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

9 Months Ended

Sep. 30, 2024

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


	September 30, 2024		December 31, 2023
Land	$	491,304	$	482,964
Buildings and improvements	4,301,385		4,164,004
Less: Accumulated depreciation	(1,502,730)		(1,400,162)
Operating properties, net	$	3,289,959	$	3,246,806

In the nine months ended September 30, 2024, we acquired the following operating office properties:

>6841 Benjamin Franklin Drive, a 202,000 square foot property in Columbia, Maryland (included in the Fort Meade/BW Corridor sub-segment of our Defense/IT Portfolio reportable segment) that was 56% leased, for a purchase price of $15.0 million on March 15, 2024; and

>3900 Rogers Road, an 80,000 square foot property in San Antonio, Texas (included in the Lackland Air Force Base sub-segment of our Defense/IT Portfolio reportable segment) that was vacant on the acquisition date and subsequently leased in full, for a purchase price of $17.0 million on September 26, 2024.

The table below sets forth the allocation of the aggregate purchase price and transaction costs associated with these acquisitions (in thousands):


Land, operating properties	$	8,361
Building and improvements	16,635
Intangible assets on real estate acquisitions	7,248


Total acquisition cost	$	32,244

Intangible assets recorded in connection with these acquisitions included the following (dollars in thousands):


			Weighted Average Amortization Period (in Years)
Tenant relationship value	$	3,752	12.4
In-place lease value	2,229		2.4
Above-market leases	1,267		2.4
	$	7,248	7.6