Corporate Office Properties Trust Announces Tax Treatment of 2010 Distributions
COLUMBIA, Md.--(BUSINESS WIRE)-- Corporate Office Properties Trust (COPT) (NYSE: OFC) announced that 59.70 percent of its 2010 Common Share distributions qualifies as ordinary income, 8.00 percent qualifies as capital gain (including 5.60 percent qualifying as unrecaptured Section 1250 gain) and 32.30 percent qualifies as return of capital. Shareholders generally benefit from the return of capital by deferring income taxes on that portion of the distribution until a share is sold or otherwise transferred. The Company also announced that 88.30 percent of its distributions paid to preferred shares in 2010 qualifies as ordinary income and 11.70 percent qualifies as capital gain (including 8.20 percent qualifying as unrecaptured Section 1250 gain). Shareholders are encouraged to consult with their tax advisors as to their specific tax treatment for Corporate Office Properties Trust Common and Preferred Share distributions.
The table below summarizes the income tax treatment for 2010 distributions for the Common Shares of Corporate Office Properties Trust (CUSIP# 22002T108).
Ordinary Total Return of Unrecap
Record Payable Distribution Taxable Capital Capital Sec.
Date Date Per Share Dividend Gain (1) 1250 Gain
(2)
3/31/2010 4/15/2010 $0.3925 $0.234417 $0.031167 $0.126916 $0.021826
6/30/2010 7/15/2010 $0.3925 $0.234417 $0.031167 $0.126916 $0.021826
9/30/2010 10/15/2010 $0.4125 $0.246361 $0.032755 $0.133384 $0.022938
12/31/2010 1/18/2011 $0.4125 $0.246361 $0.032755 $0.133384 $0.022938
(1) Represents a return of shareholder investment.
(2) Represents additional characterization of amounts included in Total
Capital Gain.
The table below summarizes the income tax treatment for 2010 distributions for the Corporate Office Properties Trust Series G Preferred Shares (CUSIP# 22002T504).
Distribution Ordinary Total Unrecap Sec.
Record Date Payable Date Per Share Taxable Capital 1250 Gain(1)
Dividend Gain
3/31/2010 4/15/2010 $0.5000 $0.441324 $0.058676 $0.041090
6/30/2010 7/15/2010 $0.5000 $0.441324 $0.058676 $0.041090
9/30/2010 10/15/2010 $0.5000 $0.441324 $0.058676 $0.041090
12/31/2010 1/18/2011 $0.5000 $0.441324 $0.058676 $0.041090
(1) Represents additional characterization of amounts included in Total
Capital Gain.
The table below summarizes the income tax treatment for 2010 distributions for the Corporate Office Properties Trust Series H Preferred Shares (CUSIP# 22002T603).
Distribution Ordinary Total Unrecap Sec.
Record Date Payable Date Per Share Taxable Capital 1250 Gain(1)
Dividend Gain
3/31/2010 4/15/2010 $0.4688 $0.413785 $0.055015 $0.038526
6/30/2010 7/15/2010 $0.4688 $0.413785 $0.055015 $0.038526
9/30/2010 10/15/2010 $0.4688 $0.413785 $0.055015 $0.038526
12/31/2010 1/18/2011 $0.4688 $0.413785 $0.055015 $0.038526
(1) Represents additional characterization of amounts included in Total
Capital Gain.
The table below summarizes the income tax treatment for 2010 distributions for the Corporate Office Properties Trust Series J Preferred Shares (CUSIP# 22002T702).
Distribution Ordinary Total Unrecap Sec.
Record Date Payable Date Per Share Taxable Capital 1250 Gain(1)
Dividend Gain
3/31/2010 4/15/2010 $0.4766 $0.420670 $0.055930 $0.039167
6/30/2010 7/15/2010 $0.4766 $0.420670 $0.055930 $0.039167
9/30/2010 10/15/2010 $0.4766 $0.420670 $0.055930 $0.039167
12/31/2010 1/18/2011 $0.4766 $0.420670 $0.055930 $0.039167
(1) Represents additional characterization of amounts included in Total
Capital Gain.
The table below summarizes the income tax treatment for 2010 distributions for the Corporate Office Properties Trust Series K Preferred Shares (CUSIP# 22002T801).
Distribution Ordinary Total Unrecap Sec.
Record Date Payable Date Per Share Taxable Capital 1250 Gain(1)
Dividend Gain
3/31/2010 4/15/2010 $0.7000 $0.617853 $0.082147 $0.057527
6/30/2010 7/15/2010 $0.7000 $0.617853 $0.082147 $0.057527
9/30/2010 10/15/2010 $0.7000 $0.617853 $0.082147 $0.057527
12/31/2010 1/18/2011 $0.7000 $0.617853 $0.082147 $0.057527
(1) Represents additional characterization of amounts included in Total
Capital Gain.
Company Information
Corporate Office Properties Trust (COPT) (NYSE: OFC) is a specialty office real estate investment trust (REIT) that focuses on strategic customer relationships and specialized tenant requirements in the U.S. Government, Defense Information Technology and Data sectors. The Company acquires, develops, manages and leases office and data center properties which are typically concentrated in large office parks primarily located adjacent to government demand drivers and/or in growth corridors. As of September 30, 2010, the Company owned 269 office properties totaling 21.0 million rentable square feet, which includes 20 properties totaling 1.1 million square feet held through joint ventures. The Company's portfolio primarily consists of technically sophisticated buildings in visually appealing settings that are environmentally sensitive, sustainable and meet unique customer requirements. COPT is an S&P MidCap 400 company and more information can be found at www.copt.com.
Forward-Looking Information
This press release may contain "forward-looking" statements, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that are based on the Company's current expectations, estimates and projections about future events and financial trends affecting the Company. Forward-looking statements can be identified by the use of words such as "may," "will," "should," "could," "expect," "estimate" or other comparable terminology. Forward-looking statements are inherently subject to risks and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate. Accordingly, the Company can give no assurance that these expectations, estimates and projections will be achieved. Future events and actual results may differ materially from those discussed in the forward-looking statements.
Important factors that may affect these expectations, estimates, and projections include, but are not limited to:
-- the Company's ability to borrow on favorable terms;
-- general economic and business conditions, which will, among other
things, affect office property demand and rents, tenant
creditworthiness, interest rates and financing availability;
-- adverse changes in the real estate markets including, among other
things, increased competition with other companies;
-- risk of real estate acquisition and development, including, among other
things, risks that development projects may not be completed on
schedule, that tenants may not take occupancy or pay rent or that
development or operating costs may be greater than anticipated;
-- risks of investing through joint venture structures, including risks
that the Company's joint venture partners may not fulfill their
financial obligations as investors or may take actions that are
inconsistent with the Company's objectives;
-- changes in our plans for properties or our views of market economic
conditions that could result in recognition of impairment losses;
-- our ability to satisfy and operate effectively under federal income tax
rules relating to real estate investment trusts and partnerships;
-- governmental actions and initiatives; and
-- environmental requirements.
The Company undertakes no obligation to update or supplement any forward-looking statements. For further information, please refer to the Company's filings with the Securities and Exchange Commission, particularly the section entitled "Risk Factors" in Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2009.
Source: Corporate Office Properties Trust
Released January 21, 2011