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

Prepaid Expenses and Other Assets, Net (Tables)

3 Months Ended

Mar. 31, 2017

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



	March 31, 2017		December 31, 2016
Lease incentives, net	$	17,516	$	18,276
Prepaid expenses	17,332		24,432
Furniture, fixtures and equipment, net	4,989		5,204
Construction contract costs incurred in excess of billings	4,451		10,350
Deferred tax asset, net (1)	2,980		3,036
Deferred financing costs, net (2)	2,444		3,128
Non-real estate equity method investments	2,353		2,355
Other assets	7,658		5,983
Prepaid expenses and other assets, net	$	59,723	$	72,764

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

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