Quarterly report pursuant to Section 13 or 15(d)

Equity

v3.19.3
Equity
 9 Months Ended
Sep. 30, 2019
Equity [Abstract]  
Equity Equity
 
COPLP Limited Partner Preferred Units

COPLP has 352,000 Series I Preferred Units outstanding to an unrelated party with an aggregate liquidation preference of $8.8 million ($25.00 per unit), plus any accrued and unpaid distributions of return thereon. On July 31, 2019, we amended the terms of these units to:

•
reduce the priority annual cumulative return from 7.5% of the units’ liquidation preference to 3.5% effective September 23, 2019, and eliminate provisions for future increases previously in place;
•
extend the earliest date that COPLP may redeem the units. As amended, the units may be redeemed for cash by COPLP at COPLP’s option on or after January 1, 2020, provided that COPLP provides notice to the unit holder six months prior to the effective date of the redemption; and
•
establish that COPLP provide notice to the unit holder for defined periods of time in advance of the sale of certain property or repayment or refinancing of certain debt, after which, in certain instances, the unit holder would have the ability to require COPLP to redeem the units at their liquidation preference.

Common Shares/Units

COPT issued 1.6 million common shares under its forward equity sale agreements for net proceeds of $46.5 million on March 27, 2019, after which it had no remaining capacity under the agreements. COPT contributed the net proceeds from this issuance to COPLP in exchange for an equal number of units in COPLP.

As of September 30, 2019, COPT had remaining capacity under its at-the-market stock offering program equal to an aggregate gross sales price of $300 million in common share sales.

During the nine months ended September 30, 2019, certain COPLP limited partners converted 103,039 common units in COPLP for an equal number of common shares in COPT.

We declared dividends per COPT common share and distributions per COPLP common unit of $0.275 in the three months ended September 30, 2019 and 2018 and $0.825 in the nine months ended September 30, 2019 and 2018.

See Note 15 for disclosure of COPT common share and COPLP common unit activity pertaining to our share-based compensation plans.