Quarterly report pursuant to Section 13 or 15(d)

Information by Business Segment (Tables)

v3.20.2
Information by Business Segment (Tables)
 9 Months Ended
Sep. 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 September 30, 2020
                  
Revenues from real estate operations $ 63,328  $ 14,699  $ 12,602  $ 8,006  $ 6,079  $ 7,995  $ 112,709  $ 14,913  $ 6,068  $ 753  $ 134,443 
Property operating expenses (21,537) (5,245) (7,116) (3,044) (2,029) (861) (39,832) (7,782) (3,642) (296) (51,552)
UJV NOI allocable to COPT
 —  —  —  —  —  1,752  1,752  —  —  —  1,752 
NOI from real estate operations $ 41,791  $ 9,454  $ 5,486  $ 4,962  $ 4,050  $ 8,886  $ 74,629  $ 7,131  $ 2,426  $ 457  $ 84,643 
Additions to long-lived assets $ 7,511  $ 2,219  $ —  $ 1,650  $ 6,382  $ —  $ 17,762  $ 5,303  $ 1,917  $ (3) $ 24,979 
Transfers from non-operating properties
 $ (209) $ 58  $ 221  $ —  $ 61,520  $ 65,269  $ 126,859  $ —  $ —  $ —  $ 126,859 
Three Months Ended September 30, 2019
                    
Revenues from real estate operations $ 63,436  $ 13,551  $ 12,703  $ 8,183  $ 4,171  $ 5,913  $ 107,957  $ 15,508  $ 6,565  $ 704  $ 130,734 
Property operating expenses (20,743) (4,965) (7,149) (3,581) (1,717) (518) (38,673) (7,343) (3,374) (324) (49,714)
UJV NOI allocable to COPT
 —  —  —  —  —  1,601  1,601  —  —  —  1,601 
NOI from real estate operations $ 42,693  $ 8,586  $ 5,554  $ 4,602  $ 2,454  $ 6,996  $ 70,885  $ 8,165  $ 3,191  $ 380  $ 82,621 
Additions to long-lived assets $ 10,770  $ 2,922  $ —  $ 2,003  $ 446  $ —  $ 16,141  $ 6,339  $ 61  $ 19  $ 22,560 
Transfers from non-operating properties
 $ 1,381  $ 118  $ 2,120  $ —  $ 4,152  $ 9,483  $ 17,254  $ —  $ (1,012) $ —  $ 16,242 
Nine Months Ended September 30, 2020
                  
Revenues from real estate operations $ 190,464  $ 42,824  $ 37,935  $ 24,466  $ 15,402  $ 20,648  $ 331,739  $ 45,535  $ 19,695  $ 2,128  $ 399,097 
Property operating expenses (63,618) (15,765) (21,696) (9,500) (5,488) (2,307) (118,374) (22,207) (10,338) (836) (151,755)
UJV NOI allocable to COPT
 —  —  —  —  —  5,190  5,190  —  —  —  5,190 
NOI from real estate operations $ 126,846  $ 27,059  $ 16,239  $ 14,966  $ 9,914  $ 23,531  $ 218,555  $ 23,328  $ 9,357  $ 1,292  $ 252,532 
Additions to long-lived assets $ 22,144  $ 8,114  $ —  $ 5,518  $ 6,698  $ —  $ 42,474  $ 13,105  $ 10,699  $ 165  $ 66,443 
Transfers from non-operating properties
 $ 4,304  $ 838  $ 381  $ —  $ 91,827  $ 171,465  $ 268,815  $ —  $ —  $ —  $ 268,815 
Segment assets at September 30, 2020
 $ 1,264,547  $ 392,226  $ 143,206  $ 180,337  $ 234,355  $ 446,530  $ 2,661,201  $ 387,290  $ 204,834  $ 3,643  $ 3,256,968 
Nine Months Ended September 30, 2019
                  
Revenues from real estate operations $ 187,778  $ 42,294  $ 36,368  $ 24,523  $ 12,078  $ 21,891  $ 324,932  $ 45,359  $ 22,996  $ 2,208  $ 395,495 
Property operating expenses (62,422) (14,951) (19,756) (10,271) (4,855) (1,630) (113,885) (22,349) (9,830) (981) (147,045)
UJV NOI allocable to COPT
 —  —  —  —  —  4,071  4,071  —  —  —  4,071 
NOI from real estate operations $ 125,356  $ 27,343  $ 16,612  $ 14,252  $ 7,223  $ 24,332  $ 215,118  $ 23,010  $ 13,166  $ 1,227  $ 252,521 
Additions to long-lived assets $ 22,204  $ 6,072  $ —  $ 7,948  $ 1,282  $ —  $ 37,506  $ 15,198  $ 312  $ 63  $ 53,079 
Transfers from non-operating properties
 $ 7,759  $ 4,647  $ 10,456  $ —  $ 13,363  $ 122,115  $ 158,340  $ —  $ (1,012) $ —  $ 157,328 
Segment assets at September 30, 2019
 $ 1,271,668  $ 398,137  $ 147,505  $ 186,243  $ 118,839  $ 298,675  $ 2,421,067  $ 393,747  $ 205,550  $ 3,708  $ 3,024,072 
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 September 30, For the Nine Months Ended September 30,
  2020 2019 2020 2019
Segment revenues from real estate operations $ 134,443  $ 130,734  $ 399,097  $ 395,495 
Construction contract and other service revenues 20,323  28,697  46,240  87,946 
Total revenues $ 154,766  $ 159,431  $ 445,337  $ 483,441 
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 September 30, For the Nine Months Ended September 30,
  2020 2019 2020 2019
UJV NOI allocable to COPT
 $ 1,752  $ 1,601  $ 5,190  $ 4,071 
Less: Income from UJV allocable to COPT attributable to depreciation and amortization expense and interest expense
 (1,274) (1,202) (3,814) (2,859)
Add: Equity in loss of unconsolidated non-real estate entities (1) (3) (4) (5)
Equity in income of unconsolidated entities
 $ 477  $ 396  $ 1,372  $ 1,207 
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 September 30, For the Nine Months Ended September 30,
  2020 2019 2020 2019
Construction contract and other service revenues $ 20,323  $ 28,697  $ 46,240  $ 87,946 
Construction contract and other service expenses (19,220) (27,802) (44,052) (85,130)
NOI from service operations $ 1,103  $ 895  $ 2,188  $ 2,816 
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 September 30, For the Nine Months Ended September 30,
  2020 2019 2020 2019
NOI from real estate operations $ 84,643  $ 82,621  $ 252,532  $ 252,521 
NOI from service operations 1,103  895  2,188  2,816 
Interest and other income 1,746  1,842  5,233  5,977 
Credit loss recoveries 1,465  —  161  — 
Gain on sales of real estate —  —  5  84,469 
Equity in income of unconsolidated entities 477  396  1,372  1,207 
Income tax (expense) benefit (16) 131  (95) 113 
Depreciation and other amortization associated with real estate operations (35,332) (34,692) (101,540) (104,290)
Impairment losses (1,530) (327) (1,530) (327)
General, administrative and leasing expenses (7,467) (7,929) (23,111) (26,066)
Business development expenses and land carry costs (1,094) (964) (3,474) (2,947)
Interest expense (17,152) (17,126) (50,789) (54,275)
UJV NOI allocable to COPT included in equity in income of unconsolidated entities (1,752) (1,601) (5,190) (4,071)
Loss on early extinguishment of debt (3,237) —  (3,237) — 
Loss on interest rate derivatives (53,196) —  (53,196) — 
Net (loss) income $ (31,342) $ 23,246  $ 19,329  $ 155,127 
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):
 
September 30,
2020		 September 30,
2019
Segment assets $ 3,256,968  $ 3,024,072 
Operating properties lease liabilities included in segment assets 26,054  16,645 
Non-operating property assets 642,182  597,301 
Other assets 194,985  217,351 
Total COPT consolidated assets $ 4,120,189  $ 3,855,369