Quarterly report pursuant to Section 13 or 15(d)

Information by Business Segment (Tables)

v3.10.0.1
Information by Business Segment (Tables)
 9 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
Schedule of segment financial information for real estate operations
The table below reports segment financial information for our reportable segments (in thousands): 
 
Operating Property Segments
 
 
 
 
 
 
 
Defense/Information Technology Locations
 
 
 
 
 
 
 
 
 
Fort Meade/BW Corridor
 
Northern Virginia Defense/IT
 
Lackland Air Force Base
 
Navy Support Locations
 
Redstone Arsenal
 
Data Center Shells
 
Total Defense/IT Locations
 
Regional Office
 
Wholesale
Data Center
 
Other
 
Total
Three Months Ended September 30, 2018
 

 
 

 
 

 
 
 
 

 
 

 
 
 
 

 
 

 
 

 
 

Revenues from real estate operations
$
61,396

 
$
13,960

 
$
11,254

 
$
7,899

 
$
3,734

 
$
6,689

 
$
104,932

 
$
15,272

 
$
7,781

 
$
1,003

 
$
128,988

Property operating expenses
(19,847
)
 
(5,518
)
 
(6,432
)
 
(3,208
)
 
(1,569
)
 
(574
)
 
(37,148
)
 
(7,425
)
 
(3,965
)
 
(802
)
 
(49,340
)
UJV NOI allocable to COPT
—

 
—

 
—

 
—

 
—

 
1,206

 
1,206

 
—

 
—

 
—

 
1,206

NOI from real estate operations
$
41,549

 
$
8,442

 
$
4,822

 
$
4,691

 
$
2,165

 
$
7,321

 
$
68,990

 
$
7,847

 
$
3,816

 
$
201

 
$
80,854

Additions to long-lived assets
$
11,211

 
$
2,305

 
$
—

 
$
1,758

 
$
33

 
$
—

 
$
15,307

 
$
5,670

 
$
370

 
$
(88
)
 
$
21,259

Transfers from non-operating properties
$
14,698

 
$
1,550

 
$
—

 
$
(17
)
 
$
13

 
$
30,286

 
$
46,530

 
$
—

 
$
155

 
$
—

 
$
46,685

Three Months Ended September 30, 2017
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

Revenues from real estate operations
$
61,254

 
$
12,190

 
$
11,024

 
$
7,494

 
$
3,532

 
$
6,676

 
$
102,170

 
$
16,656

 
$
7,398

 
$
1,007

 
$
127,231

Property operating expenses
(19,708
)
 
(4,343
)
 
(6,193
)
 
(3,157
)
 
(1,432
)
 
(637
)
 
(35,470
)
 
(7,406
)
 
(3,175
)
 
(317
)
 
(46,368
)
UJV NOI allocable to COPT
—

 
—

 
—

 
—

 
—

 
1,202

 
1,202

 
—

 
—

 
—

 
1,202

NOI from real estate operations
$
41,546

 
$
7,847

 
$
4,831

 
$
4,337

 
$
2,100

 
$
7,241

 
$
67,902

 
$
9,250

 
$
4,223

 
$
690

 
$
82,065

Additions to long-lived assets
$
5,810

 
$
2,587

 
$
55

 
$
1,910

 
$
843

 
$
—

 
$
11,205

 
$
5,338

 
$
9

 
$
76

 
$
16,628

Transfers from non-operating properties
$
5,519

 
$
45,554

 
$
—

 
$
8

 
$
(62
)
 
$
29,803

 
$
80,822

 
$
25

 
$
—

 
$
—

 
$
80,847

Nine Months Ended September 30, 2018
 

 
 

 
 

 
 
 
 

 
 

 
 
 
 

 
 

 
 

 
 

Revenues from real estate operations
$
186,171

 
$
39,639

 
$
35,079

 
$
23,896

 
$
11,019

 
$
18,475

 
$
314,279

 
$
45,852

 
$
23,963

 
$
2,334

 
$
386,428

Property operating expenses
(61,550
)
 
(15,150
)
 
(20,524
)
 
(9,943
)
 
(4,518
)
 
(2,167
)
 
(113,852
)
 
(22,472
)
 
(12,373
)
 
(1,040
)
 
(149,737
)
UJV NOI allocable to COPT
—

 
—

 
—

 
—

 
—

 
3,607

 
3,607

 
—

 
—

 
—

 
3,607

NOI from real estate operations
$
124,621

 
$
24,489

 
$
14,555

 
$
13,953

 
$
6,501

 
$
19,915

 
$
204,034

 
$
23,380

 
$
11,590

 
$
1,294

 
$
240,298

Additions to long-lived assets
$
26,483

 
$
5,431

 
$
—

 
$
4,316

 
$
463

 
$
—

 
$
36,693

 
$
14,915

 
$
487

 
$
227

 
$
52,322

Transfers from non-operating properties
$
34,919

 
$
2,243

 
$
—

 
$
(17
)
 
$
483

 
$
61,075

 
$
98,703

 
$
—

 
$
2,300

 
$
—

 
$
101,003

Segment assets at September 30, 2018
$
1,280,837

 
$
394,066

 
$
126,047

 
$
189,406

 
$
105,315

 
$
359,653

 
$
2,455,324

 
$
396,624

 
$
219,041

 
$
3,997

 
$
3,074,986

Nine Months Ended September 30, 2017
 

 
 

 
 

 
 
 
 

 
 

 
 
 
 

 
 

 
 

 
 

Revenues from real estate operations
$
183,393

 
$
34,992

 
$
35,687

 
$
21,953

 
$
10,616

 
$
17,998

 
$
304,639

 
$
52,394

 
$
21,201

 
$
4,061

 
$
382,295

Property operating expenses
(60,357
)
 
(13,014
)
 
(21,125
)
 
(9,391
)
 
(4,294
)
 
(1,873
)
 
(110,054
)
 
(21,974
)
 
(10,041
)
 
(1,446
)
 
(143,515
)
UJV NOI allocable to COPT
—

 
—

 
—

 
—

 
—

 
3,602

 
3,602

 
—

 
—

 
—

 
3,602

NOI from real estate operations
$
123,036

 
$
21,978

 
$
14,562

 
$
12,562

 
$
6,322

 
$
19,727

 
$
198,187

 
$
30,420

 
$
11,160

 
$
2,615

 
$
242,382

Additions to long-lived assets
$
15,085

 
$
6,032

 
$
71

 
$
6,309

 
$
1,059

 
$
—

 
$
28,556

 
$
16,476

 
$
3,588

 
$
203

 
$
48,823

Transfers from non-operating properties
$
37,094

 
$
45,994

 
$
—

 
$
474

 
$
1,643

 
$
55,003

 
$
140,208

 
$
—

 
$
8

 
$
18

 
$
140,234

Segment assets at September 30, 2017
$
1,265,569

 
$
400,855

 
$
129,657

 
$
194,801

 
$
108,884

 
$
275,680

 
$
2,375,446

 
$
398,579

 
$
226,909

 
$
13,347

 
$
3,014,281

Schedule of reconciliation of segment revenues to total revenues
The following table reconciles our segment revenues to total revenues as reported on our consolidated statements of operations (in thousands):
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Segment revenues from real estate operations
$
128,988

 
$
127,231

 
$
386,428

 
$
382,295

Construction contract and other service revenues
8,423

 
29,786

 
53,202

 
65,958

Total revenues
$
137,411

 
$
157,017

 
$
439,630

 
$
448,253

Schedule of reconciliation of unconsolidated joint venture net operating income to equity in income of unconsolidated entities
The following table reconciles UJV NOI allocable to COPT to equity in income of unconsolidated entities as reported on our consolidated statements of operations (in thousands):
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
UJV NOI allocable to COPT
$
1,206

 
$
1,202

 
$
3,607

 
$
3,602

Less: Income from UJV allocable to COPT attributable to depreciation and amortization expense and interest expense
(830
)
 
(830
)
 
(2,482
)
 
(2,481
)
Add: Equity in loss of unconsolidated non-real estate entities
(2
)
 
(1
)
 
(5
)
 
(3
)
Equity in income of unconsolidated entities
$
374

 
$
371

 
$
1,120

 
$
1,118

Schedule of computation of net operating income from service operations
The table below sets forth the computation of our NOI from service operations (in thousands):
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
Construction contract and other service revenues
$
8,423

 
$
29,786

 
$
53,202

 
$
65,958

Construction contract and other service expenses
(8,058
)
 
(28,788
)
 
(51,215
)
 
(63,589
)
NOI from service operations
$
365

 
$
998

 
$
1,987

 
$
2,369

Reconciliation of NOI from real estate operations and NOI from service operations to net income
The following table reconciles our NOI from real estate operations for reportable segments and NOI from service operations to net income as reported on our consolidated statements of operations (in thousands):
 
For the Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2018
 
2017
 
2018
 
2017
NOI from real estate operations
$
80,854

 
$
82,065

 
$
240,298

 
$
242,382

NOI from service operations
365

 
998

 
1,987

 
2,369

Interest and other income
1,486

 
1,508

 
4,284

 
4,817

Gain on sales of real estate
—

 
1,188

 
(27
)
 
5,438

Equity in income of unconsolidated entities
374

 
371

 
1,120

 
1,118

Income tax benefit (expense)
291

 
(57
)
 
173

 
(145
)
Depreciation and other amortization associated with real estate operations
(34,195
)
 
(34,438
)
 
(100,897
)
 
(100,290
)
Impairment recoveries (losses)
—

 
161

 
—

 
(1,464
)
General, administrative and leasing expenses
(6,899
)
 
(7,368
)
 
(21,819
)
 
(23,838
)
Business development expenses and land carry costs
(1,567
)
 
(1,277
)
 
(4,415
)
 
(4,567
)
Interest expense
(19,181
)
 
(19,615
)
 
(56,910
)
 
(57,772
)
Less: UJV NOI allocable to COPT included in equity in income of unconsolidated entities
(1,206
)
 
(1,202
)
 
(3,607
)
 
(3,602
)
Loss on early extinguishment of debt
—

 
—

 
—

 
(513
)
Net income
$
20,322

 
$
22,334

 
$
60,187

 
$
63,933

Schedule of reconciliation of segment assets to total assets
The following table reconciles our segment assets to the consolidated total assets of COPT and subsidiaries (in thousands):
 
 
September 30,
2018
 
September 30,
2017
Segment assets
$
3,074,986

 
$
3,014,281

Non-operating property assets
420,109

 
413,255

Other assets
155,271

 
149,305

Total COPT consolidated assets
$
3,650,366

 
$
3,576,841