COPT Defense Properties Annual report pursuant to Section 13 and 15(d)

Leases (Tables)

12 Months Ended

Dec. 31, 2019

The table below sets forth our allocation of lease revenue recognized between fixed and variable lease revenue (in thousands):

Fixed contractual payments due under our property leases were as follows (in thousands):

Our right-of-use assets consisted of the following (in thousands):



Leases	Balance Sheet Location	December 31, 2019
Right-of-use assets
Operating leases - Property	Property - operating right-of-use assets	$	27,864
Finance leases
Property	Property - finance right-of-use assets	40,458
Vehicles and office equipment	Prepaid expenses and other assets, net	1,196
Total finance lease right-of-use assets		41,654

Total right-of-use assets		$	69,518

Lease liabilities consisted of the following (in thousands):



Leases	Balance Sheet Location	December 31, 2019
Lease liabilities
Operating leases - Property	Property - operating lease liabilities	$	17,317
Finance leases	Other liabilities	1,116

Total lease liabilities		$	18,433

The table below sets forth the weighted average terms and discount rates of our leases as of December 31, 2019:



Weighted average remaining lease term
Operating leases	68 years
Finance leases	1 year
Weighted average discount rate
Operating leases	7.33	%
Finance leases	3.11	%

The table below presents our total lease cost (in thousands):



Lease cost	Statement of Operations Location	For the Year Ended December 31, 2019
Operating lease cost
Property leases	Property operating expenses	$	1,699
Vehicles and office equipment	General, administrative and leasing expenses	69
Finance lease cost
Amortization of vehicles and office equipment right-of-use assets	General, administrative and leasing expenses	457
Amortization of property right-of-use assets	Property operating expenses	30
Interest on lease liabilities	Interest expense	13
		$	2,268

The table below presents the effect of lease payments on our consolidated statement of cash flows (in thousands):



Supplemental cash flow information	For the Year Ended December 31, 2019
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows for operating leases	$	1,004
Operating cash flows for financing leases	$	13
Financing cash flows for financing leases	$	223

Payments on leases as of December 31, 2019 were due as follows (in thousands):



Year Ending December 31,	Operating leases			Finance leases			Total
2020	$	1,140		$	862		$	2,002
2021	1,146			202			1,348
2022	1,164			64			1,228
2023	1,169			—			1,169
2024	1,173			—			1,173
Thereafter	100,609			—			100,609
Total lease payments	106,401			1,128			107,529
Less: Amount representing interest	(89,084		)	(12		)	(89,096		)
Lease liability	$	17,317		$	1,116		$	18,433

Future minimum rental payments on leases as of December 31, 2018 were due as follows (in thousands):



Year Ending December 31,	Operating leases		Finance leases			Total
2019	$	1,101	$	219		$	1,320
2020	1,110		844			1,954
2021	1,094		184			1,278
2022	1,115		49			1,164
2023	1,119		—			1,119
Thereafter	83,373		—			83,373
Total lease payments	$	88,912	1,296			90,208
Less: Amount representing interest	N/A		(24		)	(24		)
Total	N/A		$	1,272		$	90,184

Payments on leases as of December 31, 2019 were due as follows (in thousands):



Year Ending December 31,	Operating leases			Finance leases			Total
2020	$	1,140		$	862		$	2,002
2021	1,146			202			1,348
2022	1,164			64			1,228
2023	1,169			—			1,169
2024	1,173			—			1,173
Thereafter	100,609			—			100,609
Total lease payments	106,401			1,128			107,529
Less: Amount representing interest	(89,084		)	(12		)	(89,096		)
Lease liability	$	17,317		$	1,116		$	18,433

Future minimum rental payments on leases as of December 31, 2018 were due as follows (in thousands):



Year Ending December 31,	Operating leases		Finance leases			Total
2019	$	1,101	$	219		$	1,320
2020	1,110		844			1,954
2021	1,094		184			1,278
2022	1,115		49			1,164
2023	1,119		—			1,119
Thereafter	83,373		—			83,373
Total lease payments	$	88,912	1,296			90,208
Less: Amount representing interest	N/A		(24		)	(24		)
Total	N/A		$	1,272		$	90,184