Share-Based Compensation and Other Compensation Matters (Tables)
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12 Months Ended |
Dec. 31, 2022 |
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| Share-Based Payment Arrangement [Abstract] |
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| Reporting for share-based compensation expense |
The table below sets forth our reporting for share based compensation cost (in thousands):
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For the Years Ended December 31, |
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2022 |
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2021 |
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2020 |
| General, administrative and leasing expenses |
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$ |
7,643 |
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$ |
6,881 |
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$ |
5,385 |
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| Property operating expenses |
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1,147 |
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1,098 |
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1,119 |
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| Capitalized to development activities |
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847 |
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719 |
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556 |
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| Share-based compensation cost |
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$ |
9,637 |
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$ |
8,698 |
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$ |
7,060 |
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| Summary of restricted share and TB-PIU transactions under the entity's share-based compensation plans |
The following table summarizes restricted shares under the share-based compensation plans for 2020, 2021 and 2022:
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Shares |
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Weighted Average Grant Date Fair Value |
Unvested as of December 31, 2019 |
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392,863 |
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$ |
27.49 |
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| Granted |
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166,918 |
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$ |
25.22 |
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| Forfeited |
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(25,773) |
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$ |
27.12 |
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| Vested |
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(173,191) |
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$ |
28.14 |
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Unvested as of December 31, 2020 |
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360,817 |
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$ |
26.16 |
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| Granted |
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177,995 |
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$ |
26.17 |
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| Forfeited |
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(39,664) |
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$ |
26.62 |
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| Vested |
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(164,575) |
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$ |
25.95 |
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Unvested as of December 31, 2021 |
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334,573 |
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$ |
26.22 |
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| Granted |
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186,515 |
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$ |
26.50 |
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| Forfeited |
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(43,420) |
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$ |
26.47 |
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| Vested |
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(152,585) |
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$ |
26.39 |
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Unvested as of December 31, 2022 |
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325,083 |
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$ |
26.27 |
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Unvested shares as of December 31, 2022 that are expected to vest |
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297,282 |
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$ |
26.25 |
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The following table summarizes TB-PIUs under the share-based compensation plan for 2020, 2021 and 2022:
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Number of TB-PIUs |
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Weighted Average Grant Date Fair Value |
Unvested as of December 31, 2019 |
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61,820 |
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$ |
26.01 |
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| Granted |
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98,318 |
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$ |
25.47 |
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| Forfeited |
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(20,622) |
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$ |
25.50 |
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| Vested |
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(25,182) |
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$ |
26.30 |
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Unvested as of December 31, 2020 |
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114,334 |
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$ |
25.57 |
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| Granted |
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93,983 |
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$ |
26.16 |
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| Vested |
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(45,244) |
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$ |
25.28 |
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Unvested as of December 31, 2021 |
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163,073 |
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$ |
25.99 |
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| Granted |
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101,966 |
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$ |
26.39 |
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| Vested |
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(77,709) |
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$ |
26.04 |
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Unvested as of December 31, 2022 |
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187,330 |
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$ |
26.19 |
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Unvested TB-PIUs as of December 31, 2022 that are expected to vest |
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186,345 |
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$ |
26.19 |
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| Schedule of PB-PIU's Granted |
We made the following grants of PB-PIUs to senior management team members from 2019 through 2022 (dollars in thousands, except per share data):
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| Grant Date |
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Number of PB-PIUs Granted |
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Grant Date Fair Value |
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Number of PB-PIUs Outstanding as of December 31, 2022 |
| 1/1/2019 |
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193,682 |
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$ |
2,415 |
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— |
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| 1/1/2020 |
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176,758 |
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$ |
2,891 |
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141,152 |
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| 1/1/2021 |
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227,544 |
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$ |
3,417 |
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227,544 |
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| 1/1/2022 |
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231,838 |
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$ |
3,810 |
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231,838 |
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| Schedule of payouts for defined performance under PB-PIU/PSUs |
The number of earned awards at the end of the performance period will be determined based on the percentile rank of COPT’s total shareholder return (“TSR”) relative to a peer group of companies, as set forth in the following schedule:
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| Percentile Rank |
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Earned Awards Payout % |
| 75th or greater |
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100% of PB-PIUs granted |
| 50th (target) |
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50% of PB-PIUs granted |
| 25th |
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25% of PB-PIUs granted |
| Below 25th |
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0% of PB-PIUs granted |
The number of PSUs earned (“earned PSUs”) at the end of the performance period were determined based on the percentile rank of COPT’s TSR relative to a peer group of companies, as set forth in the following schedule:
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| Percentile Rank |
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Earned PSUs Payout % |
| 75th or greater |
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200% of PSUs granted |
| 50th (target) |
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100% of PSUs granted |
| 25th |
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50% of PSUs granted |
| Below 25th |
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0% of PSUs granted |
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| Schedule of assumptions used in Monte Carlo models for PB-PIUs |
The grant date fair value and certain of the assumptions used in the Monte Carlo models for the PB-PIUs granted in 2020, 2021 and 2022 are set forth below:
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| Grant Date |
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Grant Date Fair Value Per PB-PIU at Target-Level Award |
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Baseline Common Share Value |
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Expected Volatility of Common Shares |
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Risk-free Interest Rate |
| 1/1/2020 |
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$ |
32.71 |
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$ |
29.38 |
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18.0 |
% |
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1.65 |
% |
| 1/1/2021 |
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$ |
30.03 |
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$ |
26.08 |
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34.7 |
% |
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0.18 |
% |
| 1/1/2022 |
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$ |
32.87 |
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$ |
27.97 |
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31.7 |
% |
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0.98 |
% |
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| Deferred Shares Granted |
We made the following grants of deferred share awards to non-employee Trustees in 2020, 2021 and 2022 (dollars in thousands, except per share data):
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| Year of Grant |
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Number of Deferred Share Awards Granted |
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Aggregate Grant Date Fair Value |
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Grant Date Fair Value Per Award |
| 2020 |
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10,679 |
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$ |
253 |
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$ |
23.68 |
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| 2021 |
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3,416 |
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$ |
93 |
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$ |
27.12 |
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| 2022 |
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6,771 |
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$ |
166 |
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$ |
24.50 |
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