Annual report pursuant to Section 13 and 15(d)

Information by Business Segment (Tables)

v3.19.3.a.u2
Information by Business Segment (Tables)
 12 Months Ended
Dec. 31, 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
 
Operating
Wholesale
Data Center
 
Other
 
Total
Year Ended December 31, 2019
 

 
 

 
 

 
 
 
 

 
 

 
 
 
 

 
 

 
 

 
 

Revenues from real estate operations
$
252,781

 
$
55,742

 
$
51,140

 
$
32,659

 
$
16,593

 
$
26,571

 
$
435,486

 
$
59,611

 
$
29,405

 
$
2,961

 
$
527,463

Property operating expenses
(82,815
)
 
(19,779
)
 
(29,042
)
 
(13,579
)
 
(6,626
)
 
(1,962
)
 
(153,803
)
 
(29,682
)
 
(13,213
)
 
(1,445
)
 
(198,143
)
UJV NOI allocable to COPT
—

 
—

 
—

 
—

 
—

 
5,705

 
5,705

 
—

 
—

 
—

 
5,705

NOI from real estate operations
$
169,966

 
$
35,963

 
$
22,098

 
$
19,080

 
$
9,967

 
$
30,314

 
$
287,388

 
$
29,929

 
$
16,192

 
$
1,516

 
$
335,025

Additions to long-lived assets
$
34,618

 
$
9,326

 
$
—

 
$
8,912

 
$
1,548

 
$
—

 
$
54,404

 
$
20,925

 
$
893

 
$
128

 
$
76,350

Transfers from non-operating properties
$
18,606

 
$
4,548

 
$
10,781

 
$
—

 
$
33,606

 
$
159,472

 
$
227,013

 
$
—

 
$
(1,012
)
 
$
—

 
$
226,001

Segment assets at December 31, 2019
$
1,280,656

 
$
396,914

 
$
146,592

 
$
184,257

 
$
138,501

 
$
279,099

 
$
2,426,019

 
$
392,319

 
$
202,935

 
$
3,685

 
$
3,024,958

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2018
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

Revenues from real estate operations
$
248,927

 
$
53,518

 
$
46,286

 
$
31,927

 
$
14,745

 
$
25,650

 
$
421,053

 
$
61,181

 
$
31,892

 
$
3,127

 
$
517,253

Property operating expenses
(82,975
)
 
(20,330
)
 
(26,888
)
 
(13,536
)
 
(6,050
)
 
(3,225
)
 
(153,004
)
 
(30,253
)
 
(16,342
)
 
(1,436
)
 
(201,035
)
UJV NOI allocable to COPT
—

 
—

 
—

 
—

 
—

 
4,818

 
4,818

 
—

 
—

 
—

 
4,818

NOI from real estate operations
$
165,952

 
$
33,188

 
$
19,398

 
$
18,391

 
$
8,695

 
$
27,243

 
$
272,867

 
$
30,928

 
$
15,550

 
$
1,691

 
$
321,036

Additions to long-lived assets
$
38,612

 
$
7,956

 
$
—

 
$
6,535

 
$
573

 
$
—

 
$
53,676

 
$
19,730

 
$
856

 
$
480

 
$
74,742

Transfers from non-operating properties
$
35,648

 
$
10,231

 
$
14,718

 
$
(116
)
 
$
4,167

 
$
99,191

 
$
163,839

 
$
—

 
$
2,304

 
$
—

 
$
166,143

Segment assets at December 31, 2018
$
1,279,571

 
$
399,339

 
$
139,731

 
$
188,911

 
$
108,010

 
$
353,165

 
$
2,468,727

 
$
395,380

 
$
216,640

 
$
4,115

 
$
3,084,862

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Year Ended December 31, 2017
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

Revenues from real estate operations
$
245,613

 
$
47,118

 
$
47,209

 
$
29,540

 
$
14,322

 
$
24,320

 
$
408,122

 
$
68,262

 
$
28,875

 
$
4,721

 
$
509,980

Property operating expenses
(80,697
)
 
(16,938
)
 
(27,812
)
 
(12,619
)
 
(5,783
)
 
(2,709
)
 
(146,558
)
 
(28,982
)
 
(13,551
)
 
(1,873
)
 
(190,964
)
UJV NOI allocable to COPT
—

 
—

 
—

 
—

 
—

 
4,805

 
4,805

 
—

 
—

 
—

 
4,805

NOI from real estate operations
$
164,916

 
$
30,180

 
$
19,397

 
$
16,921

 
$
8,539

 
$
26,416

 
$
266,369

 
$
39,280

 
$
15,324

 
$
2,848

 
$
323,821

Additions to long-lived assets
$
26,659

 
$
8,115

 
$
71

 
$
8,451

 
$
1,056

 
$
—

 
$
44,352

 
$
25,299

 
$
3,580

 
$
110

 
$
73,341

Transfers from non-operating properties
$
43,370

 
$
48,328

 
$
—

 
$
474

 
$
2,159

 
$
107,854

 
$
202,185

 
$
—

 
$
8

 
$
18

 
$
202,211

Segment assets at December 31, 2017
$
1,263,567

 
$
402,076

 
$
128,755

 
$
194,476

 
$
108,119

 
$
301,996

 
$
2,398,989

 
$
400,512

 
$
224,422

 
$
4,082

 
$
3,028,005


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 Years Ended December 31,
 
 
2019
 
2018
 
2017
Segment revenues from real estate operations
 
$
527,463

 
$
517,253

 
$
509,980

Construction contract and other service revenues
 
113,763

 
60,859

 
102,840

Total revenues
 
$
641,226

 
$
578,112

 
$
612,820

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 Years Ended December 31,
 
 
2019
 
2018
 
2017
UJV NOI allocable to COPT
 
$
5,705

 
$
4,818

 
$
4,805

Less: Income from UJV allocable to COPT attributable to depreciation and amortization expense and interest expense
 
(4,065
)
 
(3,314
)
 
(3,310
)
Add: Equity in (loss) income of unconsolidated non-real estate entities
 
(7
)
 
1,193

 
(5
)
Equity in income of unconsolidated entities
 
$
1,633

 
$
2,697

 
$
1,490


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 Years Ended December 31,
 
 
2019
 
2018
 
2017
Construction contract and other service revenues
 
$
113,763

 
$
60,859

 
$
102,840

Construction contract and other service expenses
 
(109,962
)
 
(58,326
)
 
(99,618
)
NOI from service operations
 
$
3,801

 
$
2,533

 
$
3,222



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 Years Ended December 31,
 
 
2019
 
2018
 
2017
NOI from real estate operations
 
$
335,025

 
$
321,036

 
$
323,821

NOI from service operations
 
3,801

 
2,533

 
3,222

Interest and other income
 
7,894

 
4,358

 
6,318

Gain on sales of real estate
 
105,230

 
2,340

 
9,890

Equity in income of unconsolidated entities
 
1,633

 
2,697

 
1,490

Income tax benefit (expense)
 
217

 
363

 
(1,098
)
Depreciation and other amortization associated with real estate operations
 
(137,069
)
 
(137,116
)
 
(134,228
)
Impairment losses
 
(329
)
 
(2,367
)
 
(15,123
)
General, administrative and leasing expenses
 
(35,402
)
 
(28,900
)
 
(30,837
)
Business development expenses and land carry costs
 
(4,239
)
 
(5,840
)
 
(6,213
)
Interest expense
 
(71,052
)
 
(75,385
)
 
(76,983
)
Less: UJV NOI allocable to COPT included in equity in income of unconsolidated entities
 
(5,705
)
 
(4,818
)
 
(4,805
)
Loss on early extinguishment of debt
 
—

 
(258
)
 
(513
)
Net income
 
$
200,004

 
$
78,643

 
$
74,941


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):
 
 
As of December 31,
 
2019
 
2018
Segment assets
$
3,024,958

 
$
3,084,862

Operating properties lease liabilities included in segment assets
17,317

 
—

Non-operating property assets
621,630

 
410,671

Other assets
190,548

 
160,472

Total COPT consolidated assets
$
3,854,453

 
$
3,656,005