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

Quarterly report pursuant to Section 13 or 15(d)

Prepaid Expenses and Other Assets

Prepaid Expenses and Other Assets

3 Months Ended

Mar. 31, 2013

Prepaid Expense and Other Assets [Abstract]

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



	March 31, 2013		December 31, 2012
Mortgage and other investing receivables	$	38,441	$	33,396
Prepaid expenses	14,023		19,270
Furniture, fixtures and equipment, net	7,616		7,991
Deferred tax asset	6,493		6,612
Lease incentives	5,366		5,578
Other assets	8,859		4,608
Prepaid expenses and other assets	$	80,798	$	77,455

Mortgage and Other Investing Receivables

Mortgage and other investing receivables consisted of the following (in thousands):



	March 31, 2013		December 31, 2012
Notes receivable from City of Huntsville	$	38,441	$	33,252
Mortgage loan receivable	—		144
	$	38,441	$	33,396

Our notes receivable from the City of Huntsville funded infrastructure costs in connection with our LW Redstone Company, LLC joint venture (see Note 5). We did not have an allowance for credit losses in connection with our notes receivable at March 31, 2013 or December 31, 2012. The fair value of our mortgage and other investing receivables totaled $38.4 million at March 31, 2013 and $33.4 million at December 31, 2012.

Operating Notes Receivable

We had operating notes receivable due from tenants with terms exceeding one year totaling $261,000 at March 31, 2013 and $271,000 at December 31, 2012. We carried allowances for estimated losses for most of these balances.