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

Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows

Consolidated Statements of Cash Flows (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities
Revenues from real estate operations received	$ 117,521	$ 116,386
Construction contract and other service revenues received	19,968	17,289
Property operating expenses paid	(42,768)ofc_PropertyOperatingExpensesPaid	(42,739)ofc_PropertyOperatingExpensesPaid
Construction contract and other service expenses paid	(27,853)	(11,397)
General, administrative, leasing, business development and land carry costs paid	(12,728)	(9,906)
Interest expense paid	(12,795)us-gaap_InterestPaidNet	(18,403)us-gaap_InterestPaidNet
Payments in connection with early extinguishment of debt	(3)	(101)
Interest and other income received	556ofc_InterestAndOtherIncomeReceived	217ofc_InterestAndOtherIncomeReceived
Income taxes (paid) refunded	(8)us-gaap_IncomeTaxesPaidNet	192us-gaap_IncomeTaxesPaidNet
Net cash provided by operating activities	41,890	51,538
Cash flows from investing activities
Acquisitions of operating properties	(56,622)	0
Construction, development and redevelopment	(62,057)	(42,625)
Tenant improvements on operating properties	(5,520)us-gaap_PaymentsForTenantImprovements	(4,357)us-gaap_PaymentsForTenantImprovements
Other capital improvements on operating properties	(3,720)us-gaap_PaymentsForCapitalImprovements	(9,115)us-gaap_PaymentsForCapitalImprovements
Proceeds from dispositions of properties	17,424	220
Leasing costs paid	(1,935)us-gaap_PaymentsForLeasingCosts	(4,422)us-gaap_PaymentsForLeasingCosts
Increase in prepaid expenses and other assets associated with investing activities	(5,782)	(450)
Other	(174)	(106)
Net cash used in investing activities	(118,386)	(60,855)
Proceeds from debt
Revolving Credit Facility	150,000	0
Other debt proceeds	0	5,700
Repayments of debt
Revolving Credit Facility	(69,000)	0
Scheduled principal amortization	(1,649)	(1,855)
Other debt repayments	(50)us-gaap_RepaymentsOfOtherLongTermDebt	(50)us-gaap_RepaymentsOfOtherLongTermDebt
Net proceeds from issuance of common shares/units	28,404	568
Common share/unit dividends/distributions paid	(25,646)us-gaap_PaymentsOfDividendsCommonStock	(24,036)us-gaap_PaymentsOfDividendsCommonStock
Preferred share/unit dividends/distributions paid	(3,552)	(4,490)
Distributions paid to noncontrolling interests in COPLP	(1,217)	(1,253)
Redemption of vested equity awards	(2,031)	(1,092)
Other	(411)	(174)
Net cash provided by (used in) financing activities	74,848	(26,682)
Net decrease in cash and cash equivalents	(1,648)	(35,999)
Cash and cash equivalents
Beginning of period	6,077	54,373
End of period	4,429	18,374
Reconciliation of net income to net cash provided by operating activities:
Net income	14,735us-gaap_ProfitLoss	5,671us-gaap_ProfitLoss
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and other amortization	32,091	44,101
Impairment losses	233us-gaap_ImpairmentOfRealEstate	1us-gaap_ImpairmentOfRealEstate
Amortization of deferred financing costs	990us-gaap_AmortizationOfFinancingCosts	1,167us-gaap_AmortizationOfFinancingCosts
(Increase) decrease in deferred rent receivable	(1,746)us-gaap_StraightLineRent	398us-gaap_StraightLineRent
Amortization of net debt discounts	264	171
(Gain) loss on sales of real estate	(3,986)us-gaap_GainLossOnSaleOfProperties	4us-gaap_GainLossOnSaleOfProperties
Share-based compensation	1,552us-gaap_ShareBasedCompensation	1,555us-gaap_ShareBasedCompensation
Loss on early extinguishment of debt	0ofc_ExtinguishmentofDebtNoncashGainLoss	(78)ofc_ExtinguishmentofDebtNoncashGainLoss
Other	(640)us-gaap_OtherNoncashIncomeExpense	(1,032)us-gaap_OtherNoncashIncomeExpense
Operating changes in assets and liabilities:
Increase in accounts receivable	(6,918)	(1,769)
(Increase) decrease in restricted cash and marketable securities	(1,577)	283
Increase in prepaid expenses and other assets	(6,352)	(494)
Increase in accounts payable, accrued expenses and other liabilities	12,704	4,785
Increase (decrease) in rents received in advance and security deposits	540	(3,225)
Net cash provided by operating activities	41,890	51,538
Supplemental schedule of non-cash investing and financing activities:
Decrease in accrued capital improvements, leasing and other investing activity costs	(3,897)	(7,985)
Liabilities assumed on acquisition of operating properties	5,265	0
Decrease in fair value of derivatives applied to accumulated other comprehensive loss and noncontrolling interests	(2,701)	(1,443)
Dividends/distributions payable	30,174	29,122
Decrease in noncontrolling interests and increase in shareholders’ equity in connection with the conversion of common units into common shares	2,122	651
Adjustments to noncontrolling interests resulting from changes in COPLP ownership	475	69
Increase (decrease) in redeemable noncontrolling interest and decrease (increase) in equity to carry redeemable noncontrolling interest at fair value	73	(540)
Corporate Office Properties, L.P.
Cash flows from operating activities
Revenues from real estate operations received	117,521	116,386
Construction contract and other service revenues received	19,968	17,289
Property operating expenses paid	(42,768)	(42,739)
Construction contract and other service expenses paid	(27,853)	(11,397)
General, administrative, leasing, business development and land carry costs paid	(12,728)	(9,906)
Interest expense paid	(12,795)	(18,403)
Payments in connection with early extinguishment of debt	(3)	(101)
Interest and other income received	556	217
Income taxes (paid) refunded	(8)	192
Net cash provided by operating activities	41,890	51,538
Cash flows from investing activities
Acquisitions of operating properties	(56,622)	0
Construction, development and redevelopment	(62,057)	(42,625)
Tenant improvements on operating properties	(5,520)	(4,357)
Other capital improvements on operating properties	(3,720)	(9,115)
Proceeds from dispositions of properties	17,424	220
Leasing costs paid	(1,935)	(4,422)
Increase in prepaid expenses and other assets associated with investing activities	(5,782)	(450)
Other	(174)	(106)
Net cash used in investing activities	(118,386)	(60,855)
Proceeds from debt
Revolving Credit Facility	150,000	0
Other debt proceeds	0	5,700
Repayments of debt
Revolving Credit Facility	(69,000)	0
Scheduled principal amortization	(1,649)	(1,855)
Other debt repayments	(50)	(50)
Net proceeds from issuance of common shares/units	28,404	568
Common share/unit dividends/distributions paid	(26,698)	(25,124)
Preferred share/unit dividends/distributions paid	(3,717)	(4,655)
Redemption of vested equity awards	(2,031)	(1,092)
Other	(411)	(174)
Net cash provided by (used in) financing activities	74,848	(26,682)
Net decrease in cash and cash equivalents	(1,648)	(35,999)
Cash and cash equivalents
Beginning of period	6,077	54,373
End of period	4,429	18,374
Reconciliation of net income to net cash provided by operating activities:
Net income	14,735	5,671
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and other amortization	32,091	44,101
Impairment losses	233	1
Amortization of deferred financing costs	990	1,167
(Increase) decrease in deferred rent receivable	(1,746)	398
Amortization of net debt discounts	264	171
(Gain) loss on sales of real estate	(3,986)	4
Share-based compensation	1,552	1,555
Loss on early extinguishment of debt	0	(78)
Other	(640)	(1,032)
Operating changes in assets and liabilities:
Increase in accounts receivable	(6,918)	(1,769)
(Increase) decrease in restricted cash and marketable securities	(1,523)	381
Increase in prepaid expenses and other assets	(6,352)	(494)
Increase in accounts payable, accrued expenses and other liabilities	12,650	4,687
Increase (decrease) in rents received in advance and security deposits	540	(3,225)
Net cash provided by operating activities	41,890	51,538
Supplemental schedule of non-cash investing and financing activities:
Decrease in accrued capital improvements, leasing and other investing activity costs	(3,897)	(7,985)
Liabilities assumed on acquisition of operating properties	5,265	0
Decrease in fair value of derivatives applied to accumulated other comprehensive loss and noncontrolling interests	(2,701)	(1,443)
Dividends/distributions payable	30,174	29,122
Increase (decrease) in redeemable noncontrolling interest and decrease (increase) in equity to carry redeemable noncontrolling interest at fair value	$ 73	$ (540)