COPT Defense Properties Quarterly report pursuant to Section 13 or 15(d)

Prepaid Expenses and Other Assets, Net (Tables)

3 Months Ended

Mar. 31, 2016

Prepaid expenses and other assets consisted of the following (in thousands):



	March 31, 2016		December 31, 2015
Prepaid expenses	$	15,516	$	23,009
Lease incentives, net	8,375		11,133
Furniture, fixtures and equipment, net	5,669		6,004
Construction contract costs incurred in excess of billings	5,232		3,261
Deferred financing costs, net (1)	5,182		5,867
Deferred tax asset, net (2)	3,474		3,467
Equity method investments	1,646		1,636
Other assets	4,230		5,647
Prepaid expenses and other assets, net	$	49,324	$	60,024

(1) Represents deferred costs, net of accumulated amortization, attributable to our Revolving Credit Facility and interest rate derivatives.

(2) Includes a valuation allowance of $2.1 million.