Exhibit 99.2

 

Supplemental Information

(Unaudited)

 

 

September 30, 2010

 

 

 


 

Corporate Office Properties Trust

Index to Supplemental Information (Unaudited)

September 30, 2010

 

 

Page

Highlights and Discussion

 

Reporting Period Highlights — Periods Ended September 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 — September 30, 2010

14

Quarterly Equity Analysis

15

Dividend Analysis

16

Investor Composition and Analyst Coverage

17

 

 

Portfolio Summary

 

Property Summary by Region — September 30, 2010 — Wholly Owned Office Properties

18

Property Summary by Region — September 30, 2010 — Joint Venture Office Properties

24

Property Occupancy Rates by Region by Quarter — Wholly Owned Office Properties

25

Property Occupancy Rates by Region by Quarter — Joint Venture Office Properties

26

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

27

Average Occupancy Rates by Region for Same Office Properties for Quarter

28

Lease Expiration Analysis by Year for Wholly Owned Operating Office Properties

29

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

30

Office Property Development Summary as of September 30, 2010

31

Office Property Construction Placed into Service as of September 30, 2010

33

Office Property Construction Leasing as of September 30, 2010

34

Land Controlled as of September 30, 2010

35

Wholesale Data Center Summary as of September 30, 2010

36

Joint Venture Summary as of September 30, 2010

37

 


 

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 office and data center 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 September 30, 2010

 

Financial Results

 

For the Nine Month Period:

 

·                  FFO, excluding the effect of operating property acquisition costs, was $119.0 million, or $1.65 per diluted share, for the nine months ended September 30, 2010 as compared to $134.1 million, or $1.94 per diluted share, for the nine months ended September 30, 2009, representing a decrease of 15% per share.  Including these costs, FFO was $116.1 million, or $1.60 per diluted share, for the nine months ended September 30, 2010.  The decrease in FFO was due primarily to a $16.1 million increase in interest expense, higher net costs for snow removal in the first quarter, lower termination fees and lower NOI from two properties in Greater Philadelphia and a warehouse in Columbia, Maryland that we expect to redevelop.  This decrease was partially offset by increased NOI from property acquisitions and development placed in service.

·                  Net income attributable to COPT common shareholders was $15.2 million, or $0.24 per diluted share, for the nine months ended September 30, 2010 as compared to $35.2 million, or $0.62 per diluted share, for the nine months ended September 30, 2009, a decrease of 61% per share.

·                  Diluted AFFO available to common share and common unit holders was $81.7 million for the nine months ended September 30, 2010 as compared to $97.4 million for the nine months ended September 30, 2009, a decrease of 16%.

·                  Our diluted FFO payout ratio, excluding the effect of operating property acquisition costs, was 73% for the nine months ended September 30, 2010 as compared to 59% for the nine months ended September 30, 2009.  Our diluted AFFO payout ratio was 93% for the nine months ended September 30, 2010 as compared to 73% for the nine months ended September 30, 2009.

 

For the Quarter Period:

 

·                  FFO, excluding the effect of operating property acquisition costs, was $41.7 million, or $0.58 per diluted share, for the quarter ended September 30, 2010 as compared to $42.4 million, or $0.60 per diluted share, for the quarter ended September 30, 2009, representing a decrease of 3% per share.  Including these costs, FFO was $39.1 million, or $0.54 per diluted share, for the quarter ended September 30, 2010.  The decrease in FFO was due primarily to a $5.6 million increase in interest expense.  This decrease was offset by increased NOI from property acquisitions and development placed in service.

·                  Net income attributable to COPT common shareholders was $4.8 million, or $0.08 per diluted share, for the quarter ended September 30, 2010 as compared to $10.4 million, or $0.18 per diluted share, for the quarter ended September 30, 2009, a decrease of 56% per share.

·                  Diluted AFFO available to common share and common unit holders was $29.5 million for the quarter ended September 30, 2010 as compared to $27.8 million for the quarter ended September 30, 2009, an increase of 6%.

·                  Our diluted FFO payout ratio, excluding the effect of operating property acquisition costs, was 71% for the quarter ended September 30, 2010 as compared to 66% for the quarter ended September 30, 2009.  Our diluted AFFO payout ratio was 89% for the quarter ended September 30, 2010, which was flat compared to the quarter ended September 30, 2009.

 

1


 

Acquisitions / Dispositions

 

·                  On September 14, 2010, we acquired 9651 Hornbaker Road, a 233,000 square foot wholesale data center known as Power Loft @ Innovation in Manassas, Virginia, for $115.5 million.  Rents for this property are based on the amount of megawatts of power made available for the exclusive use of tenants in the property (referred to as critical load).  This property, the shell of which was completed in early 2010, was 17% leased on the date of acquisition to two tenants who have a combined initial critical load of 3 megawatts and further expansion rights of up to a combined 5 megawatts.  We expect to complete the development of the property to an initial stabilization critical load of 18 megawatts for additional development costs estimated at $166 million.  Full critical load of the property is expected to be up to 30 megawatts.

·                  On September 28, 2010, we acquired two office properties totaling 362,000 square feet at 1201 M Street SE and 1220 12th Street SE (known as Maritime Plaza I and II) in the Capitol Riverfront submarket of Washington, DC that were 100% leased for approximately $119 million, including the assumption of a $70.1 million mortgage loan having a fair value of $73.3 million with a fixed interest rate of 5.35% that matures in March 2014.  The buildings are subject to ground leases that expire in 2099 and 2100.

·                  On September 8, 2010, we sold two office properties in Dayton, New Jersey totaling 201,000 square feet for $20.9 million and recognized a gain of $784,000.  We also on September 8, 2010 sold a land parcel that was contiguous to these properties for $3.0 million and recognized a gain of $2.5 million.

 

Development Activities

 

·                  We placed into service an aggregate of 751,000 square feet in newly-constructed space in seven properties during the nine months ended September 30, 2010, including an aggregate of 493,000 square feet during the quarter ended September 30, 2010.  These properties were 76% leased as of September 30, 2010.

·                  We completed leasing on an aggregate of 798,000 square feet in newly-constructed space during the nine months ended September 30, 2010, including an aggregate of 253,000 square feet in seven properties during the quarter ended September 30, 2010.

 

Operations

 

·                  Our wholly owned office property portfolio was 87.4% occupied and 88.7% leased as of September 30, 2010.  Our entire office property portfolio was 86.4% occupied and 87.6% leased as of September 30, 2010.

·                  The weighted average remaining lease term of our wholly owned office portfolio was 4.7 years as of September 30, 2010, with an average contractual rental rate (including tenant reimbursements of operating costs) of $25.48 per square foot.

 

For the Nine Month Period:

 

·                  Same office property cash NOI for the nine months ended September 30, 2010, excluding gross lease termination fees, decreased by $1.4 million, or 1%, as compared to the nine months ended September 30, 2009.  Including gross lease termination fees, our same office property cash NOI decreased by $5.0 million, or 3%, as compared to the nine months ended September 30, 2009.  Our same office portfolio consists of 230 properties and represents 85% of the rentable square footage of our consolidated office properties as of September 30, 2010.

·                  We renewed 1.4 million square feet in the nine months ended September 30, 2010 with an average committed cost of $4.87 per square foot.  For our renewed space during the nine months ended September 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.  For our renewed and retenanted space of 1.7 million square feet during the nine months ended September 30, 2010, we realized an increase of 1% in total rent, as measured from the GAAP straight-line rent in effect preceding the renewal date, and a decrease of 7% in total cash rent.  The average committed cost for our space renewed and retenanted during the nine months ended September 30, 2010 totaled $9.08 per square foot.

·                  We recognized $1.4 million in lease termination fees for the nine months ended September 30, 2010, net of write-offs of related straight-line rents and intangible assets and liabilities, as compared to $4.3 million in the nine months ended September 30, 2009.

 

For the Quarter Period:

 

·                  Same office property cash NOI for the quarter ended September 30, 2010, excluding gross lease termination fees, increased by $2.0 million, or 3%, as compared to the quarter ended September 30, 2009. 

 

2


 

Including gross lease termination fees, our same office property cash NOI increased by $1.2 million, or 2%, as compared to the quarter ended September 30, 2009.

·                  We renewed 428,000 square feet in the quarter ended September 30, 2010 with an average committed cost of $3.62 per square foot.  For our renewed space during the quarter ended September 30, 2010, we realized decreases of 1% in total rent, as measured from the GAAP straight-line rent in effect preceding the renewal date, and 9% in total cash rent.  For our renewed and retenanted space of 524,000 square feet during the quarter ended September 30, 2010, we realized decreases of 2% in total rent, as measured from the GAAP straight-line rent in effect preceding the renewal date, and 10% in total cash rent.  The average committed cost for our space renewed and retenanted during the quarter ended September 30, 2010 totaled $7.92 per square foot.

·                  We recognized $182,000 in lease termination fees for the quarter ended September 30, 2010, net of write-offs of related straight-line rents and intangible assets and liabilities, as compared to $692,000 in the quarter ended September 30, 2009.

 

Financing Activity and Capital Transactions

 

·                  As of September 30, 2010, our ratio of debt to total market capitalization was 49% and our ratio of debt to undepreciated book value of real estate assets was 62%.

·                  For the nine months ended September 30, 2010, we achieved an EBITDA interest coverage ratio of 2.88x and an EBITDA fixed charge coverage ratio of 2.43x. For the quarter ended September 30, 2010, we achieved an EBITDA interest coverage ratio of 2.85x and an EBITDA fixed charge coverage ratio of 2.42x.

·                  As of September 30, 2010, 72% 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

 

Nine Months Ended

 

 

 

9/30/10

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

9/30/10

 

9/30/09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate revenues from continuing operations

 

$

114,550

 

$

109,257

 

$

112,228

 

$

108,737

 

$

104,132

 

$

336,035

 

$

315,247

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues from continuing operations

 

$

128,158

 

$

135,322

 

$

149,593

 

$

178,290

 

$

199,453

 

$

413,073

 

$

588,781

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI

 

$

70,724

 

$

69,847

 

$

64,700

 

$

66,822

 

$

66,260

 

$

205,271

 

$

202,627

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA

 

$

66,976

 

$

65,259

 

$

61,683

 

$

61,056

 

$

63,918

 

$

193,918

 

$

194,670

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

8,926

 

$

9,151

 

$

10,675

 

$

9,546

 

$

15,536

 

$

28,752

 

$

51,753

 

Net income attributable to noncontrolling interests

 

(94

)

(685

)

(737

)

(458

)

(1,081

)

(1,516

)

(4,512

)

Preferred share dividends

 

(4,025

)

(4,026

)

(4,025

)

(4,026

)

(4,025

)

(12,076

)

(12,076

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to COPT common shareholders

 

$

4,807

 

$

4,440

 

$

5,913

 

$

5,062

 

$

10,430

 

$

15,160

 

$

35,165

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

0.08

 

$

0.07

 

$

0.10

 

$

0.08

 

$

0.18

 

$

0.24

 

$

0.62

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO

 

$

39,053

 

$

38,870

 

$

38,156

 

$

37,180

 

$

42,408

 

$

116,079

 

$

134,145

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO, excluding operating property acquisition costs

 

$

41,717

 

$

39,141

 

$

38,175

 

$

39,147

 

$

42,408

 

$

119,033

 

$

134,145

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

34,278

 

$

33,880

 

$

33,260

 

$

32,586

 

$

37,772

 

$

101,418

 

$

120,040

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted FFO per share

 

$

0.54

 

$

0.53

 

$

0.53

 

$

0.52

 

$

0.60

 

$

1.60

 

$

1.94

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted FFO per share, excluding operating property acquisition costs

 

$

0.58

 

$

0.54

 

$

0.53

 

$

0.55

 

$

0.60

 

$

1.65

 

$

1.94

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted AFFO available to common share and common unit holders

 

$

29,498

 

$

26,992

 

$

25,234

 

$

22,422

 

$

27,846

 

$

81,724

 

$

97,415

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Payout ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted FFO payout ratio, excluding operating property acquisition costs

 

71.3

%

73.2

%

75.2

%

72.0

%

65.8

%

73.2

%

58.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted AFFO payout ratio

 

89.3

%

92.6

%

99.2

%

110.9

%

89.2

%

93.4

%

72.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total dividends/distributions

 

$

30,518

 

$

29,199

 

$

29,217

 

$

29,063

 

$

29,036

 

$

88,934

 

$

83,257

 

 

4


 

Quarterly Consolidated Balance Sheets

(dollars in thousands)

 

 

 

9/30/10

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

Assets

 

 

 

 

 

 

 

 

 

 

 

Properties, net

 

 

 

 

 

 

 

 

 

 

 

Operating properties

 

$

3,241,507

 

$

3,040,414

 

$

2,954,575

 

$

2,950,327

 

$

2,790,568

 

Land - development

 

241,937

 

234,662

 

236,350

 

231,809

 

214,147

 

Construction in progress

 

344,924

 

319,846

 

317,283

 

270,376

 

266,117

 

Less: accumulated depreciation

 

(479,218

)

(464,408

)

(443,246

)

(422,612

)

(402,125

)

Total properties, net

 

3,349,150

 

3,130,514

 

3,064,962

 

3,029,900

 

2,868,707

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

11,733

 

9,879

 

10,180

 

8,262

 

9,981

 

Restricted cash and marketable securities

 

21,095

 

20,738

 

18,981

 

16,549

 

16,779

 

Accounts receivable, net

 

18,906

 

12,552

 

13,982

 

17,459

 

14,004

 

Deferred rent receivable

 

76,833

 

75,683

 

74,113

 

71,805

 

69,816

 

Intangible assets on real estate acquisitions, net

 

123,307

 

96,151

 

94,925

 

100,671

 

75,506

 

Deferred leasing and financing costs, net

 

56,568

 

55,762

 

50,974

 

51,570

 

50,673

 

Prepaid expenses and other assets

 

79,780

 

66,004

 

70,235

 

83,806

 

125,181

 

Total assets

 

$

3,737,372

 

$

3,467,283

 

$

3,398,352

 

$

3,380,022

 

$

3,230,647

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and equity

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

Debt, net

 

$

2,468,419

 

$

2,182,375

 

$

2,107,131

 

$

2,053,841

 

$

1,897,852

 

Accounts payable and accrued expenses

 

88,461

 

84,164

 

86,650

 

116,455

 

113,416

 

Rents received in advance and security deposits

 

26,919

 

28,328

 

32,575

 

32,177

 

33,322

 

Dividends and distributions payable

 

29,899

 

28,580

 

28,556

 

28,440

 

28,411

 

Deferred revenue associated with operating leases

 

15,790

 

12,929

 

13,827

 

14,938

 

8,044

 

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

 

5,458

 

5,351

 

5,238

 

5,088

 

4,966

 

Other liabilities

 

12,698

 

13,990

 

13,836

 

8,451

 

8,453

 

Total liabilities

 

2,647,644

 

2,355,717

 

2,287,813

 

2,259,390

 

2,094,464

 

 

 

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

—

 

—

 

—

 

—

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity:

 

 

 

 

 

 

 

 

 

 

 

COPT’s shareholders’ equity:

 

 

 

 

 

 

 

 

 

 

 

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

 

81

 

81

 

81

 

81

 

81

 

Common shares

 

594

 

593

 

589

 

583

 

583

 

Additional paid-in capital

 

1,271,363

 

1,269,142

 

1,244,046

 

1,238,704

 

1,234,910

 

Cumulative distributions in excess of net income

 

(265,695

)

(246,008

)

(227,189

)

(209,941

)

(192,119

)

Accumulated other comprehensive loss

 

(4,861

)

(4,263

)

(3,278

)

(1,907

)

(2,291

)

Total COPT’s shareholders’ equity

 

1,001,482

 

1,019,545

 

1,014,249

 

1,027,520

 

1,041,164

 

Noncontrolling interests in subsidiaries

 

 

 

 

 

 

 

 

 

 

 

Common units in the Operating Partnership

 

61,867

 

63,675

 

68,113

 

73,892

 

75,657

 

Preferred units in the Operating Partnership

 

8,800

 

8,800

 

8,800

 

8,800

 

8,800

 

Other consolidated entities

 

17,579

 

19,546

 

19,377

 

10,420

 

10,562

 

Total noncontrolling interests in subsidiaries

 

88,246

 

92,021

 

96,290

 

93,112

 

95,019

 

Total equity

 

1,089,728

 

1,111,566

 

1,110,539

 

1,120,632

 

1,136,183

 

Total liabilities and equity

 

$

3,737,372

 

$

3,467,283

 

$

3,398,352

 

$

3,380,022

 

$

3,230,647

 

 

5


 

Consolidated Statements of Operations

(in thousands, except per share data)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

9/30/10

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

9/30/10

 

9/30/09

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rental revenue

 

$

93,345

 

$

91,173

 

$

91,010

 

$

89,346

 

$

86,973

 

$

275,528

 

$

263,467

 

Tenant recoveries and other real estate operations revenue

 

21,205

 

18,084

 

21,218

 

19,391

 

17,159

 

60,507

 

51,780

 

Construction contract and other service revenues

 

13,608

 

26,065

 

37,365

 

69,553

 

95,321

 

77,038

 

273,534

 

Total revenues

 

128,158

 

135,322

 

149,593

 

178,290

 

199,453

 

413,073

 

588,781

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating expenses

 

44,260

 

40,005

 

48,135

 

42,567

 

38,523

 

132,400

 

114,587

 

Depreciation and amortization associated with real estate operations

 

30,745

 

29,548

 

27,596

 

27,261

 

26,498

 

87,889

 

81,268

 

Construction contract and other service expenses

 

13,347

 

25,402

 

36,399

 

68,230

 

93,805

 

75,148

 

268,289

 

General and administrative expenses

 

6,079

 

5,926

 

5,900

 

5,965

 

5,898

 

17,905

 

17,275

 

Business development expenses

 

2,886

 

465

 

155

 

2,149

 

458

 

3,506

 

1,550

 

Total operating expenses

 

97,317

 

101,346

 

118,185

 

146,172

 

165,182

 

316,848

 

482,969

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income

 

30,841

 

33,976

 

31,408

 

32,118

 

34,271

 

96,225

 

105,812

 

Interest expense

 

(26,537

)

(25,812

)

(22,638

)

(23,273

)

(20,931

)

(74,987

)

(58,914

)

Interest and other income

 

395

 

245

 

1,302

 

215

 

2,619

 

1,942

 

4,949

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

4,699

 

8,409

 

10,072

 

9,060

 

15,959

 

23,180

 

51,847

 

Equity in income (loss) of unconsolidated entities

 

648

 

(72

)

(205

)

134

 

(758

)

371

 

(1,075

)

Income tax expense

 

(27

)

(7

)

(41

)

(27

)

(47

)

(75

)

(169

)

Income from continuing operations

 

5,320

 

8,330

 

9,826

 

9,167

 

15,154

 

23,476

 

50,603

 

Discontinued operations

 

1,129

 

486

 

832

 

379

 

382

 

2,447

 

1,150

 

Income before gain on sales of real estate

 

6,449

 

8,816

 

10,658

 

9,546

 

15,536

 

25,923

 

51,753

 

Gain on sales of real estate, net of income taxes

 

2,477

 

335

 

17

 

—

 

—

 

2,829

 

—

 

Net income

 

8,926

 

9,151

 

10,675

 

9,546

 

15,536

 

28,752

 

51,753

 

Less net income attributable to noncontrolling interests

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common units in the Operating Partnership

 

(363

)

(364

)

(527

)

(463

)

(956

)

(1,254

)

(4,032

)

Preferred units in the Operating Partnership

 

(165

)

(165

)

(165

)

(165

)

(165

)

(495

)

(495

)

Other consolidated entities

 

434

 

(156

)

(45

)

170

 

40

 

233

 

15

 

Net income attributable to COPT

 

8,832

 

8,466

 

9,938

 

9,088

 

14,455

 

27,236

 

47,241

 

Preferred share dividends

 

(4,025

)

(4,026

)

(4,025

)

(4,026

)

(4,025

)

(12,076

)

(12,076

)

Net income attributable to COPT common shareholders

 

$

4,807

 

$

4,440

 

$

5,913

 

$

5,062

 

$

10,430

 

$

15,160

 

$

35,165

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For diluted EPS computations:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Numerator for diluted EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to common shareholders

 

$

4,807

 

$

4,440

 

$

5,913

 

$

5,062

 

$

10,430

 

$

15,160

 

$

35,165

 

Amount allocable to restricted shares

 

(267

)

(250

)

(290

)

(247

)

(253

)

(807

)

(763

)

Numerator for diluted EPS

 

$

4,540

 

$

4,190

 

$

5,623

 

$

4,815

 

$

10,177

 

$

14,353

 

$

34,402

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares - basic

 

58,656

 

58,489

 

57,844

 

57,604

 

57,470

 

58,333

 

55,366

 

Dilutive effect of share-based compensation awards

 

296

 

421

 

364

 

413

 

485

 

367

 

506

 

Weighted average common shares - diluted

 

58,952

 

58,910

 

58,208

 

58,017

 

57,955

 

58,700

 

55,872

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS

 

$

0.08

 

$

0.07

 

$

0.10

 

$

0.08

 

$

0.18

 

$

0.24

 

$

0.62

 

 

6


 

Consolidated Reconciliations of FFO, AFFO, EPS

(in thousands, except per share data)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

9/30/10

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

9/30/10

 

9/30/09

 

Net income

 

$

8,926

 

$

9,151

 

$

10,675

 

$

9,546

 

$

15,536

 

$

28,752

 

$

51,753

 

Real estate-related depreciation and amortization

 

30,745

 

29,548

 

27,603

 

27,475

 

26,712

 

87,896

 

81,911

 

Depreciation and amortization on unconsolidated real estate entities

 

166

 

171

 

175

 

159

 

160

 

512

 

481

 

Gain on sales of operating properties, net of income taxes

 

(784

)

—

 

(297

)

—

 

—

 

(1,081

)

—

 

FFO

 

39,053

 

38,870

 

38,156

 

37,180

 

42,408

 

116,079

 

134,145

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noncontrolling interests - preferred units in the Operating Partnership

 

(165

)

(165

)

(165

)

(165

)

(165

)

(495

)

(495

)

Noncontrolling interests - other consolidated entities

 

434

 

(156

)

(45

)

170

 

40

 

233

 

15

 

Preferred share dividends

 

(4,025

)

(4,026

)

(4,025

)

(4,026

)

(4,025

)

(12,076

)

(12,076

)

Depreciation and amortization allocable to noncontrolling interests in other consolidated entities

 

(666

)

(297

)

(282

)

(242

)

(91

)

(1,245

)

(251

)

Basic and diluted FFO allocable to restricted shares

 

(353

)

(346

)

(379

)

(331

)

(395

)

(1,078

)

(1,298

)

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

 

34,278

 

33,880

 

33,260

 

32,586

 

37,772

 

101,418

 

120,040

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Straight line rent adjustments

 

1,267

 

(1,473

)

(2,346

)

1,676

 

(2,665

)

(2,552

)

(5,523

)

Amortization of acquisition intangibles included in NOI

 

(96

)

(94

)

(270

)

(679

)

(451

)

(460

)

(1,447

)

Recurring capital expenditures

 

(10,156

)

(7,080

)

(6,211

)

(13,900

)

(7,572

)

(23,447

)

(17,838

)

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

 

1,541

 

1,488

 

782

 

772

 

762

 

3,811

 

2,183

 

Operating property acquisition costs

 

2,664

 

271

 

19

 

1,967

 

—

 

2,954

 

—

 

Diluted AFFO available to common share and common unit holders

 

$

29,498

 

$

26,992

 

$

25,234

 

$

22,422

 

$

27,846

 

$

81,724

 

$

97,415

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred dividends

 

$

4,025

 

$

4,026

 

$

4,025

 

$

4,026

 

$

4,025

 

$

12,076

 

$

12,076

 

Preferred distributions

 

165

 

165

 

165

 

165

 

165

 

495

 

495

 

Common distributions

 

1,834

 

1,749

 

1,867

 

1,988

 

1,995

 

5,450

 

5,974

 

Common dividends

 

24,494

 

23,259

 

23,160

 

22,884

 

22,851

 

70,913

 

64,712

 

Total dividends/distributions

 

$

30,518

 

$

29,199

 

$

29,217

 

$

29,063

 

$

29,036

 

$

88,934

 

$

83,257

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Denominator for diluted EPS

 

58,952

 

58,910

 

58,208

 

58,017

 

57,955

 

58,700

 

55,872

 

Weighted average common units

 

4,453

 

4,558

 

5,017

 

5,078

 

5,084

 

4,674

 

5,932

 

Denominator for diluted FFO per share

 

63,405

 

63,468

 

63,225

 

63,095

 

63,039

 

63,374

 

61,804

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FFO

 

$

39,053

 

$

38,870

 

$

38,156

 

$

37,180

 

$

42,408

 

116,079

 

134,145

 

Operating property acquisition costs

 

2,664

 

271

 

19

 

1,967

 

—

 

2,954

 

—

 

FFO, excluding operating property acquisition costs

 

$

41,717

 

$

39,141

 

$

38,175

 

$

39,147

 

$

42,408

 

119,033

 

134,145

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted FFO available to common share and common unit holders

 

$

34,278

 

$

33,880

 

$

33,260

 

$

32,586

 

$

37,772

 

$

101,418

 

$

120,040

 

Operating property acquisition costs

 

2,664

 

271

 

19

 

1,967

 

—

 

2,954

 

—

 

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

 

$

36,942

 

$

34,151

 

$

33,279

 

$

34,553

 

$

37,772

 

$

104,372

 

$

120,040

 

Diluted FFO per share, excluding operating property acquisition costs

 

$

0.58

 

$

0.54

 

$

0.53

 

$

0.55

 

$

0.60

 

$

1.65

 

$

1.94

 

 

7


 

Consolidated Reconciliations of EBITDA, NOI, Discontinued Operations,

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

(in thousands)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

9/30/10

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

9/30/10

 

9/30/09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

8,926

 

$

9,151

 

$

10,675

 

$

9,546

 

$

15,536

 

$

28,752

 

$

51,753

 

Interest expense on continuing and discontinued operations

 

26,626

 

25,921

 

22,703

 

23,332

 

20,986

 

75,250

 

59,088

 

Total income tax expense (1)

 

27

 

7

 

52

 

27

 

47

 

86

 

169

 

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

 

652

 

632

 

650

 

676

 

637

 

1,934

 

1,749

 

Real estate-related depreciation and amortization

 

30,745

 

29,548

 

27,603

 

27,475

 

26,712

 

87,896

 

81,911

 

EBITDA

 

$

66,976

 

$

65,259

 

$

61,683

 

$

61,056

 

$

63,918

 

$

193,918

 

$

194,670

 

Add back:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative

 

6,079

 

5,926

 

5,900

 

5,965

 

5,898

 

17,905

 

17,275

 

Business development

 

2,886

 

465

 

155

 

2,149

 

458

 

3,506

 

1,550

 

Depreciation of FF&E

 

(652

)

(632

)

(650

)

(676

)

(637

)

(1,934

)

(1,749

)

Income from construction contracts and other service operations

 

(261

)

(663

)

(966

)

(1,323

)

(1,516

)

(1,890

)

(5,245

)

Interest and other income

 

(395

)

(245

)

(1,302

)

(215

)

(2,619

)

(1,942

)

(4,949

)

Gain on sales of operating properties

 

(784

)

—

 

(297

)

—

 

—

 

(1,081

)

—

 

Non-operational property sales

 

(2,477

)

(335

)

(28

)

—

 

—

 

(2,840

)

—

 

Equity in (income) loss of unconsolidated entities

 

(648

)

72

 

205

 

(134

)

758

 

(371

)

1,075

 

NOI

 

$

70,724

 

$

69,847

 

$

64,700

 

$

66,822

 

$

66,260

 

$

205,271

 

$

202,627

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Discontinued Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from real estate operations

 

$

478

 

$

734

 

$

768

 

$

713

 

$

711

 

$

1,980

 

$

2,158

 

Property operating expenses

 

(44

)

(139

)

(161

)

(61

)

(60

)

(344

)

(191

)

Depreciation and amortization

 

—

 

—

 

(7

)

(214

)

(214

)

(7

)

(643

)

Interest

 

(89

)

(109

)

(65

)

(59

)

(55

)

(263

)

(174

)

Gain on sales of depreciated real estate properties

 

784

 

—

 

297

 

—

 

—

 

1,081

 

—

 

Discontinued operations

 

$

1,129

 

$

486

 

$

832

 

$

379

 

$

382

 

$

2,447

 

$

1,150

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

2,477

 

$

335

 

$

17

 

$

—

 

$

—

 

$

2,829

 

$

—

 

Add income taxes

 

—

 

—

 

11

 

—

 

—

 

11

 

—

 

Gain on sales of real estate from discontinued operations

 

784

 

—

 

297

 

—

 

—

 

1,081

 

—

 

Gain on sales of real estate from continuing and discontinued operations

 

3,261

 

335

 

325

 

—

 

—

 

3,921

 

—

 

Gain on sales of non-operating properties

 

(2,477

)

(335

)

(28

)

—

 

—

 

(2,840

)

—

 

Gain on sales of operating properties

 

$

784

 

$

—

 

$

297

 

$

—

 

$

—

 

$

1,081

 

$

—

 

 

(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

 

Nine Months Ended

 

 

 

9/30/10

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

9/30/10

 

9/30/09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets or Denominator for Debt to Total Assets

 

$

3,737,372

 

$

3,467,283

 

$

3,398,352

 

$

3,380,022

 

$

3,230,647

 

 

 

 

 

Accumulated depreciation

 

479,218

 

464,408

 

443,246

 

422,612

 

402,125

 

 

 

 

 

Intangible assets on real estate acquisitions, net

 

123,307

 

96,151

 

94,925

 

100,671

 

75,506

 

 

 

 

 

Assets other than assets included in properties, net

 

(388,222

)

(336,769

)

(333,390

)

(350,122

)

(361,940

)

 

 

 

 

Denominator for Debt to Undepreciated Book Value of Real Estate Assets

 

$

3,951,675

 

$

3,691,073

 

$

3,603,133

 

$

3,553,183

 

$

3,346,338

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP revenues from real estate operations from continuing operations

 

$

114,550

 

$

109,257

 

$

112,228

 

$

108,737

 

$

104,132

 

$

336,035

 

$

315,247

 

Revenues from discontinued operations

 

478

 

734

 

768

 

713

 

711

 

1,980

 

2,158

 

Real estate revenues from continuing and discontinued operations

 

$

115,028

 

$

109,991

 

$

112,996

 

$

109,450

 

$

104,843

 

$

338,015

 

$

317,405

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP revenues from real estate operations from continuing operations

 

$

114,550

 

$

109,257

 

$

112,228

 

$

108,737

 

$

104,132

 

$

336,035

 

$

315,247

 

Property operating expenses

 

(44,260

)

(40,005

)

(48,135

)

(42,567

)

(38,523

)

(132,400

)

(114,587

)

Revenues from discontinued operations

 

478

 

734

 

768

 

713

 

711

 

1,980

 

2,158

 

Property operating expenses from discontinued operations

 

(44

)

(139

)

(161

)

(61

)

(60

)

(344

)

(191

)

NOI

 

$

70,724

 

$

69,847

 

$

64,700

 

$

66,822

 

$

66,260

 

$

205,271

 

$

202,627

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

30,745

 

$

29,548

 

$

27,596

 

$

27,261

 

$

26,498

 

$

87,889

 

$

81,268

 

Depreciation and amortization from discontinued operations

 

—

 

—

 

7

 

214

 

214

 

7

 

643

 

Real estate-related depreciation and amortization

 

$

30,745

 

$

29,548

 

$

27,603

 

$

27,475

 

$

26,712

 

$

87,896

 

$

81,911

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total tenant improvements and incentives on operating properties

 

$

7,789

 

$

4,630

 

$

4,071

 

$

2,359

 

$

3,553

 

$

16,490

 

$

11,572

 

Total capital improvements on operating properties

 

1,717

 

1,248

 

870

 

9,475

 

2,927

 

3,835

 

6,795

 

Total leasing costs for operating properties

 

2,004

 

1,350

 

1,338

 

2,801

 

1,855

 

4,692

 

4,431

 

Less: Nonrecurring tenant improvements and incentives on operating properties

 

(1,067

)

(136

)

(77

)

(851

)

(711

)

(1,280

)

(2,780

)

Less: Nonrecurring capital improvements on operating properties

 

(171

)

(17

)

(60

)

(117

)

(58

)

(248

)

(1,340

)

Less: Nonrecurring leasing costs for operating properties

 

(120

)

(3

)

54

 

(186

)

—

 

(69

)

(916

)

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

 

4

 

8

 

15

 

419

 

6

 

27

 

76

 

Recurring capital expenditures

 

$

10,156

 

$

7,080

 

$

6,211

 

$

13,900

 

$

7,572

 

$

23,447

 

$

17,838

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense from continuing operations

 

$

26,537

 

$

25,812

 

$

22,638

 

$

23,273

 

$

20,931

 

$

74,987

 

$

58,914

 

Interest expense from discontinued operations

 

89

 

109

 

65

 

59

 

55

 

263

 

174

 

Total interest expense

 

$

26,626

 

$

25,921

 

$

22,703

 

$

23,332

 

$

20,986

 

$

75,250

 

$

59,088

 

Less: Amortization of deferred financing costs

 

(1,554

)

(1,495

)

(1,126

)

(1,125

)

(1,056

)

(4,175

)

(3,089

)

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

 

(1,541

)

(1,488

)

(782

)

(772

)

(762

)

(3,811

)

(2,183

)

Denominator for interest coverage

 

$

23,531

 

$

22,938

 

$

20,795

 

$

21,435

 

$

19,168

 

$

67,264

 

$

53,816

 

Scheduled principal amortization

 

3,420

 

3,500

 

3,469

 

3,289

 

2,691

 

10,389

 

8,200

 

Denominator for debt service coverage

 

$

26,951

 

$

26,438

 

$

24,264

 

$

24,724

 

$

21,859

 

$

77,653

 

$

62,016

 

Scheduled principal amortization

 

(3,420

)

(3,500

)

(3,469

)

(3,289

)

(2,691

)

(10,389

)

(8,200

)

Preferred dividends - redeemable non-convertible

 

4,025

 

4,026

 

4,025

 

4,026

 

4,025

 

12,076

 

12,076

 

Preferred distributions

 

165

 

165

 

165

 

165

 

165

 

495

 

495

 

Denominator for fixed charge coverage

 

$

27,721

 

$

27,129

 

$

24,985

 

$

25,626

 

$

23,358

 

$

79,835

 

$

66,387

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common share dividends

 

$

24,494

 

$

23,259

 

$

23,160

 

$

22,884

 

$

22,851

 

$

70,913

 

$

64,712

 

Common unit distributions

 

1,834

 

1,749

 

1,867

 

1,988

 

1,995

 

5,450

 

5,974

 

Dividends and distributions for FFO and AFFO payout ratios

 

$

26,328

 

$

25,008

 

$

25,027

 

$

24,872

 

$

24,846

 

$

76,363

 

$

70,686

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax expense from continuing operations

 

$

27

 

$

7

 

$

41

 

$

27

 

$

47

 

$

75

 

$

169

 

Income tax expense from gain on other sales of real estate

 

—

 

—

 

11

 

—

 

—

 

11

 

—

 

Total income tax expense

 

$

27

 

$

7

 

$

52

 

$

27

 

$

47

 

$

86

 

$

169

 

 

9


 

Real Estate Revenues from Continuing and Discontinued Operations by Geographic Region

(Dollars in thousands)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

9/30/10

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

9/30/10

 

9/30/09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Office Properties:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore/Washington Corridor

 

$

51,946

 

$

50,623

 

$

52,058

 

$

50,681

 

$

48,984

 

$

154,627

 

$

146,929

 

Northern Virginia

 

18,949

 

18,172

 

18,659

 

19,186

 

18,897

 

55,780

 

59,946

 

Greater Baltimore

 

18,288

 

16,827

 

17,865

 

16,265

 

14,493

 

52,980

 

42,010

 

Colorado Springs

 

6,176

 

6,154

 

6,332

 

6,190

 

6,261

 

18,662

 

16,935

 

Suburban Maryland

 

5,243

 

5,452

 

5,829

 

4,697

 

4,736

 

16,524

 

14,923

 

St. Mary’s and King George Counties

 

3,431

 

3,530

 

3,589

 

3,566

 

3,528

 

10,550

 

10,394

 

San Antonio

 

5,609

 

4,228

 

3,938

 

3,805

 

3,269

 

13,775

 

9,761

 

Greater Philadelphia

 

1,793

 

1,510

 

1,202

 

1,627

 

1,343

 

4,505

 

6,356

 

Other

 

3,593

 

3,495

 

3,524

 

3,433

 

3,332

 

10,612

 

10,151

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate revenues from cont. and discont. operations

 

$

115,028

 

$

109,991

 

$

112,996

 

$

109,450

 

$

104,843

 

$

338,015

 

$

317,405

 

 

NOI by Geographic Region

(Dollars in thousands)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

9/30/10

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

9/30/10

 

9/30/09

 

Office Properties:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore/Washington Corridor

 

$

33,001

 

$

33,770

 

$

29,903

 

$

31,647

 

$

31,182

 

$

96,674

 

$

93,061

 

Northern Virginia

 

11,754

 

11,466

 

11,346

 

11,684

 

11,519

 

34,566

 

37,337

 

Greater Baltimore

 

10,460

 

9,516

 

8,855

 

9,201

 

8,649

 

28,831

 

23,514

 

Colorado Springs

 

3,796

 

3,915

 

4,023

 

3,662

 

4,447

 

11,734

 

12,072

 

Suburban Maryland

 

2,625

 

3,253

 

3,128

 

2,458

 

2,672

 

9,006

 

8,769

 

St. Mary’s and King George Counties

 

2,279

 

2,489

 

2,482

 

2,641

 

2,651

 

7,250

 

7,828

 

San Antonio

 

2,912

 

2,128

 

2,309

 

2,354

 

2,038

 

7,349

 

6,733

 

Greater Philadelphia

 

1,561

 

710

 

439

 

981

 

782

 

2,710

 

5,731

 

Other

 

2,336

 

2,600

 

2,215

 

2,194

 

2,320

 

7,151

 

7,582

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI

 

$

70,724

 

$

69,847

 

$

64,700

 

$

66,822

 

$

66,260

 

$

205,271

 

$

202,627

 

 

10


 

Same Office Property Cash NOI

(Dollars in thousands)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

9/30/10

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

9/30/10

 

9/30/09

 

Office Properties: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore/Washington Corridor

 

$

33,046

 

$

31,326

 

$

27,172

 

$

31,709

 

$

30,448

 

$

91,544

 

$

90,427

 

Northern Virginia

 

10,543

 

11,781

 

11,603

 

11,637

 

11,208

 

33,927

 

37,605

 

Greater Baltimore

 

7,818

 

7,608

 

6,612

 

6,808

 

8,136

 

22,038

 

22,004

 

Colorado Springs

 

3,418

 

3,423

 

3,423

 

2,995

 

3,237

 

10,264

 

10,359

 

Suburban Maryland

 

1,601

 

1,947

 

2,200

 

2,194

 

2,460

 

5,748

 

8,053

 

St. Mary’s and King George Counties

 

2,325

 

2,538

 

2,496

 

2,630

 

2,627

 

7,359

 

7,609

 

San Antonio

 

1,962

 

1,735

 

1,906

 

2,019

 

1,625

 

5,603

 

5,499

 

Greater Philadelphia

 

773

 

677

 

406

 

783

 

636

 

1,856

 

1,904

 

Other

 

2,025

 

1,908

 

1,910

 

1,884

 

1,911

 

5,843

 

5,689

 

Total Office Properties

 

$

63,511

 

$

62,943

 

$

57,728

 

$

62,659

 

$

62,288

 

$

184,182

 

$

189,149

 

Less: Lease termination fees, gross

 

(209

)

(1,086

)

(278

)

(347

)

(966

)

(1,573

)

(5,184

)

Same office property cash NOI, excluding gross lease termination fees

 

$

63,302

 

$

61,857

 

$

57,450

 

$

62,312

 

$

61,322

 

$

182,609

 

$

183,965

 

 

Same Office Property GAAP NOI

(Dollars in thousands)

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

9/30/10

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

9/30/10

 

9/30/09

 

Office Properties: (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore/Washington Corridor

 

$

29,831

 

$

31,789

 

$

28,179

 

$

29,895

 

$

30,046

 

$

89,799

 

$

90,751

 

Northern Virginia

 

10,711

 

11,487

 

11,476

 

11,829

 

11,594

 

33,674

 

37,620

 

Greater Baltimore

 

7,896

 

7,889

 

6,861

 

7,385

 

8,641

 

22,646

 

23,512

 

Colorado Springs

 

3,569

 

3,581

 

3,609

 

3,223

 

3,510

 

10,759

 

11,138

 

Suburban Maryland

 

1,668

 

2,141

 

2,224

 

2,327

 

2,580

 

6,033

 

8,462

 

St. Mary’s and King George Counties

 

2,280

 

2,491

 

2,483

 

2,652

 

2,653

 

7,254

 

7,833

 

San Antonio

 

2,338

 

2,115

 

2,287

 

2,405

 

2,059

 

6,740

 

6,806

 

Greater Philadelphia

 

762

 

680

 

513

 

796

 

650

 

1,955

 

1,794

 

Other

 

2,227

 

2,136

 

2,147

 

2,130

 

2,188

 

6,510

 

6,538

 

Total Office Properties

 

$

61,282

 

$

64,309

 

$

59,779

 

$

62,642

 

$

63,921

 

$

185,370

 

$

194,454

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GAAP net operating income for same office properties

 

$

61,282

 

$

64,309

 

$

59,779

 

$

62,642

 

$

63,921

 

$

185,370

 

$

194,454

 

Add (less): Straight-line rent adjustments

 

2,651

 

(875

)

(1,480

)

640

 

(1,205

)

296

 

(3,945

)

Less: Amortization of deferred market rental revenue

 

(422

)

(491

)

(571

)

(623

)

(428

)

(1,484

)

(1,360

)

Same office property cash NOI

 

$

63,511

 

$

62,943

 

$

57,728

 

$

62,659

 

$

62,288

 

$

184,182

 

$

189,149

 

Less: Lease termination fees, gross

 

(209

)

(1,086

)

(278

)

(347

)

(966

)

(1,573

)

(5,184

)

Same office property cash NOI, excluding gross lease termination fees

 

$

63,302

 

$

61,857

 

$

57,450

 

$

62,312

 

$

61,322

 

$

182,609

 

$

183,965

 

 

(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

 

Nine Months Ended

 

 

 

9/30/10

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

9/30/10

 

9/30/09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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)

 

7.8

%

8.3

%

9.4

%

8.7

%

14.8

%

8.5

%

16.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(NOI / Real estate revenues from cont. and discont. operations)

 

61.5

%

63.5

%

57.3

%

61.1

%

63.2

%

60.7

%

63.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(EBITDA / Real estate revenues from cont. and discont. operations)

 

58.2

%

59.3

%

54.6

%

55.8

%

61.0

%

57.4

%

61.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(G&A / Real estate revenues from cont. and discont. operations)

 

5.3

%

5.4

%

5.2

%

5.4

%

5.6

%

5.3

%

5.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

G&A as a % of EBITDA

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(G&A / EBITDA)

 

9.1

%

9.1

%

9.6

%

9.8

%

9.2

%

9.2

%

8.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring Capital Expenditures

 

$

10,156

 

$

7,080

 

$

6,211

 

$

13,900

 

$

7,572

 

$

23,447

 

$

17,838

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring Capital Expenditures per average square foot of consolidated properties

 

$

0.50

 

$

0.36

 

$

0.32

 

$

0.73

 

$

0.40

 

$

1.18

 

$

0.95

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Recurring Capital Expenditures as a % of NOI

 

14.4

%

10.1

%

9.6

%

20.8

%

11.4

%

11.4

%

8.8

%

 

12


 

Debt Analysis

(Dollars in thousands)

 

 

 

9/30/10

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

Debt Outstanding

 

 

 

 

 

 

 

 

 

 

 

Mortgage Loans

 

$

1,449,817

 

$

1,432,544

 

$

1,452,845

 

$

1,439,608

 

$

1,454,240

 

Construction Loans (1)

 

138,655

 

119,640

 

100,225

 

93,086

 

60,364

 

Unsecured Revolving Credit Facility (2)

 

498,000

 

250,000

 

397,000

 

365,000

 

228,000

 

Exchangeable Senior Notes

 

381,947

 

380,191

 

157,061

 

156,147

 

155,248

 

 

 

$

2,468,419

 

$

2,182,375

 

$

2,107,131

 

$

2,053,841

 

$

1,897,852

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Rate Data

 

 

 

 

 

 

 

 

 

 

 

Fixed-Mortgage Loans

 

$

1,179,060

 

$

1,161,652

 

$

1,165,073

 

$

1,168,462

 

$

1,182,967

 

Fixed-Exchangeable Senior Notes

 

381,947

 

380,191

 

157,061

 

156,147

 

155,248

 

Variable

 

687,412

 

420,532

 

564,997

 

509,232

 

289,637

 

Variable Subject to Interest Rate Swaps (3)

 

220,000

 

220,000

 

220,000

 

220,000

 

270,000

 

 

 

$

2,468,419

 

$

2,182,375

 

$

2,107,131

 

$

2,053,841

 

$

1,897,852

 

 

 

 

 

 

 

 

 

 

 

 

 

% of Fixed Rate Loans (3)

 

72.15

%

80.73

%

73.19

%

75.21

%

84.74

%

% of Variable Rate Loans (3)

 

27.85

%

19.27

%

26.81

%

24.79

%

15.26

%

 

 

100.00

%

100.00

%

100.00

%

100.00

%

100.00

%

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

9/30/2010

 

6/30/2010

 

3/31/2010

 

12/31/2009

 

9/30/09

 

9/30/2010

 

9/30/09

 

Average Contract Interest Rates

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage & Construction Loans

 

5.39

%

5.43

%

5.45

%

5.49

%

5.10

%

5.45

%

5.14

%

Unsecured Revolving Credit Facility (4)

 

2.19

%

2.53

%

1.93

%

2.43

%

2.82

%

2.16

%

2.84

%

Exchangeable Senior Notes (5)

 

3.95

%

3.95

%

3.50

%

3.50

%

3.50

%

3.87

%

3.50

%

Total Weighted Average

 

5.06

%

5.26

%

4.83

%

5.07

%

4.85

%

5.05

%

4.79

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOI interest coverage ratio

 

3.01x

 

3.05x

 

3.11x

 

3.12x

 

3.46x

 

3.05x

 

3.77x

 

EBITDA interest coverage ratio

 

2.85x

 

2.85x

 

2.97x

 

2.85x

 

3.33x

 

2.88x

 

3.62x

 

NOI debt service coverage ratio

 

2.62x

 

2.64x

 

2.67x

 

2.70x

 

3.03x

 

2.64x

 

3.27x

 

EBITDA debt service coverage ratio

 

2.49x

 

2.47x

 

2.54x

 

2.47x

 

2.92x

 

2.50x

 

3.14x

 

NOI fixed charge coverage ratio

 

2.55x

 

2.57x

 

2.59x

 

2.61x

 

2.84x

 

2.57x

 

3.05x

 

EBITDA fixed charge coverage ratio

 

2.42x

 

2.41x

 

2.47x

 

2.38x

 

2.74x

 

2.43x

 

2.93x

 

 

(1)         Includes $121.9 million due under our Revolving Construction Facility at September 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 September 30, 2010, our borrowing capacity under the Revolving Credit Facility was $700.0 million, of which $200.1 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 -  September 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

 

Annual
Amortization of
Monthly
Payments

 

Balloon
Payments Due
on Maturity

 

Weighted
Average Interest
Rate of Amounts
Maturing

 

Revolver (2)

 

Total Scheduled
Payments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

October - December

 

$

3,348

 

$

—

 

$

244

 

—

 

 

 

$

—

 

$

3,592

 

Total 2010

 

$

3,348

 

$

—

 

$

244

 

$

—

 

 

 

$

—

 

$

3,592

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2011 (3)

 

13,156

 

102,264

 

1,005

 

138,655

 

 

 

498,000

 

753,081

 

2012

 

12,064

 

257,523

 

1,065

 

—

 

 

 

—

 

270,652

 

2013

 

9,291

 

134,843

 

1,130

 

—

 

 

 

—

 

145,264

 

2014 (4)

 

5,873

 

175,931

 

840

 

26,766

 

 

 

—

 

209,411

 

2015

 

4,508

 

114,558

 

529

 

—

 

 

 

—

 

119,596

 

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

 

 

 

$

51,914

 

$

1,360,334

 

$

8,396

 

$

165,472

 

 

 

$

498,000

 

$

2,084,116

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net premium

 

 

 

 

 

2,356

 

 

 

 

 

Mortgage and Other Loans Payable

 

 

 

$

2,086,472

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3.5%

 

4.25%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exchangeable Senior Notes-Face Amount

 

$

162,500

 

$

240,000

 

$

402,500

 

 

 

 

 

Net discount

 

(3,572

)

(16,981

)

(20,553

)

 

 

 

 

Exchangeable Senior Notes (5)

 

$

158,928

 

$

223,019

 

381,947

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Debt

 

 

 

 

 

$

2,468,419

 

 

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 September 30, 2010, our borrowing capacity under the Revolving Credit Facility was $700.0 million, of which $200.1 million was available.

 

(3)         Includes $498 million due under our Revolving Credit Facility at September 30, 2010 that may be extended by us for a one-year period, subject to certain conditions.  Also includes $121.9 million due under our Revolving Construction Facility at September 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.

 

(4)         We have $74.7 million of nonrecourse debt maturing in 2034 that may be prepaid in 2014, subject to certain conditions.  The above table includes $69.2 in maturities on these loans in 2014.

 

(5)         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)

 

 

 

9/30/10

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

Common Equity - End of Quarter

 

 

 

 

 

 

 

 

 

 

 

Common Shares

 

59,406

 

59,288

 

58,927

 

58,343

 

58,250

 

Common Units

 

4,446

 

4,456

 

4,757

 

5,066

 

5,084

 

Total

 

63,852

 

63,744

 

63,684

 

63,409

 

63,334

 

End of Quarter Common Share Price

 

$

37.31

 

$

37.76

 

$

40.13

 

$

36.63

 

$

36.88

 

Market Value of Common Shares/Units

 

$

2,382,318

 

$

2,406,973

 

$

2,555,639

 

$

2,322,672

 

$

2,335,758

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Shares Trading Volume

 

 

 

 

 

 

 

 

 

 

 

Average Daily Volume (Shares)

 

728

 

887

 

654

 

751

 

953

 

Average Daily Volume

 

$

27,241

 

$

35,095

 

$

24,583

 

$

26,570

 

$

33,091

 

As a Percentage of Weighted Average Common Shares

 

1.2

%

1.5

%

1.1

%

1.3

%

1.7

%

 

 

 

 

 

 

 

 

 

 

 

 

Common Share Price Range (price per share)

 

 

 

 

 

 

 

 

 

 

 

Quarterly High

 

$

39.85

 

$

43.61

 

$

42.44

 

$

38.29

 

$

40.59

 

Quarterly Low

 

$

35.04

 

$

34.82

 

$

32.69

 

$

31.77

 

$

26.87

 

Quarterly Average

 

$

37.44

 

$

39.58

 

$

37.57

 

$

35.38

 

$

34.72

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

58,656

 

58,489

 

57,844

 

57,604

 

57,470

 

Dilutive effect of share-based compensation awards

 

296

 

421

 

364

 

413

 

485

 

Common Units

 

4,453

 

4,558

 

5,017

 

5,078

 

5,084

 

Denominator for funds from operations per share - diluted

 

63,405

 

63,468

 

63,225

 

63,095

 

63,039

 

 

 

 

 

 

 

 

 

 

 

 

 

Capitalization

 

 

 

 

 

 

 

 

 

 

 

Liquidation Value of Preferred Shares/Units

 

$

225,133

 

$

225,133

 

$

225,133

 

$

225,133

 

$

225,133

 

Market Value of Common Shares/Units

 

2,382,318

 

2,406,973

 

2,555,639

 

2,322,672

 

2,335,758

 

Total Equity Market Capitalization

 

$

2,607,451

 

$

2,632,107

 

$

2,780,772

 

$

2,547,805

 

$

2,560,891

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Debt

 

$

2,468,419

 

$

2,182,375

 

$

2,107,131

 

$

2,053,841

 

$

1,897,852

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Market Capitalization

 

$

5,075,870

 

$

4,814,482

 

$

4,887,903

 

$

4,601,646

 

$

4,458,743

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt to Total Market Capitalization

 

48.6

%

45.3

%

43.1

%

44.6

%

42.6

%

Debt to Total Assets

 

66.0

%

62.9

%

62.0

%

60.8

%

58.7

%

Debt to Undepreciated Book Value of Real Estate Assets

 

62.5

%

59.1

%

58.5

%

57.8

%

56.7

%

 

15


 

Dividend Analysis

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

 

9/30/10

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

9/30/10

 

9/30/09

 

Common Share Dividends

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends per share/unit

 

$

0.4125

 

$

0.3925

 

$

0.3925

 

$

0.3925

 

$

0.3925

 

$

1.1975

 

$

1.1375

 

Increase over prior period

 

5.1

%

0.0

%

0.0

%

0.0

%

5.4

%

5.3

%

8.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Dividend Payout Ratios

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted FFO Payout, excluding operating property acquisition costs

 

71.3

%

73.2

%

75.2

%

72.0

%

65.8

%

73.2

%

58.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted AFFO Payout

 

89.3

%

92.6

%

99.2

%

110.9

%

89.2

%

93.4

%

72.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend Coverage - Diluted FFO, excluding operating property acquisition costs

 

1.40x

 

1.37x

 

1.33x

 

1.39x

 

1.52x

 

1.37x

 

1.70x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend Coverage - Diluted AFFO

 

1.12x

 

1.08x

 

1.01x

 

0.90x

 

1.12x

 

1.07x

 

1.38x

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common Dividend Yields

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend Yield at Quarter End

 

4.42

%

4.16

%

3.91

%

4.29

%

4.26

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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 September 30, 2010

 

 

 

 

 

 

 

As if Converted

 

 

 

Diluted

 

 

 

Common

 

Common

 

Preferred

 

 

 

Ownership

 

 

 

Shares

 

Units

 

Shares / Units

 

Total

 

% of Total

 

SHAREHOLDER CLASSIFICATION

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Insiders

 

1,045,074

 

3,745,152

 

—

 

4,790,226

 

7.43

%

Non-insiders

 

58,361,173

 

700,475

 

610,014

 

59,671,662

 

92.57

%

 

 

59,406,247

 

4,445,627

 

610,014

 

64,461,888

 

100.00

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

9/30/10

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

RESEARCH COVERAGE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BMO Capital Markets

 

x

 

x

 

x

 

x

 

x

 

Citigroup Global Markets

 

x

 

x

 

x

 

x

 

x

 

Friedman Billings Ramsey & Co.

 

x

 

n/a

 

n/a

 

x

 

x

 

Green Street Advisors

 

x

 

x

 

x

 

x

 

x

 

ISI Group

 

x

 

x

 

x

 

x

 

x

 

Jeffries & Co.

 

x

 

n/a

 

n/a

 

n/a

 

n/a

 

JP Morgan

 

x

 

x

 

x

 

x

 

n/a

 

Keefe, Bruyette & Woods

 

x

 

n/a

 

n/a

 

n/a

 

n/a

 

KeyBanc Capital Markets

 

x

 

x

 

x

 

n/a

 

n/a

 

Macquarie Securities

 

x

 

x

 

x

 

n/a

 

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


 

Office Property Summary by Region - September 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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

192,562

 

 

 

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

 

324 Sentinel Drive (324 NBP)

 

BWI Airport

 

NBP

 

2010

 

M

 

125,118

 

 

 

12

 

140 National Business Parkway

 

BWI Airport

 

NBP

 

2003

 

M

 

119,904

 

 

 

13

 

132 National Business Parkway

 

BWI Airport

 

NBP

 

2000

 

M

 

118,598

 

 

 

14

 

2721 Technology Drive (221 NBP)

 

BWI Airport

 

NBP

 

2000

 

M

 

118,093

 

 

 

15

 

2701 Technology Drive (201 NBP)

 

BWI Airport

 

NBP

 

2001

 

M

 

117,450

 

 

 

16

 

2691 Technology Drive (191 NBP)

 

BWI Airport

 

NBP

 

2005

 

M

 

103,683

 

 

 

17

 

134 National Business Parkway

 

BWI Airport

 

NBP

 

1999

 

M

 

93,482

 

 

 

18

 

135 National Business Parkway

 

BWI Airport

 

NBP

 

1998

 

M

 

87,422

 

 

 

19

 

133 National Business Parkway

 

BWI Airport

 

NBP

 

1997

 

M

 

87,401

 

 

 

20

 

141 National Business Parkway

 

BWI Airport

 

NBP

 

1990

 

M

 

87,206

 

 

 

21

 

131 National Business Parkway

 

BWI Airport

 

NBP

 

1990

 

M

 

69,336

 

 

 

22

 

114 National Business Parkway

 

BWI Airport

 

NBP

 

2002

 

S

 

9,908

 

 

 

23

 

314 Sentinel Way (314 NBP)

 

BWI Airport

 

NBP

 

2008

 

S

 

4,462

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,732,945

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

1550 West Nursery Road

 

BWI Airport

 

APS

 

2009

 

M

 

162,101

 

 

 

2

 

1306 Concourse Drive

 

BWI Airport

 

APS

 

1990

 

M

 

116,307

 

 

 

3

 

1306 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

 

18,698

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

545,285

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

61

 

Subtotal (continued on next page)

 

 

 

 

 

 

 

 

 

5,075,794

 

—

 

 

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

 

18


 

Operating
Property
Count

 

 

 

Submarket

 

Business Park

 

Year Built or
Renovated

 

S or M

 

Total
Operational
Square Feet

 

Total Square Feet
Under
Construction /
Redevelopment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

61

 

Subtotal (continued from prior page)

 

 

 

 

 

 

 

 

 

5,075,794

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

5520 Research Park Drive (UMBC) (1)

 

BWI Airport

 

bwtech@UMBC

 

2009

 

M

 

103,990

 

 

 

2

 

5522 Research Park Drive (UMBC) (1)

 

BWI Airport

 

bwtech@UMBC

 

2007

 

S

 

23,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

127,490

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

470,249

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,226,333

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

110

 

Total Baltimore/Washington Corridor

 

 

 

 

 

 

 

 

 

8,402,671

 

—

 

 

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

 

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

 

19


 

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

 

70,113

 

 

 

9

 

14840 Conference Center Drive

 

Dulles South

 

Westfields Corporate Center

 

2000

 

M

 

69,710

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,454,181

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

13200 Woodland Park Road

 

Herndon

 

Woodland Park

 

2002

 

M

 

404,665

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

13454 Sunrise Valley Road

 

Herndon

 

Dulles Tech

 

1998

 

M

 

111,816

 

 

 

2

 

13450 Sunrise Valley Road

 

Herndon

 

Dulles Tech

 

1998

 

M

 

53,776

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

165,592

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

2,763,656

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

Total Other

 

 

 

 

 

 

 

 

 

295,842

 

—

 

 

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

 

20


 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

753 Jolly Road

 

Blue Bell

 

Arborcrest

 

1992

 

S

 

—

 

418,430

 

1

 

785 Jolly Road

 

Blue Bell

 

Arborcrest

 

1996

 

M

 

219,065

 

 

 

2

 

760 Jolly Road

 

Blue Bell

 

Arborcrest

 

1994

 

M

 

156,695

 

61,958

 

 

 

751 Jolly Road

 

Blue Bell

 

Arborcrest

 

1991

 

M

 

 

 

114,000

 

2

 

Total Greater Philadelphia

 

 

 

 

 

 

 

 

 

375,760

 

594,388

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

San Antonio, Texas

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2

 

7700 Potranco Road

 

San Antonio Northwest

 

Sentry Gateway

 

1982/1985

 

M

 

508,412

 

 

 

3

 

8000 Potranco Road

 

San Antonio Northwest

 

Sentry Gateway

 

2010

 

M

 

125,005

 

 

 

4

 

8030 Potranco Road

 

San Antonio Northwest

 

Sentry Gateway

 

2010

 

M

 

125,005

 

 

 

5

 

7700-5 Potranco-Warehouse

 

San Antonio Northwest

 

Sentry Gateway

 

2009

 

S

 

25,056

 

 

 

6

 

7700-1 Potranco Road

 

San Antonio Northwest

 

Sentry Gateway

 

2007

 

S

 

8,674

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

792,152

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8

 

Total San Antonio, Texas

 

 

 

 

 

 

 

 

 

915,127

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

33,207

 

 

 

6

 

525 Babcock Road

 

Colorado Springs East

 

Patriot Park

 

1967

 

S

 

14,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

396,604

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

66,223

 

 

 

6

 

9925 Federal Drive

 

I-25 North Corridor

 

InterQuest Office

 

2008

 

S

 

53,788

 

 

 

7

 

9960 Federal Drive

 

I-25 North Corridor

 

InterQuest Office

 

2001

 

S

 

46,948

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

522,808

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

103,400

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

322,054

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

21

 

Total Colorado Springs, Colorado

 

 

 

 

 

 

 

 

 

1,568,926

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Washington, DC - Capitol Riverfront

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

1201 M Street

 

Washington, DC - Capitol Riverfront

 

 

 

2001

 

M

 

161,165

 

 

 

2

 

1220 12th Street

 

Washington, DC - Capitol Riverfront

 

 

 

2003

 

M

 

200,509

 

 

 

 

 

Total Washington, D.C. - Capitol Riverfront

 

 

 

 

 

 

 

 

 

361,674

 

—

 

 

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

 

21


 

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

 

215,844

 

 

 

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

 

28,618

 

 

 

8

 

224 Schilling Circle

 

Hunt Valley/Rte 83 Corridor

 

Hunt Valley Business Comm.

 

1978/1997

 

M

 

27,574

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

668,694

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

49,754

 

 

 

3

 

100 West Pennsylvania Avenue

 

Towson

 

 

 

1952/1989

 

M

 

20,094

 

 

 

4

 

109-111 Allegheny Avenue

 

Towson

 

 

 

1971

 

M

 

18,431

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

178,883

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

1501 South Clinton Street

 

Baltimore

 

Canton Crossing

 

2006

 

M

 

474,637

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1

 

209 Research Boulevard

 

Harford County

 

Northgate Business Park

 

2010

 

M

 

41,907

 

36,596

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

30

 

Subtotal (continued on next page)

 

 

 

 

 

 

 

 

 

2,151,461

 

36,596

 

 

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

 

22


 

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)

 

 

 

 

 

 

 

 

 

2,151,461

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

5355 Nottingham Ridge Road

 

White Marsh

 

Nottingham Ridge

 

2005

 

S

 

35,927

 

 

 

2

 

5325 Nottingham Ridge Road

 

White Marsh

 

Nottingham Ridge

 

2002

 

S

 

35,678

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

71,605

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

27,994

 

 

 

3

 

7923 Honeygo Boulevard

 

White Marsh

 

White Marsh Professional Center

 

1985

 

M

 

23,482

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

79,682

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

65

 

Total Greater Baltimore

 

 

 

 

 

 

 

 

 

3,728,034

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

249

 

TOTAL WHOLLY-OWNED OFFICE PROPERTY PORTFOLIO

 

 

 

 

 

 

 

 

 

19,928,686

 

594,388

 

 

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

 

23


 

Property Summary by Region - September 30, 2010

Joint Venture Office 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 Office 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 Office Properties

 

 

 

 

 

 

 

 

 

670,999

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Joint Venture Office 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 OFFICE PROPERTY 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 Office Properties

 

 

 

Baltimore /

 

 

 

 

 

 

 

St. Mary’s &

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Washington

 

Northern

 

Greater

 

Suburban

 

King George

 

Colorado

 

San

 

Greater

 

Washington, DC

 

 

 

Total

 

 

 

Corridor

 

Virginia

 

Baltimore

 

Maryland

 

Counties

 

Springs

 

Antonio

 

Philadelphia

 

Capitol Riverfront

 

Other

 

Portfolio

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Buildings

 

110

 

16

 

65

 

5

 

18

 

21

 

8

 

2

 

2

 

2

 

249

 

Rentable Square Feet

 

8,402,671

 

2,763,656

 

3,728,034

 

695,184

 

821,812

 

1,568,926

 

915,127

 

375,760

 

361,674

 

295,842

 

19,928,686

 

Occupied %

 

89.1

%

91.9

%

80.4

%

72.5

%

89.2

%

76.7

%

100.0

%

100.0

%

99.6

%

100.0

%

87.4

%

Leased %

 

90.3

%

93.2

%

83.5

%

73.3

%

89.7

%

76.7

%

100.0

%

100.0

%

99.6

%

100.0

%

88.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

June 30, 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Buildings

 

109

 

16

 

64

 

5

 

18

 

21

 

6

 

4

 

0

 

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

%

0.0

%

100.0

%

88.3

%

Leased %

 

90.6

%

96.4

%

83.4

%

71.8

%

96.0

%

75.9

%

100.0

%

100.0

%

0.0

%

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

%

0.0

%

100.0

%

89.6

%

Leased %

 

90.8

%

96.8

%

81.4

%

86.2

%

94.5

%

86.3

%

100.0

%

100.0

%

0.0

%

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

%

0.0

%

100.0

%

90.8

%

Leased %

 

92.5

%

96.8

%

81.0

%

91.9

%

98.0

%

86.1

%

100.0

%

100.0

%

0.0

%

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

%

0.0

%

100.0

%

91.0

%

Leased %

 

91.3

%

97.1

%

82.7

%

92.3

%

97.8

%

87.2

%

100.0

%

100.0

%

0.0

%

100.0

%

91.4

%

 

25


 

Property Occupancy Rates by Region by Quarter

Joint Venture Office Properties

 

 

 

Unconsolidated

 

Consolidated

 

 

 

 

 

Greater

 

Baltimore/Wash

 

Suburban

 

Total

 

 

 

Harrisburg

 

Corridor

 

Maryland

 

Portfolio

 

 

 

 

 

 

 

 

 

 

 

September 30, 2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of Buildings

 

16

 

1

 

3

 

20

 

Rentable Square Feet

 

670,999

 

143,939

 

297,858

 

1,112,796

 

Occupied %

 

73.8

%

6.0

%

88.3

%

68.9

%

Leased %

 

73.8

%

6.0

%

90.1

%

69.4

%

 

 

 

 

 

 

 

 

 

 

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

%

 

Reconciliation of Wholly Owned Properties to Entire

Portfolio as of September 30, 2010

 

 

 

 

 

Square

 

 

 

 

 

 

 

Count

 

Feet

 

Occupied %

 

Leased %

 

 

 

 

 

 

 

 

 

 

 

Wholly Owned Properties

 

249

 

19,928,686

 

87.4

%

88.7

%

Add: Consolidated Joint Venture Properties

 

4

 

441,797

 

61.5

%

62.7

%

Subtotal

 

253

 

20,370,483

 

86.8

%

88.1

%

Add: Unconsolidated Joint Venture Properties

 

16

 

670,999

 

73.8

%

73.8

%

Entire Portfolio

 

269

 

21,041,482

 

86.4

%

87.6

%

 

26


 

Top Twenty Tenants of Wholly Owned Office Properties as of September 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)

 

75

 

3,125,009

 

17.9

%

91,503

 

20.6

%

5.9

 

Northrop Grumman Corporation (6)

 

16

 

1,229,313

 

7.1

%

31,735

 

7.2

%

6.6

 

Booz Allen Hamilton, Inc.

 

8

 

726,070

 

4.2

%

21,246

 

4.8

%

4.8

 

Computer Sciences Corporation (6)

 

6

 

612,024

 

3.5

%

18,733

 

4.2

%

3.1

 

The MITRE Corporation

 

4

 

261,474

 

1.5

%

8,366

 

1.9

%

4.6

 

ITT Corporation (6)

 

9

 

333,169

 

1.9

%

7,960

 

1.8

%

4.2

 

The Aerospace Corporation (6)

 

3

 

247,253

 

1.4

%

7,728

 

1.7

%

4.4

 

Wells Fargo & Company (6)

 

6

 

215,673

 

1.2

%

7,479

 

1.7

%

7.6

 

L-3 Communications Holdings, Inc. (6)

 

4

 

256,120

 

1.5

%

7,344

 

1.7

%

3.5

 

CareFirst, Inc.

 

2

 

221,893

 

1.3

%

7,229

 

1.6

%

6.0

 

Integral Systems, Inc. (6)

 

4

 

241,627

 

1.4

%

6,205

 

1.4

%

9.4

 

Comcast Corporation (6)

 

7

 

306,123

 

1.8

%

6,100

 

1.4

%

3.0

 

AT&T Corporation (6)

 

5

 

321,063

 

1.8

%

5,490

 

1.2

%

8.1

 

The Boeing Company (6)

 

4

 

161,591

 

0.9

%

5,027

 

1.1

%

3.1

 

Ciena Corporation

 

5

 

263,724

 

1.5

%

4,956

 

1.1

%

2.5

 

General Dynamics Corporation (6)

 

5

 

175,716

 

1.0

%

4,859

 

1.1

%

0.6

 

Unisys Corporation

 

1

 

156,695

 

0.9

%

4,143

 

0.9

%

9.7

 

The Johns Hopkins Institutions (6)

 

5

 

139,295

 

0.8

%

3,507

 

0.8

%

6.1

 

Merck & Co., Inc. (6)

 

2

 

225,900

 

1.3

%

2,945

 

0.7

%

1.8

 

Magellan Health Services, Inc. (6)

 

2

 

118,801

 

0.7

%

2,755

 

0.6

%

0.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal Top 20 Office Tenants

 

173

 

9,338,533

 

53.6

%

255,310

 

57.5

%

5.4

 

All remaining tenants

 

706

 

8,074,097

 

46.4

%

188,337

 

42.5

%

3.8

 

Total/Weighted Average

 

879

 

17,412,630

 

100.0

%

$

443,647

 

100.0

%

4.7

 

 

(1)         Table excludes owner occupied leasing activity which represents 170,999 square feet with total annualized rental revenue of $4,039 and a weighted average remaining lease term of 5.1 years as of September 30, 2010.

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

(3)         Order of tenants is based on Total Annualized Rental Revenue.

(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

 

Nine Months Ended

 

 

 

Buildings

 

Feet

 

9/30/10

 

6/30/10

 

3/31/10

 

12/31/09

 

9/30/09

 

9/30/10

 

9/30/09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore Washington Corridor

 

105

 

7,687,449

 

89.5

%

89.9

%

90.1

%

91.7

%

91.9

%

89.8

%

92.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Northern Virginia

 

15

 

2,611,651

 

91.6

%

96.2

%

96.6

%

96.9

%

96.3

%

94.8

%

95.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Greater Baltimore

 

62

 

3,175,563

 

79.9

%

80.2

%

79.7

%

78.8

%

82.5

%

79.9

%

82.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Suburban Maryland

 

6

 

751,050

 

75.9

%

72.1

%

90.0

%

91.6

%

91.2

%

78.3

%

94.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

St.Mary’s and King George Counties

 

18

 

821,812

 

93.3

%

95.3

%

94.8

%

97.8

%

97.0

%

94.5

%

96.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Colorado Springs

 

16

 

1,144,139

 

88.2

%

90.0

%

90.4

%

89.9

%

90.4

%

89.5

%

92.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

17,346,632

 

88.1

%

89.2

%

90.1

%

90.9

%

91.5

%

89.1

%

92.0

%

 

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

 

28


 

Lease Expiration Analysis by Year for Wholly Owned Office Properties

As of September 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

 

22

 

381,144

 

43.0

%

2.2

%

$

9,969

 

2.2

%

$

26.15

 

Northern Virginia

 

5

 

171,020

 

19.3

%

1.0

%

3,994

 

0.9

%

23.36

 

Greater Baltimore

 

27

 

228,916

 

25.8

%

1.3

%

4,384

 

1.0

%

19.15

 

Suburban Maryland

 

1

 

2,457

 

0.3

%

0.0

%

35

 

0.0

%

14.39

 

St. Mary’s and King George Cos.

 

7

 

91,764

 

10.3

%

0.5

%

1,901

 

0.4

%

20.72

 

Colorado Springs

 

1

 

2,930

 

0.3

%

0.0

%

57

 

0.0

%

19.48

 

Washington, DC-Capitol Riverfront

 

3

 

8,583

 

1.0

%

0.0

%

385

 

0.1

%

44.87

 

2010

 

66

 

886,814

 

100.0

%

5.1

%

20,726

 

4.7

%

23.37

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore/Washington Corridor

 

56

 

880,043

 

43.7

%

5.1

%

21,938

 

4.9

%

24.93

 

Northern Virginia

 

8

 

306,302

 

15.2

%

1.8

%

7,485

 

1.7

%

24.44

 

Greater Baltimore

 

70

 

436,306

 

21.7

%

2.5

%

9,227

 

2.1

%

21.15

 

Suburban Maryland

 

3

 

82,938

 

4.1

%

0.5

%

2,319

 

0.5

%

27.96

 

St. Mary’s and King George Cos.

 

8

 

73,302

 

3.6

%

0.4

%

1,282

 

0.3

%

17.49

 

Colorado Springs

 

9

 

143,040

 

7.1

%

0.8

%

2,590

 

0.6

%

18.11

 

Washington, DC-Capitol Riverfront

 

8

 

89,836

 

4.5

%

0.5

%

4,228

 

1.0

%

47.06

 

2011

 

162

 

2,011,767

 

100.0

%

11.6

%

49,070

 

11.1

%

24.39

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore/Washington Corridor

 

46

 

1,109,850

 

40.4

%

6.4

%

28,814

 

6.5

%

25.96

 

Northern Virginia

 

19

 

317,246

 

11.6

%

1.8

%

10,074

 

2.3

%

31.75

 

Greater Baltimore

 

49

 

626,600

 

22.8

%

3.6

%

12,887

 

2.9

%

20.57

 

Suburban Maryland

 

3

 

28,835

 

1.1

%

0.2

%

639

 

0.1

%

22.15

 

St. Mary’s and King George Cos.

 

12

 

287,818

 

10.5

%

1.7

%

5,338

 

1.2

%

18.55

 

Greater Philadelphia

 

1

 

219,065

 

8.0

%

1.3

%

2,783

 

0.6

%

12.71

 

Colorado Springs

 

7

 

74,841

 

2.7

%

0.4

%

1,572

 

0.4

%

21.00

 

San Antonio

 

2

 

78,359

 

2.9

%

0.5

%

1,359

 

0.3

%

17.34

 

Washington, DC-Capitol Riverfront

 

1

 

1,608

 

0.1

%

0.0

%

76

 

0.0

%

47.24

 

2012

 

140

 

2,744,222

 

100.0

%

15.8

%

63,542

 

14.3

%

23.15

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore/Washington Corridor

 

54

 

1,111,400

 

54.2

%

6.4

%

34,223

 

7.7

%

30.79

 

Northern Virginia

 

11

 

151,741

 

7.4

%

0.9

%

4,407

 

1.0

%

29.04

 

Greater Baltimore

 

39

 

416,923

 

20.3

%

2.4

%

8,236

 

1.9

%

19.75

 

Suburban Maryland

 

2

 

8,861

 

0.4

%

0.1

%

250

 

0.1

%

28.19

 

St. Mary’s and King George Cos.

 

7

 

109,245

 

5.3

%

0.6

%

1,874

 

0.4

%

17.15

 

Colorado Springs

 

6

 

121,532

 

5.9

%

0.7

%

2,385

 

0.5

%

19.62

 

Washington, DC-Capitol Riverfront

 

4

 

130,026

 

6.3

%

0.7

%

5,532

 

1.2

%

42.54

 

2013

 

123

 

2,049,728

 

100.0

%

11.8

%

56,906

 

12.8

%

27.76

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore/Washington Corridor

 

41

 

655,240

 

39.1

%

3.8

%

17,778

 

4.0

%

27.13

 

Northern Virginia

 

6

 

293,377

 

17.5

%

1.7

%

9,245

 

2.1

%

31.51

 

Greater Baltimore

 

29

 

301,056

 

18.0

%

1.7

%

5,342

 

1.2

%

17.74

 

Suburban Maryland

 

5

 

129,865

 

7.8

%

0.7

%

2,615

 

0.6

%

20.14

 

St. Mary’s and King George Cos.

 

8

 

40,373

 

2.4

%

0.2

%

908

 

0.2

%

22.49

 

Colorado Springs

 

10

 

182,686

 

10.9

%

1.0

%

3,634

 

0.8

%

19.89

 

Washington, DC-Capitol Riverfront

 

6

 

71,562

 

4.3

%

0.4

%

3,049

 

0.7

%

42.61

 

2014

 

105

 

1,674,159

 

100.0

%

9.6

%

42,572

 

9.6

%

25.43

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Baltimore/Washington Corridor

 

120

 

3,327,034

 

41.7

%

19.1

%

86,397

 

19.5

%

25.97

 

Northern Virginia

 

27

 

1,299,889

 

16.3

%

7.5

%

40,354

 

9.1

%

31.04

 

Greater Baltimore

 

78

 

984,606

 

12.4

%

5.7

%

26,450

 

6.0

%

26.86

 

Suburban Maryland

 

5

 

250,875

 

3.1

%

1.4

%

5,518

 

1.2

%

22.00

 

St. Mary’s and King George Cos.

 

9

 

82,158

 

1.0

%

0.5

%

1,405

 

0.3

%

17.10

 

Greater Philadelphia

 

1

 

156,695

 

2.0

%

0.9

%

4,143

 

0.9

%

26.44

 

Colorado Springs

 

19

 

677,777

 

8.5

%

3.9

%

13,599

 

3.1

%

20.06

 

San Antonio

 

6

 

836,768

 

10.5

%

4.8

%

20,425

 

4.6

%

24.41

 

Washington, DC-Capitol Riverfront

 

4

 

58,681

 

0.7

%

0.3

%

2,490

 

0.6

%

42.43

 

Other

 

2

 

295,842

 

3.7

%

1.7

%

8,988

 

2.0

%

30.38

 

Thereafter

 

271

 

7,970,325

 

100.0

%

45.8

%

209,769

 

47.3

%

26.32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (4)

 

12

 

75,615

 

100.0

%

0.4

%

1,063

 

0.2

%

14.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total / Average

 

879

 

17,412,630

 

 

 

100.0

%

$

443,647

 

100.0

%

$

25.48

 

 

NOTE:  As of September 30, 2010, the weighted average lease term for the wholly owned office properties is 4.7 years.

 

(1)         This expiration analysis includes the effect of early renewals completed on existing leases but excludes the effect of new tenant leases on 255,894 square feet yet to commence as of September 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 September 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


 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expiring Square Feet

 

279,186

 

191,749

 

113,183

 

—

 

100,022

 

106,217

 

—

 

790,357

 

Vacated Square Feet

 

98,795

 

161,433

 

30,295

 

—

 

50,532

 

21,453

 

—

 

362,508

 

Renewed Square Feet

 

180,391

 

30,316

 

82,888

 

—

 

49,490

 

84,764

 

—

 

427,849

 

Retention Rate (% based upon square feet)

 

64.6

%

15.8

%

73.2

%

0.0

%

49.5

%

79.8

%

0.0

%

54.1

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Renewed Space Only:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Committed Cost per Square Foot

 

$

4.16

 

$

3.88

 

$

2.44

 

$

—

 

$

0.25

 

$

5.51

 

$

—

 

$

3.62

 

Weighted Average Lease Term in years

 

5.4

 

3.3

 

5.7

 

—

 

5.0

 

6.1

 

—

 

5.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in Total Rent - GAAP

 

5.1

%

-30.7

%

2.1

%

0.0

%

18.3

%

-2.3

%

0.0

%

-0.7

%

Change in Total Rent - Cash

 

-2.7

%

-35.5

%

-11.5

%

0.0

%

1.5

%

-4.3

%

0.0

%

-8.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Renewed & Retenanted Space:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Committed Cost per Square Foot

 

$

9.58

 

$

8.45

 

$

4.58

 

$

—

 

$

0.25

 

$

10.48

 

$

—

 

$

7.92

 

Weighted Average Lease Term in years

 

5.8

 

4.5

 

5.7

 

—

 

5.0

 

5.9

 

—

 

5.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in Total Rent - GAAP

 

0.5

%

-26.1

%

1.0

%

0.0

%

18.3

%

-0.5

%

0.0

%

-2.1

%

Change in Total Rent - Cash

 

-6.9

%

-33.6

%

-11.6

%

0.0

%

1.5

%

-3.3

%

0.0

%

-10.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nine Months Ended September 30, 2010:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Expiring Square Feet

 

1,028,019

 

561,958

 

248,461

 

278,135

 

135,959

 

117,192

 

3,706

 

2,373,430

 

Vacated Square Feet

 

402,975

 

216,465

 

81,654

 

186,952

 

79,248

 

27,345

 

3,706

 

998,345

 

Renewed Square Feet

 

625,044

 

345,493

 

166,807

 

91,183

 

56,711

 

89,847

 

—

 

1,375,085

 

Retention Rate (% based upon square feet)

 

60.8

%

61.5

%

67.1

%

32.8

%

41.7

%

76.7

%

0.0

%

57.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Renewed Space Only:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Committed Cost per Square Foot

 

$

6.52

 

$

3.89

 

$

3.75

 

$

0.82

 

$

1.93

 

$

5.20

 

$

—

 

$

4.87

 

Weighted Average Lease Term in years

 

3.5

 

2.0

 

5.0

 

4.1

 

5.0

 

5.8

 

—

 

3.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in Total Rent - GAAP

 

7.4

%

-4.9

%

0.7

%

0.1

%

16.5

%

-1.5

%

0.0

%

2.4

%

Change in Total Rent - Cash

 

-1.8

%

-10.7

%

-9.9

%

-9.7

%

0.9

%

-3.8

%

0.0

%

-5.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Renewed & Retenanted Space:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Committed Cost per Square Foot

 

$

9.36

 

$

8.76

 

$

12.70

 

$

0.08

 

$

1.82

 

$

10.00

 

$

—

 

$

9.08

 

Weighted Average Lease Term in years

 

3.9

 

3.0

 

5.8

 

4.1

 

4.9

 

5.7

 

—

 

4.1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in Total Rent - GAAP

 

4.5

%

-5.3

%

-1.2

%

0.1

%

16.5

%

0.1

%

0.0

%

0.6

%

Change in Total Rent - Cash

 

-4.1

%

-11.3

%

-9.9

%

-9.7

%

1.8

%

-3.0

%

0.0

%

-7.1

%

 

Notes:

No renewal or retenanting activity transpired in our San Antonio or Greater Philadelphia regions.

 

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

 

Retention rate includes early renewals.

 

30


 

Office Property Development Summary as of September 30, 2010

(Dollars in thousands)

 

 

 

 

 

Wholly

 

 

 

 

 

 

 

 

 

Actual or

 

 

 

 

 

 

 

Owned

 

Total

 

Percentage

 

as of September 30, 2010

 

Anticipated

 

 

 

 

 

 

 

or Joint

 

Rentable

 

Leased

 

Anticipated

 

 

 

Construction

 

Anticipated

 

 

 

 

 

Venture

 

Square

 

as of

 

Total

 

Cost

 

Completion

 

Operational

 

Property and Location

 

Submarket

 

(JV)

 

Feet

 

9/30/10

 

Cost (1)

 

to date

 

Date (2)

 

Date (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

316 Sentinel Way (316 NBP)
Annapolis Junction, Maryland

 

BWI Airport

 

Owned

 

125,044

 

0

%

28,885

 

21,652

 

1Q 11

 

1Q 12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal Government

 

 

 

 

 

125,044

 

0

%

$

28,885

 

$

21,652

 

 

 

 

 

% of Total Drivers

 

 

 

 

 

15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

308 Sentinel Drive (308 NBP)
Annapolis Junction, Maryland

 

BWI Airport

 

Owned

 

150,843

 

98

%

32,578

 

23,814

 

3Q 10

 

1Q 11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

430 National Business Parkway
Annapolis Junction, Maryland

 

BWI Airport

 

Owned

 

109,341

 

0

%

24,942

 

8,595

 

2Q 11

 

2Q 12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

206 Research Boulevard
Aberdeen, Maryland

 

Harford County

 

Owned

 

127,300

 

0

%

25,139

 

6,813

 

3Q 11

 

3Q 12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

209 Research Boulevard (4)
Aberdeen, Maryland

 

Harford County

 

Owned

 

78,503

 

100

%

18,378

 

15,819

 

2Q 10

 

2Q 11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

210 Research Boulevard
Aberdeen, Maryland

 

Harford County

 

Owned

 

79,616

 

35

%

16,673

 

12,727

 

4Q 10

 

4Q 11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

45310 Abell House Lane
California, MD

 

St. Mary’s County

 

Owned

 

80,205

 

100

%

18,080

 

3,863

 

3Q 11

 

4Q 11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

100 Sentry Gateway
San Antonio, Texas

 

San Antonio Northwest

 

Owned

 

94,550

 

0

%

15,433

 

9,971

 

4Q 10

 

4Q 11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal Defense Information Technology

 

 

 

 

 

720,358

 

46

%

$

151,223

 

$

81,602

 

 

 

 

 

% of Total Drivers

 

 

 

 

 

85

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Under Construction

 

 

 

 

 

845,402

 

40

%

$

180,108

 

$

103,254

 

 

 

 

 

 

 

 

% of Total

 

Total Rentable

 

Percentage

 

Regions

 

Regions

 

Square Feet

 

Leased

 

Baltimore/Washington Corridor

 

46

%

385,228

 

38

%

Greater Baltimore

 

34

%

285,419

 

37

%

St. Mary’s County

 

9

%

80,205

 

100

%

San Antonio

 

11

%

94,550

 

0

%

Total Under Construction by Region

 

100

%

845,402

 

40

%

 

(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,” 41,907 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


 

 

 

 

 

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

 

9/30/10

 

Cost (1)

 

to date

 

Date (2)

 

Date (3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redevelopment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7468 Candlewood Road
Hanover, Maryland

 

BWI Airport

 

Owned

 

357,700

 

0

%

$

41,103

 

$

38,994

 

4Q 10

 

4Q 11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal Baltimore/Washington Corridor

 

 

 

 

 

357,700

 

 

 

$

41,103

 

$

38,994

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

760 Jolly Road (Lakeside I)
Blue Bell, PA (4)

 

Greater Philadelphia

 

Owned

 

218,653

 

72

%

30,325

 

25,526

 

3Q 10

 

3Q 11

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal Greater Philadelphia

 

 

 

 

 

218,653

 

 

 

$

30,325

 

$

25,526

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Redevelopment

 

 

 

 

 

576,353

 

 

 

$

71,428

 

$

64,520

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Under Development

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

312 Sentinel Way
Annapolis Junction, Maryland

 

BWI Airport

 

Owned

 

125,000

 

 

 

32,800

 

5,620

 

1Q 12

 

1Q 13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7205 Riverwood Road
Columbia, Maryland

 

Howard Co. Perimeter

 

Owned

 

86,000

 

 

 

19,200

 

2,697

 

4Q 11

 

4Q 12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal Government

 

 

 

 

 

211,000

 

 

 

$

52,000

 

$

8,317

 

 

 

 

 

% of Total Drivers

 

 

 

 

 

15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

310 Sentinel Way
Annapolis Junction, Maryland

 

BWI Airport

 

Owned

 

240,000

 

 

 

66,960

 

3,306

 

1Q 13

 

1Q 14

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

410 National Business Parkway
Annapolis Junction, Maryland

 

BWI Airport

 

Owned

 

110,000

 

 

 

27,100

 

3,943

 

4Q 11

 

4Q 12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

202 Research Boulevard (Lot H)
Aberdeen, Maryland

 

Harford County

 

Owned

 

127,530

 

 

 

26,100

 

4,056

 

1Q 12

 

1Q 13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Patriot Ridge (Building 1)
Springfield, Virginia

 

Springfield

 

Owned

 

240,000

 

 

 

78,820

 

6,387

 

2Q 12

 

2Q 13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sentry Gateway (Building 200)
San Antonio, Texas

 

San Antonio Northwest

 

Owned

 

93,830

 

 

 

15,800

 

2,034

 

3Q 12

 

3Q 13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8100 Potranco Road
San Antonio, Texas

 

San Antonio Northwest

 

Owned

 

125,000

 

 

 

24,400

 

3,264

 

4Q 12

 

3Q 13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redstone Gateway (Building 1)
Huntsville, Alabama

 

Huntsville

 

JV

 

120,000

 

 

 

24,200

 

575

 

4Q 11

 

4Q 12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redstone Gateway (Building 2)
Huntsville, Alabama

 

Huntsville

 

JV

 

120,000

 

 

 

24,200

 

400

 

2Q 12

 

2Q 13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal Defense Information Technology

 

 

 

 

 

1,176,360

 

 

 

$

287,580

 

$

23,965

 

 

 

 

 

% of Total Drivers

 

 

 

 

 

85

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Under Development

 

 

 

 

 

1,387,360

 

 

 

$

339,580

 

$

32,282

 

 

 

 

 

 

 

 

% of Total

 

Total Rentable

 

Regions

 

Regions

 

Square Feet

 

Baltimore/Washington Corridor

 

40

%

561,000

 

Greater Baltimore

 

9

%

127,530

 

Northern Virginia

 

17

%

240,000

 

San Antonio

 

16

%

218,830

 

Huntsville

 

17

%

240,000

 

Total Under Development by Region

 

100

%

1,387,360

 

 

(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


 

Office Property Construction Placed into Service as of September 30, 2010 (1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

3rd Quarter

 

Leased

 

10807 New Allegiance Drive (Epic One)
Colorado Springs, Colorado

 

I-25 North Corridor

 

Owned

 

145,723

 

46,765

 

—

 

98,958

 

—

 

59,993

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

565 Space Center Drive (Patriot Park 7)
Colorado Springs, Colorado

 

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

 

112,513

 

155,093

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

209 Research Boulevard
Aberdeen, Maryland

 

Harford County

 

Owned

 

78,503

 

—

 

—

 

36,862

 

5,045

 

78,503

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

324 Sentinel Way (324 NBP)
Annapolis Junction, Maryland

 

BWI Airport

 

Owned

 

125,129

 

—

 

—

 

—

 

125,129

 

125,129

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8000 Potranco Road
San Antonio, Texas

 

San Antonio Northwest

 

Owned

 

125,005

 

—

 

—

 

—

 

125,005

 

125,005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8030 Potranco Road
San Antonio, Texas

 

San Antonio Northwest

 

Owned

 

125,005

 

—

 

—

 

—

 

125,005

 

125,005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Development Placed Into Service

 

 

 

 

 

882,018

 

94,136

 

3,617

 

254,972

 

492,697

 

670,677

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

76

%

 

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

 

33


 

Office Property Construction Leasing as of September 30, 2010 (1)

 

 

 

 

 

Wholly

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owned or

 

Rentable

 

Construction

 

 

 

 

 

 

 

 

 

 

 

 

 

Joint Venture

 

Square

 

Commencement

 

Cumulative Square Feet Leased

 

Property and Location

 

Submarket

 

(JV)

 

Feet

 

Date

 

Year 2009

 

1st Quarter

 

2nd Quarter

 

3rd Quarter

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

324 Sentinel Way (324 NBP)
Annapolis Junction, Maryland

 

BWI Airport

 

Owned

 

125,129

 

1Q 09

 

—

 

125,129

 

125,129

 

125,129

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5850 University Research Court
College Park, Maryland

 

College Park

 

JV

 

123,464

 

3Q 08

 

123,464

 

123,464

 

123,464

 

123,464

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8000 Potranco Road
San Antonio, Texas

 

San Antonio Northwest

 

Owned

 

125,005

 

1Q 09

 

—

 

125,005

 

125,005

 

125,005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

8030 Potranco Road
San Antonio, Texas

 

San Antonio Northwest

 

Owned

 

125,005

 

1Q 09

 

—

 

125,005

 

125,005

 

125,005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal Government

 

 

 

 

 

498,603

 

 

 

123,464

 

498,603

 

498,603

 

498,603

 

 

 

 

 

 

 

 

 

 

 

25

%

100

%

100

%

100

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

300 Sentinel Drive (300 NBP)
Annapolis Junction, Maryland

 

BWI Airport

 

Owned

 

192,754

 

1Q 08

 

85,700

 

124,029

 

155,093

 

155,093

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

308 Sentinel Drive (308 NBP)
Annapolis Junction, Maryland

 

BWI Airport

 

Owned

 

150,843

 

3Q 09

 

—

 

—

 

27,281

 

147,810

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6721 Columbia Gateway Drive
Columbia, Maryland

 

Howard Co. Perimeter

 

Owned

 

131,451

 

1Q 08

 

131,451

 

131,451

 

131,451

 

131,451

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

209 Research Boulevard
Aberdeen, Maryland

 

Harford County

 

Owned

 

78,503

 

1Q 09

 

54,312

 

59,357

 

66,505

 

78,503

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

210 Research Boulevard
Aberdeen, Maryland

 

Harford County

 

Owned

 

78,856

 

4Q 09

 

—

 

27,472

 

27,472

 

27,472

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

10807 New Allegiance Drive (Epic One)
Colorado Springs, Colorado

 

I-25 North Corridor

 

Owned

 

145,723

 

2Q 08

 

46,765

 

59,993

 

59,993

 

59,993

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

565 Space Center Drive (Patriot Park VII)
Colorado Springs, Colorado

 

Colorado Springs East

 

Owned

 

89,899

 

2Q 08

 

1,949

 

1,949

 

1,949

 

1,949

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal Defense Information Technology

 

 

 

 

 

868,029

 

 

 

320,177

 

404,251

 

469,744

 

602,271

 

 

 

 

 

 

 

 

 

 

 

37

%

47

%

54

%

69

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Development Leasing

 

 

 

 

 

1,366,632

 

 

 

443,641

 

902,854

 

968,347

 

1,100,874

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percent Leased

 

 

 

 

 

 

 

 

 

32

%

66

%

71

%

81

%

 

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

 

34


 

Land Controlled as of September 30, 2010

 

Location

 

Submarket

 

Status

 

Acres

 

Estimated
Developable
Square Feet

 

 

 

 

 

 

 

 

 

 

 

National Business Park - North

 

BWI Airport

 

owned

 

169

 

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

 

 

 

 

 

264

 

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

 

740,000

 

Total Northern Virginia

 

 

 

 

 

72

 

2,039,000

 

 

 

 

 

 

 

 

 

 

 

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 - 50% ownership

 

49

 

510,000

 

Total Suburban Maryland

 

 

 

 

 

172

 

1,900,000

 

 

 

 

 

 

 

 

 

 

 

Arborcrest

 

Blue Bell

 

owned

 

63

 

692,000

 

Total Greater Philadelphia

 

 

 

 

 

63

 

692,000

 

 

 

 

 

 

 

 

 

 

 

Dahlgren Technology Center

 

King George County

 

owned

 

39

 

122,000

 

Expedition VII

 

St. Mary’s County

 

owned

 

6

 

60,000

 

Total St. Mary’s & King George Counties

 

 

 

 

 

45

 

182,000

 

 

 

 

 

 

 

 

 

 

 

InterQuest

 

I-25 North Corridor

 

owned

 

113

 

1,623,000

 

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

 

2,499,000

 

 

 

 

 

 

 

 

 

 

 

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

 

Total Other

 

 

 

 

 

783

 

2,667,000

 

 

 

 

 

 

 

 

 

 

 

TOTAL

 

 

 

 

 

2,314

 

21,897,000

 

 

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


 

Wholesale Data Center Summary as of September 30, 2010

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Actual or

 

 

 

 

 

 

 

 

 

Initial

 

Critical Load

 

 

 

 

 

 

 

Anticipated

 

 

 

 

 

 

 

Raised Floor

 

Stabilization

 

Upon

 

 

 

Anticipated

 

 

 

Construction

 

Anticipated

 

 

 

Gross Building

 

Square

 

Critical Load

 

Completion

 

MW

 

Total

 

Cost

 

Completion

 

Operational

 

Property and Location

 

Area

 

Footage (1)

 

(in MWs) (2)

 

Leased

 

Operational

 

Cost (3)

 

to date

 

Date (4)

 

Date (5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Power Loft @ Innovation
9651 Hornbaker Road
Manassas, Virginia

 

233,000

 

100,000

 

18

 

17

%

8

%

$

282,000

 

$

115,778

 

4Q 12

 

4Q 12

 

 

Lease Expiration Analysis

 

 

 

 

 

 

 

 

 

Total

 

 

 

Number

 

 

 

 

 

Annual Rental

 

 

 

of Leases

 

Raised Floor

 

Critical Load

 

Revenue of

 

Year of Lease Expiration

 

Expiring

 

Square Footage

 

Leased

 

Expiring Leases

 

 

 

 

 

 

 

 

 

 

 

2019

 

1

 

7,172

 

1

 

$

2,017

 

2020

 

1

 

12,773

 

2

 

1,056

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3

 

$

3,073

 

 

(1)         Raised floor square footage is that portion of the gross building area where tenants locate their computer servers.  Raised floor area is considered to be the net rentable square footage.

(2)         Critical load is the power available for exclusive use of tenants in the property (expressed in terms of megawatts (“MWs”)).

(3)         Anticipated total cost includes land, construction and leasing costs.

(4)         Actual or anticipated construction completion date is the estimated date of completion of the building shell and equipment fit-out.

(5)         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.

 

36


 

Joint Venture Summary as of September 30, 2010

(Dollars in thousands)

 

Consolidated Ventures

 

 

 

Joint Venture

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

 

 

 

 

 

 

 

Consolidated

 

 

 

Held By

 

 

 

Square

 

 

 

Total

 

Debt as

 

Property and Location

 

COPT

 

Status

 

Feet

 

Acreage

 

Assets (1)

 

of 9/30/10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4230 Forbes Boulevard
Lanham, Maryland

 

50.0

%

Operating

 

55,866

 

5 acres

 

$

3,926

 

$

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Indian Head Technology Center Business Park
Indian Head, Maryland

 

75.0

%

Land Inventory

 

967,000

 

192 acres

 

7,444

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7740-7744 Milestone Parkway
Hanover, Maryland

 

50.0

%

Operating/ Land Inventory

 

447,539

 

23 acres

 

29,838

 

16,753

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5825 University Research Court
College Park, Maryland

 

50.0

%

Operating

 

118,528

 

8 acres

 

23,510

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5850 University Research Court
College Park, Maryland

 

50.0

%

Operating

 

123,464

 

8 acres

 

31,496

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

M Square Research Park
College Park, Maryland

 

50.0

%

Land Inventory

 

510,000

 

49 acres

 

3,799

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Redstone Gateway
Huntsville, Alabama

 

85.0

%

Land Inventory

 

4,360,000

 

458 acres

 

14,430

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL

 

 

 

 

 

 

 

 

 

$

114,443

 

$

16,753

 

 

Unconsolidated Ventures

 

 

 

Joint Venture

 

 

 

 

 

 

 

 

 

 

 

Interest

 

 

 

 

 

 

 

Off-Balance

 

 

 

Held By

 

 

 

Square

 

COPT

 

Sheet Debt as

 

Property and Location

 

COPT

 

Status

 

Feet

 

Investment

 

of 9/30/10

 

 

 

 

 

 

 

 

 

 

 

 

 

Greater Harrisburg Portfolio

 

 

 

 

 

 

 

 

 

 

 

Harrisburg and Mechanicsburg, Pennsylvania

 

20.0

%

Operating

 

670,999

 

$

(5,458

)

$

65,858

 

 

(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.

 

37