Exhibit 99.2

 

Supplemental Information

(Unaudited)

 

 

June 30, 2010

 

 

 



 

Corporate Office Properties Trust

Index to Supplemental Information (Unaudited)

June 30, 2010

 

 

Page

Highlights and Discussion

 

Reporting Period Highlights — Periods Ended June 30, 2010

1

Forward-Looking Statements

3

 

 

Financial Statements

 

Selected Financial Summary Data

4

Quarterly Consolidated Balance Sheets

5

Consolidated Statements of Operations

6

Consolidated Reconciliations of Funds From Operations (FFO), Adjusted FFO (AFFO), Earnings Per Share (EPS)

7

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

8

Reconciliations of Non GAAP Measurements

9

 

 

Selected Financial Analyses

 

Real Estate Revenues from Continuing and Discontinued Operations and NOI by Geographic Region

10

Same Office Property Cash and GAAP NOI

11

Operating Ratios

12

Debt Analysis

13

Debt Maturity Schedule — June 30, 2010

14

Quarterly Equity Analysis

15

Dividend Analysis

16

Investor Composition and Analyst Coverage

17

 

 

Portfolio Summary

 

Property Summary by Region — June 30, 2010 — Wholly Owned Properties

18

Property Summary by Region — June 30, 2010 — Joint Venture Properties

24

Property Occupancy Rates by Region by Quarter — Wholly Owned Properties

25

Property Occupancy Rates by Region by Quarter — Joint Venture Properties

26

Top Twenty Office Tenants of Wholly Owned Properties as of June 30, 2010

27

Average Occupancy Rates by Region for Same Office Properties for Quarter

28

Office Lease Expiration Analysis by Year for Wholly Owned Properties

29

Office Renewal Analysis for Wholly Owned Properties for Period Ended June 30, 2010

30

Development Summary as of June 30, 2010

31

Construction Placed into Service as of June 30, 2010

33

Construction Leasing as of June 30, 2010

34

Land Controlled as of June 30, 2010

35

Joint Venture Summary as of June 30, 2010

36

 



 

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 demographically strong markets possessing growth opportunities.  More information on COPT can be found at www.copt.com.

 

Reporting Period Highlights — Periods Ended June 30, 2010

 

Financial Results

For the Six Month Period:

·                  FFO was $77.0 million, or $1.06 per diluted share, for the six months ended June 30, 2010 as compared to $91.7 million, or $1.34 per diluted share, for the six months ended June 30, 2009, a decrease of 21% per share.  This decrease in FFO was due primarily to a $10.5 million increase in interest expense, higher net costs for snow removal in the first quarter, lower termination fees and lower net operating income from two properties in Greater Philadelphia and a warehouse in Columbia, Maryland that we expect to redevelop.

·                  Net income attributable to COPT common shareholders was $10.4 million, or $0.17 per diluted share, for the six months ended June 30, 2010 as compared to $24.7 million, or $0.44 per diluted share, for the six months ended June 30, 2009, a decrease of 61% per share.

·                  Diluted AFFO available to common share and common unit holders was $51.9 million for the six months ended June 30, 2010 as compared to $69.6 million for the six months ended June 30, 2009, a decrease of 25%.

·                  Our diluted FFO payout ratio was 75% for the six months ended June 30, 2010 as compared to 56% for the six months ended June 30, 2009.  Our diluted AFFO payout ratio was 96% for the six months ended June 30, 2010 as compared to 66% for the six months ended June 30, 2009.

 

For the Quarter Period:

·                  FFO, excluding the effect of operating property acquisition costs was $39.1 million, or $0.54 per diluted share, for the quarter ended June 30, 2010 as compared to $46.9 million, or $0.67 per diluted share, for the quarter ended June 30, 2009, representing a decrease of 19% per share.  Including these costs, FFO was $38.9 million, or $0.53 per diluted share, for the quarter ended June 30, 2010.  This decrease in FFO was due primarily to a $7.2 million increase in interest expense and a $1.5 million decrease in net construction fees. NOI increased due primarily to development placed in service and acquisitions that occurred late in 2009, partially offset by a $2.3 million decrease in NOI from two properties in Greater Philadelphia and a warehouse in Columbia, Maryland that we expect to redevelop.

·                  Net income attributable to COPT common shareholders was $4.4 million, or $0.07 per diluted share, for the quarter ended June 30, 2010 as compared to $12.6 million, or $0.22 per diluted share, for the quarter ended June 30, 2009, a decrease of 68% per share.

·                  Diluted AFFO available to common share and common unit holders was $26.7 million for the quarter ended June 30, 2010 as compared to $36.2 million for the quarter ended June 30, 2009, a decrease of 26%.

·                  Our diluted FFO payout ratio was 74% for the quarter ended June 30, 2010 as compared to 56% for the quarter ended June 30, 2009.  Our diluted AFFO payout ratio was 94% for the quarter ended June 30, 2010 as compared to 65% for the quarter ended June 30, 2009.

 

Acquisition

·                  On June 28, 2010, we acquired 1550 Westbranch Drive, a 152,000 square feet office property in McLean, Virginia that is 100% leased to The MITRE Corporation, for $40.0 million.

 

1



 

Development Activities

·                  During the six months ended June 30, 2010, we entered into a new submarket by obtaining control of 15 acres developable into up to 980,000 square feet in Springfield, Virginia.  The property, which is known as Patriot Ridge, is located adjacent to the new National Geospatial Intelligence Agency (NGA) headquarters currently under construction. The NGA will occupy a 2.4 million square foot facility at Fort Belvoir, a government demand driver that we expect to benefit from mandates by the Base Realignment and Closure Commission.

·                  We placed into service an aggregate of 255,000 square feet in newly-constructed space in four properties during the quarter ended June 30, 2010.  These properties were 56% leased as of June 30, 2010.

·                  We completed leasing on an aggregate of 545,000 square feet in newly-constructed space during the six months ended June 30, 2010, including an aggregate of 90,000 square feet in three properties during the quarter ended June 30, 2010.

 

Operations

·                  Our wholly owned portfolio was 88.3% occupied and 89.3% leased as of June 30, 2010.  Our entire portfolio was 87.3% occupied and 88.3% leased as of June 30, 2010.

·                  The weighted average remaining lease term of our wholly owned portfolio was 4.6 years as of June 30, 2010, with an average contractual rental rate (including tenant reimbursements of operating costs) of $24.72 per square foot.

 

For the Six Month Period:

·                  Same office property cash NOI for the six months ended June 30, 2010, excluding gross lease termination fees, decreased by $3.3 million, or 3%, as compared to the six months ended June 30, 2009.  Including gross lease termination fees, our same office property cash NOI decreased by $6.2 million, or 5%, as compared to the six months ended June 30, 2009.  Our same office portfolio consists of 230 properties and represents 87% of the rentable square footage of our consolidated properties as of June 30, 2010.

·                  We renewed 947,000 square feet in the six months ended June 30, 2010 with an average committed cost of $5.43 per square foot.  For our renewed space during the six months ended June 30, 2010, 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 5% in total cash rent.  For our renewed and retenanted space of 1.2 million square feet during the six months ended June 30, 2010, we realized an increase of 2% 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 six months ended June 30, 2010 totaled $9.59 per square foot.

·                  We recognized $1.2 million in lease termination fees for the six months ended June 30, 2010, net of write-offs of related straight-line rents and accretion of intangible assets and liabilities, as compared to $3.7 million in the six months ended June 30, 2009.

 

For the Quarter Period:

·                  Same office property cash NOI for the quarter ended June 30, 2010, excluding gross lease termination fees, decreased by $603,000, or 1%, as compared to the quarter ended June 30, 2009.  Including gross lease termination fees, our same office property cash NOI was essentially flat as compared to the quarter ended June 30, 2009.

·                  We renewed 588,000 square feet in the quarter ended June 30, 2010 with an average committed cost of $4.09 per square foot.  For our renewed space during the quarter ended June 30, 2010, we realized an increase of 4% in total rent, as measured from the GAAP straight-line rent in effect preceding the renewal date, and a decrease of 3% in total cash rent.  For our renewed and retenanted space of 752,000 square feet during the quarter ended June 30, 2010, 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 4% in total cash rent.  The average committed cost for our space renewed and retenanted during the quarter ended June 30, 2010 totaled $9.97 per square foot.

·                  We recognized $955,000 in lease termination fees for the quarter ended June 30, 2010, net of write-offs of related straight-line rents and intangible assets and liabilities, as compared to $568,000 in the quarter ended June 30, 2009.

 

2



 

Financing Activity and Capital Transactions

·                  On April 7, 2010, we issued $240.0 million aggregate principal amount of 4.25% Exchangeable Senior Notes due 2030.  The notes have an exchange settlement feature that provides that the notes may, under certain circumstances, be exchangeable for cash and our common shares at an initial exchange rate (subject to adjustment) of 20.7658 shares per $1,000 principal amount of the notes (equivalent to an exchange price of $48.16 per common share, a 20% premium over the closing price on the NYSE on the transaction pricing date).  On or after April 20, 2015, we may redeem the notes in cash, in whole or in part.  The holders of the notes have the right to require us to repurchase the notes in cash, in whole or in part, on each of April 15, 2015, April 15, 2020 and April 15, 2025, or in the event of a “fundamental change,” as defined under the terms of the notes.  We used the proceeds for general corporate purposes, including repayment of borrowings under our Revolving Credit Facility.

·                  On April 26, 2010, we increased the borrowing capacity under our Revolving Credit Facility by $100.0 million, from $600.0 million to $700.0 million.

·                  As of June 30, 2010, our ratio of debt to total market capitalization was 45% and our ratio of debt to undepreciated book value of real estate assets was 59%.

·                  For the six months ended June 30, 2010, we achieved an EBITDA interest coverage ratio of 2.90x and an EBITDA fixed charge coverage ratio of 2.44x. For the quarter ended June 30, 2010, we achieved an EBITDA interest coverage ratio of 2.85x and an EBITDA fixed charge coverage ratio of 2.41x.

·                  As of June 30, 2010, 81% of our debt had fixed interest rates, including the effect of interest rate swaps in effect.

 

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,” “could,” “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;

·                  changes in our plans for properties or our views of market economic conditions that could result in recognition of impairment losses;

·                  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, 2009.

 

3



 

Selected Financial Summary Data

(dollars in thousands, except per share data)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

6/30/09

 

6/30/10

 

6/30/09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate revenues from continuing operations

 

$

109,257

 

$

112,228

 

$

108,737

 

$

104,132

 

$

105,007

 

$

221,485

 

$

211,115

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues from continuing operations

 

$

135,322

 

$

149,593

 

$

178,290

 

$

199,453

 

$

208,331

 

$

284,915

 

$

389,328

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI

 

$

69,847

 

$

64,700

 

$

66,822

 

$

66,260

 

$

68,556

 

$

134,547

 

$

136,367

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

$

65,259

 

$

61,683

 

$

61,056

 

$

63,918

 

$

66,062

 

$

126,942

 

$

130,752

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

9,151

 

$

10,675

 

$

9,546

 

$

15,536

 

$

18,051

 

$

19,826

 

$

36,217

 

Net income attributable to noncontrolling interests

 

(685

)

(737

)

(458

)

(1,081

)

(1,412

)

(1,422

)

(3,431

)

Preferred share dividends

 

(4,026

)

(4,025

)

(4,026

)

(4,025

)

(4,026

)

(8,051

)

(8,051

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to COPT common shareholders

 

$

4,440

 

$

5,913

 

$

5,062

 

$

10,430

 

$

12,613

 

$

10,353

 

$

24,735

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

0.07

 

$

0.10

 

$

0.08

 

$

0.18

 

$

0.22

 

$

0.17

 

$

0.44

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO

 

$

38,870

 

$

38,156

 

$

37,180

 

$

42,408

 

$

46,920

 

$

77,026

 

$

91,737

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO, excluding operating property acquisition costs

 

$

39,141

 

$

38,175

 

$

39,147

 

$

42,408

 

$

46,920

 

$

77,316

 

$

91,737

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted FFO available to common share and common unit holders

 

$

33,880

 

$

33,260

 

$

32,586

 

$

37,772

 

$

42,197

 

$

67,140

 

$

82,268

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted FFO per share

 

$

0.53

 

$

0.53

 

$

0.52

 

$

0.60

 

$

0.67

 

$

1.06

 

$

1.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted FFO per share, excluding operating property acquisition costs

 

$

0.54

 

$

0.53

 

$

0.55

 

$

0.60

 

$

0.67

 

$

1.06

 

$

1.34

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted AFFO available to common share and common unit holders

 

$

26,721

 

$

25,215

 

$

20,455

 

$

27,846

 

$

36,203

 

$

51,936

 

$

69,569

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payout ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted FFO payout ratio

 

73.8

%

75.2

%

76.3

%

65.8

%

55.7

%

74.5

%

55.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted AFFO payout ratio

 

93.6

%

99.3

%

121.6

%

89.2

%

64.9

%

96.3

%

65.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total dividends/distributions

 

$

29,199

 

$

29,217

 

$

29,063

 

$

29,036

 

$

27,682

 

$

58,416

 

$

54,221

 

 

4



 

Quarterly Consolidated Balance Sheets

(dollars in thousands)

 

 

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

6/30/09

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Properties, net

 

 

 

 

 

 

 

 

 

 

 

Operating properties

 

$

3,040,414

 

$

2,954,575

 

$

2,950,327

 

$

2,790,568

 

$

2,722,959

 

Land - development

 

234,662

 

236,350

 

231,809

 

214,147

 

219,775

 

Construction in progress

 

319,846

 

317,283

 

270,376

 

266,117

 

293,787

 

Less: accumulated depreciation

 

(464,408

)

(443,246

)

(422,612

)

(402,125

)

(382,385

)

Total properties, net

 

3,130,514

 

3,064,962

 

3,029,900

 

2,868,707

 

2,854,136

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

9,879

 

10,180

 

8,262

 

9,981

 

11,931

 

Restricted cash and marketable securities

 

20,738

 

18,981

 

16,549

 

16,779

 

17,879

 

Accounts receivable, net

 

12,552

 

13,982

 

17,459

 

14,004

 

13,776

 

Deferred rent receivable

 

75,683

 

74,113

 

71,805

 

69,816

 

67,137

 

Intangible assets on real estate acquisitions, net

 

96,151

 

94,925

 

100,671

 

75,506

 

81,090

 

Deferred leasing and financing costs, net

 

55,838

 

51,074

 

51,570

 

50,700

 

46,961

 

Prepaid expenses and other assets

 

65,928

 

70,135

 

83,806

 

125,154

 

105,765

 

Total assets

 

$

3,467,283

 

$

3,398,352

 

$

3,380,022

 

$

3,230,647

 

$

3,198,675

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and shareholders’ equity

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Debt, net

 

$

2,182,375

 

$

2,107,131

 

$

2,053,841

 

$

1,897,852

 

$

1,831,713

 

Accounts payable and accrued expenses

 

84,164

 

86,650

 

116,455

 

113,416

 

142,734

 

Rents received in advance and security deposits

 

28,328

 

32,575

 

32,177

 

33,322

 

29,936

 

Dividends and distributions payable

 

28,580

 

28,556

 

28,440

 

28,411

 

27,057

 

Deferred revenue associated with operating leases

 

12,929

 

13,827

 

14,938

 

8,044

 

8,926

 

Distributions received in excess of investment in unconsolidated real estate joint ventures

 

5,351

 

5,238

 

5,088

 

4,966

 

4,873

 

Other liabilities

 

13,990

 

13,836

 

8,451

 

8,453

 

7,029

 

Total liabilities

 

2,355,717

 

2,287,813

 

2,259,390

 

2,094,464

 

2,052,268

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COPT’s shareholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

Preferred shares (aggregate liquidation preference of $216,333)

 

81

 

81

 

81

 

81

 

81

 

Common shares

 

593

 

589

 

583

 

583

 

580

 

Additional paid-in capital

 

1,269,142

 

1,244,046

 

1,238,704

 

1,234,910

 

1,229,931

 

Cumulative distributions in excess of net income

 

(246,008

)

(227,189

)

(209,941

)

(192,119

)

(179,698

)

Accumulated other comprehensive loss

 

(4,263

)

(3,278

)

(1,907

)

(2,291

)

(1,176

)

Total COPT’s shareholders’ equity

 

1,019,545

 

1,014,249

 

1,027,520

 

1,041,164

 

1,049,718

 

Noncontrolling interests in subsidiaries

 

 

 

 

 

 

 

 

 

 

 

Common units in the Operating Partnership

 

63,675

 

68,113

 

73,892

 

75,657

 

76,873

 

Preferred units in the Operating Partnership

 

8,800

 

8,800

 

8,800

 

8,800

 

8,800

 

Other consolidated real estate joint ventures

 

19,546

 

19,377

 

10,420

 

10,562

 

11,016

 

Total noncontrolling interests in subsidiaries

 

92,021

 

96,290

 

93,112

 

95,019

 

96,689

 

Total equity

 

1,111,566

 

1,110,539

 

1,120,632

 

1,136,183

 

1,146,407

 

Total liabilities and equity

 

$

3,467,283

 

$

3,398,352

 

$

3,380,022

 

$

3,230,647

 

$

3,198,675

 

 

5


 


 

Consolidated Statements of Operations

(in thousands, except per share data)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

6/30/09

 

6/30/10

 

6/30/09

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue

 

$

91,173

 

$

91,010

 

$

89,346

 

$

86,973

 

$

87,649

 

$

182,183

 

$

176,494

 

Tenant recoveries and other real estate operations revenue

 

18,084

 

21,218

 

19,391

 

17,159

 

17,358

 

39,302

 

34,621

 

Construction contract and other service revenues

 

26,065

 

37,365

 

69,553

 

95,321

 

103,324

 

63,430

 

178,213

 

Total revenues

 

135,322

 

149,593

 

178,290

 

199,453

 

208,331

 

284,915

 

389,328

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating expenses

 

40,005

 

48,135

 

42,567

 

38,523

 

37,100

 

88,140

 

76,064

 

Depreciation and amortization associated with real estate operations

 

29,548

 

27,596

 

27,261

 

26,498

 

28,493

 

57,144

 

54,770

 

Construction contract and other service expenses

 

25,402

 

36,399

 

68,230

 

93,805

 

101,161

 

61,801

 

174,484

 

General and administrative expenses

 

5,926

 

5,900

 

5,965

 

5,898

 

5,834

 

11,826

 

11,377

 

Business development expenses

 

465

 

155

 

2,149

 

458

 

446

 

620

 

1,092

 

Total operating expenses

 

101,346

 

118,185

 

146,172

 

165,182

 

173,034

 

219,531

 

317,787

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

33,976

 

31,408

 

32,118

 

34,271

 

35,297

 

65,384

 

71,541

 

Interest expense

 

(25,812

)

(22,638

)

(23,273

)

(20,931

)

(18,620

)

(48,450

)

(37,983

)

Interest and other income

 

245

 

1,302

 

215

 

2,619

 

1,252

 

1,547

 

2,330

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income from continuing operations before equity in (loss) income of unconsolidated entities and income taxes

 

8,409

 

10,072

 

9,060

 

15,959

 

17,929

 

18,481

 

35,888

 

Equity in (loss) income of unconsolidated entities

 

(72

)

(205

)

134

 

(758

)

(202

)

(277

)

(317

)

Income tax expense

 

(7

)

(41

)

(27

)

(47

)

(52

)

(48

)

(122

)

Income from continuing operations

 

8,330

 

9,826

 

9,167

 

15,154

 

17,675

 

18,156

 

35,449

 

Discontinued operations

 

486

 

832

 

379

 

382

 

376

 

1,318

 

768

 

Income before gain on sales of real estate

 

8,816

 

10,658

 

9,546

 

15,536

 

18,051

 

19,474

 

36,217

 

Gain on sales of real estate, net of income taxes

 

335

 

17

 

 

 

 

352

 

 

Net income

 

9,151

 

10,675

 

9,546

 

15,536

 

18,051

 

19,826

 

36,217

 

Less net income attributable to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common units in the Operating Partnership

 

(364

)

(527

)

(463

)

(956

)

(1,272

)

(891

)

(3,076

)

Preferred units in the Operating Partnership

 

(165

)

(165

)

(165

)

(165

)

(165

)

(330

)

(330

)

Other consolidated entities

 

(156

)

(45

)

170

 

40

 

25

 

(201

)

(25

)

Net income attributable to COPT

 

8,466

 

9,938

 

9,088

 

14,455

 

16,639

 

18,404

 

32,786

 

Preferred share dividends

 

(4,026

)

(4,025

)

(4,026

)

(4,025

)

(4,026

)

(8,051

)

(8,051

)

Net income attributable to COPT common shareholders

 

$

4,440

 

$

5,913

 

$

5,062

 

$

10,430

 

$

12,613

 

$

10,353

 

$

24,735

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For diluted EPS computations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator for diluted EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to common shareholders

 

$

4,440

 

$

5,913

 

$

5,062

 

$

10,430

 

$

12,613

 

$

10,353

 

$

24,735

 

Amount allocable to restricted shares

 

(250

)

(290

)

(247

)

(253

)

(242

)

(540

)

(510

)

Numerator for diluted EPS

 

$

4,190

 

$

5,623

 

$

4,815

 

$

10,177

 

$

12,371

 

$

9,813

 

$

24,225

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares - basic

 

58,489

 

57,844

 

57,604

 

57,470

 

56,637

 

58,169

 

54,296

 

Dilutive effect of share-based compensation awards

 

421

 

364

 

413

 

485

 

546

 

405

 

522

 

Weighted average common shares - diluted

 

58,910

 

58,208

 

58,017

 

57,955

 

57,183

 

58,574

 

54,818

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

0.07

 

$

0.10

 

$

0.08

 

$

0.18

 

$

0.22

 

$

0.17

 

$

0.44

 

 

6


 


 

Consolidated Reconciliations of FFO, AFFO, EPS

(in thousands, except per share data)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

6/30/09

 

6/30/10

 

6/30/09

 

Net income

 

$

9,151

 

$

10,675

 

$

9,546

 

$

15,536

 

$

18,051

 

$

19,826

 

$

36,217

 

Real estate-related depreciation and amortization

 

29,548

 

27,603

 

27,475

 

26,712

 

28,708

 

57,151

 

55,199

 

Depreciation and amortization on unconsolidated real estate entities

 

171

 

175

 

159

 

160

 

161

 

346

 

321

 

Gain on sales of operating properties, net of income taxes

 

 

(297

)

 

 

 

(297

)

 

FFO

 

38,870

 

38,156

 

37,180

 

42,408

 

46,920

 

77,026

 

91,737

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interests - preferred units in the Operating Partnership

 

(165

)

(165

)

(165

)

(165

)

(165

)

(330

)

(330

)

Noncontrolling interests - other consolidated entities

 

(156

)

(45

)

170

 

40

 

25

 

(201

)

(25

)

Preferred share dividends

 

(4,026

)

(4,025

)

(4,026

)

(4,025

)

(4,026

)

(8,051

)

(8,051

)

Depreciation and amortization allocable to noncontrolling interests in other consolidated entities

 

(297

)

(282

)

(242

)

(91

)

(107

)

(579

)

(160

)

Basic and diluted FFO allocable to restricted shares

 

(346

)

(379

)

(331

)

(395

)

(450

)

(725

)

(903

)

Basic and diluted FFO available to common share and common unit holders

 

33,880

 

33,260

 

32,586

 

37,772

 

42,197

 

67,140

 

82,268

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Straight line rent adjustments

 

(1,473

)

(2,346

)

1,676

 

(2,665

)

(1,718

)

(3,819

)

(2,858

)

Amortization of acquisition intangibles included in NOI

 

(94

)

(270

)

(679

)

(451

)

(616

)

(364

)

(996

)

Recurring capital expenditures

 

(7,080

)

(6,211

)

(13,900

)

(7,572

)

(4,383

)

(13,291

)

(10,266

)

Amortization of discount on Exchangeable Senior Notes, net of amounts capitalized

 

1,488

 

782

 

772

 

762

 

723

 

2,270

 

1,421

 

Diluted AFFO available to common share and common unit holders

 

$

26,721

 

$

25,215

 

$

20,455

 

$

27,846

 

$

36,203

 

$

51,936

 

$

69,569

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred dividends

 

$

4,026

 

$

4,025

 

$

4,026

 

$

4,025

 

$

4,026

 

$

8,051

 

$

8,051

 

Preferred distributions

 

165

 

165

 

165

 

165

 

165

 

330

 

330

 

Common distributions

 

1,749

 

1,867

 

1,988

 

1,995

 

1,894

 

3,616

 

3,979

 

Common dividends

 

23,259

 

23,160

 

22,884

 

22,851

 

21,597

 

46,419

 

41,861

 

Total dividends/distributions

 

$

29,199

 

$

29,217

 

$

29,063

 

$

29,036

 

$

27,682

 

$

58,416

 

$

54,221

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator for diluted EPS

 

58,910

 

58,208

 

58,017

 

57,955

 

57,183

 

58,574

 

54,818

 

Weighted average common units

 

4,558

 

5,017

 

5,078

 

5,084

 

5,483

 

4,786

 

6,363

 

Denominator for diluted FFO per share

 

63,468

 

63,225

 

63,095

 

63,039

 

62,666

 

63,360

 

61,181

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO

 

$

38,870

 

$

38,156

 

$

37,180

 

$

42,408

 

$

46,920

 

77,026

 

91,737

 

Operating property acquisition costs

 

271

 

19

 

1,967

 

 

 

290

 

 

FFO, excluding operating property acquisition costs

 

$

39,141

 

$

38,175

 

$

39,147

 

$

42,408

 

$

46,920

 

77,316

 

91,737

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted FFO available to common share and common unit holders

 

$

33,880

 

$

33,260

 

$

32,586

 

$

37,772

 

$

42,197

 

$

67,140

 

$

82,268

 

Operating property acquisition costs

 

271

 

19

 

1,967

 

 

 

290

 

 

Diluted FFO available to common share and common unit holders, excluding operating property acquisition costs

 

$

34,151

 

$

33,279

 

$

34,553

 

$

37,772

 

$

42,197

 

$

67,430

 

$

82,268

 

Diluted FFO per share, excluding operating property acquisition costs

 

$

0.54

 

$

0.53

 

$

0.55

 

$

0.60

 

$

0.67

 

$

1.06

 

$

1.34

 

 

7


 


 

Consolidated Reconciliations of EBITDA, NOI, Discontinued Operations,

Gains on Sales of Real Estate and Certain Non-GAAP Measures

(in thousands)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

6/30/09

 

6/30/10

 

6/30/09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

9,151

 

$

10,675

 

$

9,546

 

$

15,536

 

$

18,051

 

$

19,826

 

$

36,217

 

Interest expense on continuing and discontinued operations

 

25,921

 

22,703

 

23,332

 

20,986

 

18,678

 

48,624

 

38,102

 

Total income tax expense (1)

 

7

 

52

 

27

 

47

 

52

 

59

 

122

 

Depreciation of furniture, fixtures and equipment (FF&E)

 

632

 

650

 

676

 

637

 

573

 

1,282

 

1,112

 

Real estate-related depreciation and amortization

 

29,548

 

27,603

 

27,475

 

26,712

 

28,708

 

57,151

 

55,199

 

EBITDA

 

$

65,259

 

$

61,683

 

$

61,056

 

$

63,918

 

$

66,062

 

$

126,942

 

$

130,752

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

5,926

 

5,900

 

5,965

 

5,898

 

5,834

 

11,826

 

11,377

 

Business development

 

465

 

155

 

2,149

 

458

 

446

 

620

 

1,092

 

Depreciation of FF&E

 

(632

)

(650

)

(676

)

(637

)

(573

)

(1,282

)

(1,112

)

Income from construction contracts and other service operations

 

(663

)

(966

)

(1,323

)

(1,516

)

(2,163

)

(1,629

)

(3,729

)

Interest and other income

 

(245

)

(1,302

)

(215

)

(2,619

)

(1,252

)

(1,547

)

(2,330

)

Gain on sales of operating properties

 

 

(297

)

 

 

 

(297

)

 

Non-operational property sales

 

(335

)

(28

)

 

 

 

(363

)

 

Equity in loss (income) of unconsolidated entities

 

72

 

205

 

(134

)

758

 

202

 

277

 

317

 

NOI

 

$

69,847

 

$

64,700

 

$

66,822

 

$

66,260

 

$

68,556

 

$

134,547

 

$

136,367

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from real estate operations

 

$

734

 

$

768

 

$

713

 

$

711

 

$

711

 

$

1,502

 

$

1,447

 

Property operating expenses

 

(139

)

(161

)

(61

)

(60

)

(62

)

(300

)

(131

)

Depreciation and amortization

 

 

(7

)

(214

)

(214

)

(215

)

(7

)

(429

)

Interest

 

(109

)

(65

)

(59

)

(55

)

(58

)

(174

)

(119

)

Gain on sales of depreciated real estate properties

 

 

297

 

 

 

 

297

 

 

Discontinued operations

 

$

486

 

$

832

 

$

379

 

$

382

 

$

376

 

$

1,318

 

$

768

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gain on sales of real estate, net, per statements of operations

 

$

335

 

$

17

 

$

 

$

 

$

 

$

352

 

$

 

Add income taxes

 

 

11

 

 

 

 

11

 

 

Gain on sales of real estate from discontinued operations

 

 

297

 

 

 

 

297

 

 

Gain on sales of real estate from continuing and discontinued operations

 

335

 

325

 

 

 

 

660

 

 

Non-operational property sales

 

(335

)

(28

)

 

 

 

(363

)

 

Gain on sales of operating properties

 

$

 

$

297

 

$

 

$

 

$

 

$

297

 

$

 

 


(1) Includes income taxes from continuing operations, discontinued operations and gains on other sales of real estate (see components on page 9).

 

8


 


 

Reconciliations of Non GAAP Measurements

(Dollars in thousands)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

6/30/09

 

6/30/10

 

6/30/09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets or Denominator for Debt to Total Assets

 

$

3,467,283

 

$

3,398,352

 

$

3,380,022

 

$

3,230,647

 

$

3,198,675

 

 

 

 

 

Accumulated depreciation

 

464,408

 

443,246

 

422,612

 

402,125

 

382,385

 

 

 

 

 

Intangible assets on real estate acquisitions, net

 

96,151

 

94,925

 

100,671

 

75,506

 

81,090

 

 

 

 

 

Assets other than assets included in properties, net

 

(336,769

)

(333,390

)

(350,122

)

(361,940

)

(344,539

)

 

 

 

 

Denominator for Debt to Undepreciated Book Value of Real Estate Assets

 

$

3,691,073

 

$

3,603,133

 

$

3,553,183

 

$

3,346,338

 

$

3,317,611

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP revenues from real estate operations from continuing operations

 

$

109,257

 

$

112,228

 

$

108,737

 

$

104,132

 

$

105,007

 

$

221,485

 

$

211,115

 

Revenues from discontinued operations

 

734

 

768

 

713

 

711

 

711

 

1,502

 

1,447

 

Real estate revenues from continuing and discontinued operations

 

$

109,991

 

$

112,996

 

$

109,450

 

$

104,843

 

$

105,718

 

$

222,987

 

$

212,562

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP revenues from real estate operations from continuing operations

 

$

109,257

 

$

112,228

 

$

108,737

 

$

104,132

 

$

105,007

 

$

221,485

 

$

211,115

 

Property operating expenses

 

(40,005

)

(48,135

)

(42,567

)

(38,523

)

(37,100

)

(88,140

)

(76,064

)

Revenues from discontinued operations

 

734

 

768

 

713

 

711

 

711

 

1,502

 

1,447

 

Property operating expenses from discontinued operations

 

(139

)

(161

)

(61

)

(60

)

(62

)

(300

)

(131

)

NOI

 

$

69,847

 

$

64,700

 

$

66,822

 

$

66,260

 

$

68,556

 

$

134,547

 

$

136,367

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization assoc. with real estate operations from continuing operations

 

$

29,548

 

$

27,596

 

$

27,261

 

$

26,498

 

$

28,493

 

$

57,144

 

$

54,770

 

Depreciation and amortization from discontinued operations

 

 

7

 

214

 

214

 

215

 

7

 

429

 

Real estate-related depreciation and amortization

 

$

29,548

 

$

27,603

 

$

27,475

 

$

26,712

 

$

28,708

 

$

57,151

 

$

55,199

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total tenant improvements and incentives on operating properties

 

$

4,630

 

$

4,071

 

$

2,359

 

$

3,553

 

$

3,794

 

$

8,701

 

$

8,019

 

Total capital improvements on operating properties

 

1,248

 

870

 

9,475

 

2,927

 

2,355

 

2,118

 

3,868

 

Total leasing costs for operating properties

 

1,350

 

1,338

 

2,801

 

1,855

 

950

 

2,688

 

2,576

 

Less: Nonrecurring tenant improvements and incentives on operating properties

 

(136

)

(77

)

(851

)

(711

)

(2,028

)

(213

)

(2,069

)

Less: Nonrecurring capital improvements on operating properties

 

(17

)

(60

)

(117

)

(58

)

(694

)

(77

)

(1,282

)

Less: Nonrecurring leasing costs for operating properties

 

(3

)

54

 

(186

)

 

(16

)

51

 

(916

)

Add: Recurring capital expenditures on operating properties held through joint ventures

 

8

 

15

 

419

 

6

 

22

 

23

 

70

 

Recurring capital expenditures

 

$

7,080

 

$

6,211

 

$

13,900

 

$

7,572

 

$

4,383

 

$

13,291

 

$

10,266

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense from continuing operations

 

$

25,812

 

$

22,638

 

$

23,273

 

$

20,931

 

$

18,620

 

$

48,450

 

$

37,983

 

Interest expense from discontinued operations

 

109

 

65

 

59

 

55

 

58

 

174

 

119

 

Total interest expense

 

$

25,921

 

$

22,703

 

$

23,332

 

$

20,986

 

$

18,678

 

$

48,624

 

$

38,102

 

Less: Amortization of deferred financing costs

 

(1,495

)

(1,126

)

(1,125

)

(1,056

)

(1,009

)

(2,621

)

(2,033

)

Less: Amortization of discount on Exchangeable Senior Notes, net of amounts capitalized

 

(1,488

)

(782

)

(772

)

(762

)

(723

)

(2,270

)

(1,421

)

Denominator for interest coverage

 

$

22,938

 

$

20,795

 

$

21,435

 

$

19,168

 

$

16,946

 

$

43,733

 

$

34,648

 

Scheduled principal amortization

 

3,500

 

3,469

 

3,289

 

2,691

 

2,662

 

6,969

 

5,509

 

Denominator for debt service coverage

 

$

26,438

 

$

24,264

 

$

24,724

 

$

21,859

 

$

19,608

 

$

50,702

 

$

40,157

 

Scheduled principal amortization

 

(3,500

)

(3,469

)

(3,289

)

(2,691

)

(2,662

)

(6,969

)

(5,509

)

Preferred dividends - redeemable non-convertible

 

4,026

 

4,025

 

4,026

 

4,025

 

4,026

 

8,051

 

8,051

 

Preferred distributions

 

165

 

165

 

165

 

165

 

165

 

330

 

330

 

Denominator for fixed charge coverage

 

$

27,129

 

$

24,985

 

$

25,626

 

$

23,358

 

$

21,137

 

$

52,114

 

$

43,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common share dividends

 

$

23,259

 

$

23,160

 

$

22,884

 

$

22,851

 

$

21,597

 

$

46,419

 

$

41,861

 

Common unit distributions

 

1,749

 

1,867

 

1,988

 

1,995

 

1,894

 

3,616

 

3,979

 

Dividends and distributions for FFO and AFFO payout ratios

 

$

25,008

 

$

25,027

 

$

24,872

 

$

24,846

 

$

23,491

 

$

50,035

 

$

45,840

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense from continuing operations

 

$

7

 

$

41

 

$

27

 

$

47

 

$

52

 

$

48

 

$

122

 

Income tax expense from gain on other sales of real estate

 

 

11

 

 

 

 

11

 

 

Total income tax expense

 

$

7

 

$

52

 

$

27

 

$

47

 

$

52

 

$

59

 

$

122

 

 

9


 


 

Real Estate Revenues from Continuing and Discontinued Operations by Geographic Region

(Dollars in thousands)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

6/30/09

 

6/30/10

 

6/30/09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office Properties:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore/Washington Corridor

 

$

50,623

 

$

52,058

 

$

50,681

 

$

48,984

 

$

48,941

 

$

102,681

 

$

97,945

 

Northern Virginia

 

18,172

 

18,659

 

19,186

 

18,897

 

18,950

 

36,831

 

41,049

 

Greater Baltimore

 

16,827

 

17,865

 

16,265

 

14,493

 

13,746

 

34,692

 

27,517

 

Colorado Springs

 

6,154

 

6,332

 

6,190

 

6,261

 

5,797

 

12,486

 

10,674

 

Suburban Maryland

 

5,452

 

5,829

 

4,697

 

4,736

 

5,164

 

11,281

 

10,187

 

St. Mary’s and King George Counties

 

3,530

 

3,589

 

3,566

 

3,528

 

3,467

 

7,119

 

6,866

 

San Antonio

 

4,228

 

3,938

 

3,805

 

3,269

 

3,547

 

8,166

 

6,492

 

Greater Philadelphia

 

1,510

 

1,202

 

1,627

 

1,343

 

2,507

 

2,712

 

5,013

 

Other

 

3,495

 

3,524

 

3,433

 

3,332

 

3,599

 

7,019

 

6,819

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate revenues from cont. and discont. operations

 

$

109,991

 

$

112,996

 

$

109,450

 

$

104,843

 

$

105,718

 

$

222,987

 

$

212,562

 

 

NOI by Geographic Region

(Dollars in thousands)

 

 

 

Three Months Ended

 

Year Ended

 

 

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

6/30/09

 

6/30/10

 

6/30/09

 

Office Properties:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore/Washington Corridor

 

$

33,770

 

$

29,903

 

$

31,647

 

$

31,182

 

$

31,494

 

$

63,673

 

$

61,879

 

Northern Virginia

 

11,466

 

11,346

 

11,684

 

11,519

 

11,515

 

22,812

 

25,818

 

Greater Baltimore

 

9,516

 

8,855

 

9,201

 

8,649

 

7,865

 

18,371

 

14,865

 

Colorado Springs

 

3,915

 

4,023

 

3,662

 

4,447

 

4,071

 

7,938

 

7,625

 

Suburban Maryland

 

3,253

 

3,128

 

2,458

 

2,672

 

3,128

 

6,381

 

6,097

 

St. Mary’s and King George Counties

 

2,489

 

2,482

 

2,641

 

2,651

 

2,664

 

4,971

 

5,177

 

San Antonio

 

2,128

 

2,309

 

2,354

 

2,038

 

2,586

 

4,437

 

4,695

 

Greater Philadelphia

 

710

 

439

 

981

 

782

 

2,524

 

1,149

 

4,949

 

Other

 

2,600

 

2,215

 

2,194

 

2,320

 

2,709

 

4,815

 

5,262

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI

 

$

69,847

 

$

64,700

 

$

66,822

 

$

66,260

 

$

68,556

 

$

134,547

 

$

136,367

 

 

10


 


 

Same Office Property Cash NOI

(Dollars in thousands)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

6/30/09

 

6/30/10

 

6/30/09

 

Office Properties: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore/Washington Corridor

 

$

31,326

 

$

27,172

 

$

31,709

 

$

30,448

 

$

30,337

 

$

58,498

 

$

59,979

 

Northern Virginia

 

11,781

 

11,603

 

11,637

 

11,208

 

11,402

 

23,384

 

26,397

 

Greater Baltimore

 

7,608

 

6,612

 

6,808

 

8,136

 

7,426

 

14,220

 

13,868

 

Colorado Springs

 

3,423

 

3,423

 

2,995

 

3,237

 

3,666

 

6,846

 

7,122

 

Suburban Maryland

 

1,947

 

2,200

 

2,194

 

2,460

 

2,890

 

4,147

 

5,593

 

St. Mary’s and King George Counties

 

2,538

 

2,496

 

2,630

 

2,627

 

2,533

 

5,034

 

4,982

 

San Antonio

 

1,735

 

1,906

 

2,019

 

1,625

 

2,175

 

3,641

 

3,874

 

Greater Philadelphia

 

677

 

406

 

783

 

636

 

689

 

1,083

 

1,268

 

Other

 

1,908

 

1,910

 

1,884

 

1,909

 

1,900

 

3,818

 

3,756

 

Total Office Properties

 

$

62,943

 

$

57,728

 

$

62,659

 

$

62,286

 

$

63,018

 

$

120,671

 

$

126,839

 

Less: Lease termination fees, gross

 

(1,086

)

(278

)

(347

)

(966

)

(558

)

(1,364

)

(4,218

)

Same office property cash NOI, excluding gross lease termination fees

 

$

61,857

 

$

57,450

 

$

62,312

 

$

61,320

 

$

62,460

 

$

119,307

 

$

122,621

 

 

Same Office Property GAAP NOI

(Dollars in thousands)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

6/30/09

 

6/30/10

 

6/30/09

 

Office Properties: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore/Washington Corridor

 

$

31,789

 

$

28,179

 

$

29,895

 

$

30,046

 

$

30,596

 

$

59,968

 

$

60,705

 

Northern Virginia

 

11,487

 

11,476

 

11,829

 

11,594

 

11,610

 

22,963

 

26,026

 

Greater Baltimore

 

7,889

 

6,861

 

7,385

 

8,641

 

7,860

 

14,750

 

14,871

 

Colorado Springs

 

3,581

 

3,609

 

3,223

 

3,510

 

3,959

 

7,190

 

7,628

 

Suburban Maryland

 

2,141

 

2,224

 

2,327

 

2,580

 

3,028

 

4,365

 

5,882

 

St. Mary’s and King George Counties

 

2,491

 

2,483

 

2,652

 

2,653

 

2,665

 

4,974

 

5,180

 

San Antonio

 

2,115

 

2,287

 

2,405

 

2,059

 

2,611

 

4,402

 

4,747

 

Greater Philadelphia

 

680

 

513

 

796

 

650

 

627

 

1,193

 

1,144

 

Other

 

2,136

 

2,147

 

2,130

 

2,186

 

2,196

 

4,283

 

4,328

 

Total Office Properties

 

$

64,309

 

$

59,779

 

$

62,642

 

$

63,919

 

$

65,152

 

$

124,088

 

$

130,511

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net operating income for same office properties

 

$

64,309

 

$

59,779

 

$

62,642

 

$

63,919

 

$

65,152

 

$

124,088

 

$

130,511

 

Less: Straight-line rent adjustments

 

(875

)

(1,480

)

640

 

(1,205

)

(1,550

)

(2,355

)

(2,740

)

Less: Amortization of deferred market rental revenue

 

(491

)

(571

)

(623

)

(428

)

(584

)

(1,062

)

(932

)

Same office property cash NOI

 

$

62,943

 

$

57,728

 

$

62,659

 

$

62,286

 

$

63,018

 

$

120,671

 

$

126,839

 

Less: Lease termination fees, gross

 

(1,086

)

(278

)

(347

)

(966

)

(558

)

(1,364

)

(4,218

)

Same office property cash NOI, excluding gross lease termination fees

 

$

61,857

 

$

57,450

 

$

62,312

 

$

61,320

 

$

62,460

 

$

119,307

 

$

122,621

 

 


(1) Same office properties represent buildings owned and 100% operational since January 1, 2009.

 

11


 


 

Operating Ratios

(Dollars in thousands except per share data and ratios)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

6/30/09

 

6/30/10

 

6/30/09

 

OPERATING RATIOS — All computations include the effect of discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income as a % of Real estate revenues from cont. and discont. operations
(Net income / Real estate revenues from cont. and discont. operations)

 

8.3

%

9.4

%

8.7

%

14.8

%

17.1

%

8.9

%

17.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI as a % of Real estate revenues from cont. and discont. operations
(NOI / Real estate revenues from cont. and discont. operations)

 

63.5

%

57.3

%

61.1

%

63.2

%

64.8

%

60.3

%

64.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA as a % of Real estate revenues from cont. and discont. operations
(EBITDA / Real estate revenues from cont. and discont. operations)

 

59.3

%

54.6

%

55.8

%

61.0

%

62.5

%

56.9

%

61.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G&A as a % of Real estate revenues from cont. and discont. operations
(G&A / Real estate revenues from cont. and discont. operations)

 

5.4

%

5.2

%

5.4

%

5.6

%

5.5

%

5.3

%

5.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G&A as a % of EBITDA
(G&A / EBITDA)

 

9.1

%

9.6

%

9.8

%

9.2

%

8.8

%

9.3

%

8.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring Capital Expenditures

 

$

7,080

 

$

6,211

 

$

13,900

 

$

7,572

 

$

4,383

 

$

13,291

 

$

10,266

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring Capital Expenditures per average square foot of consolidated properties

 

$

0.36

 

$

0.32

 

$

0.73

 

$

0.40

 

$

0.23

 

$

0.68

 

$

0.55

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring Capital Expenditures as a % of NOI

 

10.1

%

9.6

%

20.8

%

11.4

%

6.4

%

9.9

%

7.5

%

 

12


 


 

Debt Analysis

(Dollars in thousands)

 

 

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

6/30/09

 

Debt Outstanding

 

 

 

 

 

 

 

 

 

 

 

Mortgage Loans

 

$

1,432,544

 

$

1,452,845

 

$

1,439,608

 

$

1,454,240

 

$

1,204,437

 

Construction Loans (1)

 

119,640

 

100,225

 

93,086

 

60,364

 

115,914

 

Unsecured Revolving Credit Facility (2)

 

250,000

 

397,000

 

365,000

 

228,000

 

357,000

 

Exchangeable Senior Notes

 

380,191

 

157,061

 

156,147

 

155,248

 

154,362

 

 

 

$

2,182,375

 

$

2,107,131

 

$

2,053,841

 

$

1,897,852

 

$

1,831,713

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Data

 

 

 

 

 

 

 

 

 

 

 

Fixed-Mortgage Loans

 

$

1,161,652

 

$

1,165,073

 

$

1,168,462

 

$

1,182,967

 

$

933,037

 

Fixed-Exchangeable Senior Notes

 

380,191

 

157,061

 

156,147

 

155,248

 

154,362

 

Variable

 

420,532

 

564,997

 

509,232

 

289,637

 

474,314

 

Variable Subject to Interest Rate Swaps (3)

 

220,000

 

220,000

 

220,000

 

270,000

 

270,000

 

 

 

$

2,182,375

 

$

2,107,131

 

$

2,053,841

 

$

1,897,852

 

$

1,831,713

 

 

 

 

 

 

 

 

 

 

 

 

 

% of Fixed Rate Loans (3)

 

80.73

%

73.19

%

75.21

%

84.74

%

74.11

%

% of Variable Rate Loans (3)

 

19.27

%

26.81

%

24.79

%

15.26

%

25.89

%

 

 

100.00

%

100.00

%

100.00

%

100.00

%

100.00

%

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

6/30/2010

 

3/31/2010

 

12/31/2009

 

9/30/09

 

6/30/09

 

6/30/2010

 

6/30/09

 

Average Contract Interest Rates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage & Construction Loans

 

5.43

%

5.45

%

5.49

%

5.10

%

5.04

%

5.49

%

5.11

%

Unsecured Revolving Credit Facility (4)

 

2.53

%

1.93

%

2.43

%

2.82

%

2.85

%

2.15

%

2.85

%

Exchangeable Senior Notes (5)

 

3.95

%

3.50

%

3.50

%

3.50

%

3.50

%

3.83

%

3.50

%

Total Weighted Average

 

5.26

%

4.83

%

5.07

%

4.85

%

4.68

%

5.04

%

4.75

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Coverage Ratios (excluding capitalized interest) — All coverage computations include the effect of discontinued operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI interest coverage ratio

 

3.05x

 

3.11x

 

3.12x

 

3.46x

 

4.05x

 

3.08x

 

3.94x

 

EBITDA interest coverage ratio

 

2.85x

 

2.97x

 

2.85x

 

3.33x

 

3.90x

 

2.90x

 

3.77x

 

NOI debt service coverage ratio

 

2.64x

 

2.67x

 

2.70x

 

3.03x

 

3.50x

 

2.65x

 

3.40x

 

EBITDA debt service coverage ratio

 

2.47x

 

2.54x

 

2.47x

 

2.92x

 

3.37x

 

2.50x

 

3.26x

 

NOI fixed charge coverage ratio

 

2.57x

 

2.59x

 

2.61x

 

2.84x

 

3.24x

 

2.58x

 

3.17x

 

EBITDA fixed charge coverage ratio

 

2.41x

 

2.47x

 

2.38x

 

2.74x

 

3.13x

 

2.44x

 

3.04x

 

 


(1)

Includes $102.9 million due under our Revolving Construction Facility at June 30, 2010. This facility provides for the borrowing of up to $225.0 million to finance construction of the Company’s wholly owned buildings.

(2)

As of June 30, 2010, our borrowing capacity under the Revolving Credit Facility was $700.0 million, of which $449.5 million was available.

(3)

Includes the effect of the following interest rate swaps in effect during certain of the periods set forth above that hedge the risk of changes in interest rates on certain of our one-month LIBOR-based variable rate debt:

 

Notional

 

One-Month

 

Effective

 

Expiration

 

Amount

 

Libor Base

 

Date

 

Date

 

$

50,000

 

5.036

%

3/28/06

 

3/30/09

 

$

25,000

 

5.232

%

5/1/06

 

5/1/09

 

$

25,000

 

5.232

%

5/1/06

 

5/1/09

 

$

50,000

 

4.330

%

10/23/07

 

10/23/09

 

$

100,000

 

2.510

%

11/3/08

 

12/31/09

 

$

120,000

 

1.760

%

1/2/09

 

5/1/2012

 

$

100,000

 

1.975

%

1/1/10

 

5/1/2012

 

 

(4)

Includes effect of interest expense incurred on interest rate swaps.

(5)

Represents the weighted average of the stated interest rates on our Exchangeable Senior Notes.

 

13


 


 

Debt Maturity Schedule - June 30, 2010

(Dollars in thousands)

 

 

 

Non-Recourse Debt (1)

 

Recourse Debt (1)

 

 

 

Year of Maturity

 

Annual
Amortization of
Monthly
Payments

 

Balloon
Payments Due
on Maturity

 

Weighted
Average Interest
Rate of Amounts
Maturing

 

Annual
Amortization of
Monthly
Payments

 

Balloon
Payments Due
on Maturity

 

Weighted
Average Interest
Rate of Amounts
Maturing

 

Revolver (2)

 

Total Scheduled
Payments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

July - September

 

$

3,370

 

$

 

 

 

$

242

 

 

 

 

$

 

$

3,612

 

October - December(3)

 

3,239

 

52,177

 

5.78

%

244

 

 

 

 

 

55,660

 

Total 2010

 

$

6,609

 

$

52,177

 

5.78

%

$

486

 

$

 

 

 

$

 

$

59,272

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2011(4)

 

11,730

 

102,265

 

 

 

1,005

 

119,640

 

 

 

250,000

 

484,640

 

2012

 

10,569

 

257,524

 

 

 

1,065

 

 

 

 

 

269,158

 

2013

 

7,703

 

134,843

 

 

 

1,130

 

 

 

 

 

143,676

 

2014(5)

 

5,612

 

90,670

 

 

 

840

 

47,066

 

 

 

 

144,188

 

2015

 

4,508

 

114,558

 

 

 

529

 

 

 

 

 

119,595

 

2016

 

3,481

 

274,605

 

 

 

556

 

 

 

 

 

278,642

 

2017

 

193

 

300,610

 

 

 

585

 

 

 

 

 

301,388

 

2018

 

 

 

 

 

617

 

 

 

 

 

617

 

2019

 

 

 

 

 

573

 

39

 

 

 

 

612

 

2020

 

 

 

 

 

200

 

 

 

 

 

200

 

2021

 

 

 

 

 

200

 

 

 

 

 

200

 

2022

 

 

 

 

 

200

 

 

 

 

 

200

 

2023

 

 

 

 

 

200

 

 

 

 

 

200

 

2024

 

 

 

 

 

200

 

 

 

 

 

200

 

2025

 

 

 

 

 

200

 

 

 

 

 

200

 

2026

 

 

 

 

 

50

 

11

 

 

 

 

61

 

 

 

$

 50,405

 

$

 1,327,252

 

 

 

$

8,636

 

$

166,756

 

 

 

$

250,000

 

$

1,803,049

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net discount

 

 

 

 

 

(865

)

 

 

 

 

Mortgage and Other Loans Payable

 

 

 

 

 

$

1,802,184

 

 

 

 

 

 

 

3.5

%

4.25

%

 

 

 

 

 

 

Exchangeable Senior Notes-Face Amount

 

$

162,500

 

$

240,000

 

$

402,500

 

 

 

 

 

Net discount

 

(4,513

)

(17,796

)

(22,309

)

 

 

 

 

Exchangeable Senior Notes (6)

 

$

157,987

 

$

222,204

 

380,191

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Debt

 

 

 

 

 

$

2,182,375

 

 


Notes:

 

(1)        Certain mortgages contain extension options, generally either for a period of six months or one year, subject to certain conditions. The maturity dates presented above in the table assume that the extension options have not been exercised.

 

(2)        As of June 30, 2010, our borrowing capacity under the Revolving Credit Facility was $700.0 million, of which $449.5 million was available.

 

(3)        Includes $8.5 million maturing on a non-recourse loan that matures in September 2025 but will be called in October 2010.

 

(4)        Includes $250 million due under our Revolving Credit Facility at June 30, 2010 that may be extended by us for a one-year period, subject to certain conditions. Also includes $102.9 million due under our Revolving Construction Facility at June 30, 2010 that may be extended by us for a one-year period, subject to certain conditions; this facility provides for the borrowing of up to $225.0 million to finance construction of the Company’s wholly owned buildings.

 

(5)        We have a $4.6 million non-recourse loan maturing in March 2034 that may be prepaid in March 2014, subject to certain conditions. The above table includes $4.3 million due on maturity of this loan in 2014.

 

(6)        3.5% Exchangeable Senior Notes mature in September 2026 but are subject to a put by the holders in September 2011 and every five years thereafter. 4.25% Exchangeable Senior Notes mature in April 2030 but are subject to a put by the holders in April 2015 and every five years thereafter.

 

14



 

Quarterly Equity Analysis

(Dollars and shares in thousands except per share data)

 

 

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

6/30/09

 

Common Equity - End of Quarter

 

 

 

 

 

 

 

 

 

 

 

Common Shares

 

59,288

 

58,927

 

58,343

 

58,250

 

58,017

 

Common Units

 

4,456

 

4,757

 

5,066

 

5,084

 

5,084

 

Total

 

63,744

 

63,684

 

63,409

 

63,334

 

63,101

 

End of Quarter Common Share Price

 

$

37.76

 

$

40.13

 

$

36.63

 

$

36.88

 

$

29.33

 

Market Value of Common Shares/Units

 

$

2,406,973

 

$

2,555,639

 

$

2,322,672

 

$

2,335,758

 

$

1,850,752

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Shares Trading Volume

 

 

 

 

 

 

 

 

 

 

 

Average Daily Volume (Shares)

 

887

 

654

 

751

 

953

 

1,520

 

Average Daily Volume

 

$

35,095

 

$

24,583

 

$

26,570

 

$

33,091

 

$

44,187

 

As a Percentage of Weighted Average Common Shares

 

1.5

%

1.1

%

1.3

%

1.7

%

2.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Common Share Price Range (price per share)

 

 

 

 

 

 

 

 

 

 

 

Quarterly High

 

$

43.61

 

$

42.44

 

$

38.29

 

$

40.59

 

$

33.14

 

Quarterly Low

 

$

34.82

 

$

32.69

 

$

31.77

 

$

26.87

 

$

23.13

 

Quarterly Average

 

$

39.58

 

$

37.57

 

$

35.38

 

$

34.72

 

$

29.07

 

 

 

 

 

 

 

 

 

 

 

 

 

Convertible Preferred Equity - End of Quarter

 

 

 

 

 

 

 

 

 

 

 

Convertible Series I Preferred Units Outstanding

 

352

 

352

 

352

 

352

 

352

 

Conversion Ratio

 

0.5000

 

0.5000

 

0.5000

 

0.5000

 

0.5000

 

Common Shares Issued Assuming Conversion

 

176

 

176

 

176

 

176

 

176

 

 

 

 

 

 

 

 

 

 

 

 

 

Convertible Series K Preferred Shares Outstanding

 

532

 

532

 

532

 

532

 

532

 

Conversion Ratio

 

0.8163

 

0.8163

 

0.8163

 

0.8163

 

0.8163

 

Common Shares Issued Assuming Conversion

 

434

 

434

 

434

 

434

 

434

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonconvertible Preferred Equity - End of Quarter

 

 

 

 

 

 

 

 

 

 

 

Redeemable Series G Shares Outstanding

 

2,200

 

2,200

 

2,200

 

2,200

 

2,200

 

Redeemable Series H Shares Outstanding

 

2,000

 

2,000

 

2,000

 

2,000

 

2,000

 

Redeemable Series J Shares Outstanding

 

3,390

 

3,390

 

3,390

 

3,390

 

3,390

 

Total Nonconvertible Preferred Equity

 

7,590

 

7,590

 

7,590

 

7,590

 

7,590

 

Convertible Preferred Equity

 

 

 

 

 

 

 

 

 

 

 

Convertible Series K Shares Outstanding

 

884

 

884

 

884

 

884

 

884

 

Total Preferred Equity

 

8,474

 

8,474

 

8,474

 

8,474

 

8,474

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonconvertible Preferred Equity ($25 par value)

 

 

 

 

 

 

 

 

 

 

 

Redeemable Series G Shares

 

$

55,000

 

$

55,000

 

$

55,000

 

$

55,000

 

$

55,000

 

Redeemable Series H Shares

 

50,000

 

50,000

 

50,000

 

50,000

 

50,000

 

Redeemable Series J Shares

 

84,750

 

84,750

 

84,750

 

84,750

 

84,750

 

Total Nonconvertible Preferred Equity

 

$

189,750

 

$

189,750

 

$

189,750

 

$

189,750

 

$

189,750

 

 

 

 

 

 

 

 

 

 

 

 

 

Convertible Preferred Equity ($25 liquidation value)

 

 

 

 

 

 

 

 

 

 

 

Convertible Series I Units

 

$

8,800

 

$

8,800

 

$

8,800

 

$

8,800

 

$

8,800

 

Convertible Preferred Equity ($50 liquidation value)

 

 

 

 

 

 

 

 

 

 

 

Convertible Series K Shares

 

26,583

 

26,583

 

26,583

 

26,583

 

26,583

 

Total Convertible Preferred Equity

 

$

35,383

 

$

35,383

 

$

35,383

 

$

35,383

 

$

35,383

 

Total Liquidation Value of Preferred Equity

 

$

225,133

 

$

225,133

 

$

225,133

 

$

225,133

 

$

225,133

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted Average Shares for quarter ended:

 

 

 

 

 

 

 

 

 

 

 

Common Shares Outstanding

 

58,489

 

57,844

 

57,604

 

57,470

 

56,637

 

Dilutive effect of share-based compensation awards

 

421

 

364

 

413

 

485

 

546

 

Common Units

 

4,558

 

5,017

 

5,078

 

5,084

 

5,483

 

Denominator for funds from operations per share - diluted

 

63,468

 

63,225

 

63,095

 

63,039

 

62,666

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalization

 

 

 

 

 

 

 

 

 

 

 

Liquidation Value of Preferred Shares/Units

 

$

225,133

 

$

225,133

 

$

225,133

 

$

225,133

 

$

225,133

 

Market Value of Common Shares/Units

 

2,406,973

 

2,555,639

 

2,322,672

 

2,335,758

 

1,850,752

 

Total Equity Market Capitalization

 

$

2,632,107

 

$

2,780,772

 

$

2,547,805

 

$

2,560,891

 

$

2,075,886

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Debt

 

$

2,182,375

 

$

2,107,131

 

$

2,053,841

 

$

1,897,852

 

$

1,831,713

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Market Capitalization

 

$

4,814,482

 

$

4,887,903

 

$

4,601,646

 

$

4,458,743

 

$

3,907,599

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt to Total Market Capitalization

 

45.3

%

43.1

%

44.6

%

42.6

%

46.9

%

Debt to Total Assets

 

62.9

%

62.0

%

60.8

%

58.7

%

57.3

%

Debt to Undepreciated Book Value of Real Estate Assets

 

59.1

%

58.5

%

57.8

%

56.7

%

55.2

%

 

15



 

Dividend Analysis

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

6/30/09

 

6/30/10

 

6/30/09

 

Common Share Dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per share/unit

 

$

0.3925

 

$

0.3925

 

$

0.3925

 

$

0.3925

 

$

0.3725

 

$

 0.7850

 

$

0.7450

 

Increase over prior period

 

0.0

%

0.0

%

0.0

%

5.4

%

0.0

%

5.4

%

9.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Dividend Payout Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted FFO Payout

 

73.8

%

75.2

%

76.3

%

65.8

%

55.7

%

74.5

%

55.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted AFFO Payout

 

93.6

%

99.3

%

121.6

%

89.2

%

64.9

%

96.3

%

65.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend Coverage - Diluted FFO

 

1.35x

 

1.33x

 

1.31x

 

1.52x

 

1.80x

 

1.34x

 

1.79x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend Coverage - Diluted AFFO

 

1.07x

 

1.01x

 

0.82x

 

1.12x

 

1.54x

 

1.04x

 

1.52x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Dividend Yields

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend Yield at Quarter End

 

4.16

%

3.91

%

4.29

%

4.26

%

5.08

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series I Preferred Unit Distributions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Unit Distributions Per Unit

 

$

0.46875

 

$

0.46875

 

$

0.46875

 

$

0.46875

 

$

0.46875

 

 

 

 

 

Preferred Unit Distributions Yield

 

7.500

%

7.500

%

7.500

%

7.500

%

7.500

%

 

 

 

 

Quarter End Recorded Book Value

 

$

25.00

 

$

25.00

 

$

25.00

 

$

25.00

 

$

25.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series G Preferred Share Dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Share Dividends Per Share

 

$

0.50000

 

$

0.50000

 

$

0.50000

 

$

0.50000

 

$

0.50000

 

 

 

 

 

Preferred Share Dividend Yield

 

8.000

%

8.000

%

8.000

%

8.000

%

8.000

%

 

 

 

 

Quarter End Recorded Book Value

 

$

25.00

 

$

25.00

 

$

25.00

 

$

25.00

 

$

25.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series H Preferred Share Dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Share Dividends Per Share

 

$

0.46875

 

$

0.46875

 

$

0.46875

 

$

0.46875

 

$

0.46875

 

 

 

 

 

Preferred Share Dividend Yield

 

7.500

%

7.500

%

7.500

%

7.500

%

7.500

%

 

 

 

 

Quarter End Recorded Book Value

 

$

25.00

 

$

25.00

 

$

25.00

 

$

25.00

 

$

25.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series J Preferred Share Dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Share Dividends Per Share

 

$

0.47656

 

$

0.47656

 

$

0.47656

 

$

0.47656

 

$

0.47656

 

 

 

 

 

Preferred Share Dividend Yield

 

7.625

%

7.625

%

7.625

%

7.625

%

7.625

%

 

 

 

 

Quarter End Recorded Book Value

 

$

25.00

 

$

25.00

 

$

25.00

 

$

25.00

 

$

25.00

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Series K Preferred Share Dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Share Dividends Per Share

 

$

0.70000

 

$

0.70000

 

$

0.70000

 

$

0.70000

 

$

0.70000

 

 

 

 

 

Preferred Share Dividend Yield

 

5.600

%

5.600

%

5.600

%

5.600

%

5.600

%

 

 

 

 

Quarter End Recorded Book Value

 

$

50.00

 

$

50.00

 

$

50.00

 

$

50.00

 

$

50.00

 

 

 

 

 

 

16



 

Investor Composition and Analyst Coverage

as of June 30, 2010

 

 

 

 

 

 

 

As if Converted

 

 

 

Diluted

 

 

 

Common

 

Common

 

Preferred

 

 

 

Ownership

 

 

 

Shares

 

Units

 

Shares / Units

 

Total

 

% of Total

 

SHAREHOLDER CLASSIFICATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insiders

 

1,151,982

 

3,755,152

 

 

4,907,134

 

7.63

%

Non-insiders

 

58,135,779

 

700,475

 

610,014

 

59,446,268

 

92.37

%

 

 

59,287,761

 

4,455,627

 

610,014

 

64,353,402

 

100.00

%

 

 

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

6/30/09

 

RESEARCH COVERAGE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BMO Capital Markets

 

x

 

x

 

x

 

x

 

x

 

Citigroup Global Markets

 

x

 

x

 

x

 

x

 

x

 

Friedman Billings Ramsey & Co.

 

n/a

 

n/a

 

x

 

x

 

x

 

Green Street Advisors

 

x

 

x

 

x

 

x

 

x

 

ISI Group

 

x

 

x

 

x

 

x

 

x

 

JP Morgan

 

x

 

x

 

x

 

n/a

 

n/a

 

KeyBanc Capital Markets

 

x

 

x

 

n/a

 

n/a

 

n/a

 

Macquarie Securities

 

x

 

x

 

n/a

 

x

 

x

 

Raymond James

 

x

 

x

 

x

 

x

 

x

 

RBC Capital Markets

 

x

 

x

 

x

 

x

 

x

 

Robert W. Baird & Co. Incorporated

 

x

 

x

 

x

 

x

 

x

 

Stifel, Nicolaus & Company, Incorporated

 

x

 

x

 

x

 

x

 

x

 

Wells Fargo Securities

 

x

 

x

 

x

 

x

 

x

 

 

17



 

Property Summary by Region - June 30, 2010

Wholly Owned Properties

 

Operating
Property 
Count

 

 

 

Submarket

 

Business Park

 

Year Built or 
Renovated

 

S or M

 

Total 
Operational 
Square Feet

 

Total Square Feet
Under 
Construction / 
Redevelopment

 

 

 

Office Properties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore /Washington Corridor

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

2730 Hercules Road

 

BWI Airport

 

NBP

 

1990

 

M

 

240,336

 

 

 

2

 

300 Sentinel Drive (300 NBP)

 

BWI Airport

 

NBP

 

2009

 

M

 

80,241

 

112,513

 

3

 

304 Sentinel Drive (304 NBP)

 

BWI Airport

 

NBP

 

2005

 

M

 

162,647

 

 

 

4

 

306 Sentinel Drive (306 NBP)

 

BWI Airport

 

NBP

 

2006

 

M

 

155,883

 

 

 

5

 

2720 Technology Drive (220 NBP)

 

BWI Airport

 

NBP

 

2004

 

M

 

156,730

 

 

 

6

 

302 Sentinel Drive (302 NBP)

 

BWI Airport

 

NBP

 

2007

 

M

 

153,598

 

 

 

7

 

2711 Technology Drive (211 NBP)

 

BWI Airport

 

NBP

 

2002

 

M

 

152,196

 

 

 

8

 

320 Sentinel Way (320 NBP)

 

BWI Airport

 

NBP

 

2007

 

M

 

125,681

 

 

 

9

 

318 Sentinel Way (318 NBP)

 

BWI Airport

 

NBP

 

2005

 

M

 

125,681

 

 

 

10

 

322 Sentinel Way (322 NBP)

 

BWI Airport

 

NBP

 

2006

 

M

 

125,568

 

 

 

11

 

140 National Business Parkway

 

BWI Airport

 

NBP

 

2003

 

M

 

119,904

 

 

 

12

 

132 National Business Parkway

 

BWI Airport

 

NBP

 

2000

 

M

 

118,598

 

 

 

13

 

2721 Technology Drive (221 NBP)

 

BWI Airport

 

NBP

 

2000

 

M

 

118,093

 

 

 

14

 

2701 Technology Drive (201 NBP)

 

BWI Airport

 

NBP

 

2001

 

M

 

117,450

 

 

 

15

 

2691 Technology Drive (191 NBP)

 

BWI Airport

 

NBP

 

2005

 

M

 

103,683

 

 

 

16

 

134 National Business Parkway

 

BWI Airport

 

NBP

 

1999

 

M

 

93,482

 

 

 

17

 

135 National Business Parkway

 

BWI Airport

 

NBP

 

1998

 

M

 

87,422

 

 

 

18

 

133 National Business Parkway

 

BWI Airport

 

NBP

 

1997

 

M

 

87,401

 

 

 

19

 

141 National Business Parkway

 

BWI Airport

 

NBP

 

1990

 

M

 

87,206

 

 

 

20

 

131 National Business Parkway

 

BWI Airport

 

NBP

 

1990

 

M

 

69,336

 

 

 

21

 

114 National Business Parkway

 

BWI Airport

 

NBP

 

2002

 

S

 

9,908

 

 

 

22

 

314 Sentinel Way (314 NBP)

 

BWI Airport

 

NBP

 

2008

 

S

 

4,462

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,495,506

 

112,513

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

1550 West Nursery Road

 

BWI Airport

 

APS

 

2009

 

M

 

162,101

 

 

 

2

 

1306 Concourse Drive

 

BWI Airport

 

APS

 

1990

 

M

 

116,307

 

 

 

3

 

1304 Concourse Drive

 

BWI Airport

 

APS

 

2002

 

M

 

101,792

 

 

 

4

 

900 Elkridge Landing Road

 

BWI Airport

 

APS

 

1982

 

M

 

100,824

 

 

 

5

 

880 Elkridge Landing Road

 

BWI Airport

 

APS

 

1981

 

M

 

99,524

 

 

 

6

 

1199 Winterson Road

 

BWI Airport

 

APS

 

1988

 

M

 

96,636

 

 

 

7

 

920 Elkridge Landing Road

 

BWI Airport

 

APS

 

1982

 

M

 

96,566

 

 

 

8

 

1302 Concourse Drive

 

BWI Airport

 

APS

 

1996

 

M

 

84,053

 

 

 

9

 

881 Elkridge Landing Road

 

BWI Airport

 

APS

 

1986

 

M

 

73,572

 

 

 

10

 

1099 Winterson Road

 

BWI Airport

 

APS

 

1988

 

M

 

70,583

 

 

 

11

 

1190 Winterson Road

 

BWI Airport

 

APS

 

1987

 

M

 

68,899

 

 

 

12

 

849 International Drive

 

BWI Airport

 

APS

 

1988

 

M

 

68,768

 

 

 

13

 

911 Elkridge Landing Road

 

BWI Airport

 

APS

 

1985

 

M

 

68,296

 

 

 

14

 

1201 Winterson Road

 

BWI Airport

 

APS

 

1985

 

M

 

67,903

 

 

 

15

 

999 Corporate Boulevard

 

BWI Airport

 

APS

 

2000

 

M

 

66,889

 

 

 

16

 

901 Elkridge Landing Road

 

BWI Airport

 

APS

 

1984

 

M

 

58,035

 

 

 

17

 

891 Elkridge Landing Road

 

BWI Airport

 

APS

 

1984

 

M

 

57,955

 

 

 

18

 

800 International Drive

 

BWI Airport

 

APS

 

1988

 

S

 

57,379

 

 

 

19

 

930 International Drive

 

BWI Airport

 

APS

 

1986

 

S

 

57,272

 

 

 

20

 

900 International Drive

 

BWI Airport

 

APS

 

1986

 

S

 

57,140

 

 

 

21

 

939 Elkridge Landing Road

 

BWI Airport

 

APS

 

1983

 

M

 

54,280

 

 

 

22

 

921 Elkridge Landing Road

 

BWI Airport

 

APS

 

1983

 

M

 

54,175

 

 

 

23

 

938 Elkridge Landing Road

 

BWI Airport

 

APS

 

1984

 

M

 

52,988

 

 

 

24

 

870 Elkridge Landing Road

 

BWI Airport

 

APS

 

1981

 

S

 

5,627

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,797,564

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

7467 Ridge Road

 

BWI Airport

 

Comm./Pkwy.

 

1990

 

M

 

74,136

 

 

 

2

 

7240 Parkway Drive

 

BWI Airport

 

Comm./Pkwy.

 

1985

 

M

 

74,153

 

 

 

3

 

7272 Park Circle Drive

 

BWI Airport

 

Comm./Pkwy.

 

1991/1996

 

M

 

59,888

 

 

 

4

 

7318 Parkway Drive

 

BWI Airport

 

Comm./Pkwy.

 

1984

 

S

 

59,204

 

 

 

5

 

7320 Parkway Drive

 

BWI Airport

 

Comm./Pkwy.

 

1983

 

S

 

56,964

 

 

 

6

 

1340 Ashton Road

 

BWI Airport

 

Comm./Pkwy.

 

1989

 

S

 

45,867

 

 

 

7

 

1362 Mellon Road

 

BWI Airport

 

Comm./Pkwy.

 

2006

 

M

 

44,138

 

 

 

8

 

1334 Ashton Road

 

BWI Airport

 

Comm./Pkwy.

 

1989

 

S

 

37,317

 

 

 

9

 

1331 Ashton Road

 

BWI Airport

 

Comm./Pkwy.

 

1989

 

S

 

28,998

 

 

 

10

 

1350 Dorsey Road

 

BWI Airport

 

Comm./Pkwy.

 

1989

 

S

 

19,706

 

 

 

11

 

1344 Ashton Road

 

BWI Airport

 

Comm./Pkwy.

 

1989

 

M

 

16,964

 

 

 

12

 

1341 Ashton Road

 

BWI Airport

 

Comm./Pkwy.

 

1989

 

S

 

15,947

 

 

 

13

 

1343 Ashton Road

 

BWI Airport

 

Comm./Pkwy.

 

1989

 

S

 

9,903

 

 

 

14

 

1348 Ashton Road

 

BWI Airport

 

Comm./Pkwy.

 

1988

 

S

 

3,108

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

546,293

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

60

 

Subtotal (continued on next page)

 

 

 

 

 

 

 

 

 

4,839,363

 

   112,513

 

 

The S or M notation indicates single story or multi-story, respectively.

 

18



 

Property Summary by Region - June 30, 2010 (continued)

Wholly Owned Properties

 

Operating
Property
Count

 

 

 

Submarket

 

Business Park

 

Year Built or
Renovated

 

S or 
M

 

Total 
Operational 
Square Feet

 

Total Square 
Feet Under 
Construction / 
Redevelopment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

60

 

Subtotal (continued from prior page)

 

 

 

 

 

 

 

 

 

4,839,363

 

112,513

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

5520 Research Park Drive (UMBC)  (1)

 

BWI Airport

 

bwtech@UMBC

 

2009

 

M

 

105,925

 

 

 

2

 

5522 Research Park Drive (UMBC)  (1)

 

BWI Airport

 

bwtech@UMBC

 

2007

 

S

 

23,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

129,425

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

2500 Riva Road

 

Annapolis

 

 

 

2000

 

M

 

155,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

Old Annapolis Road

 

Howard Co. Perimeter

 

Oakland Ridge

 

1985

 

M

 

171,436

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

7125 Columbia Gateway Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

1973/1999

 

M

 

471,012

 

 

 

2

 

7000 Columbia Gateway Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

1999

 

M

 

145,806

 

 

 

3

 

6721 Columbia Gateway Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

2009

 

M

 

131,451

 

 

 

4

 

6731 Columbia Gateway Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

2002

 

M

 

123,847

 

 

 

5

 

6711 Columbia Gateway Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

2006-2007

 

M

 

123,599

 

 

 

6

 

6940 Columbia Gateway Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

1999

 

M

 

108,822

 

 

 

7

 

6950 Columbia Gateway Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

1998

 

M

 

112,861

 

 

 

8

 

7067 Columbia Gateway Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

2001

 

M

 

86,027

 

 

 

9

 

8621 Robert Fulton Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

2005-2006

 

M

 

86,033

 

 

 

10

 

6750 Alexander Bell Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

2001

 

M

 

75,595

 

 

 

11

 

6700 Alexander Bell Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

1988

 

M

 

76,347

 

 

 

12

 

6740 Alexander Bell Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

1992

 

M

 

63,480

 

 

 

13

 

7015 Albert Einstein Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

1999

 

S

 

61,203

 

 

 

14

 

8671 Robert Fulton Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

2002

 

S

 

56,350

 

 

 

15

 

6716 Alexander Bell Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

1990

 

M

 

52,131

 

 

 

16

 

8661 Robert Fulton Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

2002

 

S

 

49,307

 

 

 

17

 

7142 Columbia Gateway Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

1994

 

S

 

47,668

 

 

 

18

 

7130 Columbia Gateway Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

1989

 

S

 

46,460

 

 

 

19

 

6708 Alexander Bell Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

1988

 

M

 

39,203

 

 

 

20

 

7065 Columbia Gateway Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

2000

 

S

 

38,560

 

 

 

21

 

7138 Columbia Gateway Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

1990

 

S

 

38,225

 

 

 

22

 

7063 Columbia Gateway Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

2000

 

S

 

36,472

 

 

 

23

 

6760 Alexander Bell Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

1991

 

M

 

36,225

 

 

 

24

 

7150 Columbia Gateway Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

1991

 

S

 

35,812

 

 

 

25

 

7061 Columbia Gateway Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

2000

 

M

 

29,910

 

 

 

26

 

6724 Alexander Bell Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

2001

 

M

 

28,107

 

 

 

27

 

7134 Columbia Gateway Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

1990

 

S

 

21,991

 

 

 

28

 

6741 Columbia Gateway Drive

 

Howard Co. Perimeter

 

Columbia Gateway

 

2008

 

S

 

4,592

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,227,096

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

7200 Riverwood Drive

 

Howard Co. Perimeter

 

Rivers Corporate Park

 

1986

 

S

 

160,000

 

 

 

2

 

7160 Riverwood Drive

 

Howard Co. Perimeter

 

Rivers Corporate Park

 

2000

 

M

 

61,984

 

 

 

3

 

9140 Guilford Road

 

Howard Co. Perimeter

 

Rivers Corporate Park

 

1983

 

S

 

40,286

 

 

 

4

 

7150 Riverwood Drive

 

Howard Co. Perimeter

 

Rivers Corporate Park

 

2000

 

M

 

39,496

 

 

 

5

 

9160 Guilford Road

 

Howard Co. Perimeter

 

Rivers Corporate Park

 

1984

 

M

 

37,034

 

 

 

6

 

7170 Riverwood Drive

 

Howard Co. Perimeter

 

Rivers Corporate Park

 

2000

 

M

 

29,162

 

 

 

7

 

9150 Guilford Road

 

Howard Co. Perimeter

 

Rivers Corporate Park

 

1984

 

S

 

18,592

 

 

 

8

 

10280 Old Columbia Road

 

Howard Co. Perimeter

 

Rivers Corporate Park

 

1988/2001

 

S

 

16,195

 

 

 

9

 

10270 Old Columbia Road

 

Howard Co. Perimeter

 

Rivers Corporate Park

 

1988/2001

 

S

 

15,910

 

 

 

10

 

9130 Guilford Road

 

Howard Co. Perimeter

 

Rivers Corporate Park

 

1984

 

S

 

13,700

 

 

 

11

 

10290 Old Columbia Road

 

Howard Co. Perimeter

 

Rivers Corporate Park

 

1988/2001

 

S

 

10,263

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

442,622

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

9720 Patuxent Woods Drive

 

Howard Co. Perimeter

 

Owen Brown South

 

1986/2001

 

M

 

40,004

 

 

 

2

 

9740 Patuxent Woods Drive

 

Howard Co. Perimeter

 

Owen Brown South

 

1986/2001

 

M

 

38,292

 

 

 

3

 

9700 Patuxent Woods Drive

 

Howard Co. Perimeter

 

Owen Brown South

 

1986/2001

 

M

 

31,220

 

 

 

4

 

9730 Patuxent Woods Drive

 

Howard Co. Perimeter

 

Owen Brown South

 

1986/2001

 

M

 

30,485

 

 

 

5

 

9710 Patuxent Woods Drive

 

Howard Co. Perimeter

 

Owen Brown South

 

1986/2001

 

M

 

14,778

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

154,779

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

9020 Mendenhall Court

 

Howard Co. Perimeter

 

Sieling Business Park

 

1982/2005

 

S

 

49,217

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

109

 

Total Baltimore/Washington Corridor

 

 

 

 

 

 

 

 

  8,168,938

 

      112,513

 

 

The S or M notation indicates single story or multi-story building, respectively.

 


(1) This property is a land-lease property.

 

19



 

Property Summary by Region - June 30, 2010 (continued)

Wholly Owned Properties

 

Operating
Property 
Count

 

 

 

Submarket

 

Business Park

 

Year Built or 
Renovated

 

S or M

 

Total 
Operational 
Square Feet

 

Total Square Feet 
Under 
Construction / 
Redevelopment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

St. Mary’s & King George Counties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

22309 Exploration Drive

 

St. Mary’s County

 

Exploration Park

 

1984/1997

 

M

 

98,860

 

 

 

2

 

22289 Exploration Drive

 

St. Mary’s County

 

Exploration Park

 

2000

 

M

 

58,676

 

 

 

3

 

22299 Exploration Drive

 

St. Mary’s County

 

Exploration Park

 

1998

 

M

 

58,363

 

 

 

4

 

22300 Exploration Drive

 

St. Mary’s County

 

Exploration Park

 

1997

 

M

 

44,830

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

260,729

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

46579 Expedition Drive

 

St. Mary’s County

 

Expedition Park

 

2002

 

M

 

61,156

 

 

 

2

 

46591 Expedition Drive

 

St. Mary’s County

 

Expedition Park

 

2005-2006

 

M

 

59,483

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

120,639

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

44425 Pecan Court

 

St. Mary’s County

 

Wildewood Tech Park

 

1997

 

M

 

58,981

 

 

 

2

 

44408 Pecan Court

 

St. Mary’s County

 

Wildewood Tech Park

 

1986

 

S

 

50,532

 

 

 

3

 

23535 Cottonwood Parkway

 

St. Mary’s County

 

Wildewood Tech Park

 

1984

 

M

 

46,656

 

 

 

4

 

44417 Pecan Court

 

St. Mary’s County

 

Wildewood Tech Park

 

1989

 

S

 

29,053

 

 

 

5

 

44414 Pecan Court

 

St. Mary’s County

 

Wildewood Tech Park

 

1986

 

S

 

25,444

 

 

 

6

 

44420 Pecan Court

 

St. Mary’s County

 

Wildewood Tech Park

 

1989

 

S

 

25,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

235,866

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

16480 Commerce Drive

 

King George County

 

Dahlgren Technology Center

 

2000

 

M

 

70,728

 

 

 

2

 

16541 Commerce Drive

 

King George County

 

Dahlgren Technology Center

 

1996

 

S

 

36,053

 

 

 

3

 

16539 Commerce Drive

 

King George County

 

Dahlgren Technology Center

 

1990

 

S

 

32,076

 

 

 

4

 

16442 Commerce Drive

 

King George County

 

Dahlgren Technology Center

 

2002

 

S

 

25,518

 

 

 

5

 

16501 Commerce Drive

 

King George County

 

Dahlgren Technology Center

 

2002

 

S

 

22,833

 

 

 

6

 

16543 Commerce Drive

 

King George County

 

Dahlgren Technology Center

 

2002

 

S

 

17,370

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

204,578

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

18

 

Total St. Mary’s & King George Counties

 

 

 

 

 

 

 

821,812

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Northern Virginia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

15000 Conference Center Drive

 

Dulles South

 

Westfields Corporate Center

 

1989

 

M

 

471,440

 

 

 

2

 

15010 Conference Center Drive

 

Dulles South

 

Westfields Corporate Center

 

2006

 

M

 

223,610

 

 

 

3

 

15059 Conference Center Drive

 

Dulles South

 

Westfields Corporate Center

 

2000

 

M

 

145,224

 

 

 

4

 

15049 Conference Center Drive

 

Dulles South

 

Westfields Corporate Center

 

1997

 

M

 

145,706

 

 

 

5

 

14900 Conference Center Drive

 

Dulles South

 

Westfields Corporate Center

 

1999

 

M

 

126,158

 

 

 

6

 

14280 Park Meadow Drive

 

Dulles South

 

Westfields Corporate Center

 

1999

 

M

 

114,126

 

 

 

7

 

4851 Stonecroft Boulevard

 

Dulles South

 

Westfields Corporate Center

 

2004

 

M

 

88,094

 

 

 

8

 

14850 Conference Center Drive

 

Dulles South

 

Westfields Corporate Center

 

2000

 

M

 

70,348

 

 

 

9

 

14840 Conference Center Drive

 

Dulles South

 

Westfields Corporate Center

 

2000

 

M

 

69,710

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,454,416

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

13200 Woodland Park Road

 

Herndon

 

Woodland Park

 

2002

 

M

 

404,665

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

13454 Sunrise Valley Road

 

Herndon

 

Dulles Tech

 

1998

 

M

 

112,633

 

 

 

2

 

13450 Sunrise Valley Road

 

Herndon

 

Dulles Tech

 

1998

 

M

 

53,776

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

166,409

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

1751 Pinnacle Drive

 

Tysons Corner

 

 

 

1989/1995

 

M

 

260,469

 

 

 

2

 

1753 Pinnacle Drive

 

Tysons Corner

 

 

 

1976/2004

 

M

 

186,707

 

 

 

3

 

1550 Westbranch Drive

 

Tysons Corner

 

 

 

2002

 

M

 

152,240

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

599,416

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

2900 Towerview Road

 

Route 28 South

 

Renaissance Park

 

1982/2008

 

M

 

139,802

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16

 

Total Northern Virginia

 

 

 

 

 

 

 

 

 

2,764,708

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

11751 Meadowville Lane

 

Richmond Southwest

 

Meadowville Technology Park

 

2007

 

M

 

193,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

201 Technology Park Drive

 

Southwest Virginia

 

Russell Regional Business Tech Park

 

2007

 

S

 

102,842

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

431 Ridge Road

 

Exit 8A — Cranbury

 

Princeton Tech Cntr.

 

1998

 

S

 

171,200

 

 

 

2

 

437 Ridge Road

 

Exit 8A — Cranbury

 

Princeton Tech Cntr.

 

1996

 

S

 

30,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

201,200

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

Total Other

 

 

 

 

 

 

 

 

 

497,042

 

 

 

The S or M notation indicates single story or multi-story building, respectively.

 

20



 

Property Summary by Region - June 30, 2010 (continued)

Wholly Owned Properties

Operating
Property 
Count

 

 

 

Submarket

 

Business Park

 

Year Built or 
Renovated

 

S or 
M

 

Total 
Operational 
Square Feet

 

Total Square Feet 
Under 
Construction / 
Redevelopment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Greater Philadelphia

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

753 Jolly Road

 

Blue Bell

 

Arborcrest

 

1992

 

S

 

125,637

 

292,793

 

2

 

785 Jolly Road

 

Blue Bell

 

Arborcrest

 

1996

 

M

 

219,065

 

 

 

3

 

760 Jolly Road

 

Blue Bell

 

Arborcrest

 

1994

 

M

 

156,695

 

61,958

 

4

 

751 Jolly Road

 

Blue Bell

 

Arborcrest

 

1991

 

M

 

114,000

 

 

 

 

 

Total Greater Philadelphia

 

 

 

 

 

 

 

 

 

615,397

 

354,751

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Antonio, Texas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

7700 Potranco Road

 

San Antonio Northwest

 

Sentry Gateway

 

1982/1985

 

M

 

508,412

 

 

 

3

 

7700-5 Potranco-Warehouse

 

San Antonio Northwest

 

Sentry Gateway

 

2009

 

S

 

25,056

 

 

 

4

 

7700-1 Potranco Road

 

San Antonio Northwest

 

Sentry Gateway

 

2007

 

S

 

8,674

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

542,142

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

1560 Cable Ranch Road - Building B

 

San Antonio Northwest

 

151 Technology Center

 

1985/2006

 

M

 

77,040

 

 

 

2

 

1560 Cable Ranch Road - Building A

 

San Antonio Northwest

 

151 Technology Center

 

1985/2007

 

M

 

45,935

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

122,975

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6

 

Total San Antonio, Texas

 

 

 

 

 

 

 

 

 

665,117

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Colorado Springs, Colorado

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

655 Space Center Drive

 

Colorado Springs East

 

Patriot Park

 

2008

 

M

 

103,970

 

 

 

2

 

985 Space Center Drive

 

Colorado Springs East

 

Patriot Park

 

1989

 

M

 

104,028

 

 

 

3

 

565 Space Center Drive

 

Colorado Springs East

 

Patriot Park

 

2009

 

M

 

89,899

 

 

 

4

 

745 Space Center Drive

 

Colorado Springs East

 

Patriot Park

 

2006

 

M

 

51,500

 

 

 

5

 

980 Technology Court

 

Colorado Springs East

 

Patriot Park

 

1995

 

S

 

33,190

 

 

 

6

 

525 Babcock Road

 

Colorado Springs East

 

Patriot Park

 

1967

 

S

 

14,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

396,587

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

1055 North Newport Road

 

Colorado Springs East

 

Aerotech Commerce Park

 

2007-2008

 

M

 

59,763

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

3535 Northrop Grumman Point

 

Colorado Springs East

 

Colorado Springs Airport

 

2008

 

M

 

124,305

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

1670 North Newport Road

 

Colorado Springs East

 

 

 

1986-1987

 

M

 

67,500

 

 

 

2

 

1915 Aerotech Drive

 

Colorado Springs East

 

 

 

1985

 

S

 

37,946

 

 

 

3

 

1925 Aerotech Drive

 

Colorado Springs East

 

 

 

1985

 

S

 

37,946

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

143,392

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

10807 New Allegiance Drive

 

I-25 North Corridor

 

InterQuest Office

 

2009

 

M

 

145,723

 

 

 

2

 

12515 Academy Ridge View

 

I-25 North Corridor

 

InterQuest Office

 

2006

 

M

 

61,372

 

 

 

3

 

9965 Federal Drive

 

I-25 North Corridor

 

InterQuest Office

 

1983/2007

 

M

 

74,749

 

 

 

4

 

9945 Federal Drive

 

I-25 North Corridor

 

InterQuest Office

 

2009

 

S

 

74,005

 

 

 

5

 

9950 Federal Drive

 

I-25 North Corridor

 

InterQuest Office

 

2001

 

S

 

66,222

 

 

 

6

 

9925 Federal Drive

 

I-25 North Corridor

 

InterQuest Office

 

2008

 

S

 

53,745

 

 

 

7

 

9960 Federal Drive

 

I-25 North Corridor

 

InterQuest Office

 

2001

 

S

 

46,948

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

522,764

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

5775 Mark Dabling Boulevard

 

Colorado Springs Northwest

 

 

 

1984

 

M

 

109,678

 

 

 

2

 

5725 Mark Dabling Boulevard

 

Colorado Springs Northwest

 

 

 

1984

 

M

 

108,976

 

 

 

3

 

5755 Mark Dabling Boulevard

 

Colorado Springs Northwest

 

 

 

1989

 

M

 

105,997

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

324,651

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21

 

Total Colorado Springs, Colorado

 

 

 

 

 

 

 

 

 

1,571,462

 

 

 

The S or M notation indicates single story or multi-story building, respectively.

 

21



 

Property Summary by Region - June 30, 2010 (continued)

Wholly Owned Properties

 

Operating
Property
Count

 

 

 

Submarket

 

Business Park

 

Year Built or
Renovated

 

S or M

 

Total
Operational
Square Feet

 

Total Square Feet
Under
Construction /
Redevelopment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Suburban Maryland

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

11800 Tech Road

 

North Silver Spring

 

Montgomery Industrial

 

1989

 

M

 

228,179

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

400 Professional Drive

 

Gaithersburg

 

Crown Point

 

2000

 

M

 

129,355

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

110 Thomas Johnson Drive

 

Frederick

 

 

 

1987/1999

 

M

 

122,490

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

45 West Gude Drive

 

Rockville

 

 

 

1987

 

M

 

108,466

 

 

 

2

 

15 West Gude Drive

 

Rockville

 

 

 

1986

 

M

 

106,694

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

215,160

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5

 

Total Suburban Maryland

 

 

 

 

 

 

 

 

 

695,184

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Greater Baltimore

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

11311 McCormick Road

 

Hunt Valley/Rte 83 Corridor

 

Hunt Valley Business Comm.

 

1984/1994

 

M

 

216,127

 

 

 

2

 

200 International Circle

 

Hunt Valley/Rte 83 Corridor

 

Hunt Valley Business Comm.

 

1987

 

M

 

125,734

 

 

 

3

 

226 Schilling Circle

 

Hunt Valley/Rte 83 Corridor

 

Hunt Valley Business Comm.

 

1980

 

M

 

98,640

 

 

 

4

 

201 International Circle

 

Hunt Valley/Rte 83 Corridor

 

Hunt Valley Business Comm.

 

1982

 

M

 

78,461

 

 

 

5

 

11011 McCormick Road

 

Hunt Valley/Rte 83 Corridor

 

Hunt Valley Business Comm.

 

1974

 

M

 

57,550

 

 

 

6

 

216 Schilling Circle

 

Hunt Valley/Rte 83 Corridor

 

Hunt Valley Business Comm.

 

1988/2001

 

M

 

36,273

 

 

 

7

 

222 Schilling Circle

 

Hunt Valley/Rte 83 Corridor

 

Hunt Valley Business Comm.

 

1978/1997

 

M

 

28,613

 

 

 

8

 

224 Schilling Circle

 

Hunt Valley/Rte 83 Corridor

 

Hunt Valley Business Comm.

 

1978/1997

 

M

 

27,574

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

668,972

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

10150 York Road

 

Hunt Valley/Rte 83 Corridor

 

 

 

1985

 

M

 

178,286

 

 

 

2

 

9690 Deereco Road

 

Hunt Valley/Rte 83 Corridor

 

 

 

1988

 

M

 

134,268

 

 

 

3

 

375 West Padonia Road

 

Hunt Valley/Rte 83 Corridor

 

 

 

1986

 

M

 

110,378

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

422,932

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

7210 Ambassador Road

 

Baltimore County Westside

 

Rutherford Business Center

 

1972

 

S

 

83,435

 

 

 

2

 

7152 Windsor Boulevard

 

Baltimore County Westside

 

Rutherford Business Center

 

1986

 

S

 

57,855

 

 

 

3

 

21 Governor’s Court

 

Baltimore County Westside

 

Rutherford Business Center

 

1981/1995

 

M

 

56,383

 

 

 

4

 

7125 Ambassador Road

 

Baltimore County Westside

 

Rutherford Business Center

 

1985

 

M

 

50,604

 

 

 

5

 

7104 Ambassador Road

 

Baltimore County Westside

 

Rutherford Business Center

 

1988

 

M

 

30,081

 

 

 

6

 

17 Governor’s Court

 

Baltimore County Westside

 

Rutherford Business Center

 

1981

 

S

 

14,454

 

 

 

7

 

15 Governor’s Court

 

Baltimore County Westside

 

Rutherford Business Center

 

1981

 

S

 

14,568

 

 

 

8

 

7127 Ambassador Road

 

Baltimore County Westside

 

Rutherford Business Center

 

1985

 

S

 

11,630

 

 

 

9

 

7129 Ambassador Road

 

Baltimore County Westside

 

Rutherford Business Center

 

1985

 

S

 

11,075

 

 

 

10

 

7108 Ambassador Road

 

Baltimore County Westside

 

Rutherford Business Center

 

1988

 

S

 

8,811

 

 

 

11

 

7102 Ambassador Road

 

Baltimore County Westside

 

Rutherford Business Center

 

1988

 

S

 

8,879

 

 

 

12

 

7106 Ambassador Road

 

Baltimore County Westside

 

Rutherford Business Center

 

1988

 

S

 

8,899

 

 

 

13

 

7131 Ambassador Road

 

Baltimore County Westside

 

Rutherford Business Center

 

1985

 

S

 

7,734

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

364,408

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

502 Washington Avenue

 

Towson

 

 

 

1984

 

M

 

90,604

 

 

 

2

 

102 West Pennsylvania Avenue

 

Towson

 

 

 

1968/2001

 

M

 

50,442

 

 

 

3

 

100 West Pennsylvania Avenue

 

Towson

 

 

 

1952/1989

 

M

 

20,094

 

 

 

4

 

109-111 Allegheny Avenue

 

Towson

 

 

 

1971

 

M

 

18,431

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

179,571

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

1501 South Clinton Street

 

Baltimore

 

Canton Crossing

 

2006

 

M

 

474,237

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

209 Research Boulevard

 

Harford County

 

Northgate Business Park

 

2010

 

M

 

36,862

 

41,641

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30

 

Subtotal (continued on next page)

 

 

 

 

 

 

 

 

 

2,146,982

 

41,641

 

 

The S or M notation indicates single story or multi-story building, respectively.

 

22



 

Property Summary by Region - June 30, 2010 (continued)

Wholly Owned Properties

 

Operating
Property
Count

 

 

 

Submarket

 

Business Park

 

Year Built or
Renovated

 

S or M

 

Total
Operational
Square Feet

 

Total Square Feet
Under
Construction /
Redevelopment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30

 

Subtotal (continued from prior page)

 

 

 

 

 

 

 

 

 

2,146,982

 

41,641

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

4940 Campbell Boulevard

 

White Marsh

 

Campbell Corporate Center

 

1990

 

M

 

50,417

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

8140 Corporate Drive

 

White Marsh

 

Corporate Place

 

2003

 

M

 

76,149

 

 

 

2

 

8110 Corporate Drive

 

White Marsh

 

Corporate Place

 

2001

 

M

 

75,687

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

151,836

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

9910 Franklin Square Drive

 

White Marsh

 

Franklin Ridge

 

2005

 

S

 

56,271

 

 

 

2

 

9920 Franklin Square Drive

 

White Marsh

 

Franklin Ridge

 

2006

 

S

 

42,767

 

 

 

3

 

9930 Franklin Square Drive

 

White Marsh

 

Franklin Ridge

 

2001

 

S

 

39,750

 

 

 

4

 

9900 Franklin Square Drive

 

White Marsh

 

Franklin Ridge

 

1999

 

S

 

33,801

 

 

 

5

 

9940 Franklin Square Drive

 

White Marsh

 

Franklin Ridge

 

2000

 

S

 

32,242

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

204,831

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

8020 Corporate Drive

 

White Marsh

 

McLean Ridge

 

1997

 

S

 

50,796

 

 

 

2

 

8094 Sandpiper Circle

 

White Marsh

 

McLean Ridge

 

1998

 

S

 

49,585

 

 

 

3

 

8098 Sandpiper Circle

 

White Marsh

 

McLean Ridge

 

1998

 

S

 

47,680

 

 

 

4

 

8010 Corporate Drive

 

White Marsh

 

McLean Ridge

 

1998

 

S

 

38,487

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

186,548

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

5325 Nottingham Ridge Road

 

White Marsh

 

Nottingham Ridge

 

2002

 

S

 

35,678

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

7941-7949 Corporate Drive

 

White Marsh

 

Tyler Ridge

 

1996

 

S

 

58,287

 

 

 

2

 

8007 Corporate Drive

 

White Marsh

 

Tyler Ridge

 

1995

 

S

 

41,810

 

 

 

3

 

8019 Corporate Drive

 

White Marsh

 

Tyler Ridge

 

1990

 

S

 

33,274

 

 

 

4

 

8013 Corporate Drive

 

White Marsh

 

Tyler Ridge

 

1990

 

S

 

30,003

 

 

 

5

 

8003 Corporate Drive

 

White Marsh

 

Tyler Ridge

 

1999

 

S

 

17,599

 

 

 

6

 

8015 Corporate Drive

 

White Marsh

 

Tyler Ridge

 

1990

 

S

 

15,669

 

 

 

7

 

8023 Corporate Drive

 

White Marsh

 

Tyler Ridge

 

1990

 

S

 

9,486

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

206,128

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

5020 Campbell Boulevard

 

White Marsh

 

White Marsh Business Center

 

1986-1988

 

S

 

43,791

 

 

 

2

 

5024 Campbell Boulevard

 

White Marsh

 

White Marsh Business Center

 

1986-1988

 

S

 

33,710

 

 

 

3

 

5026 Campbell Boulevard

 

White Marsh

 

White Marsh Business Center

 

1986-1988

 

S

 

30,163

 

 

 

4

 

5022 Campbell Boulevard

 

White Marsh

 

White Marsh Business Center

 

1986-1988

 

S

 

26,747

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

134,411

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

10001 Franklin Square Drive

 

White Marsh

 

White Marsh Commerce Center

 

1997

 

S

 

218,215

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

8114 Sandpiper Circle

 

White Marsh

 

White Marsh Health Center

 

1986

 

S

 

45,806

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

4979 Mercantile Road

 

White Marsh

 

White Marsh Hi-Tech Center

 

1985

 

S

 

51,198

 

 

 

2

 

4969 Mercantile Road

 

White Marsh

 

White Marsh Hi-Tech Center

 

1983

 

S

 

47,132

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

98,330

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

7939 Honeygo Boulevard

 

White Marsh

 

White Marsh Professional Center

 

1984

 

M

 

28,206

 

 

 

2

 

8133 Perry Hall Boulevard

 

White Marsh

 

White Marsh Professional Center

 

1988

 

M

 

27,995

 

 

 

3

 

7923 Honeygo Boulevard

 

White Marsh

 

White Marsh Professional Center

 

1985

 

M

 

23,482

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

79,683

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

8031 Corporate Drive

 

White Marsh

 

 

 

1988/2004

 

S

 

66,000

 

 

 

2

 

8615 Ridgely’s Choice Drive

 

White Marsh

 

 

 

2005

 

M

 

37,764

 

 

 

3

 

8029 Corporate Drive

 

White Marsh

 

 

 

1988/2004

 

S

 

25,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

128,764

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

64

 

Total Greater Baltimore

 

 

 

 

 

 

 

 

 

3,687,629

 

41,641

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

247

 

TOTAL WHOLLY-OWNED PORTFOLIO

 

 

 

 

 

 

 

 

 

19,487,289

 

508,905

 

 

The S or M notation indicates single story or multi-story building, respectively.

 

23



 

Property Summary by Region - June 30, 2010

Joint Venture Properties

 

Operating
Property
Count

 

 

 

Submarket

 

Business Park

 

Year Built or
Renovated

 

S or M

 

Total
Operational
Square Feet

 

Total Square Feet
Under
Construction /
Redevelopment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unconsolidated Joint Venture Properties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Greater Harrisburg

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

2605 Interstate Drive

 

East Shore

 

Commerce Park

 

1990

 

M

 

79,456

 

 

 

2

 

2601 Market Place

 

East Shore

 

Commerce Park

 

1989

 

M

 

65,411

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

144,867

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

6345 Flank Drive

 

East Shore

 

Gtwy Corp. Ctr.

 

1989

 

S

 

69,443

 

 

 

2

 

6340 Flank Drive

 

East Shore

 

Gtwy Corp. Ctr.

 

1988

 

S

 

68,200

 

 

 

3

 

6400 Flank Drive

 

East Shore

 

Gtwy Corp. Ctr.

 

1992

 

S

 

52,439

 

 

 

4

 

6360 Flank Drive

 

East Shore

 

Gtwy Corp. Ctr.

 

1988

 

S

 

46,589

 

 

 

5

 

6385 Flank Drive

 

East Shore

 

Gtwy Corp. Ctr.

 

1995

 

S

 

32,671

 

 

 

6

 

6380 Flank Drive

 

East Shore

 

Gtwy Corp. Ctr.

 

1991

 

S

 

32,668

 

 

 

7

 

6405 Flank Drive

 

East Shore

 

Gtwy Corp. Ctr.

 

1991

 

S

 

32,000

 

 

 

8

 

95 Shannon Road

 

East Shore

 

Gtwy Corp. Ctr.

 

1999

 

S

 

21,976

 

 

 

9

 

75 Shannon Road

 

East Shore

 

Gtwy Corp. Ctr.

 

1999

 

S

 

20,887

 

 

 

10

 

6375 Flank Drive

 

East Shore

 

Gtwy Corp. Ctr.

 

2000

 

S

 

19,783

 

 

 

11

 

85 Shannon Road

 

East Shore

 

Gtwy Corp. Ctr.

 

1999

 

S

 

12,863

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

409,519

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

5035 Ritter Road

 

West Shore

 

Rossmoyne Bus. Ctr.

 

1988

 

S

 

56,556

 

 

 

2

 

5070 Ritter Road - Building A

 

West Shore

 

Rossmoyne Bus. Ctr.

 

1989

 

S

 

31,710

 

 

 

3

 

5070 Ritter Road - Building B

 

West Shore

 

Rossmoyne Bus. Ctr.

 

1989

 

S

 

28,347

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

116,613

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16

 

Total Greater Harrisburg

 

 

 

 

 

 

 

 

 

670,999

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16

 

Total Unconsolidated Joint Venture Properties

 

 

 

 

 

 

 

 

 

670,999

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Joint Venture Properties

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Suburban Maryland

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

5825 University Research Court

 

College Park

 

M Square Business Park

 

2008

 

M

 

118,528

 

 

 

2

 

5850 University Research Court

 

College Park

 

M Square Business Park

 

2009

 

M

 

123,464

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

241,992

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

4230 Forbes Boulevard

 

Lanham

 

Forbes 50

 

2003

 

S

 

55,866

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

Total Suburban Maryland

 

 

 

 

 

 

 

 

 

297,858

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore/Washington Corridor

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

7740 Milestone Parkway

 

BWI Airport

 

Arundel Preserve

 

2007

 

M

 

143,939

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Baltimore/Washington Corridor

 

 

 

 

 

 

 

 

 

143,939

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4

 

Total Consolidated Joint Venture Properties

 

 

 

 

 

 

 

 

 

441,797

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

20

 

TOTAL JOINT VENTURE PORTFOLIO

 

 

 

 

 

 

 

 

 

1,112,796

 

 

 

The S or M notation indicates single story or multi-story building, respectively.

 

24



 

Property Occupancy Rates by Region by Quarter

Wholly Owned Properties

 

 

 

Baltimore /

 

 

 

 

 

 

 

St. Mary’s &

 

 

 

 

 

 

 

 

 

 

 

 

 

Washington

 

Northern

 

Greater

 

Suburban

 

King George

 

Colorado

 

San

 

Greater

 

 

 

Total

 

 

 

Corridor

 

Virginia

 

Baltimore

 

Maryland

 

Counties

 

Springs

 

Antonio

 

Philadelphia

 

Other

 

Portfolio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Buildings

 

109

 

16

 

64

 

5

 

18

 

21

 

6

 

4

 

4

 

247

 

Rentable Square Feet

 

8,168,938

 

2,764,708

 

3,687,629

 

695,184

 

821,812

 

1,571,462

 

665,117

 

615,397

 

497,042

 

19,487,289

 

Occupied %

 

89.6

%

96.0

%

81.2

%

70.7

%

96.0

%

75.1

%

100.0

%

100.0

%

100.0

%

88.3

%

Leased %

 

90.6

%

96.4

%

83.4

%

71.8

%

96.0

%

75.9

%

100.0

%

100.0

%

100.0

%

89.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Buildings

 

109

 

15

 

63

 

5

 

18

 

21

 

6

 

3

 

4

 

244

 

Rentable Square Feet

 

8,117,503

 

2,611,980

 

3,650,487

 

695,307

 

821,812

 

1,384,554

 

665,117

 

458,702

 

497,042

 

18,902,504

 

Occupied %

 

89.4

%

96.4

%

81.3

%

86.2

%

94.5

%

86.3

%

100.0

%

100.0

%

100.0

%

89.6

%

Leased %

 

90.8

%

96.8

%

81.4

%

86.2

%

94.5

%

86.3

%

100.0

%

100.0

%

100.0

%

90.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Buildings

 

109

 

15

 

64

 

5

 

18

 

21

 

6

 

3

 

4

 

245

 

Rentable Square Feet

 

8,277,178

 

2,613,077

 

3,672,756

 

695,307

 

821,812

 

1,384,554

 

665,117

 

458,702

 

497,042

 

19,085,545

 

Occupied %

 

91.6

%

96.6

%

80.3

%

91.9

%

97.8

%

85.8

%

100.0

%

100.0

%

100.0

%

90.8

%

Leased %

 

92.5

%

96.8

%

81.0

%

91.9

%

98.0

%

86.1

%

100.0

%

100.0

%

100.0

%

91.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Buildings

 

107

 

15

 

63

 

5

 

18

 

21

 

6

 

3

 

4

 

242

 

Rentable Square Feet

 

8,109,624

 

2,613,077

 

3,198,083

 

695,307

 

821,812

 

1,375,028

 

665,117

 

458,702

 

497,042

 

18,433,792

 

Occupied %

 

90.6

%

97.0

%

82.0

%

92.0

%

97.3

%

87.1

%

100.0

%

100.0

%

100.0

%

91.0

%

Leased %

 

91.3

%

97.1

%

82.7

%

92.3

%

97.8

%

87.2

%

100.0

%

100.0

%

100.0

%

91.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Buildings

 

106

 

15

 

63

 

5

 

18

 

19

 

5

 

4

 

4

 

239

 

Rentable Square Feet

 

7,992,471

 

2,616,302

 

3,206,243

 

694,017

 

824,137

 

1,293,770

 

640,061

 

960,349

 

497,042

 

18,724,392

 

Occupied %

 

93.0

%

94.7

%

82.1

%

92.8

%

97.5

%

93.0

%

100.0

%

100.0

%

100.0

%

92.4

%

Leased %

 

93.5

%

97.4

%

83.3

%

92.8

%

99.1

%

93.1

%

100.0

%

100.0

%

100.0

%

93.2

%

 

25



 

Property Occupancy Rates by Region by Quarter

Joint Venture Properties

 

 

 

Unconsolidated

 

Consolidated

 

 

 

 

 

Greater

 

Baltimore/Wash

 

Suburban

 

Total

 

 

 

Harrisburg

 

Corridor

 

Maryland

 

Portfolio

 

 

 

 

 

 

 

 

 

 

 

June 30, 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Buildings

 

16

 

1

 

3

 

20

 

Rentable Square Feet

 

670,999

 

143,939

 

297,858

 

1,112,796

 

Occupied %

 

76.4

%

6.0

%

86.2

%

69.9

%

Leased %

 

76.4

%

6.0

%

90.0

%

70.9

%

 

 

 

 

 

 

 

 

 

 

March 31, 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Buildings

 

16

 

1

 

3

 

20

 

Rentable Square Feet

 

670,999

 

143,939

 

297,858

 

1,112,796

 

Occupied %

 

76.4

%

6.0

%

84.1

%

69.4

%

Leased %

 

76.4

%

6.0

%

90.1

%

71.0

%

 

 

 

 

 

 

 

 

 

 

December 31, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Buildings

 

16

 

1

 

3

 

20

 

Rentable Square Feet

 

670,999

 

143,939

 

297,866

 

1,112,804

 

Occupied %

 

79.0

%

6.0

%

84.1

%

70.9

%

Leased %

 

79.0

%

6.0

%

84.1

%

70.9

%

 

 

 

 

 

 

 

 

 

 

September 30, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Buildings

 

16

 

1

 

2

 

19

 

Rentable Square Feet

 

670,999

 

143,939

 

174,402

 

989,340

 

Occupied %

 

79.8

%

6.0

%

69.4

%

67.2

%

Leased %

 

79.8

%

6.0

%

75.8

%

68.3

%

 

 

 

 

 

 

 

 

 

 

June 30, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Buildings

 

16

 

1

 

2

 

19

 

Rentable Square Feet

 

671,763

 

8,626

 

171,949

 

852,338

 

Occupied %

 

86.2

%

100.0

%

65.6

%

82.2

%

Leased %

 

86.2

%

100.0

%

65.6

%

82.2

%

 

Reconciliation of Wholly Owned Properties to Entire

Portfolio as of June 30, 2010

 

 

 

 

 

Square

 

 

 

 

 

 

 

Count

 

Feet

 

Occupied %

 

Leased %

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned Properties

 

247

 

19,487,289

 

88.3

%

89.3

%

Add: Consolidated Joint Venture Properties

 

4

 

441,797

 

60.1

%

62.6

%

Subtotal

 

251

 

19,929,086

 

87.7

%

88.7

%

Add: Unconsolidated Joint Venture Properties

 

16

 

670,999

 

76.4

%

76.4

%

Entire Portfolio

 

267

 

20,600,085

 

87.3

%

88.3

%

 

26


 

 


 

Top Twenty Office Tenants of Wholly Owned Properties as of June 30, 2010 (1)

(Dollars 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 (2) (3)

 

Revenue

 

Lease Term (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States of America (5)

 

69

 

2,679,619

 

15.6

%

80,729

 

19.0

%

5.6

 

Northrop Grumman Corporation (6)

 

17

 

1,232,351

 

7.2

%

31,592

 

7.4

%

6.9

 

Booz Allen Hamilton, Inc.

 

7

 

721,564

 

4.2

%

21,023

 

4.9

%

5.1

 

Computer Sciences Corporation (6)

 

3

 

454,986

 

2.6

%

12,146

 

2.9

%

3.6

 

General Dynamics Corporation (6)

 

9

 

294,924

 

1.7

%

8,252

 

1.9

%

0.5

 

ITT Corporation (6)

 

9

 

333,169

 

1.9

%

8,017

 

1.9

%

4.5

 

The Aerospace Corporation (6)

 

3

 

247,253

 

1.4

%

7,728

 

1.8

%

4.6

 

The MITRE Corporation

 

4

 

241,745

 

1.4

%

7,585

 

1.8

%

4.5

 

Wells Fargo & Company (6)

 

6

 

215,673

 

1.3

%

7,470

 

1.8

%

7.9

 

L-3 Communications Holdings, Inc. (6)

 

4

 

256,120

 

1.5

%

7,329

 

1.7

%

3.7

 

CareFirst, Inc.

 

2

 

211,972

 

1.2

%

7,229

 

1.7

%

6.3

 

Integral Systems, Inc. (6)

 

4

 

241,610

 

1.4

%

6,175

 

1.5

%

9.6

 

Comcast Corporation (6)

 

7

 

306,123

 

1.8

%

5,950

 

1.4

%

3.3

 

AT&T Corporation (6)

 

6

 

341,279

 

2.0

%

5,706

 

1.3

%

8.4

 

Ciena Corporation

 

5

 

263,724

 

1.5

%

4,852

 

1.1

%

2.8

 

The Boeing Company (6)

 

4

 

150,768

 

0.9

%

4,715

 

1.1

%

3.2

 

Unisys Corporation

 

2

 

176,319

 

1.0

%

4,671

 

1.1

%

9.2

 

The Johns Hopkins Institutions (6)

 

5

 

139,295

 

0.8

%

3,507

 

0.8

%

6.3

 

BAE Systems PLC (6)

 

6

 

186,605

 

1.1

%

3,039

 

0.7

%

2.6

 

Merck & Co., Inc. (6)

 

2

 

225,900

 

1.3

%

2,892

 

0.7

%

2.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal Top 20 Office Tenants

 

174

 

8,920,999

 

51.8

%

240,607

 

56.6

%

5.4

 

All remaining tenants

 

688

 

8,289,199

 

48.2

%

184,859

 

43.4

%

3.7

 

Total/Weighted Average

 

862

 

17,210,198

 

100.0

%

$

425,466

 

100.0

%

4.6

 

 


(1)          Table excludes owner occupied leasing activity which represents 173,956 square feet with total annualized rental revenue of $4,028 and a weighted average remaining lease term of 5.3 years as of  June 30, 2010.

(2)          Total Annualized Rental Revenue is the monthly contractual base rent as of June 30, 2010, multiplied by 12, plus the estimated annualized expense reimbursements under existing office leases.

(3)          Order of tenants is based on Annualized Rent.

(4)          The weighting of the lease term was computed using Total Rental Revenue.

(5)          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.

(6)          Includes affiliated organizations or agencies.

 

27



 

Average Occupancy Rates by Region for Same Office Properties (1)

 

 

 

Number

 

Rentable

 

 

 

 

 

 

 

of

 

Square

 

Three Months Ended

 

Six Months Ended

 

 

 

Buildings

 

Feet

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

6/30/09

 

6/30/10

 

6/30/09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore Washington Corridor

 

105

 

7,689,220

 

89.9

%

90.1

%

91.7

%

91.9

%

92.6

%

90.0

%

92.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Northern Virginia

 

15

 

2,612,468

 

96.2

%

96.6

%

96.9

%

96.3

%

95.2

%

96.4

%

95.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Greater Baltimore

 

62

 

3,176,530

 

80.2

%

79.7

%

78.8

%

82.5

%

82.5

%

79.9

%

82.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Suburban Maryland

 

6

 

751,050

 

72.1

%

90.0

%

91.6

%

91.2

%

95.5

%

81.1

%

96.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

St.Mary’s and King George Counties

 

18

 

821,812

 

95.3

%

94.8

%

97.8

%

97.0

%

97.2

%

95.0

%

96.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Colorado Springs

 

16

 

1,146,718

 

90.0

%

90.4

%

89.9

%

90.4

%

94.3

%

90.2

%

94.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Antonio

 

5

 

640,061

 

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Greater Philadelphia

 

1

 

219,065

 

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

 

2

 

295,842

 

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

100.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Office

 

230

 

17,352,766

 

89.2

%

90.1

%

90.9

%

91.5

%

92.1

%

89.6

%

92.3

%

 


(1)  Same office properties represent buildings owned and 100% operational since January 1, 2009.

 

28



 

Office Lease Expiration Analysis by Year for Wholly Owned Properties

As of June 30, 2010 (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

 

 

 

 

 

 

Total Annualized

 

Percentage

 

Annual. Rental

 

 

 

 

 

Square

 

 

 

 

 

Rental

 

of Total

 

Revenue of

 

Year and Region

 

Number

 

Footage

 

Percentage of

 

Percentage of

 

Revenue of

 

Annualized Rental

 

Expiring Leases

 

of Lease

 

of Leases

 

of Leases

 

Period’s Expiring

 

Total Occupied

 

Expiring

 

Revenue

 

per Occupied

 

Expiration (2)

 

Expiring

 

Expiring

 

Square Feet

 

Square Feet

 

Leases (3)

 

Expiring

 

Square Foot

 

 

 

 

 

 

 

 

 

 

 

(000’s)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore/Washington Corridor

 

36

 

498,937

 

32.2

%

2.9

%

$

12,254

 

2.9

%

$

24.56

 

Northern Virginia

 

16

 

282,801

 

18.3

%

1.6

%

9,145

 

2.1

%

32.34

 

Greater Baltimore

 

40

 

285,539

 

18.4

%

1.7

%

5,801

 

1.4

%

20.31

 

St. Mary’s and King George Cos.

 

10

 

188,336

 

12.2

%

1.1

%

3,105

 

0.7

%

16.49

 

Greater Philadelphia

 

 

239,637

 

15.5

%

1.4

%

4,079

 

1.0

%

17.02

 

Colorado Springs

 

3

 

53,800

 

3.5

%

0.3

%

1,135

 

0.3

%

21.10

 

2010

 

105

 

1,549,050

 

100.0

%

9.0

%

35,519

 

8.3

%

22.93

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore/Washington Corridor

 

59

 

1,038,222

 

48.5

%

6.0

%

23,862

 

5.6

%

22.98

 

Northern Virginia

 

8

 

298,797

 

14.0

%

1.7

%

7,278

 

1.7

%

24.36

 

Greater Baltimore

 

67

 

447,419

 

20.9

%

2.6

%

9,458

 

2.2

%

21.14

 

Suburban Maryland

 

3

 

82,453

 

3.9

%

0.5

%

2,324

 

0.5

%

28.19

 

St. Mary’s and King George Cos.

 

8

 

73,302

 

3.4

%

0.4

%

1,267

 

0.3

%

17.29

 

Colorado Springs

 

11

 

199,960

 

9.3

%

1.2

%

3,463

 

0.8

%

17.32

 

2011

 

156

 

2,140,153

 

100.0

%

12.4

%

47,652

 

11.2

%

22.27

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore/Washington Corridor

 

47

 

1,131,802

 

40.8

%

6.6

%

29,142

 

6.8

%

25.75

 

Northern Virginia

 

18

 

312,633

 

11.3

%

1.8

%

9,824

 

2.3

%

31.42

 

Greater Baltimore

 

51

 

641,040

 

23.1

%

3.7

%

13,024

 

3.1

%

20.32

 

Suburban Maryland

 

3

 

28,835

 

1.0

%

0.2

%

636

 

0.1

%

22.05

 

St. Mary’s and King George Cos.

 

12

 

287,818

 

10.4

%

1.7

%

5,321

 

1.3

%

18.49

 

Greater Philadelphia

 

1

 

219,065

 

7.9

%

1.3

%

2,731

 

0.6

%

12.47

 

Colorado Springs

 

7

 

74,841

 

2.7

%

0.4

%

1,567

 

0.4

%

20.94

 

San Antonio

 

2

 

78,359

 

2.8

%

0.5

%

1,449

 

0.3

%

18.49

 

2012

 

141

 

2,774,393

 

100.0

%

16.1

%

63,693

 

15.0

%

22.96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore/Washington Corridor

 

54

 

1,129,240

 

60.2

%

6.6

%

35,727

 

8.4

%

31.64

 

Northern Virginia

 

8

 

119,673

 

6.4

%

0.7

%

3,534

 

0.8

%

29.53

 

Greater Baltimore

 

37

 

405,133

 

21.6

%

2.4

%

7,839

 

1.8

%

19.35

 

Suburban Maryland

 

2

 

7,069

 

0.4

%

0.0

%

211

 

0.0

%

29.82

 

St. Mary’s and King George Cos.

 

7

 

109,245

 

5.8

%

0.6

%

1,864

 

0.4

%

17.06

 

Colorado Springs

 

4

 

105,624

 

5.6

%

0.6

%

2,098

 

0.5

%

19.86

 

2013

 

112

 

1,875,984

 

100.0

%

10.9

%

51,272

 

12.1

%

27.33

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore/Washington Corridor

 

39

 

640,343

 

41.2

%

3.7

%

17,334

 

4.1

%

27.07

 

Northern Virginia

 

6

 

293,377

 

18.9

%

1.7

%

9,219

 

2.2

%

31.42

 

Greater Baltimore

 

30

 

301,744

 

19.4

%

1.8

%

5,295

 

1.2

%

17.55

 

Suburban Maryland

 

5

 

129,865

 

8.4

%

0.8

%

2,614

 

0.6

%

20.13

 

St. Mary’s and King George Cos.

 

8

 

40,373

 

2.6

%

0.2

%

898

 

0.2

%

22.25

 

Colorado Springs

 

10

 

149,252

 

9.6

%

0.9

%

3,066

 

0.7

%

20.54

 

2014

 

98

 

1,554,954

 

100.0

%

9.0

%

38,426

 

9.0

%

24.71

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore/Washington Corridor

 

103

 

2,854,869

 

39.4

%

16.6

%

75,725

 

17.8

%

26.52

 

Northern Virginia

 

24

 

1,341,251

 

18.5

%

7.8

%

39,746

 

9.3

%

29.63

 

Greater Baltimore

 

71

 

913,313

 

12.6

%

5.3

%

24,454

 

5.7

%

26.78

 

Suburban Maryland

 

4

 

243,100

 

3.4

%

1.4

%

5,320

 

1.3

%

21.89

 

St. Mary’s and King George Cos.

 

8

 

64,748

 

0.9

%

0.4

%

1,350

 

0.3

%

20.85

 

Greater Philadelphia

 

1

 

156,695

 

2.2

%

0.9

%

4,142

 

1.0

%

26.44

 

Colorado Springs

 

16

 

596,759

 

8.2

%

3.5

%

12,010

 

2.8

%

20.13

 

San Antonio

 

4

 

586,758

 

8.1

%

3.4

%

13,970

 

3.3

%

23.81

 

Other

 

4

 

497,042

 

6.9

%

2.9

%

11,279

 

2.7

%

22.69

 

Thereafter

 

235

 

7,254,535

 

100.0

%

42.2

%

187,997

 

44.2

%

25.91

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (4)

 

15

 

61,129

 

100.0

%

0.4

%

907

 

0.2

%

14.84

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total / Average

 

862

 

17,210,198

 

 

 

100.0

%

$

425,466

 

100.0

%

$

24.72

 

 


NOTE:  As of June 30, 2010, the weighted average lease term for the wholly owned properties is 4.6 years.

 

(1)          This expiration analysis includes the effect of early renewals completed on existing leases but excludes the effect of new tenant leases on 190,236 square feet yet to commence as of June 30, 2010.

 

(2)          Many of our government leases are subject to certain early termination provisions which are customary to government leases.  The year of lease expiration was computed assuming no exercise of such early termination rights.

 

(3)          Total Annualized Rental Revenue is the monthly contractual base rent as of June 30, 2010 multiplied by 12 plus the estimated annualized expense reimbursements under existing office leases.

 

(4)          Month-to-month leases and leases which have expired but the tenant remains in holdover are included in this line as the exact expiration date is unknown.

 

29



 

Office Renewal Analysis for Wholly Owned Operating Properties for Periods Ended June 30, 2010

 

 

 

Baltimore/
Washington
Corridor

 

Northern
Virginia

 

Greater
Baltimore

 

Suburban
Maryland

 

St. Mary’s and
King George
Counties

 

Colorado
Springs

 

Other

 

Total
Office

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Quarter Ended June 30, 2010:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expiring Square Feet

 

271,280

 

300,871

 

88,649

 

162,796

 

 

7,111

 

 

830,707

 

Vacated Square Feet

 

60,679

 

44,209

 

26,861

 

108,588

 

 

2,028

 

 

242,365

 

Renewed Square Feet

 

210,601

 

256,662

 

61,788

 

54,208

 

 

5,083

 

 

588,342

 

Retention Rate (% based upon square feet)

 

77.6

%

85.3

%

69.7

%

33.3

%

0.0

%

71.5

%

0.0

%

70.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Renewed Space Only:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Committed Cost per Square Foot

 

$

7.78

 

$

1.41

 

$

6.57

 

$

 

$

 

$

 

$

 

$

4.09

 

Weighted Average Lease Term in years

 

2.8

 

1.2

 

4.8

 

5.0

 

 

2.0

 

 

2.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in Total Rent - GAAP

 

6.6

%

3.3

%

-2.9

%

11.0

%

0.0

%

9.4

%

0.0

%

4.3

%

Change in Total Rent - Cash

 

0.0

%

-2.7

%

-10.5

%

-7.5

%

0.0

%

2.2

%

0.0

%

-2.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Renewed & Retenanted Space:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Committed Cost per Square Foot

 

$

8.62

 

$

7.78

 

$

22.46

 

$

 

$

 

$

 

$

 

$

9.97

 

Weighted Average Lease Term in years

 

3.1

 

2.4

 

7.1

 

5.0

 

 

2.0

 

 

3.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in Total Rent - GAAP

 

5.3

%

1.4

%

1.1

%

11.0

%

0.0

%

9.4

%

0.0

%

3.1

%

Change in Total Rent - Cash

 

-0.9

%

-4.4

%

-7.0

%

-7.5

%

0.0

%

2.2

%

0.0

%

-3.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended June 30, 2010:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expiring Square Feet

 

748,833

 

370,209

 

135,278

 

278,135

 

35,937

 

10,975

 

3,706

 

1,583,073

 

Vacated Square Feet

 

304,180

 

55,032

 

51,359

 

186,952

 

28,716

 

5,892

 

3,706

 

635,837

 

Renewed Square Feet

 

444,653

 

315,177

 

83,919

 

91,183

 

7,221

 

5,083

 

 

947,236

 

Retention Rate (% based upon square feet)

 

59.4

%

85.1

%

62.0

%

32.8

%

20.1

%

46.3

%

0.0

%

59.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Renewed Space Only:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Committed Cost per Square Foot

 

$

7.48

 

$

3.89

 

$

5.04

 

$

0.82

 

$

13.42

 

$

 

$

 

$

5.43

 

Weighted Average Lease Term in years

 

2.7

 

1.9

 

4.3

 

4.1

 

5.2

 

2.0

 

 

2.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in Total Rent - GAAP

 

8.0

%

-1.7

%

-0.8

%

0.1

%

9.5

%

9.4

%

0.0

%

3.4

%

Change in Total Rent - Cash

 

-1.6

%

-7.5

%

-8.1

%

-9.7

%

-1.6

%

2.2

%

0.0

%

-4.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Renewed & Retenanted Space:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Committed Cost per Square Foot

 

$

9.27

 

$

8.79

 

$

16.57

 

$

0.82

 

$

9.03

 

$

 

$

 

$

9.59

 

Weighted Average Lease Term in years

 

3.1

 

2.9

 

5.8

 

4.1

 

4.5

 

2.0

 

 

3.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in Total Rent - GAAP

 

5.7

%

-2.5

%

-2.4

%

0.1

%

11.8

%

9.4

%

0.0

%

1.6

%

Change in Total Rent - Cash

 

-3.2

%

-8.2

%

-9.0

%

-9.7

%

2.5

%

2.2

%

0.0

%

-6.0

%

 

Notes:             No renewal or retenanting activity transpired in our San Antonio, Greater Philadelphia or St. Marys and King George Counties regions.

Activity is exclusive of owner occupied space and leases with less than a one-year term.

Retention rate includes early renewals.

 

30



 

Development Summary

(Dollars in thousands)

 

 

 

 

 

 

Wholly

 

 

 

 

 

 

 

 

 

Actual or

 

 

 

 

 

 

 

Owned

 

Total

 

Percentage

 

as of June 30, 2010

 

Anticipated

 

 

 

 

 

 

 

or Joint

 

Rentable

 

Leased

 

Anticipated

 

 

 

Construction

 

Anticipated

 

 

 

 

 

Venture

 

Square

 

as of

 

Total

 

Cost

 

Completion

 

Operational

 

Property and Location

 

Submarket

 

(JV)

 

Feet

 

6/30/10

 

Cost (1)

 

to date

 

Date (2)

 

Date (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

324 Sentinel Way (324 NBP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annapolis Junction, Maryland

 

BWI Airport

 

Owned

 

125,129

 

100

%

$

27,922

 

$

22,564

 

1Q 10

 

3Q 10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

316 Sentinel Way (316 NBP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annapolis Junction, Maryland

 

BWI Airport

 

Owned

 

125,044

 

0

%

28,124

 

15,922

 

1Q 11

 

4Q 11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8000 Potranco Road

 

San Antonio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Antonio, Texas

 

Northwest

 

Owned

 

125,005

 

100

%

24,104

 

19,621

 

1Q 10

 

3Q 10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8030 Potranco Road

 

San Antonio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Antonio, Texas

 

Northwest

 

Owned

 

125,005

 

100

%

24,104

 

19,756

 

1Q 10

 

3Q 10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal Government

 

 

 

 

 

500,183

 

75

%

$

104,253

 

$

77,863

 

 

 

 

 

% of Total Drivers

 

 

 

 

 

42

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

300 Sentinel Drive (300 NBP) (4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annapolis Junction, Maryland

 

BWI Airport

 

Owned

 

192,754

 

81

%

$

52,836

 

$

43,863

 

3Q 09

 

3Q 10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

308 Sentinel Drive (308 NBP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annapolis Junction, Maryland

 

BWI Airport

 

Owned

 

150,843

 

18

%

32,590

 

18,317

 

3Q 10

 

3Q 11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

430 National Business Parkway

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annapolis Junction, Maryland

 

BWI Airport

 

Owned

 

109,341

 

0

%

24,942

 

7,289

 

2Q 11

 

2Q 12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

209 Research Boulevard (5)

 

Harford County

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aberdeen, Maryland

 

 

 

Owned

 

78,503

 

85

%

18,359

 

14,772

 

2Q 10

 

2Q 11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

210 Research Boulevard

 

Harford County

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aberdeen, Maryland

 

 

 

Owned

 

78,856

 

35

%

16,698

 

8,896

 

4Q 10

 

4Q 11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

100 Sentry Gateway

 

San Antonio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Antonio, Texas

 

Northwest

 

Owned

 

94,550

 

0

%

15,433

 

5,176

 

1Q 11

 

1Q 12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal Defense Information Technology

 

 

 

 

 

704,847

 

39

%

$

160,858

 

$

98,313

 

 

 

 

 

% of Total Drivers

 

 

 

 

 

58

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Under Construction

 

 

 

 

 

1,205,030

 

54

%

$

265,111

 

$

176,176

 

 

 

 

 

 

 

 

% of Total

 

Total Rentable

 

Percentage

 

Regions

 

Regions

 

Square Feet

 

Leased

 

Baltimore/Washington Corridor

 

58

%

703,111

 

40

%

Greater Baltimore

 

13

%

157,359

 

42

%

San Antonio

 

29

%

344,560

 

73

%

Total Under Construction by Region

 

100

%

1,205,030

 

54

%

 


(1)   Anticipated Total Cost includes land, construction and leasing costs.

(2)   Actual or anticipated construction completion date is the estimated date of completion of the building shell.

(3)   Anticipated operational date is the estimated date when leases have commenced on 100% of a property’s space or one year from the cessation of major construction activities. 

(4)   Although classified as “Under Construction,” 80,241 square feet are operational.

(5)   Although classified as “Under Construction,” 36,862 square feet are operational.

 

Demand Driver Categories (as classified by COPT management):

Defense Information Technology:  Development opportunity created through our current and future relationships with defense information technology contractors and, possibly, minor Government tenancy.

Government:  Development opportunity created through our existing and future relationship with various agencies of the government of the United States of America.  Excludes Government tenancy included in Defense Information Technology.

Market Demand:  Development opportunity created through perceived unfulfilled space requirements within a specific submarket; potential submarket demand exceeds existing supply.

Research Park:  Development opportunity created through specific research park relationship.

 

31



 

Development Summary as of June 30, 2010 (continued)

(Dollars in thousands)

 

 

 

 

 

Wholly

 

 

 

 

 

 

 

 

 

Actual or

 

 

 

 

 

 

 

Owned

 

Total

 

Percentage

 

 

 

 

 

Anticipated

 

 

 

 

 

 

 

or Joint

 

Rentable

 

Leased

 

Anticipated

 

 

 

Construction

 

Anticipated

 

 

 

 

 

Venture

 

Square

 

as of

 

Total

 

Cost

 

Completion

 

Operational

 

Property and Location

 

Submarket

 

(JV)

 

Feet

 

6/30/10

 

Cost (1)

 

to date

 

Date (2)

 

Date (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redevelopment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7468 Candlewood Road

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hanover, Maryland

 

BWI Airport

 

Owned

 

357,700

 

0

%

$

41,103

 

$

34,726

 

3Q 10

 

3Q 11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal Baltimore/Washington Corridor

 

 

 

 

 

357,700

 

 

 

$

41,103

 

$

34,726

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

760 Jolly Road (Lakeside I)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blue Bell, PA (4)

 

Greater Philadelphia

 

Owned

 

218,653

 

72

%

30,291

 

24,926

 

3Q 10

 

3Q 11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal Greater Philadelphia

 

 

 

 

 

218,653

 

 

 

$

30,291

 

$

24,926

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Redevelopment

 

 

 

 

 

576,353

 

 

 

$

71,394

 

$

59,652

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

312 Sentinel Way

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annapolis Junction, Maryland

 

BWI Airport

 

Owned

 

125,000

 

 

 

$

32,800

 

$

4,961

 

4Q 11

 

4Q 12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Riverwood
Columbia, Maryland

 

Howard Co. Perimeter

 

Owned

 

86,000

 

 

 

19,200

 

2,576

 

4Q 11

 

2Q 12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal Government

 

 

 

 

 

211,000

 

 

 

$

52,000

 

$

7,537

 

 

 

 

 

% of Total Drivers

 

 

 

 

 

14

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

310 Sentinel Way

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annapolis Junction, Maryland

 

BWI Airport

 

Owned

 

240,000

 

 

 

$

66,960

 

$

3,065

 

2Q 12

 

2Q 13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

410 National Business Parkway

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annapolis Junction, Maryland

 

BWI Airport

 

Owned

 

110,000

 

 

 

27,100

 

3,943

 

3Q 11

 

3Q 12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

206 Research Boulevard (Lot D)

 

Harford County

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aberdeen, Maryland

 

 

 

Owned

 

127,530

 

 

 

25,800

 

4,225

 

3Q 11

 

3Q 12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

202 Research Boulevard (Lot H)

 

Harford County

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aberdeen, Maryland

 

 

 

Owned

 

127,530

 

 

 

26,100

 

4,225

 

4Q 11

 

4Q 12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Patriot Ridge (Building 1)

 

Springfield

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Springfield, Virginia

 

 

 

Owned

 

225,000

 

 

 

74,270

 

4,790

 

2Q 12

 

2Q 13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sentry Gateway (Building 200)
San Antonio, Texas

 

San Antonio Northwest

 

Owned

 

93,830

 

 

 

15,800

 

1,876

 

4Q 11

 

4Q 12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8100 Potranco Road
San Antonio, Texas

 

San Antonio Northwest

 

Owned

 

125,000

 

 

 

24,400

 

3,188

 

4Q 11

 

2Q 12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expedition Drive

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lexington Park, Maryland

 

St. Mary’s County

 

Owned

 

45,975

 

 

 

10,500

 

1,313

 

2Q 11

 

4Q 11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redstone Gateway (Building 1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Huntsville, Alabama

 

Huntsville

 

JV

 

120,000

 

 

 

24,200

 

298

 

4Q 11

 

4Q 12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redstone Gateway (Building 2)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Huntsville, Alabama

 

Huntsville

 

JV

 

120,000

 

 

 

24,200

 

298

 

1Q 12

 

1Q 13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal Defense Information Technology

 

 

 

 

 

1,334,865

 

 

 

$

319,330

 

$

27,221

 

 

 

 

 

% of Total Drivers

 

 

 

 

 

86

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Under Development

 

 

 

 

 

1,545,865

 

 

 

$

371,330

 

$

34,758

 

 

 

 

 

 

 

 

% of Total

 

Total Rentable

 

Regions

 

Regions

 

Square Feet

 

Baltimore/Washington Corridor

 

36

%

561,000

 

Greater Baltimore

 

16

%

255,060

 

St. Mary’s County

 

3

%

45,975

 

Northern Virginia

 

15

%

225,000

 

San Antonio

 

14

%

218,830

 

Huntsville

 

16

%

240,000

 

Total Under Development by Region

 

100

%

1,545,865

 

 


(1)   Anticipated Total Cost includes land, construction and leasing costs, except for properties previously operated prior to placing into redevelopment, in which case only incremental costs of redevelopment are included.

(2)   Actual or anticipated construction completion date is the estimated date of completion of the building shell.

(3)   Anticipated operational date is the estimated date when leases have commenced on 100% of a property’s space or one year from the cessation of major construction activities.

(4)   Although classified as “Under Redevelopment”, 156,695 square feet are operational.

 

Demand Driver Categories (as classified by COPT management):

Defense Information Technology:  Development opportunity created through our current and future relationships with defense information technology contractors and, possibly, minor Government tenancy.

Government:  Development opportunity created through our existing and future relationship with various agencies of the government of the United States of America.  Excludes Government tenancy included in Defense Information Technology.

Market Demand:  Development opportunity created through perceived unfulfilled space requirements within a specific submarket; potential submarket demand exceeds existing supply.

Research Park:  Development opportunity created through a specific research park relationship.

 

32



 

Construction Placed into Service as of June 30, 2010 (1)

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

 

 

 

 

Wholly

 

Total

 

 

 

Rentable

 

 

 

 

 

Owned or

 

Rentable

 

Development Square Feet Placed Into Service

 

Square

 

 

 

 

 

Joint Venture

 

Square

 

 

 

Year 2010

 

Feet

 

Property and Location

 

Submarket

 

(JV)

 

Feet

 

Year 2009

 

1st Quarter

 

2nd Quarter

 

Leased

 

10807 New Allegiance Drive (Epic One)

 

I-25 North

 

 

 

 

 

 

 

 

 

 

 

 

 

Colorado Springs, Colorado

 

Corridor

 

Owned

 

145,723

 

46,765

 

 

98,958

 

59,993

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

565 Space Center Drive (Patriot Park 7)

 

Colorado 

 

 

 

 

 

 

 

 

 

 

 

 

 

Colorado Springs, Colorado

 

Springs East

 

Owned

 

89,899

 

1,949

 

 

87,950

 

1,949

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

300 Sentinel Drive (300 NBP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annapolis Junction, Maryland

 

BWI Airport

 

Owned

 

192,754

 

45,422

 

3,617

 

31,202

 

155,231

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

209 Research Boulevard

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aberdeen, Maryland

 

Harford County

 

Owned

 

78,503

 

 

 

36,862

 

66,528

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Development Placed Into Service

 

 

 

 

 

506,879

 

94,136

 

3,617

 

254,972

 

283,701

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

56

%

 


(1) Includes properties with space placed in service during the six months ended June 30, 2010.

 

33



 

Construction Leasing as of June 30, 2010 (1)

 

 

 

 

 

Wholly

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned or

 

Rentable

 

Construction

 

 

 

 

 

 

 

 

 

 

 

Joint Venture

 

Square

 

Commencement

 

Cumulative Square Feet Leased

 

Property and Location

 

Submarket

 

(JV)

 

Feet

 

Date

 

12/31/09

 

3/31/10

 

6/30/10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

324 Sentinel Way (324 NBP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annapolis Junction, Maryland

 

BWI Airport

 

Owned

 

125,129

 

1Q 09

 

––

 

125,129

 

125,129

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5850 University Research Court

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

College Park, Maryland

 

College Park

 

JV

 

123,464

 

3Q 08

 

123,464

 

123,464

 

123,464

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8000 Potranco Road

 

San Antonio

 

 

 

 

 

 

 

 

 

 

 

 

 

San Antonio, Texas

 

Northwest

 

Owned

 

125,005

 

1Q 09

 

––

 

125,005

 

125,005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8030 Potranco Road

 

San Antonio

 

 

 

 

 

 

 

 

 

 

 

 

 

San Antonio, Texas

 

Northwest

 

Owned

 

125,005

 

1Q 09

 

––

 

125,005

 

125,005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal Government

 

 

 

 

 

498,603

 

 

 

123,464

 

498,603

 

498,603

 

 

 

 

 

 

 

 

 

 

 

25

%

100

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

300 Sentinel Drive (300 NBP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annapolis Junction, Maryland

 

BWI Airport

 

Owned

 

192,754

 

1Q 08

 

85,700

 

124,029

 

155,231

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

308 Sentinel Drive (308 NBP)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Annapolis Junction, Maryland

 

BWI Airport

 

Owned

 

150,843

 

3Q 09

 

––

 

––

 

27,281

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6721 Columbia Gateway Drive

 

Howard Co.

 

 

 

 

 

 

 

 

 

 

 

 

 

Columbia, Maryland

 

Perimeter

 

Owned

 

131,451

 

1Q 08

 

131,451

 

131,451

 

131,451

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

209 Research Boulevard

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aberdeen, Maryland

 

Harford County

 

Owned

 

78,503

 

1Q 09

 

54,335

 

59,380

 

66,528

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

210 Research Boulevard

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aberdeen, Maryland

 

Harford County

 

Owned

 

78,856

 

4Q 09

 

––

 

27,472

 

27,472

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10807 New Allegiance Drive (Epic One)

 

I-25 North

 

 

 

 

 

 

 

 

 

 

 

 

 

Colorado Springs, Colorado

 

Corridor

 

Owned

 

145,723

 

2Q 08

 

46,765

 

59,993

 

59,993

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

565 Space Center Drive (Patriot Park VII)

 

Colorado Springs East

 

 

 

 

 

 

 

 

 

 

 

 

 

Colorado Springs, Colorado

 

 

 

Owned

 

89,899

 

2Q 08

 

1,949

 

1,949

 

1,949

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal Defense Information Technology

 

 

 

 

 

868,029

 

 

 

320,200

 

404,274

 

469,905

 

 

 

 

 

 

 

 

 

 

 

37

%

47

%

54

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Development Leasing

 

 

 

 

 

1,366,632

 

 

 

443,664

 

902,877

 

968,508

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent Leased

 

 

 

 

 

 

 

 

 

32

%

66

%

71

%

 


(1) Includes properties with actual construction completion in 2009 or actual or anticipated construction completion in 2010.

 

34



 

Land Controlled as of June 30, 2010

 

Location

 

Submarket

 

Status

 

Acres

 

Estimated Developable Square Feet

 

 

 

 

 

 

 

 

 

 

 

National Business Park - North

 

BWI Airport

 

owned

 

167

 

1,258,000

 

1243 Winterson Road (AS 22)

 

BWI Airport

 

owned

 

2

 

30,000

 

940 Elkridge Landing Road (AS 7)

 

BWI Airport

 

owned

 

3

 

54,000

 

West Nursery Road

 

BWI Airport

 

owned

 

1

 

5,000

 

Arundel Preserve

 

BWI Airport

 

under contract/JV

 

56

 up to

1,652,000

 

1460 Dorsey Road

 

BWI Airport

 

owned

 

6

 

60,000

 

Columbia Gateway Parcel T-11

 

Howard Co. Perimeter

 

owned

 

14

 

220,000

 

7125 Columbia Gateway Drive

 

Howard Co. Perimeter

 

owned

 

8

 

275,000

 

Riverwood

 

Howard Co. Perimeter

 

owned

 

5

 

27,000

 

Total Baltimore / Washington Corridor

 

 

 

 

 

262

 

3,581,000

 

 

 

 

 

 

 

 

 

 

 

Westfields Corporate Center

 

Dulles South

 

owned

 

23

 

400,000

 

Westfields — Park Center

 

Dulles South

 

owned

 

33

 

674,000

 

Woodland Park

 

Herndon

 

owned

 

5

 

225,000

 

Patriot Ridge

 

Springfield

 

owned/under contract

 

11

 

755,000

 

Total Northern Virginia

 

 

 

 

 

72

 

2,054,000

 

 

 

 

 

 

 

 

 

 

 

Canton Crossing

 

Baltimore

 

owned

 

10

 

773,000

 

White Marsh

 

White Marsh

 

owned

 

152

 

1,692,000

 

37 Allegheny Avenue

 

Towson

 

owned

 

0.3

 

40,000

 

North Gate Business Park

 

Harford County

 

owned

 

34

 

439,000

 

Total Greater Baltimore

 

 

 

 

 

196

 

2,944,000

 

 

 

 

 

 

 

 

 

 

 

Thomas Johnson Drive

 

Frederick

 

owned

 

6

 

170,000

 

Route 15 / Biggs Ford Road

 

Frederick

 

owned

 

107

 

1,000,000

 

Rockville Corporate Center

 

Rockville

 

owned

 

10

 

220,000

 

M Square Research Park

 

College Park

 

JV - 45% ownership

 

49

 

510,000

 

Total Suburban Maryland

 

 

 

 

 

172

 

1,900,000

 

 

 

 

 

 

 

 

 

 

 

Arborcrest

 

Blue Bell

 

owned

 

8

 

160,000

 

Total Greater Philadelphia

 

 

 

 

 

8

 

160,000

 

 

 

 

 

 

 

 

 

 

 

Dahlgren Technology Center

 

King George County

 

owned

 

39

 

122,000

 

 

 

 

 

 

 

 

 

 

 

Total St. Mary’s & King George Counties

 

 

 

 

 

39

 

122,000

 

 

 

 

 

 

 

 

 

 

 

InterQuest

 

I-25 North Corridor

 

owned

 

113

 

1,627,000

 

9965 Federal Drive

 

I-25 North Corridor

 

owned

 

4

 

30,000

 

Patriot Park

 

Colorado Springs East

 

owned

 

71

 

756,000

 

Aerotech Commerce

 

Colorado Springs East

 

owned

 

6

 

90,000

 

Total Colorado Springs

 

 

 

 

 

194

 

2,503,000

 

 

 

 

 

 

 

 

 

 

 

Northwest Crossroads

 

San Antonio Northwest

 

owned

 

31

 

375,000

 

Military Drive

 

San Antonio Northwest

 

owned

 

37

 

658,000

 

Total San Antonio

 

 

 

 

 

68

 

1,033,000

 

 

 

 

 

 

 

 

 

 

 

Redstone Gateway

 

Huntsville, AL

 

JV- 85% ownership

 

458

 

4,360,000

 

Total Huntsville

 

 

 

 

 

458

 

4,360,000

 

 

 

 

 

 

 

 

 

 

 

Indian Head

 

Charles County, MD

 

JV- 75% ownership

 

192

 

967,000

 

Fort Ritchie (1)

 

Fort Ritchie

 

owned

 

591

 

1,700,000

 

Princeton Technology Center

 

Exit 8A - Cranbury, NJ

 

owned

 

19

 

250,000

 

Total Other

 

 

 

 

 

802

 

2,917,000

 

 

 

 

 

 

 

 

 

 

 

TOTAL

 

 

 

 

 

2,270

 

21,574,000

 

 


This land inventory schedule excludes all properties listed as under construction, redevelopment or under development as detailed on

pages 31 and 32, and includes properties under ground lease to us.

(1) The Fort Ritchie acquisition includes 283,565 square feet of existing office space targeted for future redevelopment and 110 existing usable residential units.

 

35



 

Joint Venture Summary as of June 30, 2010

(Dollars in thousands)

 

Consolidated Ventures

 

Property and Location

 

Joint Venture
Interest
Held By
COPT

 

Status

 

Square
Feet

 

Acreage

 

Total
Assets (1)

 

Consolidated
Debt as
of 6/30/10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4230 Forbes Boulevard

 

 

 

 

 

 

 

 

 

 

 

 

 

Lanham, Maryland

 

50.0

%

Operating

 

55,866

 

5 acres

 

$

3,906

 

$

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Indian Head Technology Center Business Park

 

 

 

 

 

 

 

 

 

 

 

 

 

Indian Head, Maryland

 

75.0

%

Land Inventory

 

967,250

 

192 acres

 

7,408

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7740-7744 Milestone Parkway

 

 

 

Construction/

 

 

 

 

 

 

 

 

 

Hanover, Maryland

 

50.0

%

Land Inventory

 

447,539

 

23 acres

 

29,969

 

16,753

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5825 University Research Court

 

 

 

 

 

 

 

 

 

 

 

 

 

College Park, Maryland

 

45.0

%

Construction

 

118,528

 

8 acres

 

21,640

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5850 University Research Court

 

 

 

 

 

 

 

 

 

 

 

 

 

College Park, Maryland

 

45.0

%

Construction

 

123,464

 

8 acres

 

31,354

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

M Square Research Park

 

 

 

 

 

 

 

 

 

 

 

 

 

College Park, Maryland

 

45.0

%

Land Inventory

 

510,453

 

49 acres

 

4,076

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LW Redstone Company

 

 

 

 

 

 

 

 

 

 

 

 

 

Huntsville, Alabama

 

85.0

%

Land Inventory

 

4,360,000

 

458 acres

 

12,405

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL

 

 

 

 

 

 

 

 

 

$

110,758

 

$

16,753

 

 

Unconsolidated Ventures

 

Property and Location

 

Joint Venture
Interest
Held By
COPT

 

Status

 

Square
Feet

 

COPT
Investment

 

Off-Balance
Sheet Debt as
of 6/30/10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Greater Harrisburg Portfolio

 

 

 

 

 

 

 

 

 

 

 

 

 

Harrisburg and Mechanicsburg, Pennsylvania

 

20.0

%

Operating

 

670,999

 

$

(5,351

)

$

66,057

 

 

 

 


(1)  Total assets includes any outside investment basis related to the applicable joint venture plus the total assets recorded on the books of the consolidated joint venture.

 

36