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

Quarterly report pursuant to Section 13 or 15(d)

Real Estate Joint Ventures (Tables)

Real Estate Joint Ventures (Tables)

3 Months Ended

Mar. 31, 2012

Schedule of information related to the investment in unconsolidated real estate joint venture accounted for using the equity method of accounting

										Maximum
Investment Balance at (1)						Date			Nature of	Exposure
March 31, 2012			December 31, 2011			Acquired	Ownership		Activity	to Loss (2)
$	(6,178	)	$	(6,071	)	9/29/2005	20	%	Operates 16 Buildings	$	—

(1) The carrying amount of our investment in this joint venture was lower than our share of the equity in the joint venture by $5.2 million at March 31, 2012 and December 31, 2011 due to our deferral of gain on the contribution by us of real estate into the joint venture upon its formation. A difference will continue to exist to the extent the nature of our continuing involvement in the joint venture remains the same.

(2) Derived from the sum of our investment balance and maximum additional unilateral capital contributions or loans required from us. Not reported above are additional amounts that we and our partner are required to fund when needed by this joint venture; these funding requirements are proportional to our respective ownership percentages. Also not reported above are additional unilateral contributions or loans from us, the amounts of which are uncertain, that we would be required to make if certain contingent events occur (see Note 15).

Schedule of condensed balance sheets for unconsolidated real estate joint venture

	March 31,			December 31,
	2012			2011
Properties, net	$	59,333		$	59,792
Other assets	4,403			3,529
Total assets	$	63,736		$	63,321

Liabilities (primarily debt)	$	68,663		$	67,710
Owners’ equity	(4,927		)	(4,389		)
Total liabilities and owners’ equity	$	63,736		$	63,321

Schedule of condensed statements of operations for unconsolidated real estate joint venture

	For the Three Months
	Ended March 31,
	2012			2011
Revenues	$	1,894		$	1,924
Property operating expenses	(737		)	(986		)
Interest expense	(1,125		)	(1,011		)
Depreciation and amortization expense	(570		)	(608		)
Net loss	$	(538	)	$	(681	)

Schedule of information related to investments in consolidated real estate joint ventures

		Ownership			March 31, 2012 (1)
	Date	% at		Nature of	Total		Pledged		Total
	Acquired	3/31/2012		Activity	Assets		Assets		Liabilities
M Square Associates, LLC	6/26/2007	50	%	Operating two buildings and developing others (2)	$	60,260	$	47,845	$	44,117
LW Redstone Company, LLC	3/23/2010	85	%	Developing business park (3)	55,255		15,858		11,373
Arundel Preserve #5, LLC	7/2/2007	50	%	Operating one building (4)	32,477		31,619		18,079
COPT-FD Indian Head, LLC	10/23/2006	75	%	Developing land parcel (5)	6,544		—		—
MOR Forbes 2 LLC	12/24/2002	50	%	Operating one building (6)	3,836		—		40
					$	158,372	$	95,322	$	73,609

(1) Excludes amounts eliminated in consolidation.

(2) This joint venture’s properties are in College Park, Maryland (in the Suburban Maryland region).

(3) This joint venture’s property is in Huntsville, Alabama.

(4) This joint venture’s property is in Hanover, Maryland (in the Baltimore/Washington Corridor).

(5) This joint venture’s property is in Charles County, Maryland.

(6) This joint venture’s property is in Lanham, Maryland (in the Suburban Maryland region).

- Definition

Tabular disclosure of equity method investments in common stock. The disclosure may include: (a) the name of each investee or group of investments for which combined disclosure is appropriate, (2) the percentage ownership of common stock, (3) the difference, if any, between the carrying amount of an investment and the value of the underlying equity in the net assets and the accounting treatment of difference, if any, and (4) the aggregate value of each identified investment based on its quoted market price, if available.

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