Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows

v3.20.2
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Cash flows from operating activities    
Revenues from real estate operations received $ 394,094 $ 391,758
Construction contract and other service revenues received 53,911 65,813
Property operating expenses paid (159,007) (151,478)
Construction contract and other service expenses paid (45,686) (68,599)
General, administrative, leasing, business development and land carry costs paid (24,408) (23,806)
Interest expense paid (49,693) (52,818)
Lease incentives paid (12,634) (6,366)
Other 2,464 2,533
Net cash provided by operating activities 159,041 157,037
Cash flows from investing activities    
Development and redevelopment of properties (284,416) (308,997)
Tenant improvements on operating properties (23,377) (16,466)
Other capital improvements on operating properties (24,797) (14,497)
Proceeds from property dispositions    
Distribution from unconsolidated real estate joint venture following contribution of properties 0 129,783
Sale of properties 0 107,440
Distributions from unconsolidated real estate joint ventures 2,287 16,937
Investing receivables funded (258) (11,169)
Leasing costs paid (12,455) (13,502)
Settlement of interest rate derivatives (53,130) 0
Other (63) 1,558
Net cash used in investing activities (396,209) (108,913)
Proceeds from debt    
Revolving Credit Facility 409,000 349,000
Unsecured senior notes 395,264 0
Other debt proceeds 199,088 32,002
Repayments of debt    
Revolving Credit Facility (529,000) (342,000)
Unsecured senior notes (122,948) 0
Scheduled principal amortization (3,077) (3,300)
Deferred financing costs paid (2,161) (405)
Net proceeds from issuance of common shares 0 46,415
Common share/unit dividends/distributions paid (92,512) (91,835)
Distributions paid to noncontrolling interests in COPLP (1,303) (1,661)
Distributions paid to noncontrolling interests in other consolidated entities (15) (5,882)
Distributions paid to redeemable noncontrolling interests (13,515) (984)
Redemption of vested equity awards (1,629) (1,973)
Payments in connection with early extinguishment of debt (3,037) 0
Other (442) (1,944)
Net cash provided by (used in) financing activities 233,713 (22,567)
Net (decrease) increase in cash and cash equivalents and restricted cash (3,455) 25,557
Cash and cash equivalents and restricted cash    
Beginning of period 18,130 11,950
End of period 14,675 37,507
Reconciliation of net income to net cash provided by operating activities:    
Net income 19,329 155,127
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and other amortization 102,864 105,686
Impairment losses 1,530 327
Amortization of deferred financing costs and net debt discounts 3,104 2,716
Increase in deferred rent receivable (3,560) (4,184)
Gain on sales of real estate (5) (84,469)
Share-based compensation 4,753 4,979
Loss on early extinguishment of debt 3,237 0
Loss on interest rate derivatives 53,196 0
Other (4,184) (4,296)
Changes in operating assets and liabilities:    
Increase in accounts receivable (744) (9,483)
Increase in prepaid expenses and other assets, net (13,164) (26,878)
(Decrease) increase in accounts payable, accrued expenses and other liabilities (3,971) 19,616
Decrease in rents received in advance and security deposits (3,344) (2,104)
Net cash provided by operating activities 159,041 157,037
Reconciliation of cash and cash equivalents and restricted cash:    
Cash and cash equivalents and restricted cash 14,675 37,507
Supplemental schedule of non-cash investing and financing activities:    
(Decrease) increase in accrued capital improvements, leasing and other investing activity costs (195) 29,457
Finance right-of-use asset contributed by noncontrolling interest in joint venture 0 2,570
Recognition of operating right-of-use assets and related lease liabilities 8,955 255
Non-cash changes from property dispositions:    
Contribution of properties to unconsolidated real estate joint venture 0 99,288
Investment in unconsolidated real estate joint venture retained in disposition 0 26,500
Decrease in fair value of derivatives applied to accumulated other comprehensive loss and noncontrolling interests (37,183) (34,951)
Decrease in noncontrolling interests and increase in shareholders’ equity in connection with the conversion of common units into common shares 182 1,556
Adjustments to noncontrolling interests resulting from changes in COPLP ownership (527) 522
Increase in redeemable noncontrolling interests and decrease in equity to carry redeemable noncontrolling interests at fair value 4,711 1,344
Corporate Office Properties, L.P.    
Cash flows from operating activities    
Revenues from real estate operations received 394,094 391,758
Construction contract and other service revenues received 53,911 65,813
Property operating expenses paid (159,007) (151,478)
Construction contract and other service expenses paid (45,686) (68,599)
General, administrative, leasing, business development and land carry costs paid (24,408) (23,806)
Interest expense paid (49,693) (52,818)
Lease incentives paid (12,634) (6,366)
Other 2,464 2,533
Net cash provided by operating activities 159,041 157,037
Cash flows from investing activities    
Development and redevelopment of properties (284,416) (308,997)
Tenant improvements on operating properties (23,377) (16,466)
Other capital improvements on operating properties (24,797) (14,497)
Proceeds from property dispositions    
Distribution from unconsolidated real estate joint venture following contribution of properties 0 129,783
Sale of properties 0 107,440
Distributions from unconsolidated real estate joint ventures 2,287 16,937
Investing receivables funded (258) (11,169)
Leasing costs paid (12,455) (13,502)
Settlement of interest rate derivatives (53,130) 0
Other (63) 1,558
Net cash used in investing activities (396,209) (108,913)
Proceeds from debt    
Revolving Credit Facility 409,000 349,000
Unsecured senior notes 395,264 0
Other debt proceeds 199,088 32,002
Repayments of debt    
Revolving Credit Facility (529,000) (342,000)
Unsecured senior notes (122,948) 0
Scheduled principal amortization (3,077) (3,300)
Deferred financing costs paid (2,161) (405)
Net proceeds from issuance of common shares 0 46,415
Common share/unit dividends/distributions paid (93,584) (93,001)
Distributions paid to noncontrolling interests in other consolidated entities (15) (5,882)
Distributions paid to redeemable noncontrolling interests (13,515) (984)
Redemption of vested equity awards (1,629) (1,973)
Payments in connection with early extinguishment of debt (3,037) 0
Other (673) (2,439)
Net cash provided by (used in) financing activities 233,713 (22,567)
Net (decrease) increase in cash and cash equivalents and restricted cash (3,455) 25,557
Cash and cash equivalents and restricted cash    
Beginning of period 18,130 11,950
End of period 14,675 37,507
Reconciliation of net income to net cash provided by operating activities:    
Net income 19,329 155,127
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and other amortization 102,864 105,686
Impairment losses 1,530 327
Amortization of deferred financing costs and net debt discounts 3,104 2,716
Increase in deferred rent receivable (3,560) (4,184)
Gain on sales of real estate (5) (84,469)
Share-based compensation 4,753 4,979
Loss on early extinguishment of debt 3,237 0
Loss on interest rate derivatives 53,196 0
Other (4,184) (4,296)
Changes in operating assets and liabilities:    
Increase in accounts receivable (744) (9,483)
Increase in prepaid expenses and other assets, net (13,552) (26,489)
(Decrease) increase in accounts payable, accrued expenses and other liabilities (3,583) 19,227
Decrease in rents received in advance and security deposits (3,344) (2,104)
Net cash provided by operating activities 159,041 157,037
Reconciliation of cash and cash equivalents and restricted cash:    
Cash and cash equivalents and restricted cash 14,675 11,950
Supplemental schedule of non-cash investing and financing activities:    
(Decrease) increase in accrued capital improvements, leasing and other investing activity costs (195) 29,457
Finance right-of-use asset contributed by noncontrolling interest in joint venture 0 2,570
Recognition of operating right-of-use assets and related lease liabilities 8,955 255
Non-cash changes from property dispositions:    
Contribution of properties to unconsolidated real estate joint venture 0 99,288
Investment in unconsolidated real estate joint venture retained in disposition 0 26,500
Decrease in fair value of derivatives applied to accumulated other comprehensive loss and noncontrolling interests (37,183) (34,951)
Increase in redeemable noncontrolling interests and decrease in equity to carry redeemable noncontrolling interests at fair value $ 4,711 $ 1,344