Exhibit 99.2
SELECTED CONSOLIDATED FINANCIAL DATA
The following tables set forth summary historical consolidated financial and operating data for Corporate Office Properties, L.P. (“COPLP”), a Delaware limited partnership, and its subsidiaries. You should read the following summary historical financial data in conjunction with the consolidated historical financial statements and notes thereto of COPLP and its subsidiaries, included in Exhibit 99.3 (“Exhibit 99.3”) to COPLP’s Current Report on Form 8-K filed with the Securities and Exchange Commission on July 25, 2013 (the “July 25 8-K”), and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” included elsewhere in this prospectus.
Corporate Office Properties, L.P.
The consolidated balance sheet data as of December 31, 2012 and 2011 and the consolidated statement of operations data for the years ended December 31, 2012, 2011 and 2010 have been derived from the historical consolidated financial statements of COPLP audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, whose report with respect thereto is included in Exhibit 99.3 The consolidated balance sheet data as of December 31, 2010, 2009 and 2008 and the consolidated statement of operations data for each of the years ended December 31, 2009 and 2008 have been derived from the unaudited historical consolidated financial statements of COPLP. The consolidated balance sheet data as of March 31, 2013 and the consolidated statement of operations data for the three months ended March 31, 2013 and 2012 have been derived from the unaudited historical consolidated financial statements of COPLP, which are included in Exhibit 99.3. and include all adjustments of a normal and recurring nature that management considers necessary for a fair presentation of such information. COPLP’s consolidated results of operations and financial condition as of and for the three months ended March 31, 2013 do not purport to be indicative of its financial condition or results of operations as of or for the year ending December 31, 2013.
Corporate Office Properties, L.P. and Subsidiaries
(in thousands, except per unit data and number of properties)
|
|
|
Three Months |
|
Years Ended December 31, |
| |||||||||||||||||
|
|
|
2013 |
|
2012 |
|
2012 |
|
2011 |
|
2010 |
|
2009 |
|
2008 |
| |||||||
|
Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Revenues from real estate operations |
|
$ |
116,735 |
|
$ |
110,661 |
|
$ |
454,171 |
|
$ |
428,496 |
|
$ |
387,559 |
|
$ |
349,463 |
|
$ |
326,223 |
|
|
Construction contract and other service revenues |
|
14,262 |
|
21,534 |
|
73,836 |
|
84,345 |
|
104,675 |
|
343,087 |
|
188,385 |
| |||||||
|
Total revenues |
|
130,997 |
|
132,195 |
|
528,007 |
|
512,841 |
|
492,234 |
|
692,550 |
|
514,608 |
| |||||||
|
Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Property operating expenses |
|
42,575 |
|
41,253 |
|
167,161 |
|
162,397 |
|
146,617 |
|
123,769 |
|
109,967 |
| |||||||
|
Depreciation and amortization associated with real estate operations |
|
28,252 |
|
27,834 |
|
113,480 |
|
113,111 |
|
97,897 |
|
81,446 |
|
75,264 |
| |||||||
|
Construction contract and other service expenses |
|
13,477 |
|
20,607 |
|
70,576 |
|
81,639 |
|
102,302 |
|
336,519 |
|
184,142 |
| |||||||
|
Impairment losses |
|
1,857 |
|
(4,836 |
) |
43,214 |
|
83,478 |
|
— |
|
— |
|
— |
| |||||||
|
General, administrative and leasing expenses |
|
7,820 |
|
9,569 |
|
31,900 |
|
30,308 |
|
28,477 |
|
27,853 |
|
28,707 |
| |||||||
|
Business development expenses and land carry costs |
|
1,359 |
|
1,576 |
|
5,711 |
|
6,122 |
|
6,403 |
|
5,259 |
|
2,206 |
| |||||||
|
Total operating expenses |
|
95,340 |
|
96,003 |
|
432,042 |
|
477,055 |
|
381,696 |
|
574,846 |
|
400,286 |
| |||||||
|
Operating income |
|
35,657 |
|
36,192 |
|
95,965 |
|
35,786 |
|
110,538 |
|
117,704 |
|
114,322 |
| |||||||
|
Interest expense |
|
(22,307 |
) |
(24,431 |
) |
(94,624 |
) |
(98,222 |
) |
(95,729 |
) |
(76,718 |
) |
(79,542 |
) | |||||||
|
Interest and other income |
|
946 |
|
1,217 |
|
7,172 |
|
5,603 |
|
9,568 |
|
5,164 |
|
2,070 |
| |||||||
|
(Loss) gain on early extinguishment of debt |
|
(5,184 |
) |
— |
|
(943 |
) |
(1,639 |
) |
— |
|
— |
|
8,101 |
| |||||||
|
Loss on interest rate derivatives |
|
— |
|
— |
|
— |
|
(29,805 |
) |
— |
|
— |
|
— |
| |||||||
|
Income (loss) from continuing operations before equity in (loss) income of unconsolidated entities and income taxes |
|
9,112 |
|
12,978 |
|
7,570 |
|
(88,277 |
) |
24,377 |
|
46,150 |
|
44,951 |
| |||||||
|
Equity in (loss) income of unconsolidated entities |
|
41 |
|
(89 |
) |
(546 |
) |
(331 |
) |
1,376 |
|
(941 |
) |
(147 |
) | |||||||
|
Income tax (expense) benefit |
|
(16 |
) |
(204 |
) |
(381 |
) |
6,710 |
|
(108 |
) |
(196 |
) |
(201 |
) | |||||||
|
Income (loss) from continuing operations |
|
9,137 |
|
12,685 |
|
6,643 |
|
(81,898 |
) |
25,645 |
|
45,013 |
|
44,603 |
| |||||||
|
Discontinued operations(1) |
|
3,786 |
|
(2,450 |
) |
13,677 |
|
(48,404 |
) |
17,054 |
|
16,310 |
|
15,655 |
| |||||||
|
Income (loss) before gain on sales of real estate |
|
12,923 |
|
10,235 |
|
20,320 |
|
(130,302 |
) |
42,699 |
|
61,323 |
|
60,258 |
| |||||||
|
Gain on sales of real estate, net of income taxes(2) |
|
2,354 |
|
— |
|
21 |
|
2,732 |
|
2,829 |
|
— |
|
1,090 |
| |||||||
|
Net income (loss) |
|
15,277 |
|
10,235 |
|
20,341 |
|
(127,570 |
) |
45,528 |
|
61,323 |
|
61,348 |
| |||||||
|
Net loss (income) attributable to noncontrolling interests |
|
336 |
|
570 |
|
507 |
|
244 |
|
(61 |
) |
66 |
|
(353 |
) | |||||||
|
Net income (loss) attributable to COPLP |
|
15,613 |
|
10,805 |
|
20,848 |
|
(127,326 |
) |
45,467 |
|
61,389 |
|
60,995 |
| |||||||
|
Preferred unit distributions |
|
(6,271 |
) |
(4,190 |
) |
(21,504 |
) |
(16,762 |
) |
(16,762 |
) |
(16,762 |
) |
(16,762 |
) | |||||||
|
Issuance costs associated with redeemed preferred units(3) |
|
— |
|
— |
|
(1,827 |
) |
— |
|
— |
|
— |
|
— |
| |||||||
|
Net income (loss) attributable to COPLP common unitholders |
|
$ |
9,342 |
|
$ |
6,615 |
|
$ |
(2,483 |
) |
$ |
(144,088 |
) |
$ |
28,705 |
|
$ |
44,627 |
|
$ |
44,233 |
|
|
Basic earnings per common unit(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Income (loss) from continuing operations |
|
$ |
0.06 |
|
$ |
0.12 |
|
$ |
(0.21 |
) |
$ |
(1.33 |
) |
$ |
0.17 |
|
$ |
0.46 |
|
$ |
0.51 |
|
|
Net income (loss) |
|
$ |
0.11 |
|
$ |
0.09 |
|
$ |
(0.04 |
) |
$ |
(2.00 |
) |
$ |
0.44 |
|
$ |
0.73 |
|
$ |
0.80 |
|
|
Diluted earnings per common unit(4) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Income (loss) from continuing operations |
|
$ |
0.06 |
|
$ |
0.12 |
|
$ |
(0.21 |
) |
$ |
(1.33 |
) |
$ |
0.17 |
|
$ |
0.46 |
|
$ |
0.51 |
|
|
Net income (loss) |
|
$ |
0.11 |
|
$ |
0.09 |
|
$ |
(0.04 |
) |
$ |
(2.00 |
) |
$ |
0.44 |
|
$ |
0.72 |
|
$ |
0.79 |
|
|
Weighted average common units outstanding—basic |
|
85,290 |
|
75,739 |
|
77,689 |
|
72,564 |
|
62,553 |
|
59,981 |
|
54,573 |
| |||||||
|
Weighted average common units outstanding—diluted |
|
85,342 |
|
75,783 |
|
77,689 |
|
72,564 |
|
62,886 |
|
60,458 |
|
55,261 |
| |||||||
|
|
|
Three Months |
|
Years Ended December 31, |
| |||||||||||||||||
|
|
|
2013 |
|
2012 |
|
2012 |
|
2011 |
|
2010 |
|
2009 |
|
2008 |
| |||||||
|
Balance Sheet Data (as of period end): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Total properties, net |
|
$ |
3,189,973 |
|
$ |
3,338,291 |
|
$ |
3,163,044 |
|
$ |
3,352,975 |
|
$ |
3,445,455 |
|
$ |
3,029,900 |
|
$ |
2,778,466 |
|
|
Total assets |
|
$ |
3,678,041 |
|
$ |
3,790,595 |
|
$ |
3,646,983 |
|
$ |
3,855,967 |
|
$ |
3,836,329 |
|
$ |
3,373,337 |
|
$ |
3,109,690 |
|
|
Debt |
|
$ |
1,957,360 |
|
$ |
2,418,078 |
|
$ |
2,019,168 |
|
$ |
2,426,303 |
|
$ |
2,323,681 |
|
$ |
2,053,841 |
|
$ |
1,856,751 |
|
|
Total liabilities |
|
$ |
2,127,142 |
|
$ |
2,589,799 |
|
$ |
2,200,186 |
|
$ |
2,641,160 |
|
$ |
2,512,504 |
|
$ |
2,252,051 |
|
$ |
2,026,650 |
|
|
Redeemable noncontrolling interest |
|
$ |
10,356 |
|
$ |
9,237 |
|
$ |
10,298 |
|
$ |
8,908 |
|
$ |
9,000 |
|
$ |
— |
|
$ |
— |
|
|
Total equity |
|
$ |
1,540,543 |
|
$ |
1,191,559 |
|
$ |
1,436,499 |
|
$ |
1,205,899 |
|
$ |
1,314,825 |
|
$ |
1,121,286 |
|
$ |
1,083,040 |
|
|
Other Financial Data (for the period ended): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Cash flows provided by (used in): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Operating activities |
|
$ |
47,311 |
|
$ |
43,787 |
|
$ |
191,838 |
|
$ |
152,149 |
|
$ |
156,460 |
|
$ |
194,838 |
|
$ |
182,039 |
|
|
Investing activities |
|
$ |
(60,176 |
) |
$ |
7,791 |
|
$ |
13,744 |
|
$ |
(260,387 |
) |
$ |
(479,167 |
) |
$ |
(349,076 |
) |
$ |
(290,822 |
) |
|
Financing activities |
|
$ |
25,780 |
|
$ |
(49,150 |
) |
$ |
(200,547 |
) |
$ |
103,695 |
|
$ |
324,547 |
|
$ |
155,725 |
|
$ |
90,920 |
|
|
Numerator for diluted EPU(4) |
|
$ |
9,224 |
|
$ |
6,474 |
|
$ |
(2,952 |
) |
$ |
(145,125 |
) |
$ |
27,634 |
|
$ |
43,617 |
|
$ |
43,505 |
|
|
Cash distributions declared per common unit |
|
$ |
0.275 |
|
$ |
0.275 |
|
$ |
1.100 |
|
$ |
1.650 |
|
$ |
1.610 |
|
$ |
1.530 |
|
$ |
1.425 |
|
|
Property Data (as of period end): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||
|
Number of properties owned(5) |
|
210 |
|
231 |
|
208 |
|
238 |
|
256 |
|
253 |
|
240 |
| |||||||
|
Total rentable square feet owned(5) |
|
19,128 |
|
20,237 |
|
18,831 |
|
20,514 |
|
20,432 |
|
19,543 |
|
18,559 |
| |||||||
(1) Includes income derived from three operating properties disposed in 2008, three operating properties disposed in 2010, 23 operating properties disposed in 2011, 35 operating properties disposed in 2012 and 17 operating properties classified as held for sale at March 31, 2013.
(2) Reflects gain from sales of properties and unconsolidated real estate joint ventures not associated with discontinued operations.
(3) Reflects a decrease to net income available to common unitholders pertaining to the original issuance costs recognized upon the redemption of the Series G preferred units in 2012.
(4) Basic and diluted earnings per common share are calculated based on amounts attributable to common unitholders of COPLP.
(5) Amounts reported reflect only operating office properties.