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

 

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