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

Prepaid Expenses and Other Assets, Net (Tables)

9 Months Ended

Sep. 30, 2019

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



	September 30, 2019		December 31, 2018
Lease incentives, net	$	26,179	$	21,258
Prepaid expenses	25,158		25,658
Construction contract costs incurred in excess of billings	16,743		3,189
Furniture, fixtures and equipment, net (1)	7,931		8,630
Non-real estate equity investments	6,153		5,940
Deferred financing costs, net (2)	3,914		4,733
Restricted cash	3,502		3,884
Deferred tax asset, net (3)	2,294		2,084
Interest rate derivatives	32		5,617
Other assets	4,419		6,337
Total for COPLP and subsidiaries	96,325		87,330
Marketable securities in deferred compensation plan	4,257		3,868
Total for COPT and subsidiaries	$	100,582	$	91,198

(1) Includes $1.2 million in finance right-of-use assets as of September 30, 2019.

(2) Represents deferred costs, net of accumulated amortization, attributable to our Revolving Credit Facility and interest rate derivatives.

(3) Includes a valuation allowance of $2.0 million as of September 30, 2019 and $2.7 million as of December 31, 2018.