Share-Based Compensation and Other Compensation Matters (Tables)
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12 Months Ended |
Dec. 31, 2019 |
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| Share-based Payment Arrangement [Abstract] |
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| Reporting for share-based compensation expense |
The table below sets forth our reporting for share based compensation cost (in thousands):
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For the Years Ended December 31, |
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2019 |
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2018 |
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2017 |
General, administrative and leasing expenses |
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$ |
5,748 |
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$ |
5,415 |
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$ |
4,649 |
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Property operating expenses |
|
966 |
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|
961 |
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|
966 |
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Capitalized to development activities |
|
742 |
|
|
587 |
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|
480 |
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Share-based compensation cost |
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$ |
7,456 |
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$ |
6,963 |
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$ |
6,095 |
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| Summary of restricted share transactions under the entity's share-based compensation plans |
The following table summarizes restricted shares under the share-based compensation plans for 2017, 2018 and 2019:
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Shares |
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Weighted Average Grant Date Fair Value |
Unvested as of December 31, 2016 |
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371,247 |
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$ |
26.20 |
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Granted |
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239,479 |
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|
33.84 |
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Forfeited |
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(27,056 |
) |
|
27.80 |
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Vested |
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(158,044 |
) |
|
26.27 |
|
Unvested as of December 31, 2017 |
|
425,626 |
|
|
30.37 |
|
Granted |
|
219,716 |
|
|
25.62 |
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Forfeited |
|
(25,419 |
) |
|
30.02 |
|
Vested |
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(181,238 |
) |
|
29.49 |
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Unvested as of December 31, 2018 |
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438,685 |
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|
28.38 |
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Granted |
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195,520 |
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|
26.56 |
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Forfeited |
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(56,341 |
) |
|
29.44 |
|
Vested |
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(185,001 |
) |
|
28.01 |
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Unvested as of December 31, 2019 |
|
392,863 |
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$ |
27.49 |
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Unvested shares as of December 31, 2019 that are expected to vest |
|
363,773 |
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$ |
27.50 |
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| Schedule of PSU's Granted |
We made the following grants of PSUs to executives from 2015 through 2018 (dollars in thousands):
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Grant Date |
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Number of PSUs Granted |
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Performance Period Commencement Date |
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Performance Period End Date |
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Grant Date Fair Value |
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Number of PSUs Outstanding as of December 31, 2019 |
3/5/2015 |
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45,656 |
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1/1/2015 |
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12/31/2017 |
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$ |
1,678 |
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|
— |
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3/1/2016 |
|
26,299 |
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1/1/2016 |
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12/31/2018 |
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$ |
1,005 |
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|
— |
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1/1/2017 |
|
39,351 |
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1/1/2017 |
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12/31/2019 |
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$ |
1,415 |
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|
39,351 |
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1/1/2018 |
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59,110 |
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1/1/2018 |
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12/31/2020 |
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$ |
1,890 |
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|
59,110 |
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| Schedule of payouts for defined performance under performance-based awards of share-based compensation |
The number of earned awards at the end of the performance period will be determined based on the percentile rank of COPT’s total shareholder return relative to a peer group of companies, as set forth in the following schedule:
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Percentile Rank |
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Earned Awards Payout % |
75th or greater |
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100% of PB-PIUs granted |
50th (target) |
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50% of PB-PIUs granted |
25th |
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25% of PB-PIUs granted |
Below 25th |
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0% of PB-PIUs granted |
The number of PSUs earned (“earned PSUs”) at the end of the performance period will be determined based on the percentile rank of COPT’s total shareholder return relative to a peer group of companies, as set forth in the following schedule:
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Percentile Rank |
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Earned PSUs Payout % |
75th or greater |
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200% of PSUs granted |
50th (target) |
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100% of PSUs granted |
25th |
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50% of PSUs granted |
Below 25th |
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0% of PSUs granted |
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| Schedule of assumptions used in Monte Carlo models for PSUs |
The grant date fair value and certain of the assumptions used in the Monte Carlo models for the PSUs granted in 2017 and 2018 are set forth below:
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Grant Date |
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Grant Date Fair Value Per Share |
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Baseline Common Share Value |
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Expected Volatility of Common Shares |
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Risk-free Interest Rate |
1/1/2017 |
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$ |
38.43 |
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$ |
31.22 |
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19.0 |
% |
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1.47 |
% |
1/1/2018 |
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$ |
31.97 |
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$ |
29.20 |
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17.0 |
% |
|
2.04 |
% |
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| Deferred share awards |
We made the following grants of deferred share awards to nonemployee members of our Board of Trustees in 2017, 2018 and 2019 (dollars in thousands, except per share data):
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Year of Grant |
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Number of Deferred Share Awards Granted |
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Aggregate Grant Date Fair Value |
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Grant Date Fair Value Per Share |
2017 |
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10,032 |
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$ |
326 |
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$ |
32.47 |
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2018 |
|
13,832 |
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$ |
388 |
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$ |
28.08 |
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2019 |
|
3,432 |
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$ |
95 |
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$ |
27.60 |
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| Deferred share awards vested activity |
We issued the following common shares in settlement of deferred shares in 2017, 2018 and 2019 (dollars in thousands, except per share data):
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For the Years Ended December 31, |
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2019 |
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2018 |
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2017 |
Number of common shares issued |
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3,097 |
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|
5,515 |
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|
15,590 |
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Grant date fair value per share |
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$ |
26.77 |
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$ |
29.32 |
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$ |
26.89 |
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Aggregate intrinsic value |
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$ |
86 |
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$ |
154 |
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$ |
508 |
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| Summary of options outstanding |
The table below sets forth information regarding our outstanding options as of the following dates (dollars in thousands, except per share data):
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Options Outstanding and Exercisable |
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Weighted Average Exercise Price Per Share |
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Weighted Average Remaining Contractual Term
(in Years)
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Aggregate Intrinsic Value |
December 31, 2016 |
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201,100 |
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$ |
43.35 |
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1 |
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$ |
31 |
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December 31, 2017 |
|
60,000 |
|
|
$ |
35.17 |
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1 |
|
$ |
— |
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December 31, 2018 |
|
30,000 |
|
|
$ |
32.52 |
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0.4 |
|
$ |
— |
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December 31, 2019 |
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— |
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N/A |
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N/A |
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N/A |
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