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

Quarterly report pursuant to Section 13 or 15(d)

Properties, Net

Properties, Net

3 Months Ended

Mar. 31, 2022

Operating properties, net consisted of the following (in thousands):


	March 31, 2022		December 31, 2021
Land	$	584,878	$	572,900
Buildings and improvements	3,765,625		3,670,133
Less: Accumulated depreciation	(1,182,652)		(1,152,523)
Operating properties, net	$	3,167,851	$	3,090,510

2022 Dispositions and Discontinued Operations

On January 25, 2022, we sold 9651 Hornbaker Road in Manassas, Virginia, our sole wholesale data center investment, for $222.5 million, resulting in a gain on sale of $28.6 million. This property, a separate reportable segment, is reported herein as discontinued operations. The table below sets forth the components of the property’s assets classified as held for sale on our consolidated balance sheet as of December 31, 2021 (in thousands):



Properties, net	$	191,857
Deferred rent receivable	462
Intangible assets on property acquisitions, net	73
Deferred leasing costs, net	307

Assets held for sale, net	$	192,699

The table below sets forth the property’s results of operations included in discontinued operations on our consolidated statements of operations and its operating and investing cash flows included on our consolidated statements of cash flows (in thousands):


	For the Three Months Ended March 31,
	2022		2021
	(in thousands)
Revenues from real estate operations	$	1,980	$	7,334
Property operating expenses	(971)		(3,698)
Depreciation and amortization associated with real estate operations	—		(2,821)

Gain on sale of real estate	28,564		—
Discontinued operations	29,573		815

Cash flows from operating activities	$	4,463	$	4,387
Cash flows from investing activities	$	220,569	$	(297)

2022 Development Activities

During the three months ended March 31, 2022, we placed into service 283,000 square feet in two newly-developed properties. As of March 31, 2022, we had 11 properties under development, including two partially-operational properties, that we estimate will total 1.7 million square feet upon completion.