thousands)

 

		12/31/09			9/30/09			6/30/09			3/31/09			12/31/08
Assets
Properties, net
Operating properties		$	2,950,327		$	2,790,568		$	2,722,959		$	2,653,802		$	2,626,980
Land - development		231,809			214,147			219,775			222,242			220,863
Construction in progress		270,376			266,117			293,787			295,686			273,733
Less: accumulated depreciation		(422,612		)	(402,125		)	(382,385		)	(362,318		)	(343,110		)
Properties, net		3,029,900			2,868,707			2,854,136			2,809,412			2,778,466
Cash and cash equivalents		8,262			9,981			11,931			12,702			6,775
Restricted cash and marketable securities		16,549			16,779			17,879			15,408			13,745
Accounts receivable, net		17,459			14,004			13,776			12,737			13,684
Deferred rent receivable		71,805			69,816			67,137			65,346			64,131
Intangible assets on real estate acquisitions, net		100,671			75,506			81,090			85,774			91,848
Deferred charges, net		53,421			52,551			48,812			47,350			51,801
Prepaid and other assets		81,955			123,303			103,914			88,561			93,789
Total assets		$	3,380,022		$	3,230,647		$	3,198,675		$	3,137,290		$	3,114,239
Liabilities and shareholders’ equity
Liabilities:
Mortgage and other loans payable, net		$	1,897,694		$	1,742,604		$	1,677,351		$	1,715,144		$	1,704,123
3.5% Exchangeable Senior Notes, net		156,147			155,248			154,362			153,488			152,628
Accounts payable and accrued expenses		116,455			113,416			142,734			111,135			93,625
Rents received in advance and security deposits		32,177			33,322			29,936			31,524			30,464
Dividends and distributions payable		28,440			28,411			27,057			25,891			25,794
Deferred revenue associated with operating leases		14,938			8,044			8,926			9,880			10,816
Distributions in excess of investment in unconsolidated real estate joint ventures		5,088			4,966			4,873			4,809			4,770
Other liabilities		8,451			8,453			7,029			8,793			9,596
Total liabilities		2,259,390			2,094,464			2,052,268			2,060,664			2,031,816
Commitments and contingencies		—			—			—			—			—
COPT’s shareholders’ equity:
Preferred shares (aggregate liquidation preference of $216,333)		81			81			81			81			81
Common shares		583			583			580			544			518
Additional paid-in capital		1,238,704			1,234,910			1,229,931			1,148,424			1,112,734
Cumulative distributions in excess of net income		(209,941		)	(192,119		)	(179,698		)	(170,714		)	(162,572		)
Accumulated other comprehensive loss		(1,907		)	(2,291		)	(1,176		)	(3,256		)	(4,749		)
Total COPT’s shareholders’ equity		1,027,520			1,041,164			1,049,718			975,079			946,012
Noncontrolling interests
Common units in the Operating Partnership		73,892			75,657			76,873			81,793			117,356
Preferred units in the Operating Partnership		8,800			8,800			8,800			8,800			8,800
Other consolidated real estate joint ventures		10,420			10,562			11,016			10,954			10,255
Total noncontrolling interests		93,112			95,019			96,689			101,547			136,411
Total equity		1,120,632			1,136,183			1,146,407			1,076,626			1,082,423
Total liabilities and equity		$	3,380,022		$	3,230,647		$	3,198,675		$	3,137,290		$	3,114,239

 

6

 

Consolidated Statements of Operations

(in thousands, except per share data)

 

		Three Months Ended															Year Ended
		12/31/09			9/30/09			6/30/09			3/31/09			12/31/08			12/31/09			12/31/08
Revenues
Rental revenue		$	89,451		$	87,078		$	87,754		$	88,950		$	86,446		$	353,233		$	334,654
Tenant recoveries and other real estate operations revenue		19,399			17,165			17,363			17,272			16,515			71,199			62,566
Construction contract and other service revenues		69,553			95,321			103,324			74,889			65,345			343,087			188,385
Total revenues		178,403			199,564			208,441			181,111			168,306			767,519			585,605
Expenses
Property operating expenses		42,604			38,559			37,135			39,016			36,766			157,314			141,052
Depreciation and amortization associated with real estate operations		27,281			26,518			28,513			26,297			27,094			108,609			101,937
Construction contract and other service expenses		68,230			93,805			101,161			73,323			64,052			336,519			184,142
General and administrative expenses		5,965			5,898			5,834			5,543			6,488			23,240			24,096
Business development		2,149			458			446			646			769			3,699			1,233
Total operating expenses		146,229			165,238			173,089			144,825			135,169			629,381			452,460
Operating income		32,174			34,326			35,352			36,286			33,137			138,138			133,145
Interest expense		(23,278		)	(20,936		)	(18,625		)	(19,369		)	(21,201		)	(82,208		)	(86,414		)
Interest and other income		215			2,619			1,252			1,078			1,146			5,164			2,070
Gain on early extinguishment of debt		—			—			—			—			8,101			—			8,101
Income from continuing operations before equity in income (loss) of unconsolidated entities and income taxes		9,111			16,009			17,979			17,995			21,183			61,094			56,902
Equity in income (loss) of unconsolidated entities		134			(758		)	(202		)	(115		)	20			(941		)	(147		)
Income tax expense		(27		)	(47		)	(52		)	(70		)	(99		)	(196		)	(201		)
Income from continuing operations		9,218			15,204			17,725			17,810			21,104			59,957			56,554
Discontinued operations, net of income taxes		328			332			326			356			333			1,342			3,658
Income before gain on sales of real estate		9,546			15,536			18,051			18,166			21,437			61,299			60,212
Gain on sales of real estate, net of income taxes		—			—			—			—			—			—			1,104
Net income		9,546			15,536			18,051			18,166			21,437			61,299			61,316
Less net income attributable to noncontrolling interests
Common units in the Operating Partnership		(463		)	(956		)	(1,272		)	(1,804		)	(2,389		)	(4,495		)	(6,519		)
Preferred units in the Operating Partnership		(165		)	(165		)	(165		)	(165		)	(165		)	(660		)	(660		)
Other consolidated entities		170			40			25			(50		)	(40		)	185			(172		)
Net income attributable to COPT		9,088			14,455			16,639			16,147			18,843			56,329			53,965
Preferred share dividends		(4,026		)	(4,025		)	(4,026		)	(4,025		)	(4,026		)	(16,102		)	(16,102		)
Net income attributable to COPT common shareholders		$	5,062		$	10,430		$	12,613		$	12,122		$	14,817		$	40,227		$	37,863
For diluted EPS computations:
Numerator for diluted EPS
Net income available to common shareholders		$	5,062		$	10,430		$	12,613		$	12,122		$	14,817		$	40,227		$	37,863
Amount allocable to restricted shares		(247		)	(253		)	(242		)	(268		)	(200		)	(1,010		)	(728		)
Numerator for diluted EPS		$	4,815		$	10,177		$	12,371		$	11,854		$	14,617		$	39,217		$	37,135
Denominator:
Weighted average common shares - basic		57,604			57,470			56,637			51,930			51,120			55,930			48,132
Dilutive effect of stock option awards		413			485			546			498			567			477			688
Weighted average common shares - diluted		58,017			57,955			57,183			52,428			51,687			56,407			48,820
Diluted EPS		$	0.08		$	0.18		$	0.22		$	0.23		$	0.28		$	0.70		$	0.76

 

7

 

Consolidated Reconciliations of FFO, AFFO, EPS

(in thousands, except per share data)

 

		Three Months Ended															Year Ended
		12/31/09			9/30/09			6/30/09			3/31/09			12/31/08			12/31/09			12/31/08
Net income		$	9,546		$	15,536		$	18,051		$	18,166		$	21,437		$	61,299		$	61,316
Real estate-related depreciation and amortization		27,475			26,712			28,708			26,491			27,290			109,386			102,772
Depreciation and amortization on unconsolidated real estate entities		159			160			161			160			159			640			648
Gain on sales of operating properties, net of income taxes		—			—			—			—			—			—			(2,630		)
FFO		37,180			42,408			46,920			44,817			48,886			171,325			162,106
Noncontrolling interests - preferred units in the Operating Partnership		(165		)	(165		)	(165		)	(165		)	(165		)	(660		)	(660		)
Noncontrolling interests - other consolidated entities		170			40			25			(50		)	(40		)	185			(172		)
Preferred share dividends		(4,026		)	(4,025		)	(4,026		)	(4,025		)	(4,026		)	(16,102		)	(16,102		)
Depreciation and amortization allocable to noncontrolling interests in other consolidated entities		(242		)	(91		)	(107		)	(53		)	(72		)	(493		)	(270		)
Basic and diluted FFO allocable to restricted shares		(331		)	(395		)	(450		)	(453		)	(407		)	(1,629		)	(1,310		)
Basic and diluted FFO available to common share and common unit holders		32,586			37,772			42,197			40,071			44,176			152,626			143,592
Straight line rent adjustments		1,676			(2,665		)	(1,718		)	(1,140		)	(1,927		)	(3,847		)	(10,211		)
Amortization of deferred market rental revenue		(679		)	(451		)	(616		)	(380		)	(606		)	(2,126		)	(2,064		)
Recurring capital expenditures		(13,900		)	(7,572		)	(4,383		)	(5,883		)	(8,682		)	(31,738		)	(26,293		)
Amortization of discount on Exchangeable Senior Notes, net of amounts capitalized		772			762			723			698			778			2,955			3,224
Gain on early extinguishment of debt		—			—			—			—			(8,101		)	—			(8,101		)
Diluted AFFO available to common share and common unit holders		$	20,455		$	27,846		$	36,203		$	33,366		$	25,638		$	117,870		$	100,147
Preferred dividends		$	4,026		$	4,025		$	4,026		$	4,025		$	4,026		$	16,102		$	16,102
Preferred distributions		165			165			165			165			165			660			660
Common distributions		1,988			1,995			1,894			2,085			2,946			7,962			11,510
Common dividends		22,884			22,851			21,597			20,264			19,283			87,596			70,836
Total dividends/distributions		$	29,063		$	29,036		$	27,682		$	26,539		$	26,420		$	112,320		$	99,108
Denominator for diluted EPS		58,017			57,955			57,183			52,428			51,687			56,407			48,820
Common units		5,078			5,084			5,483			7,253			7,993			5,717			8,107
Denominator for diluted FFO per share		63,095			63,039			62,666			59,681			59,680			62,124			56,927
FFO		37,180			42,408			46,920			44,817			48,886			171,325			162,106
Gain on early extinguishment of debt		—			—			—			—			(8,101		)	—			(8,101		)
Operating property acquisition costs		1,967			—			—			—			—			1,967			—
FFO, excluding operating property acquisition costs and gain on early extinguishment of debt		39,147			42,408			46,920			44,817			40,785			173,292			154,005
Diluted FFO available to common share and common unit holders		$	32,586		$	37,772		$	42,197		$	40,071		$	44,176		$	152,626		$	143,592
Gain on early extinguishment of debt		—			—			—			—			(8,101		)	—			(8,101		)
Operating property acquisition costs		1,967			—			—			—			—			1,967			—
Gain on early extinguishment of debt allocable to restricted shares		—			—			—			—			75			—			75
Diluted FFO available to common share and common unit holders, excluding operating property acquisition costs and gain on early extinguishment of debt		$	34,553		$	37,772		$	42,197		$	40,071		$	36,150		$	154,593		$	135,566
Diluted FFO per share, excluding operating property acquisition costs and gain on early extinguishment of debt		$	0.55		$	0.60		$	0.67		$	0.67		$	0.61		$	2.49		$	2.38

 

8