Consolidated Statements of Cash Flows - USD ($)
$ in Thousands |
12 Months Ended |
Dec. 31, 2019 |
Dec. 31, 2018 |
Dec. 31, 2017 |
| Cash flows from operating activities |
|
|
|
| Revenues from real estate operations received |
$ 530,280
|
$ 528,066
|
$ 510,551
|
| Construction contract and other service revenues received |
94,677
|
33,579
|
102,531
|
| Property operating expenses paid |
(196,611)
|
(197,647)
|
(186,577)
|
| Construction contract and other service expenses paid |
(96,789)
|
(79,386)
|
(82,707)
|
| General, administrative, leasing, business development and land carry costs paid |
(29,347)
|
(27,006)
|
(32,673)
|
| Interest expense paid |
(67,475)
|
(72,460)
|
(73,079)
|
| Lease incentives paid |
(9,482)
|
(7,679)
|
(9,725)
|
| Income taxes paid |
0
|
(21)
|
(31)
|
| Other |
3,305
|
3,036
|
1,831
|
| Net cash provided by operating activities |
228,558
|
180,482
|
230,121
|
| Cash flows from investing activities |
|
|
|
| Development and redevelopment of properties |
(394,444)
|
(159,994)
|
(200,504)
|
| Tenant improvements on operating properties |
(23,809)
|
(35,098)
|
(33,409)
|
| Other capital improvements on operating properties |
(24,659)
|
(24,223)
|
(22,882)
|
| Proceeds from property dispositions |
|
|
|
| Distribution from unconsolidated real estate joint venture following contribution of properties |
201,499
|
0
|
0
|
| Sale of properties |
108,128
|
0
|
180,839
|
| Distributions from unconsolidated real estate joint ventures |
22,426
|
1,942
|
1,874
|
| Investing receivables funded |
(11,180)
|
(97)
|
(588)
|
| Leasing costs paid |
(16,825)
|
(10,926)
|
(14,581)
|
| Other |
849
|
(4,522)
|
(112)
|
| Net cash used in investing activities |
(138,015)
|
(232,918)
|
(89,363)
|
| Proceeds from debt |
|
|
|
| Revolving Credit Facility |
409,000
|
381,000
|
352,000
|
| Other debt proceeds |
43,615
|
13,406
|
0
|
| Repayments of debt |
|
|
|
| Revolving Credit Facility |
(445,000)
|
(294,000)
|
(226,000)
|
| Scheduled principal amortization |
(4,310)
|
(4,240)
|
(4,062)
|
| Other debt repayments |
(77)
|
(100,000)
|
(200,000)
|
| Deferred financing costs paid |
(448)
|
(8,292)
|
(500)
|
| Payments on finance lease liabilities |
(223)
|
(15,379)
|
0
|
| Net proceeds from issuance of common shares |
46,415
|
202,065
|
69,534
|
| Redemption of preferred shares |
0
|
0
|
(199,083)
|
| Common share/unit dividends/distributions paid |
(122,657)
|
(114,286)
|
(109,174)
|
| Preferred share/unit dividends/distributions paid |
0
|
0
|
(9,305)
|
| Distributions paid to noncontrolling interests in COPLP |
(2,166)
|
(3,699)
|
(4,426)
|
| Distributions paid to redeemable noncontrolling interests |
(1,659)
|
(1,382)
|
(8,215)
|
| Distributions paid to noncontrolling interests in other consolidated entities |
(5,890)
|
(16)
|
(2,617)
|
| Redemption of vested equity awards |
(2,064)
|
(1,702)
|
(1,973)
|
| Other |
1,101
|
(3,920)
|
5,275
|
| Net cash (used in) provided by financing activities |
(84,363)
|
49,555
|
(338,546)
|
| Net increase (decrease) in cash and cash equivalents and restricted cash |
6,180
|
(2,881)
|
(197,788)
|
| Cash and cash equivalents and restricted cash |
|
|
|
| Beginning of year |
11,950
|
14,831
|
212,619
|
| End of year |
18,130
|
11,950
|
14,831
|
| Reconciliation of net income to net cash provided by operating activities: |
|
|
|
| Net income |
200,004
|
78,643
|
74,941
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
| Depreciation and other amortization |
138,903
|
139,063
|
136,501
|
| Impairment losses |
329
|
2,367
|
15,116
|
| Amortization of deferred financing costs and net debt discounts |
3,639
|
3,393
|
4,307
|
| Increase in deferred rent receivable |
(4,091)
|
(4,621)
|
(2,651)
|
| Gain on sales of real estate |
(105,230)
|
(2,340)
|
(9,890)
|
| Share-based compensation |
6,714
|
6,376
|
5,615
|
| Other |
(6,022)
|
(2,733)
|
(4,216)
|
| Changes in operating assets and liabilities: |
|
|
|
| (Increase) decrease in accounts receivable |
(7,141)
|
5,673
|
2,783
|
| (Increase) decrease in prepaid expenses and other assets, net |
(22,457)
|
(987)
|
7,219
|
| Increase (decrease) in accounts payable, accrued expenses and other liabilities |
20,369
|
(49,179)
|
4,309
|
| Increase (decrease) in rents received in advance and security deposits |
3,541
|
4,827
|
(3,913)
|
| Net cash provided by operating activities |
228,558
|
180,482
|
230,121
|
| Reconciliation of cash and cash equivalents and restricted cash: |
|
|
|
| Cash and cash equivalents and restricted cash |
18,130
|
14,831
|
14,831
|
| Supplemental schedule of non-cash investing and financing activities: |
|
|
|
| Increase (decrease) in accrued capital improvements, leasing and other investing activity costs |
35,913
|
6,570
|
(10,654)
|
| Finance right-of-use asset contributed by noncontrolling interest in joint venture |
2,570
|
0
|
0
|
| Operating right-of-use assets obtained in exchange for operating lease liabilities |
840
|
0
|
0
|
| Finance right-of-use asset obtained in exchange for finance lease liability |
0
|
0
|
16,127
|
| Non-cash changes from property dispositions: |
|
|
|
| Contribution of properties to unconsolidated real estate joint venture |
158,542
|
0
|
0
|
| Investment in unconsolidated real estate joint venture retained in disposition |
34,506
|
0
|
0
|
| Non-cash changes from recognition of property sale previously accounted for as financing arrangement: |
|
|
|
| Decrease in assets held for sale, net |
0
|
(42,226)
|
0
|
| Decrease in deferred property sale |
0
|
43,377
|
0
|
| (Decrease) increase in fair value of derivatives applied to accumulated other comprehensive income and noncontrolling interests |
(25,817)
|
2,915
|
3,845
|
| Equity in other comprehensive income of an equity method investee |
199
|
210
|
39
|
| Decrease in noncontrolling interests and increase in shareholders’ equity in connection with the conversion of common units into common shares |
1,586
|
27,413
|
4,636
|
| Adjustments to noncontrolling interests resulting from changes in COPLP ownership |
167
|
2,466
|
1,486
|
| Increase (decrease) in redeemable noncontrolling interests and decrease (increase) in equity to carry redeemable noncontrolling interests at fair value |
1,749
|
1,837
|
(626)
|
| Corporate Office Properties, L.P |
|
|
|
| Cash flows from operating activities |
|
|
|
| Revenues from real estate operations received |
530,280
|
528,066
|
510,551
|
| Construction contract and other service revenues received |
94,677
|
33,579
|
102,531
|
| Property operating expenses paid |
(196,611)
|
(197,647)
|
(186,577)
|
| Construction contract and other service expenses paid |
(96,789)
|
(79,386)
|
(82,707)
|
| General, administrative, leasing, business development and land carry costs paid |
(29,347)
|
(27,006)
|
(32,673)
|
| Interest expense paid |
(67,475)
|
(72,460)
|
(73,079)
|
| Lease incentives paid |
(9,482)
|
(7,679)
|
(9,725)
|
| Income taxes paid |
0
|
(21)
|
(31)
|
| Other |
3,305
|
3,036
|
1,831
|
| Net cash provided by operating activities |
228,558
|
180,482
|
230,121
|
| Cash flows from investing activities |
|
|
|
| Development and redevelopment of properties |
(394,444)
|
(159,994)
|
(200,504)
|
| Tenant improvements on operating properties |
(23,809)
|
(35,098)
|
(33,409)
|
| Other capital improvements on operating properties |
(24,659)
|
(24,223)
|
(22,882)
|
| Proceeds from property dispositions |
|
|
|
| Distribution from unconsolidated real estate joint venture following contribution of properties |
201,499
|
0
|
0
|
| Sale of properties |
108,128
|
0
|
180,839
|
| Distributions from unconsolidated real estate joint ventures |
22,426
|
1,942
|
1,874
|
| Investing receivables funded |
(11,180)
|
(97)
|
(588)
|
| Leasing costs paid |
(16,825)
|
(10,926)
|
(14,581)
|
| Other |
849
|
(4,522)
|
(112)
|
| Net cash used in investing activities |
(138,015)
|
(232,918)
|
(89,363)
|
| Proceeds from debt |
|
|
|
| Revolving Credit Facility |
409,000
|
381,000
|
352,000
|
| Other debt proceeds |
43,615
|
13,406
|
0
|
| Repayments of debt |
|
|
|
| Revolving Credit Facility |
(445,000)
|
(294,000)
|
(226,000)
|
| Scheduled principal amortization |
(4,310)
|
(4,240)
|
(4,062)
|
| Other debt repayments |
(77)
|
(100,000)
|
(200,000)
|
| Deferred financing costs paid |
(448)
|
(8,292)
|
(500)
|
| Payments on finance lease liabilities |
(223)
|
(15,379)
|
0
|
| Net proceeds from issuance of common shares |
46,415
|
202,065
|
69,534
|
| Redemption of preferred shares |
0
|
0
|
(199,083)
|
| Common share/unit dividends/distributions paid |
(124,171)
|
(117,325)
|
(112,940)
|
| Preferred share/unit dividends/distributions paid |
(652)
|
(660)
|
(9,965)
|
| Distributions paid to noncontrolling interests in COPLP |
(5,890)
|
(16)
|
(2,617)
|
| Distributions paid to redeemable noncontrolling interests |
(1,659)
|
(1,382)
|
(8,215)
|
| Redemption of vested equity awards |
(2,064)
|
(1,702)
|
(1,973)
|
| Other |
1,101
|
(3,920)
|
5,275
|
| Net cash (used in) provided by financing activities |
(84,363)
|
49,555
|
(338,546)
|
| Net increase (decrease) in cash and cash equivalents and restricted cash |
6,180
|
(2,881)
|
(197,788)
|
| Cash and cash equivalents and restricted cash |
|
|
|
| Beginning of year |
11,950
|
14,831
|
212,619
|
| End of year |
18,130
|
11,950
|
14,831
|
| Reconciliation of net income to net cash provided by operating activities: |
|
|
|
| Net income |
200,004
|
78,643
|
74,941
|
| Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
| Depreciation and other amortization |
138,903
|
139,063
|
136,501
|
| Impairment losses |
329
|
2,367
|
15,116
|
| Amortization of deferred financing costs and net debt discounts |
3,639
|
3,393
|
4,307
|
| Increase in deferred rent receivable |
(4,091)
|
(4,621)
|
(2,651)
|
| Gain on sales of real estate |
(105,230)
|
(2,340)
|
(9,890)
|
| Share-based compensation |
6,714
|
6,376
|
5,615
|
| Other |
(6,022)
|
(2,733)
|
(4,216)
|
| Changes in operating assets and liabilities: |
|
|
|
| (Increase) decrease in accounts receivable |
(7,141)
|
5,673
|
2,783
|
| (Increase) decrease in prepaid expenses and other assets, net |
(23,255)
|
(1,735)
|
6,398
|
| Increase (decrease) in accounts payable, accrued expenses and other liabilities |
21,167
|
(48,431)
|
5,130
|
| Increase (decrease) in rents received in advance and security deposits |
3,541
|
4,827
|
(3,913)
|
| Net cash provided by operating activities |
228,558
|
180,482
|
230,121
|
| Reconciliation of cash and cash equivalents and restricted cash: |
|
|
|
| Cash and cash equivalents and restricted cash |
11,950
|
14,831
|
14,831
|
| Supplemental schedule of non-cash investing and financing activities: |
|
|
|
| Increase (decrease) in accrued capital improvements, leasing and other investing activity costs |
35,913
|
6,570
|
(10,654)
|
| Finance right-of-use asset contributed by noncontrolling interest in joint venture |
2,570
|
0
|
0
|
| Operating right-of-use assets obtained in exchange for operating lease liabilities |
840
|
0
|
0
|
| Finance right-of-use asset obtained in exchange for finance lease liability |
0
|
0
|
16,127
|
| Non-cash changes from property dispositions: |
|
|
|
| Contribution of properties to unconsolidated real estate joint venture |
158,542
|
0
|
0
|
| Investment in unconsolidated real estate joint venture retained in disposition |
34,506
|
0
|
0
|
| Non-cash changes from recognition of property sale previously accounted for as financing arrangement: |
|
|
|
| Decrease in assets held for sale, net |
0
|
(42,226)
|
0
|
| Decrease in deferred property sale |
0
|
43,377
|
0
|
| (Decrease) increase in fair value of derivatives applied to accumulated other comprehensive income and noncontrolling interests |
(25,817)
|
2,915
|
3,845
|
| Equity in other comprehensive income of an equity method investee |
199
|
210
|
39
|
| Increase (decrease) in redeemable noncontrolling interests and decrease (increase) in equity to carry redeemable noncontrolling interests at fair value |
$ 1,749
|
$ 1,837
|
$ (626)
|