Annual report pursuant to Section 13 and 15(d)

Information by Business Segment (Tables)

v3.10.0.1
Information by Business Segment (Tables)
 12 Months Ended
Dec. 31, 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
 
Operating
Wholesale
Data Center
 
Other
 
Total
Year Ended December 31, 2018
 

 
 

 
 

 
 
 
 

 
 

 
 
 
 

 
 

 
 

 
 

Revenues from real estate operations
$
248,927

 
$
53,518

 
$
46,286

 
$
31,927

 
$
14,745

 
$
25,650

 
$
421,053

 
$
61,181

 
$
31,892

 
$
3,127

 
$
517,253

Property operating expenses
(82,975
)
 
(20,330
)
 
(26,888
)
 
(13,536
)
 
(6,050
)
 
(3,225
)
 
(153,004
)
 
(30,253
)
 
(16,342
)
 
(1,436
)
 
(201,035
)
UJV NOI allocable to COPT
—

 
—

 
—

 
—

 
—

 
4,818

 
4,818

 
—

 
—

 
—

 
4,818

NOI from real estate operations
$
165,952

 
$
33,188

 
$
19,398

 
$
18,391

 
$
8,695

 
$
27,243

 
$
272,867

 
$
30,928

 
$
15,550

 
$
1,691

 
$
321,036

Additions to long-lived assets
$
38,612

 
$
7,956

 
$
—

 
$
6,535

 
$
573

 
$
—

 
$
53,676

 
$
19,730

 
$
856

 
$
480

 
$
74,742

Transfers from non-operating properties
$
35,648

 
$
10,231

 
$
14,718

 
$
(116
)
 
$
4,167

 
$
99,191

 
$
163,839

 
$
—

 
$
2,304

 
$
—

 
$
166,143

Segment assets at December 31, 2018
$
1,279,571

 
$
399,339

 
$
139,731

 
$
188,911

 
$
108,010

 
$
353,165

 
$
2,468,727

 
$
395,380

 
$
216,640

 
$
4,115

 
$
3,084,862

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2017
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

Revenues from real estate operations
$
245,613

 
$
47,118

 
$
47,209

 
$
29,540

 
$
14,322

 
$
24,320

 
$
408,122

 
$
68,262

 
$
28,875

 
$
4,721

 
$
509,980

Property operating expenses
(80,697
)
 
(16,938
)
 
(27,812
)
 
(12,619
)
 
(5,783
)
 
(2,709
)
 
(146,558
)
 
(28,982
)
 
(13,551
)
 
(1,873
)
 
(190,964
)
UJV NOI allocable to COPT
—

 
—

 
—

 
—

 
—

 
4,805

 
4,805

 
—

 
—

 
—

 
4,805

NOI from real estate operations
$
164,916

 
$
30,180

 
$
19,397

 
$
16,921

 
$
8,539

 
$
26,416

 
$
266,369

 
$
39,280

 
$
15,324

 
$
2,848

 
$
323,821

Additions to long-lived assets
$
26,659

 
$
8,115

 
$
71

 
$
8,451

 
$
1,056

 
$
—

 
$
44,352

 
$
25,299

 
$
3,580

 
$
110

 
$
73,341

Transfers from non-operating properties
$
43,370

 
$
48,328

 
$
—

 
$
474

 
$
2,159

 
$
107,854

 
$
202,185

 
$
—

 
$
8

 
$
18

 
$
202,211

Segment assets at December 31, 2017
$
1,263,567

 
$
402,076

 
$
128,755

 
$
194,476

 
$
108,119

 
$
301,996

 
$
2,398,989

 
$
400,512

 
$
224,422

 
$
4,082

 
$
3,028,005

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2016
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

Revenues from real estate operations
$
245,354

 
$
48,964

 
$
46,803

 
$
28,197

 
$
13,056

 
$
23,836

 
$
406,210

 
$
85,805

 
$
26,869

 
$
7,080

 
$
525,964

Property operating expenses
(83,684
)
 
(17,824
)
 
(27,357
)
 
(12,690
)
 
(4,476
)
 
(2,674
)
 
(148,705
)
 
(34,095
)
 
(11,512
)
 
(3,218
)
 
(197,530
)
UJV NOI allocable to COPT
—

 
—

 
—

 
—

 
—

 
2,145

 
2,145

 
—

 
—

 
—

 
2,145

NOI from real estate operations
$
161,670

 
$
31,140

 
$
19,446

 
$
15,507

 
$
8,580

 
$
23,307

 
$
259,650

 
$
51,710

 
$
15,357

 
$
3,862

 
$
330,579

Additions to long-lived assets
$
26,267

 
$
17,344

 
$
—

 
$
9,168

 
$
4,352

 
$
—

 
$
57,131

 
$
12,559

 
$
299

 
$
335

 
$
70,324

Transfers from non-operating properties
$
49,937

 
$
28,230

 
$
240

 
$
—

 
$
3,169

 
$
103,367

 
$
184,943

 
$
82

 
$
(377
)
 
$
(8
)
 
$
184,640

Segment assets at December 31, 2016
$
1,255,230

 
$
404,438

 
$
131,957

 
$
196,486

 
$
110,395

 
$
227,796

 
$
2,326,302

 
$
442,811

 
$
231,954

 
$
21,293

 
$
3,022,360

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 Years Ended December 31,
 
 
2018
 
2017
 
2016
Segment revenues from real estate operations
 
$
517,253

 
$
509,980

 
$
525,964

Construction contract and other service revenues
 
60,859

 
102,840

 
48,364

Total revenues
 
$
578,112

 
$
612,820

 
$
574,328

Reconciliation of UJV NOI allocable to COPT 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 Years Ended December 31,
 
 
2018
 
2017
 
2016
UJV NOI allocable to COPT
 
$
4,818

 
$
4,805

 
$
2,145

Less: Income from UJV allocable to COPT attributable to depreciation and amortization expense and interest expense
 
(3,314
)
 
(3,310
)
 
(1,413
)
Add: Equity in income (loss) of unconsolidated non-real estate entities
 
1,193

 
(5
)
 
20

Equity in income of unconsolidated entities
 
$
2,697

 
$
1,490

 
$
752

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 Years Ended December 31,
 
 
2018
 
2017
 
2016
Construction contract and other service revenues
 
$
60,859

 
$
102,840

 
$
48,364

Construction contract and other service expenses
 
(58,326
)
 
(99,618
)
 
(45,481
)
NOI from service operations
 
$
2,533

 
$
3,222

 
$
2,883

Schedule of reconciliation of net operating income from real estate operations and 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 Years Ended December 31,
 
 
2018
 
2017
 
2016
NOI from real estate operations
 
$
321,036

 
$
323,821

 
$
330,579

NOI from service operations
 
2,533

 
3,222

 
2,883

Interest and other income
 
4,358

 
6,318

 
5,444

Gain on sales of real estate
 
2,340

 
9,890

 
59,679

Equity in income of unconsolidated entities
 
2,697

 
1,490

 
752

Income tax benefit (expense)
 
363

 
(1,098
)
 
(244
)
Depreciation and other amortization associated with real estate operations
 
(137,116
)
 
(134,228
)
 
(132,719
)
Impairment losses
 
(2,367
)
 
(15,123
)
 
(101,391
)
General, administrative and leasing expenses
 
(28,900
)
 
(30,837
)
 
(36,553
)
Business development expenses and land carry costs
 
(5,840
)
 
(6,213
)
 
(8,244
)
Interest expense
 
(75,385
)
 
(76,983
)
 
(83,163
)
Less: UJV NOI allocable to COPT included in equity in income of unconsolidated entities
 
(4,818
)
 
(4,805
)
 
(2,145
)
Loss on early extinguishment of debt
 
(258
)
 
(513
)
 
(1,110
)
Net income
 
$
78,643

 
$
74,941

 
$
33,768

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):
 
 
As of December 31,
 
2018
 
2017
Segment assets
$
3,084,862

 
$
3,028,005

Non-operating property assets
410,671

 
411,041

Other assets
160,472

 
156,159

Total COPT consolidated assets
$
3,656,005

 
$
3,595,205