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

Quarterly report pursuant to Section 13 or 15(d)

Information by Business Segment (Tables)

Information by Business Segment (Tables)

3 Months Ended

Mar. 31, 2023

Schedule of segment financial information for real estate operations

The table below reports segment financial information for our reportable segments (in thousands):


	Defense/IT Locations
	Fort Meade/BW Corridor		NoVA Defense/IT		Lackland Air Force Base		Navy Support		Redstone Arsenal		Data Center Shells		Total Defense/IT Locations		Regional Office		Wholesale Data Center		Other		Total














Three Months Ended March 31, 2023
Revenues from real estate operations	$	69,777	$	19,829	$	15,605	$	7,925	$	13,414	$	6,692	$	133,242	$	16,054	$	—	$	2,385	$	151,681
Property operating expenses	(24,520)		(7,572)		(7,945)		(3,543)		(4,636)		(594)		(48,810)		(8,851)		—		(1,759)		(59,420)
UJV NOI allocable to COPT	—		—		—		—		—		1,642		1,642		—		—		—		1,642
NOI from real estate operations	$	45,257	$	12,257	$	7,660	$	4,382	$	8,778	$	7,740	$	86,074	$	7,203	$	—	$	626	$	93,903
Additions to long-lived assets	$	12,135	$	2,398	$	62	$	759	$	6,594	$	—	$	21,948	$	3,278	$	—	$	11	$	25,237
Transfers from non-operating properties	$	5,781	$	238	$	28	$	2,650	$	14,392	$	3,311	$	26,400	$	13	$	—	$	—	$	26,413
Segment assets at March 31, 2023	$	1,390,273	$	486,649	$	193,160	$	169,235	$	472,237	$	324,422	$	3,035,976	$	545,817	$	—	$	3,321	$	3,585,114
Three Months Ended March 31, 2022
Revenues from real estate operations	$	67,214	$	18,576	$	14,713	$	8,169	$	9,195	$	7,505	$	125,372	$	15,082	$	1,980	$	1,826	$	144,260
Property operating expenses	(25,784)		(6,869)		(7,072)		(3,471)		(3,735)		(1,010)		(47,941)		(7,930)		(1,025)		(1,256)		(58,152)
UJV NOI allocable to COPT	—		—		—		—		—		1,080		1,080		—		—		—		1,080
NOI from real estate operations	$	41,430	$	11,707	$	7,641	$	4,698	$	5,460	$	7,575	$	78,511	$	7,152	$	955	$	570	$	87,188
Additions to long-lived assets	$	11,785	$	2,189	$	—	$	740	$	235	$	—	$	14,949	$	4,333	$	(51)	$	1	$	19,232
Transfers from non-operating properties	$	5,369	$	319	$	418	$	6,376	$	76	$	81,203	$	93,761	$	271	$	—	$	—	$	94,032
Segment assets at March 31, 2022	$	1,334,119	$	488,479	$	197,406	$	175,176	$	297,974	$	430,447	$	2,923,601	$	536,909	$	—	$	3,901	$	3,464,411

Schedule of reconciliation of segment revenues to total revenues

The following table reconciles our segment revenues to total revenues as reported on our consolidated statements of operations (in thousands):


	For the Three Months Ended March 31,
	2023		2022
Segment revenues from real estate operations	$	151,681	$	144,260
Construction contract and other service revenues	15,820		53,200
Less: Revenues from discontinued operations	—		(1,980)
Total revenues	$	167,501	$	195,480

Schedule of reconciliation of segment property operating expenses to property operating expenses

The following table reconciles our segment property operating expenses to property operating expenses as reported on our consolidated statements of operations (in thousands):


	For the Three Months Ended March 31,
	2023		2022
Segment property operating expenses	$	59,420	$	58,152
Less: Property operating expenses from discontinued operations	—		(971)
Total property operating expenses	$	59,420	$	57,181

Reconciliation of UJV NOI allocable to COPT to equity in income of unconsolidated entities

The following table reconciles UJV NOI allocable to COPT to equity in (loss) income of unconsolidated entities as reported on our consolidated statements of operations (in thousands):


	For the Three Months Ended March 31,
	2023		2022
UJV NOI allocable to COPT	$	1,642	$	1,080
Less: Income from UJV allocable to COPT attributable to depreciation and amortization expense and interest expense	(1,704)		(758)
Add: Equity in (loss) income of unconsolidated non-real estate entities	(2)		566
Equity in (loss) income of unconsolidated entities	$	(64)	$	888

Schedule of computation of net operating income from service operations

The table below sets forth the computation of our NOI from service operations (in thousands):


	For the Three Months Ended March 31,
	2023		2022
Construction contract and other service revenues	$	15,820	$	53,200
Construction contract and other service expenses	(15,201)		(51,650)
NOI from service operations	$	619	$	1,550

Schedule of reconciliation of net operating income from real estate operations and service operations to income from continuing operations

The following table reconciles our NOI from real estate operations for reportable segments and NOI from service operations to income from continuing operations as reported on our consolidated statements of operations (in thousands):


	For the Three Months Ended March 31,
	2023		2022
NOI from real estate operations	$	93,903	$	87,188
NOI from service operations	619		1,550
Depreciation and other amortization associated with real estate operations	(36,995)		(34,264)
General, administrative and leasing expenses	(9,995)		(8,544)
Business development expenses and land carry costs	(495)		(783)

Interest expense	(16,442)		(14,424)
Interest and other income	2,323		1,893
Credit loss (expense) recoveries	(67)		316
Gain on sales of real estate	49,378		15
Loss on early extinguishment of debt	—		(342)

Equity in (loss) income of unconsolidated entities	(64)		888
UJV NOI allocable to COPT included in equity in (loss) income of unconsolidated entities	(1,642)		(1,080)
Income tax expense	(125)		(153)
Revenues from real estate operations from discontinued operations	—		(1,980)
Property operating expenses from discontinued operations	—		971
Income from continuing operations	$	80,398	$	31,251

Schedule of reconciliation of segment assets to total assets

The following table reconciles our segment assets to our consolidated total assets (in thousands):


	March 31, 2023		March 31, 2022
Segment assets	$	3,585,114	$	3,464,411
Operating properties lease liabilities included in segment assets	35,327		29,729
Non-operating property assets	345,518		419,346
Other assets	212,033		218,540
Total consolidated assets	$	4,177,992	$	4,132,026