Quarterly report pursuant to Section 13 or 15(d)

Information by Business Segment (Tables)

v3.19.3
Information by Business Segment (Tables)
 9 Months Ended
Sep. 30, 2019
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, 2019
 

 
 

 
 

 
 
 
 

 
 

 
 
 
 

 
 

 
 

 
 

Revenues from real estate operations
$
63,436

 
$
13,551

 
$
12,703

 
$
8,183

 
$
4,171

 
$
5,913

 
$
107,957

 
$
15,508

 
$
6,565

 
$
704

 
$
130,734

Property operating expenses
(20,743
)
 
(4,965
)
 
(7,149
)
 
(3,581
)
 
(1,717
)
 
(518
)
 
(38,673
)
 
(7,343
)
 
(3,374
)
 
(324
)
 
(49,714
)
UJV NOI allocable to COPT
—

 
—

 
—

 
—

 
—

 
1,601

 
1,601

 
—

 
—

 
—

 
1,601

NOI from real estate operations
$
42,693

 
$
8,586

 
$
5,554

 
$
4,602

 
$
2,454

 
$
6,996

 
$
70,885

 
$
8,165

 
$
3,191

 
$
380

 
$
82,621

Additions to long-lived assets
$
10,770

 
$
2,922

 
$
—

 
$
2,003

 
$
446

 
$
—

 
$
16,141

 
$
6,339

 
$
61

 
$
19

 
$
22,560

Transfers from non-operating properties
$
1,381

 
$
118

 
$
2,120

 
$
—

 
$
4,152

 
$
9,483

 
$
17,254

 
$
—

 
$
(1,012
)
 
$
—

 
$
16,242

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

Nine Months Ended September 30, 2019
 

 
 

 
 

 
 
 
 

 
 

 
 
 
 

 
 

 
 

 
 

Revenues from real estate operations
$
187,778

 
$
42,294

 
$
36,368

 
$
24,523

 
$
12,078

 
$
21,891

 
$
324,932

 
$
45,359

 
$
22,996

 
$
2,208

 
$
395,495

Property operating expenses
(62,422
)
 
(14,951
)
 
(19,756
)
 
(10,271
)
 
(4,855
)
 
(1,630
)
 
(113,885
)
 
(22,349
)
 
(9,830
)
 
(981
)
 
(147,045
)
UJV NOI allocable to COPT
—

 
—

 
—

 
—

 
—

 
4,071

 
4,071

 
—

 
—

 
—

 
4,071

NOI from real estate operations
$
125,356

 
$
27,343

 
$
16,612

 
$
14,252

 
$
7,223

 
$
24,332

 
$
215,118

 
$
23,010

 
$
13,166

 
$
1,227

 
$
252,521

Additions to long-lived assets
$
22,204

 
$
6,072

 
$
—

 
$
7,948

 
$
1,282

 
$
—

 
$
37,506

 
$
15,198

 
$
312

 
$
63

 
$
53,079

Transfers from non-operating properties
$
7,759

 
$
4,647

 
$
10,456

 
$
—

 
$
13,363

 
$
122,115

 
$
158,340

 
$
—

 
$
(1,012
)
 
$
—

 
$
157,328

Segment assets at September 30, 2019
$
1,271,668

 
$
398,137

 
$
147,505

 
$
186,243

 
$
118,839

 
$
298,675

 
$
2,421,067

 
$
393,747

 
$
205,550

 
$
3,708

 
$
3,024,072

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


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,
 
2019
 
2018
 
2019
 
2018
Segment revenues from real estate operations
$
130,734

 
$
128,988

 
$
395,495

 
$
386,428

Construction contract and other service revenues
28,697

 
8,423

 
87,946

 
53,202

Total revenues
$
159,431

 
$
137,411

 
$
483,441

 
$
439,630


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 Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
UJV NOI allocable to COPT
$
1,601

 
$
1,206

 
$
4,071

 
$
3,607

Less: Income from UJV allocable to COPT attributable to depreciation and amortization expense and interest expense
(1,202
)
 
(830
)
 
(2,859
)
 
(2,482
)
Add: Equity in loss of unconsolidated non-real estate entities
(3
)
 
(2
)
 
(5
)
 
(5
)
Equity in income of unconsolidated entities
$
396

 
$
374

 
$
1,207

 
$
1,120


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,
 
2019
 
2018
 
2019
 
2018
Construction contract and other service revenues
$
28,697

 
$
8,423

 
$
87,946

 
$
53,202

Construction contract and other service expenses
(27,802
)
 
(8,058
)
 
(85,130
)
 
(51,215
)
NOI from service operations
$
895

 
$
365

 
$
2,816

 
$
1,987



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 Three Months Ended September 30,
 
For the Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
NOI from real estate operations
$
82,621

 
$
80,854

 
$
252,521

 
$
240,298

NOI from service operations
895

 
365

 
2,816

 
1,987

Interest and other income
1,842

 
1,486

 
5,977

 
4,284

Gain on sales of real estate
—

 
—

 
84,469

 
(27
)
Equity in income of unconsolidated entities
396

 
374

 
1,207

 
1,120

Income tax benefit
131

 
291

 
113

 
173

Depreciation and other amortization associated with real estate operations
(34,692
)
 
(34,195
)
 
(104,290
)
 
(100,897
)
Impairment losses
(327
)
 
—

 
(327
)
 
—

General, administrative and leasing expenses
(7,929
)
 
(6,899
)
 
(26,066
)
 
(21,819
)
Business development expenses and land carry costs
(964
)
 
(1,567
)
 
(2,947
)
 
(4,415
)
Interest expense
(17,126
)
 
(19,181
)
 
(54,275
)
 
(56,910
)
Less: UJV NOI allocable to COPT included in equity in income of unconsolidated entities
(1,601
)
 
(1,206
)
 
(4,071
)
 
(3,607
)
Net income
$
23,246

 
$
20,322

 
$
155,127

 
$
60,187


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,
2019
 
September 30,
2018
Segment assets
$
3,024,072

 
$
3,074,986

Operating properties lease liabilities included in segment assets
16,645

 
—

Non-operating property assets
597,301

 
420,109

Other assets
217,351

 
155,271

Total COPT consolidated assets
$
3,855,369

 
$
3,650,366