| Schedule of adjustments to prior period financial statements |
The following are selected line items from COPT’s consolidated financial statements as of, and for the three and six months ended, June 30, 2012 illustrating the effect of adjustments pertaining to reclassifications and revisions (in thousands):
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Consolidated Balance Sheet as of June 30, 2012 |
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Per June 30, 2012 10-Q |
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As Revised |
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Change |
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Revisions |
Redeemable noncontrolling interest |
$ |
— |
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|
$ |
9,578 |
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|
$ |
9,578 |
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|
$ |
9,578 |
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Additional paid-in capital |
$ |
1,450,923 |
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|
$ |
1,447,781 |
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|
$ |
(3,142 |
) |
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$ |
(3,142 |
) |
Cumulative distributions in excess of net income |
$ |
(562,678 |
) |
|
$ |
(560,262 |
) |
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$ |
2,416 |
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|
$ |
2,416 |
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Noncontrolling interests in common units in COPLP |
$ |
52,152 |
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|
$ |
52,300 |
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$ |
148 |
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$ |
148 |
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Noncontrolling interests in other consolidated entities |
$ |
18,315 |
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$ |
9,315 |
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$ |
(9,000 |
) |
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$ |
(9,000 |
) |
Total equity |
$ |
1,353,349 |
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$ |
1,343,771 |
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$ |
(9,578 |
) |
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$ |
(9,578 |
) |
Total liabilities, redeemable noncontrolling interest and equity |
$ |
3,715,075 |
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$ |
3,715,075 |
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$ |
— |
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$ |
— |
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Consolidated Statements of Operations for the |
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Three Months Ended June 30, 2012 |
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Per June 30, 2012 10-Q |
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Per June 30, 2013 10-Q |
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Change |
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Discontinued Operations |
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Other Reclassifications |
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Revisions |
Total revenues |
$ |
133,386 |
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|
$ |
127,664 |
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|
$ |
(5,722 |
) |
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$ |
(5,722 |
) |
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$ |
— |
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$ |
— |
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Expenses |
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Property operating expenses |
$ |
42,384 |
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$ |
39,441 |
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$ |
(2,943 |
) |
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$ |
(1,833 |
) |
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$ |
(1,110 |
) |
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$ |
— |
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Depreciation and amortization associated with real estate operations |
29,853 |
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|
28,295 |
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(1,558 |
) |
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(1,558 |
) |
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— |
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|
— |
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Construction contract and other service expenses |
16,285 |
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16,285 |
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— |
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— |
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— |
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— |
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General, administrative and leasing expenses |
7,742 |
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|
8,851 |
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|
1,109 |
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(1 |
) |
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1,110 |
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— |
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Business development expenses and land carry costs |
1,298 |
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|
1,298 |
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— |
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— |
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— |
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— |
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Total operating expenses |
$ |
97,562 |
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$ |
94,170 |
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$ |
(3,392 |
) |
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$ |
(3,392 |
) |
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$ |
— |
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$ |
— |
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Operating income |
$ |
35,824 |
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$ |
33,494 |
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$ |
(2,330 |
) |
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$ |
(2,330 |
) |
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$ |
— |
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$ |
— |
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Interest expense |
$ |
(24,747 |
) |
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$ |
(24,239 |
) |
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$ |
508 |
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$ |
508 |
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$ |
— |
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$ |
— |
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Income tax expense |
$ |
(17 |
) |
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$ |
(17 |
) |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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Income from continuing operations |
$ |
11,544 |
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$ |
9,722 |
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$ |
(1,822 |
) |
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$ |
(1,822 |
) |
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$ |
— |
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$ |
— |
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Discontinued operations |
$ |
296 |
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$ |
2,118 |
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$ |
1,822 |
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$ |
1,822 |
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$ |
— |
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$ |
— |
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Net income |
$ |
11,861 |
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$ |
11,861 |
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$ |
— |
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$ |
— |
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$ |
— |
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$ |
— |
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Net income attributable to noncontrolling interests in common units in COPLP |
$ |
(390 |
) |
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$ |
(422 |
) |
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$ |
(32 |
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$ |
— |
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$ |
— |
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$ |
(32 |
) |
Net income attributable to noncontrolling interests in other consolidated entities |
$ |
(552 |
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$ |
31 |
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$ |
583 |
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$ |
— |
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$ |
— |
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$ |
583 |
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Net income attributable to Corporate Office Properties Trust |
$ |
10,754 |
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$ |
11,305 |
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$ |
551 |
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$ |
— |
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$ |
— |
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$ |
551 |
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Basic and diluted earnings per common share: |
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Income from continuing operations |
$ |
0.09 |
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$ |
0.07 |
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$ |
(0.02 |
) |
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$ |
(0.03 |
) |
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$ |
— |
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$ |
0.01 |
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Discontinued operations |
— |
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|
0.03 |
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0.03 |
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0.03 |
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— |
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— |
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Net income attributable to COPT common shareholders |
$ |
0.09 |
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$ |
0.10 |
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$ |
0.01 |
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$ |
— |
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$ |
— |
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$ |
0.01 |
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Consolidated Statements of Operations for the |
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Six Months Ended June 30, 2012 |
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Per June 30, 2012 10-Q |
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Per June 30, 2013 10-Q |
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Change |
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Discontinued Operations |
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Other Reclassifications |
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Revisions |
Total revenues |
$ |
270,996 |
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$ |
259,398 |
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$ |
(11,598 |
) |
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$ |
(11,598 |
) |
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$ |
— |
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$ |
— |
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Expenses |
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Property operating expenses |
$ |
87,301 |
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$ |
80,628 |
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$ |
(6,673 |
) |
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$ |
(3,722 |
) |
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$ |
(2,951 |
) |
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$ |
— |
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Depreciation and amortization associated with real estate operations |
59,172 |
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56,029 |
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(3,143 |
) |
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(3,143 |
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— |
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— |
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Construction contract and other service expenses |
36,892 |
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36,892 |
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— |
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— |
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— |
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— |
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Impairment recoveries |
(2,303 |
) |
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(4,836 |
) |
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(2,533 |
) |
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(2,533 |
) |
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— |
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— |
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General, administrative and leasing expenses |
14,759 |
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|
18,420 |
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|
3,661 |
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(1 |
) |
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2,951 |
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|
711 |
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Business development expenses and land carry costs |
2,874 |
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|
2,874 |
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— |
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— |
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— |
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— |
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Total operating expenses |
$ |
198,695 |
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$ |
190,007 |
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$ |
(8,688 |
) |
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$ |
(9,399 |
) |
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$ |
— |
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$ |
711 |
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Operating income |
$ |
72,301 |
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$ |
69,391 |
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$ |
(2,910 |
) |
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$ |
(2,199 |
) |
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$ |
— |
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$ |
(711 |
) |
Interest expense |
$ |
(49,667 |
) |
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$ |
(48,670 |
) |
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$ |
997 |
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$ |
997 |
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$ |
— |
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$ |
— |
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Income tax (expense) benefit |
$ |
(4,190 |
) |
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$ |
(221 |
) |
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$ |
3,969 |
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$ |
— |
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$ |
— |
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$ |
3,969 |
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Income from continuing operations |
$ |
20,056 |
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$ |
22,112 |
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$ |
2,056 |
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$ |
(1,202 |
) |
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$ |
— |
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$ |
3,258 |
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Discontinued operations |
$ |
(1,239 |
) |
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$ |
(37 |
) |
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$ |
1,202 |
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$ |
1,202 |
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$ |
— |
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$ |
— |
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Net income |
$ |
18,838 |
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$ |
22,096 |
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$ |
3,258 |
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$ |
— |
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$ |
— |
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$ |
3,258 |
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Net income attributable to noncontrolling interests in common units in the Operating Partnership |
$ |
(549 |
) |
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$ |
(795 |
) |
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$ |
(246 |
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$ |
— |
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$ |
— |
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$ |
(246 |
) |
Net income attributable to noncontrolling interests in other consolidated entities |
$ |
(528 |
) |
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$ |
629 |
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$ |
1,157 |
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$ |
— |
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$ |
— |
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$ |
1,157 |
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Net income attributable to Corporate Office Properties Trust |
$ |
17,431 |
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$ |
21,600 |
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$ |
4,169 |
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$ |
— |
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$ |
— |
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$ |
4,169 |
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Basic and diluted earnings per common share: |
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Income from continuing operations |
$ |
0.14 |
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$ |
0.18 |
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$ |
0.04 |
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$ |
(0.01 |
) |
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$ |
— |
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$ |
0.05 |
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Discontinued operations |
(0.01 |
) |
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— |
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|
0.01 |
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|
0.01 |
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— |
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— |
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Net income attributable to COPT common shareholders |
$ |
0.13 |
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$ |
0.18 |
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$ |
0.05 |
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$ |
— |
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$ |
— |
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$ |
0.05 |
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