Quarterly report pursuant to Section 13 or 15(d)

Information by Business Segment (Tables)

v3.20.2
Information by Business Segment (Tables)
 6 Months Ended
Jun. 30, 2020
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 June 30, 2020
 

 
 

 
 

 
 
 
 

 
 

 
 
 
 

 
 

 
 

 
 

Revenues from real estate operations
$
62,698

 
$
14,447

 
$
13,257

 
$
8,119

 
$
4,647

 
$
7,076

 
$
110,244

 
$
15,162

 
$
6,455

 
$
677

 
$
132,538

Property operating expenses
(20,859
)
 
(5,335
)
 
(7,785
)
 
(3,171
)
 
(1,612
)
 
(789
)
 
(39,551
)
 
(6,888
)
 
(3,463
)
 
(302
)
 
(50,204
)
UJV NOI allocable to COPT
—

 
—

 
—

 
—

 
—

 
1,725

 
1,725

 
—

 
—

 
—

 
1,725

NOI from real estate operations
$
41,839

 
$
9,112

 
$
5,472

 
$
4,948

 
$
3,035

 
$
8,012

 
$
72,418

 
$
8,274

 
$
2,992

 
$
375

 
$
84,059

Additions to long-lived assets
$
6,958

 
$
3,204

 
$
—

 
$
2,110

 
$
146

 
$
—

 
$
12,418

 
$
4,445

 
$
7,904

 
$
103

 
$
24,870

Transfers from non-operating properties
$
3,975

 
$
524

 
$
145

 
$
—

 
$
29,171

 
$
49,964

 
$
83,779

 
$
—

 
$
—

 
$
—

 
$
83,779

Three Months Ended June 30, 2019
 

 
 

 
 

 
 

 
 

 
 

 
 
 
 

 
 

 
 

 
 

Revenues from real estate operations
$
61,659

 
$
13,912

 
$
12,104

 
$
8,185

 
$
3,968

 
$
8,624

 
$
108,452

 
$
15,018

 
$
8,560

 
$
741

 
$
132,771

Property operating expenses
(19,344
)
 
(4,694
)
 
(6,648
)
 
(3,286
)
 
(1,599
)
 
(759
)
 
(36,330
)
 
(7,590
)
 
(3,618
)
 
(348
)
 
(47,886
)
UJV NOI allocable to COPT
—

 
—

 
—

 
—

 
—

 
1,251

 
1,251

 
—

 
—

 
—

 
1,251

NOI from real estate operations
$
42,315

 
$
9,218

 
$
5,456

 
$
4,899

 
$
2,369

 
$
9,116

 
$
73,373

 
$
7,428

 
$
4,942

 
$
393

 
$
86,136

Additions to long-lived assets
$
7,499

 
$
1,703

 
$
—

 
$
928

 
$
536

 
$
—

 
$
10,666

 
$
4,870

 
$
95

 
$
34

 
$
15,665

Transfers from non-operating properties
$
1,338

 
$
20

 
$
1,833

 
$
—

 
$
5,576

 
$
92,844

 
$
101,611

 
$
—

 
$
—

 
$
—

 
$
101,611

Six Months Ended June 30, 2020
 

 
 

 
 

 
 
 
 

 
 

 
 
 
 

 
 

 
 

 
 

Revenues from real estate operations
$
127,136

 
$
28,125

 
$
25,333

 
$
16,460

 
$
9,323

 
$
12,653

 
$
219,030

 
$
30,622

 
$
13,627

 
$
1,375

 
$
264,654

Property operating expenses
(42,081
)
 
(10,520
)
 
(14,580
)
 
(6,456
)
 
(3,459
)
 
(1,446
)
 
(78,542
)
 
(14,425
)
 
(6,696
)
 
(540
)
 
(100,203
)
UJV NOI allocable to COPT
—

 
—

 
—

 
—

 
—

 
3,438

 
3,438

 
—

 
—

 
—

 
3,438

NOI from real estate operations
$
85,055

 
$
17,605

 
$
10,753

 
$
10,004

 
$
5,864

 
$
14,645

 
$
143,926

 
$
16,197

 
$
6,931

 
$
835

 
$
167,889

Additions to long-lived assets
$
14,633

 
$
5,895

 
$
—

 
$
3,868

 
$
316

 
$
—

 
$
24,712

 
$
7,802

 
$
8,782

 
$
168

 
$
41,464

Transfers from non-operating properties
$
4,513

 
$
780

 
$
160

 
$
—

 
$
30,307

 
$
106,196

 
$
141,956

 
$
—

 
$
—

 
$
—

 
$
141,956

Segment assets at June 30, 2020
$
1,271,790

 
$
394,363

 
$
144,253

 
$
181,744

 
$
167,161

 
$
382,749

 
$
2,542,060

 
$
389,058

 
$
205,711

 
$
3,710

 
$
3,140,539

Six Months Ended June 30, 2019
 

 
 

 
 

 
 
 
 

 
 

 
 
 
 

 
 

 
 

 
 

Revenues from real estate operations
$
124,342

 
$
28,743

 
$
23,665

 
$
16,340

 
$
7,907

 
$
15,978

 
$
216,975

 
$
29,851

 
$
16,431

 
$
1,504

 
$
264,761

Property operating expenses
(41,679
)
 
(9,986
)
 
(12,607
)
 
(6,690
)
 
(3,138
)
 
(1,112
)
 
(75,212
)
 
(15,006
)
 
(6,456
)
 
(657
)
 
(97,331
)
UJV NOI allocable to COPT
—

 
—

 
—

 
—

 
—

 
2,470

 
2,470

 
—

 
—

 
—

 
2,470

NOI from real estate operations
$
82,663

 
$
18,757

 
$
11,058

 
$
9,650

 
$
4,769

 
$
17,336

 
$
144,233

 
$
14,845

 
$
9,975

 
$
847

 
$
169,900

Additions to long-lived assets
$
11,434

 
$
3,150

 
$
—

 
$
5,945

 
$
836

 
$
—

 
$
21,365

 
$
8,859

 
$
251

 
$
44

 
$
30,519

Transfers from non-operating properties
$
6,378

 
$
4,529

 
$
8,336

 
$
—

 
$
9,211

 
$
112,632

 
$
141,086

 
$
—

 
$
—

 
$
—

 
$
141,086

Segment assets at June 30, 2019
$
1,274,336

 
$
398,586

 
$
146,475

 
$
187,172

 
$
115,222

 
$
307,676

 
$
2,429,467

 
$
393,110

 
$
209,787

 
$
3,776

 
$
3,036,140


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 June 30,
 
For the Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Segment revenues from real estate operations
$
132,538

 
$
132,771

 
$
264,654

 
$
264,761

Construction contract and other service revenues
12,236

 
42,299

 
25,917

 
59,249

Total revenues
$
144,774

 
$
175,070

 
$
290,571

 
$
324,010


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 June 30,
 
For the Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
UJV NOI allocable to COPT
$
1,725

 
$
1,251

 
$
3,438

 
$
2,470

Less: Income from UJV allocable to COPT attributable to depreciation and amortization expense and interest expense
(1,270
)
 
(830
)
 
(2,540
)
 
(1,657
)
Add: Equity in loss of unconsolidated non-real estate entities
(1
)
 
(1
)
 
(3
)
 
(2
)
Equity in income of unconsolidated entities
$
454

 
$
420

 
$
895

 
$
811


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 June 30,
 
For the Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
Construction contract and other service revenues
$
12,236

 
$
42,299

 
$
25,917

 
$
59,249

Construction contract and other service expenses
(11,711
)
 
(41,002
)
 
(24,832
)
 
(57,328
)
NOI from service operations
$
525

 
$
1,297

 
$
1,085

 
$
1,921



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 June 30,
 
For the Six Months Ended June 30,
 
2020
 
2019
 
2020
 
2019
NOI from real estate operations
$
84,059

 
$
86,136

 
$
167,889

 
$
169,900

NOI from service operations
525

 
1,297

 
1,085

 
1,921

Interest and other income
2,282

 
1,849

 
3,487

 
4,135

Credit loss expense
(615
)
 
—

 
(1,304
)
 
—

Gain on sales of real estate
—

 
84,469

 
5

 
84,469

Equity in income of unconsolidated entities
454

 
420

 
895

 
811

Income tax (expense) benefit
(30
)
 
176

 
(79
)
 
(18
)
Depreciation and other amortization associated with real estate operations
(33,612
)
 
(34,802
)
 
(66,208
)
 
(69,598
)
General, administrative and leasing expenses
(8,158
)
 
(9,386
)
 
(15,644
)
 
(18,137
)
Business development expenses and land carry costs
(1,262
)
 
(870
)
 
(2,380
)
 
(1,983
)
Interest expense
(16,797
)
 
(18,475
)
 
(33,637
)
 
(37,149
)
Less: UJV NOI allocable to COPT included in equity in income of unconsolidated entities
(1,725
)
 
(1,251
)
 
(3,438
)
 
(2,470
)
Net income
$
25,121

 
$
109,563

 
$
50,671

 
$
131,881


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):
 
 
June 30,
2020
 
June 30,
2019
Segment assets
$
3,140,539

 
$
3,036,140

Operating properties lease liabilities included in segment assets
19,073

 
16,502

Non-operating property assets
679,207

 
523,801

Other assets
172,506

 
227,026

Total COPT consolidated assets
$
4,011,325

 
$
3,803,469