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

Prepaid Expenses and Other Assets, Net (Tables)

9 Months Ended

Sep. 30, 2017

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



	September 30, 2017		December 31, 2016
Prepaid expenses	$	30,932	$	24,432
Lease incentives, net	17,202		18,276
Furniture, fixtures and equipment, net	5,422		5,204
Deferred tax asset, net (1)	2,851		3,036
Non-real estate equity method investments	2,413		2,355
Construction contract costs incurred in excess of billings	2,005		10,350
Deferred financing costs, net (2)	1,419		3,128
Other assets	4,294		5,983
Prepaid expenses and other assets, net	$	66,538	$	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.