Share-Based Compensation and Other Compensation Matters (Tables)
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12 Months Ended |
Dec. 31, 2023 |
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| Share-Based Payment Arrangement [Abstract] |
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| Schedule of 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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2023 |
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2022 |
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2021 |
| General, administrative, leasing and other expenses |
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$ |
7,255 |
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$ |
7,643 |
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$ |
6,881 |
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| Property operating expenses |
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1,289 |
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1,147 |
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1,098 |
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| Capitalized to development activities |
|
576 |
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|
847 |
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|
719 |
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| Share-based compensation cost |
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$ |
9,120 |
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$ |
9,637 |
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$ |
8,698 |
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| Schedule of Restricted Share and TB-PIU Activity |
The following table summarizes restricted shares activity under our share-based compensation plan for 2021, 2022 and 2023:
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Shares |
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Weighted Average Grant Date Fair Value |
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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| Granted |
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220,336 |
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$ |
25.38 |
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| Forfeited |
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(39,474) |
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$ |
26.03 |
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| Vested |
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(152,490) |
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$ |
26.09 |
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Unvested as of December 31, 2023 |
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353,455 |
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$ |
25.82 |
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Unvested shares as of December 31, 2023 that are expected to vest |
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317,075 |
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$ |
25.83 |
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The following table summarizes TB-PIUs activity under our share-based compensation plan for 2021, 2022 and 2023:
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Number of TB-PIUs |
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Weighted Average Grant Date Fair Value |
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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| Granted |
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123,900 |
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$ |
25.40 |
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| Forfeited |
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(27,182) |
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$ |
26.46 |
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| Vested |
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(89,633) |
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$ |
25.95 |
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Unvested as of December 31, 2023 |
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194,415 |
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$ |
25.76 |
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Unvested TB-PIUs as of December 31, 2023 that are expected to vest |
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193,131 |
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$ |
25.76 |
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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 2023 (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, 2023 |
| 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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— |
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| 1/1/2021 |
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227,544 |
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$ |
3,417 |
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189,308 |
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| 1/1/2022 |
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231,838 |
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$ |
3,810 |
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192,996 |
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| 1/1/2023 |
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275,402 |
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$ |
4,343 |
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225,590 |
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| Schedule of Payouts for Defined Performance Under PB-PIU |
The number of earned awards at the end of the performance period will be determined based on the percentile rank of COPT Defense’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 |
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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 2021, 2022 and 2023 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 |
| 1/1/2021 |
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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 |
% |
| 1/1/2023 |
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$ |
31.54 |
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$ |
25.94 |
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35.0 |
% |
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4.28 |
% |
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| Schedule of Deferred Shares Granted |
We made the following grants of deferred share awards to non-employee Trustees in 2021, 2022 and 2023 (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 |
| 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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| 2023 |
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9,046 |
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$ |
215 |
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$ |
23.75 |
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