Annual report pursuant to Section 13 and 15(d)

Properties, Net (Tables)

v3.8.0.1
Properties, Net (Tables)
 12 Months Ended
Dec. 31, 2017
Real Estate [Abstract]  
Schedule of operating properties, net
Operating properties, net consisted of the following (in thousands): 
 
December 31,
 
2017
 
2016
Land
$
455,680

 
$
433,311

Buildings and improvements
3,068,124

 
2,944,905

Less: Accumulated depreciation
(786,193
)
 
(706,385
)
Operating properties, net
$
2,737,611

 
$
2,671,831

Schedule of projects in development or held for future development
Projects we had in development or held for future development consisted of the following (in thousands): 
 
December 31,
 
2017
 
2016
Land
$
240,825

 
$
195,521

Development in progress, excluding land
162,669

 
206,010

Projects in development or held for future development
$
403,494

 
$
401,531

Components of assets held for sale
The table below sets forth the components of assets held for sale (in thousands):
 
 
December 31,
 
2017
 
2016
Properties, net
$
38,670

 
$
85,402

Deferred rent receivable
3,237

 
4,241

Intangible assets on real estate acquisitions, net
—

 
338

Deferred leasing costs, net
319

 
3,636

Lease incentives, net
—

 
1,037

Assets held for sale, net
$
42,226

 
$
94,654

Schedule of operating property dispositions
In 2017, we sold the following operating properties (dollars in thousands):
Project Name
 
City, State
 
Segment
 
Date of Sale
 
Number of Buildings
 
Total Rentable Square Feet
 
Transaction Value
 
Gain on Sale
3120 Fairview Park Drive
 
Falls Church, VA
 
Northern Virginia Defense/IT
 
2/15/2017
 
1

 
190,000

 
$
39,000

 
$
—

1334 Ashton Road
 
Hanover, MD
 
Fort Meade/BW Corridor
 
6/9/2017
 
1

 
37,000

 
2,300

 
—

Remaining White Marsh Properties (1)
 
White Marsh, MD
 
Regional Office and Other
 
7/28/2017
 
8

 
412,000

 
47,500

 
1,180

201 Technology Drive
 
Lebanon, VA
 
Data Center Shells
 
10/27/2017
 
1

 
103,000

 
29,500

 
3,625

7320 Parkway Drive
 
Hanover, MD
 
Fort Meade/BW Corridor
 
12/15/2017
 
1

 
57,000

 
7,529

 
831

 
 
 
 
12

 
799,000

 
$
125,829

 
$
5,636


(1) This sale also included land
In 2015, we completed dispositions of the following operating properties (dollars in thousands):
Project Name
 
City, State
 
Segment
 
Date of Disposition
 
Number of Buildings
 
Total Rentable Square Feet
 
Transaction Value (1)
 
Gain on Disposition
1550 Westbranch Drive
 
McLean, VA
 
Regional Office
 
7/27/2015
 
1

 
160,000

 
$
27,800

 
$
—

15000 and 15010 Conference Center Drive
 
Chantilly, VA
 
Northern Virginia Defense/IT
 
8/28/2015
 
2

 
665,000

 
167,335

 
—

13200 Woodland Park Road
 
Herndon, VA
 
Regional Office
 
10/27/2015
 
1

 
397,000

 
84,000

 
42,515

9900, 9910 and 9920 Franklin Square Drive
 
White Marsh, MD
 
Regional Office
 
11/9/2015
 
3

 
135,000

 
24,150

 
6,468

9690 Deereco Road and 375 W. Padonia Road
 
Timonium, MD
 
Regional Office
 
12/17/2015
 
2

 
240,000

 
44,500

 
15,050

 
 
 
 
 
 
 
 
9

 
1,597,000

 
$
347,785

 
$
64,033


(1)
Each of these properties were sold except for 15000 and 15010 Conference Center Drive, the disposition of which was completed in connection with a debt extinguishment, as discussed further below.

In 2016, we sold the following operating properties (dollars in thousands):
Project Name
 
City, State
 
Segment
 
Date of Sale
 
Number of Buildings
 
Total Rentable Square Feet
 
Transaction Value
 
Gain on Sale
Arborcrest Corporate Campus (1)
 
Philadelphia, PA
 
Regional Office
 
8/4/2016
 
4

 
654,000

 
$
142,800

 
$
4,742

8003 Corporate Drive
 
White Marsh, MD
 
Regional Office
 
8/17/2016
 
1

 
18,000

 
2,400

 
—

1341 & 1343 Ashton Road
 
Hanover, MD
 
Fort Meade/BW Corridor
 
9/9/2016
 
2

 
25,000

 
2,900

 
848

8007, 8013, 8015, 8019 and 8023-8027 Corporate Drive (1)
 
White Marsh, MD
 
Regional Office
 
9/21/2016
 
5

 
130,000

 
14,513

 
1,906

1302, 1304 and 1306 Concourse Drive
 
Linthicum, MD
 
Fort Meade/BW Corridor
 
9/29/2016
 
3

 
299,000

 
48,100

 
8,375

2900 Towerview Road
 
Herndon, VA
 
Northern Virginia Defense/IT
 
10/19/2016
 
1

 
151,000

 
12,100

 
—

4940 Campbell Boulevard
 
White Marsh, MD
 
Regional Office
 
11/17/2016
 
1

 
50,000

 
5,200

 
—

1560 A and B Cable Ranch Road
 
San Antonio, TX
 
Other
 
11/30/2016
 
2

 
120,000

 
10,300

 
—

1331 Ashton Road
 
Hanover, MD
 
Fort Meade/BW Corridor
 
12/19/2016
 
1

 
29,000

 
2,625

 
—

900 Elkridge Landing Road
 
Linthicum, MD
 
Fort Meade/BW Corridor
 
12/22/2016
 
1

 
101,000

 
7,800

 
—

 
 
 
 
 
 
 
 
21

 
1,577,000

 
$
248,738

 
$
15,871


(1) This sale also included land.
Schedule of allocation of acquisition costs
The table below sets forth the allocation of the aggregate purchase price of these properties to the value of the acquired assets and liabilities (in thousands):
Land, operating properties
 
$
55,076

Building and improvements
 
139,540

Intangible assets on real estate acquisitions
 
75,729

Total assets
 
270,345

Below-market leases
 
(6,808
)
Total acquisition cost
 
$
263,537

Schedule of intangible assets recorded in connection with acquisition
Intangible assets recorded in connection with these acquisitions included the following (dollars in thousands):
 
 
 
 Weighted Average Amortization Period (in Years)
Tenant relationship value
$
31,183

 
12
In-place lease value
35,139

 
7
Above-market leases
6,720

 
4
Below-market cost arrangements
2,687

 
40
 
$
75,729

 
10
Pro Forma information
The pro forma financial information was prepared for comparative purposes only and is not necessarily indicative of what would have occurred had these acquisitions been made at that time or of results which may occur in the future (in thousands, except per shares amounts).
 
 
For the Year Ended December 31, 2015
 
 
(Unaudited)
Pro forma total revenues
 
$
641,982

Pro forma net income attributable to COPT common shareholders
 
$
167,079

Pro forma EPS:
 
 
Basic
 
$
1.77

Diluted
 
$
1.77