Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.6.0.2
Consolidated Statements of Cash Flows
$ in Thousands
12 Months Ended
Dec. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Dec. 31, 2014
USD ($)
Cash flows from operating activities      
Revenues from real estate operations received $ 511,338 $ 501,779 $ 479,605
Construction contract and other service revenues received 76,824 117,107 89,180
Property operating expenses paid (197,254) (190,281) (178,803)
Construction contract and other service expenses paid (46,318) (124,481) (79,271)
General, administrative, leasing, business development and land carry costs paid (34,877) (38,113) (29,521)
Interest expense paid (78,158) (65,816) (79,095)
Payments in connection with early extinguishment of debt (654) (373) (9,017)
Interest and other income received 960 4,194 607
Income taxes (paid) refunded (5) (8) 200
Other 682 0 0
Net cash provided by operating activities 232,538 204,008 193,885
Cash flows from investing activities      
Construction, development and redevelopment (161,519) (234,346) (200,385)
Acquisitions of operating properties and related intangible assets 0 (202,866) 0
Tenant improvements on operating properties (34,275) (29,413) (27,037)
Other capital improvements on operating properties (26,345) (23,147) (28,720)
Proceeds from dispositions of properties 262,866 193,735 57,782
Proceeds from partial sales of properties, net of related debt 43,681 0 0
Investing receivables funded (48) (22) (3,731)
Investing receivables payments received 0 5,114 10,279
Leasing costs paid (10,296) (13,710) (16,234)
Other (2,615) (2,877) (1,643)
Net cash provided by (used in) investing activities 71,449 (307,532) (209,689)
Proceeds from debt      
Revolving Credit Facility 495,500 522,000 232,000
Unsecured senior notes 0 296,580 297,342
Other debt proceeds 255,000 164,000 11,569
Repayments of debt      
Revolving Credit Facility (539,000) (561,500) (149,000)
Scheduled principal amortization (5,395) (6,728) (6,517)
Other debt repayments (323,107) (155,307) (394,653)
Deferred financing costs paid (825) (7,522) (708)
Net proceeds from issuance of common shares 109,069 28,567 150,174
Redemption of preferred shares 0 0 (50,000)
Common share/unit dividends/distributions paid (104,135) (103,638) (96,330)
Preferred share/unit dividends/distributions paid (14,210) (14,210) (16,731)
Distributions paid to noncontrolling interests in COPLP (4,619) (4,752) (5,008)
Distributions paid to redeemable noncontrolling interests (15,206) (2,993) (1,467)
Redemption of vested equity awards (2,466) (2,462) (1,554)
Other (5,040) 5,722 (1,609)
Net cash (used in) provided by financing activities (154,434) 157,757 (32,492)
Net increase (decrease) in cash and cash equivalents 149,553 54,233 (48,296)
Cash and cash equivalents      
Beginning of year 60,310 6,077 54,373
End of year 209,863 60,310 6,077
Reconciliation of net income to net cash provided by operating activities:      
Net income 15,655 188,878 45,206
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and other amortization 134,870 142,231 138,490
Impairment losses 101,341 23,523 1,419
Amortization of deferred financing costs and net debt discounts 5,885 5,588 5,587
Increase in deferred rent receivable (145) (14,969) (3,520)
Gain on sales of real estate (40,986) (68,047) (10,695)
Share-based compensation 6,843 6,574 6,164
Loss (gain) on early extinguishment of debt 456 (86,028) 651
Other (4,295) 528 (3,242)
Changes in operating assets and liabilities:      
(Increase) decrease in accounts receivable (5,262) 1,331 (2,011)
(Increase) decrease in restricted cash and marketable securities (365) (1,241) 1,352
(Increase) decrease in prepaid expenses and other assets, net (17,272) 2,853 (10,126)
Increase (decrease) in accounts payable, accrued expenses and other liabilities 43,163 (3,620) 25,091
(Decrease) increase in rents received in advance and security deposits (7,350) 6,407 (481)
Net cash provided by operating activities 232,538 204,008 193,885
Supplemental schedule of non-cash investing and financing activities:      
Increase (decrease) in accrued capital improvements, leasing and other investing activity costs 5,950 (14,797) (3,779)
Increase in property and redeemable noncontrolling interests in connection with property contribution by a redeemable noncontrolling interest in a joint venture 22,600 0 0
Decrease in redeemable noncontrolling interests and increase in other liabilities in connection with distribution payable to redeemable noncontrolling interest 6,675 0 0
Decrease in properties, net (114,597) 0 0
Increase in investment in unconsolidated real estate joint venture 25,680 0 0
Decrease in debt 59,534 0 0
Other net decreases in assets and liabilities 3,619 0 0
Debt assumed on acquisition of operating property 0 55,490 0
Other liabilities assumed on acquisition of operating properties 0 5,179 0
Decrease in property in connection with surrender of property in settlement of debt 0 (82,738) 0
Decrease in debt in connection with surrender of property in settlement of debt 0 (150,000) 0
Increase in property and redeemable noncontrolling interests in connection with property contribution by a redeemable noncontrolling interest in a joint venture 0 1,415 0
Increase (decrease) in fair value of derivatives applied to accumulated other comprehensive income (loss) and noncontrolling interests 1,315 (1,140) (4,866)
Equity in other comprehensive loss of an equity method investee (184) (264) 0
Reclassification of preferred shares to be redeemed to liability 26,583 0 0
Dividends/distribution payable 31,335 30,178 29,862
Decrease in noncontrolling interests and increase in shareholders’ equity in connection with the conversion of common units into common shares 1,167 2,151 1,843
Adjustments to noncontrolling interests resulting from changes in COPLP ownership 2,158 682 3,382
Increase (decrease) in redeemable noncontrolling interest and decrease (increase) in equity to carry redeemable noncontrolling interests at fair value 621 (116) (134)
Corporate Office Properties, L.P. [Member]      
Cash flows from operating activities      
Revenues from real estate operations received 511,338 501,779 479,605
Construction contract and other service revenues received 76,824 117,107 89,180
Property operating expenses paid (197,254) (190,281) (178,803)
Construction contract and other service expenses paid (46,318) (124,481) (79,271)
General, administrative, leasing, business development and land carry costs paid (34,877) (38,113) (29,521)
Interest expense paid (78,158) (65,816) (79,095)
Payments in connection with early extinguishment of debt (654) (373) (9,017)
Interest and other income received 960 4,194 607
Income taxes (paid) refunded (5) (8) 200
Other 682 0 0
Net cash provided by operating activities 232,538 204,008 193,885
Cash flows from investing activities      
Construction, development and redevelopment (161,519) (234,346) (200,385)
Acquisitions of operating properties and related intangible assets 0 (202,866) 0
Tenant improvements on operating properties (34,275) (29,413) (27,037)
Other capital improvements on operating properties (26,345) (23,147) (28,720)
Proceeds from dispositions of properties 262,866 193,735 57,782
Proceeds from partial sales of properties, net of related debt 43,681 0 0
Investing receivables funded (48) (22) (3,731)
Investing receivables payments received 0 5,114 10,279
Leasing costs paid (10,296) (13,710) (16,234)
Other (2,615) (2,877) (1,643)
Net cash provided by (used in) investing activities 71,449 (307,532) (209,689)
Proceeds from debt      
Revolving Credit Facility 495,500 522,000 232,000
Unsecured senior notes 0 296,580 297,342
Other debt proceeds 255,000 164,000 11,569
Repayments of debt      
Revolving Credit Facility (539,000) (561,500) (149,000)
Scheduled principal amortization (5,395) (6,728) (6,517)
Other debt repayments (323,107) (155,307) (394,653)
Deferred financing costs paid (825) (7,522) (708)
Net proceeds from issuance of common shares 109,069 28,567 150,174
Redemption of preferred shares 0 0 (50,000)
Common share/unit dividends/distributions paid (108,094) (107,730) (100,678)
Preferred share/unit dividends/distributions paid (14,870) (14,870) (17,391)
Distributions paid to redeemable noncontrolling interests (15,206) 0 0
Redemption of vested equity awards (2,466) (2,462) (1,554)
Other (5,040) 2,729 (3,076)
Net cash (used in) provided by financing activities (154,434) 157,757 (32,492)
Net increase (decrease) in cash and cash equivalents 149,553 54,233 (48,296)
Cash and cash equivalents      
Beginning of year 60,310 6,077 54,373
End of year 209,863 60,310 6,077
Reconciliation of net income to net cash provided by operating activities:      
Net income 15,655 188,878 45,206
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and other amortization 134,870 142,231 138,490
Impairment losses 101,341 23,523 1,419
Amortization of deferred financing costs and net debt discounts 5,885 5,588 5,587
Increase in deferred rent receivable (145) (14,969) (3,520)
Gain on sales of real estate (40,986) (68,047) (10,695)
Share-based compensation 6,843 6,574 6,164
Loss (gain) on early extinguishment of debt 456 (86,028) 651
Other (4,295) 528 (3,242)
Changes in operating assets and liabilities:      
(Increase) decrease in accounts receivable (5,262) 1,331 (2,011)
(Increase) decrease in restricted cash and marketable securities (691) (1,360) (234)
(Increase) decrease in prepaid expenses and other assets, net (17,272) 2,853 (10,126)
Increase (decrease) in accounts payable, accrued expenses and other liabilities 43,489 (3,501) 26,677
(Decrease) increase in rents received in advance and security deposits (7,350) 6,407 (481)
Net cash provided by operating activities 232,538 204,008 193,885
Supplemental schedule of non-cash investing and financing activities:      
Increase (decrease) in accrued capital improvements, leasing and other investing activity costs 5,950 (14,797) (3,779)
Increase in property and redeemable noncontrolling interests in connection with property contribution by a redeemable noncontrolling interest in a joint venture 22,600 0 0
Decrease in redeemable noncontrolling interests and increase in other liabilities in connection with distribution payable to redeemable noncontrolling interest 6,675 0 0
Decrease in properties, net (114,597) 0 0
Increase in investment in unconsolidated real estate joint venture 25,680 0 0
Decrease in debt 59,534 0 0
Other net decreases in assets and liabilities 3,619 0 0
Debt assumed on acquisition of operating property 0 55,490 0
Other liabilities assumed on acquisition of operating properties 0 5,179 0
Decrease in property in connection with surrender of property in settlement of debt 0 (82,738) 0
Decrease in debt in connection with surrender of property in settlement of debt 0 (150,000) 0
Increase in property and redeemable noncontrolling interests in connection with property contribution by a redeemable noncontrolling interest in a joint venture 0 1,415 0
Increase (decrease) in fair value of derivatives applied to accumulated other comprehensive income (loss) and noncontrolling interests 1,315 (1,140) (4,866)
Equity in other comprehensive loss of an equity method investee (184) (264) 0
Reclassification of preferred shares to be redeemed to liability 26,583 0 0
Dividends/distribution payable 31,335 30,178 29,862
Increase (decrease) in redeemable noncontrolling interest and decrease (increase) in equity to carry redeemable noncontrolling interests at fair value $ 621 $ (116) $ (134)