COPT Defense Properties Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Credit Losses, Financial Assets and Other Instruments (Tables)

Credit Losses, Financial Assets and Other Instruments (Tables)

9 Months Ended

Sep. 30, 2021

Credit Losses, Financial Assets and Other Instruments, Allowance for Credit Loss

The table below sets forth the activity for the allowance for credit losses (in thousands):


	For the Nine Months Ended September 30, 2021
	Investing Receivables		Tenant Notes Receivable (1)		Other Assets (2)		Total
December 31, 2020	$	2,851	$	1,203	$	643	$	4,697

Credit loss (recoveries) expense	(1,436)		(114)		510		(1,040)



September 30, 2021	$	1,415	$	1,089	$	1,153	$	3,657

(1)Included in the line entitled “accounts receivable, net” on our consolidated balance sheets.

(2)The balance as of September 30, 2021 and December 31, 2020 included $705,000 and $257,000, respectively, in the line entitled “accounts receivable, net” and $448,000 and $386,000, respectively, in the line entitled “prepaid expenses and other assets, net” on our consolidated balance sheets.

Financing Receivable Credit Quality Indicator

The following table presents the amortized cost basis of our investing receivables, tenant notes receivable and sales-type lease receivables by credit risk classification, by origination year as of September 30, 2021 (in thousands):


	Origination Year
	2016 and Earlier		2017		2018		2019		2020		2021		Total
Investing receivables:
Credit risk classification:
Investment grade	$	68,773	$	1,043	$	—	$	—	$	1,057	$	449	$	71,322
Non-investment grade	—		—		—		6,040		—		—		6,040
Total	$	68,773	$	1,043	$	—	$	6,040	$	1,057	$	449	$	77,362

Tenant notes receivable:
Credit risk classification:
Investment grade	$	—	$	—	$	949	$	69	$	297	$	—	$	1,315
Non-investment grade	221		—		141		147		1,763		—		2,272
Total	$	221	$	—	$	1,090	$	216	$	2,060	$	—	$	3,587

Sales-type lease receivables:
Credit risk classification:
Investment grade	$	—	$	—	$	—	$	—	$	6,300	$	—	$	6,300