COPT Defense Properties Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Credit Losses on Financial Assets and Other Instruments (Tables)

Credit Losses on Financial Assets and Other Instruments (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Credit Losses, Financial Assets and Other Instruments, Allowance for Credit Loss

The table below sets forth the activity for our allowance for credit losses in 2021, 2022 and 2023 (in thousands):



	Investing Receivables		Tenant Notes Receivable (1)		Other Assets (2)		Total
December 31, 2020	$	2,851	$	1,203	$	643	$	4,697

Credit loss (recoveries) expense (3)	(1,252)		(146)		270		(1,128)



December 31, 2021	1,599		1,057		913		3,569
Credit loss expense (recoveries) (3)	1,195		(279)		(645)		271
December 31, 2022	2,794		778		268		3,840
Credit loss recoveries (3)	(417)		(79)		(115)		(611)
Write-offs	—		(33)		—		(33)
December 31, 2023	$	2,377	$	666	$	153	$	3,196

(1)Included in the line entitled “accounts receivable, net” on our consolidated balance sheets.

(2)The balance as of December 31, 2023 and December 31, 2022 included $87,000 and $52,000, respectively, in the line entitled “accounts receivable, net” and $66,000 and $216,000, respectively, in the line entitled “prepaid expenses and other assets, net” on our consolidated balance sheets.

(3)Included in the line entitled “interest and other income, net” on our consolidated statements of operations.

Schedule of Financing Receivable Credit Quality Indicators

The following table presents the amortized cost basis of our investing receivables, tenant notes receivable and sales-type lease receivables by credit risk classification, by origination year as of December 31, 2023 (in thousands):


	Origination Year
	2018 and Earlier		2019		2020		2021		2022		2023		Total
Investing receivables:
Credit risk classification:
Investment grade	$	66,105	$	—	$	2,326	$	8,336	$	—	$	255	$	77,022
Non-investment grade	—		—		—		—		6,867		—		6,867
Total	$	66,105	$	—	$	2,326	$	8,336	$	6,867	$	255	$	83,889

Tenant notes receivable:
Credit risk classification:
Investment grade	$	686	$	15	$	115	$	—	$	—	$	—	$	816
Non-investment grade	125		46		1,433		—		—		—		1,604
Total	$	811	$	61	$	1,548	$	—	$	—	$	—	$	2,420
Gross write-offs during the year ended December 31, 2023	$	33	$	—	$	—	$	—	$	—	$	—	$	33

Sales-type lease receivable:
Credit risk classification:
Investment grade	$	—	$	—	$	5,098	$	—	$	—	$	—	$	5,098