Corporate Office Properties Trust Reports Second Quarter 2010 Results
COLUMBIA, Md.--(BUSINESS WIRE)-- Corporate Office Properties Trust (COPT) (NYSE: OFC) announced today financial and operating results for the quarter ended June 30, 2010.
Highlights
-- Funds from Operations ("FFO") per diluted share for the second quarter 2010, excluding the effect of operating property acquisition costs, was $.54 as compared to $.67 for the second quarter 2009, a decrease of 19%. Including these costs, FFO per diluted share for the second quarter 2010 was $.53. This decline was primarily a result of a $7 million increase in interest expense and a $1.5 million decrease in net construction fees. Net Operating Income ("NOI") increased primarily due to development placed in service and acquisitions that occurred late in 2009, partially offset by a $2.3 million decrease in NOI attributable to vacancies in assets we expect to redevelop in Blue Bell, PA and a warehouse in Columbia, MD. -- Net income attributable to common shareholders for the second quarter 2010 was $4.4 million or $.07 per diluted earnings per share ("Diluted EPS") as compared to $12.6 million of net income available to common shareholders or $.22 Diluted EPS for the second quarter 2009, a decrease of 68% per share. -- Diluted Adjusted Funds from Operations ("Diluted AFFO") available to common share and common unit holders was $26.7 million for the second quarter 2010 as compared to $36.2 million for the second quarter 2009, a decrease of 26%. -- 88.3% occupied and 89.3% leased for our wholly-owned portfolio as of June 30, 2010. -- Flat same office property cash NOI including gross lease termination fees for the quarter ended June 30, 2010 as compared to the quarter ended June 30, 2009. -- 588,000 square feet renewed for a 71% renewal rate for the quarter ended June 30, 2010. -- 545,000 square feet of development space leased during the six months ended June 30, 2010.
"Our results for the quarter were in line with our expectations. However, consensus was impacted by several estimates that assumed NOI contributions from development placed in service and acquisitions earlier than our guidance indicated," stated Randall M. Griffin, President and Chief Executive Officer, Corporate Office Properties Trust. "Also, a few estimates did not include our guidance regarding higher interest expense as a result of our exchangeable notes offering," he added.
Financial Ratios
Diluted FFO payout ratio for the six months ended June 30, 2010 was 75% as compared to 56% for the six months ended June 30, 2009. Diluted AFFO payout ratio for the six months ended June 30, 2010 was 96% as compared to 66% for the six months ended June 30, 2009.
As of June 30, 2010, the Company had a total market capitalization of $4.8 billion, with $2.2 billion in debt outstanding, equating to a 45% debt to total market capitalization ratio.
For the second quarter 2010, the Company's weighted average interest rate was 5.3% compared to 4.7% for the second quarter 2009. At June 30, 2010, the Company had 81% of its total debt subject to fixed interest rates.
For the second quarter 2010, the Company's EBITDA to interest coverage ratio was 2.8x, and the EBITDA fixed charge coverage ratio was 2.4x.
Reconciliations of non-GAAP measures to the most directly comparable GAAP measures are included in the tables that follow the text of this press release.
Operating Results
At June 30, 2010, the Company's wholly-owned portfolio of 247 office properties totaled 19.5 million square feet. The weighted average remaining lease term for the portfolio was 4.6 years and the average rental rate (including tenant reimbursements) was $24.72 per square foot.
For the quarter ended June 30, 2010, 588,000 square feet was renewed, at an average committed cost of $4.09 per square foot. Total rent on renewed space increased 4% on a straight-line basis, as measured from the straight-line rent in effect preceding the renewal date, and decreased 3% on a cash basis. For renewed and retenanted space of 752,000 square feet, total straight-line rent increased 3% and total rent on a cash basis decreased 4%. The average committed cost for renewed and retenanted space was $9.97 per square foot.
Development Activity
At June 30, 2010, the Company had 3.3 million square feet under construction, development and redevelopment for a total projected cost of $707.8 million.
The Company's land inventory (wholly-owned and joint venture) at June 30, 2010 totaled 2,270 acres that can support up to 21.6 million square feet of estimated development.
During the quarter, the Company placed into service 255,000 square feet located in four properties.
The Company entered a new submarket with control of approximately 15 acres and the development potential of up to 980,000 square feet in the Northern Virginia submarket of Springfield. This project, known as Patriot Ridge, is adjacent to the new National Geospatial Intelligence Agency (NGA) headquarters currently under construction. The NGA will occupy a 2.4 million square foot facility which will be located at Fort Belvoir, the beneficiary of the largest BRAC gain of any military installation in the country.
Acquisition Activity
The Company acquired a 152,000 square foot building for $40 million located at 1550 Westbranch Drive in Tysons Corner, Virginia. The building is 100% leased to The MITRE Corporation.
Financing and Capital Transactions
The Company closed the following transactions during the quarter:
-- On April 7, 2010, the Company issued $240 million aggregate principal amount of 4.25% Exchangeable Senior Notes due 2030. The notes have an exchange settlement feature that provides that the notes may, under certain circumstances, be exchangeable for cash and our common shares at an initial exchange rate (subject to adjustment) of 20.7658 shares for $1,000 principal amount of the notes (equivalent to an exchange price of $48.16 per common share, a 20% premium over the closing price on the NYSE on the transaction pricing date). The Company used the proceeds for general corporate purposes, including repayment of borrowings under its unsecured revolving credit facility. -- Increased the Company's revolving credit facility by $100 million, from $600 million to $700 million in April 2010.
"We continue to experience a challenging leasing environment for portions of our existing portfolio. Offsetting this pressure, we are capturing increased leasing activity, at excellent margins, for our projects under construction and are starting new projects based on demand. We have added two strong future projects to our development pipeline," stated Randall M. Griffin, President and Chief Executive Officer, Corporate Office Properties Trust. "In addition, we have commenced our 2010 acquisitions that are expected to total over $300 million for the year. The combination of our development placed in service, acquisitions under way and gains on our strategic investment is expected to accelerate FFO results for the second half of 2010," he added.
Earnings Guidance
The Company revised its 2010 diluted EPS guidance from a range of $.51 to $.68 to a range of $.50 to $.63 per diluted share.
The Company revised its 2010 diluted FFO per share guidance from a range of $2.31 to $2.49 to a range of $2.31 to $2.46. This guidance excludes any initial property acquisition costs that would be required to be expensed as incurred.
Conference Call
The Company will hold an investor/analyst conference call:
Conference Call (within the United States) Date: Thursday, July 29, 2010 Time: 11:00 a.m. Eastern Time Telephone Number: 888-679-8034 Passcode: 39421048 Conference Call (outside the United States) Date: Thursday, July 29, 2010 Time: 11:00 a.m. Eastern Time Telephone Number: 617-213-4847 Passcode: 39421048
Please use the following link to pre-register and view important information about this conference call. Pre-registering is not mandatory but is recommended as it will provide you immediate entry into the call and will facilitate the timely start of the conference. Pre-registration only takes a few moments and you may pre-register at anytime, including up to and after the call start time. To pre-register, please click on the below link: https://www.theconferencingservice.com/prereg/key.process?key=PU738Q8YR
You may also pre-register in the Investor Relations section of the Company's website at www.copt.com. Alternatively, you may be placed into the call by an operator by calling the number provided above at least 5 to 10 minutes before the start of the call. A replay of this call will be available beginning Thursday, July 29 at 3:00 p.m. Eastern Time through Thursday, August 12 at midnight Eastern Time. To access the replay within in the United States, please call 888-286-8010 and use passcode 67473908. To access the replay outside the United States, please call 617-801-6888 and use passcode 67473908.
The conference calls will also be available via live webcast in the Investor Relations section of the Company's website at www.copt.com. A replay of the conference calls will be immediately available via webcast in the Investor Relations section of the Company's website.
Definitions
Please refer to our Form 8-K or our website (www.copt.com) for definitions of certain terms used in this press release. Reconciliations of non-GAAP measures to the most directly comparable GAAP measures are included in the attached tables.
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 properties which are typically concentrated in large office parks primarily located adjacent to government demand drivers and/or in growth corridors. As of June 30, 2010, the Company owned 267 office and data properties totaling 20.6 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.
Corporate Office Properties Trust Summary Financial Data (unaudited) (Amounts in thousands, except per share data) Three Months Ended Six Months Ended June 30, June 30, 2010 2009 2010 2009 Revenues Real estate revenues $ 109,257 $ 105,007 $ 221,485 $ 211,115 Construction contract and 26,065 103,324 63,430 178,213 other service revenues Total revenues 135,322 208,331 284,915 389,328 Expenses Property operating expenses 40,005 37,100 88,140 76,064 Depreciation and amortization associated with 29,548 28,493 57,144 54,770 real estate operations Construction contract and 25,402 101,161 61,801 174,484 other service expenses General and administrative 5,926 5,834 11,826 11,377 expenses Business development 465 446 620 1,092 expenses Total operating expenses 101,346 173,034 219,531 317,787 Operating income 33,976 35,297 65,384 71,541 Interest expense (25,812 ) (18,620 ) (48,450 ) (37,983 ) Interest and other income 245 1,252 1,547 2,330 Income from continuing operations before equity in 8,409 17,929 18,481 35,888 loss of unconsolidated entities and income taxes Equity in loss of (72 ) (202 ) (277 ) (317 ) unconsolidated entities Income tax expense (7 ) (52 ) (48 ) (122 ) Income from continuing 8,330 17,675 18,156 35,449 operations Discontinued operations 486 376 1,318 768 Income before gain on sales 8,816 18,051 19,474 36,217 of real estate Gain on sales of real 335 - 352 - estate, net of income taxes Net income 9,151 18,051 19,826 36,217 Less net income attributable to noncontrolling interests Common units in the (364 ) (1,272 ) (891 ) (3,076 ) Operating Partnership Preferred units in the (165 ) (165 ) (330 ) (330 ) Operating Partnership Other consolidated entities (156 ) 25 (201 ) (25 ) Net income attributable to 8,466 16,639 18,404 32,786 COPT Preferred share dividends (4,026 ) (4,026 ) (8,051 ) (8,051 ) Net income attributable to $ 4,440 $ 12,613 $ 10,353 $ 24,735 COPT common shareholders Earnings per share "EPS" computation: Numerator for diluted EPS: Net income attributable to $ 4,440 $ 12,613 $ 10,353 $ 24,735 common shareholders Amount allocable to (250 ) (242 ) (540 ) (510 ) restricted shares Numerator for diluted EPS 4,190 12,371 9,813 24,225 Denominator: Weighted average common 58,489 56,637 58,169 54,296 shares - basic Dilutive effect of share-based compensation 421 546 405 522 awards Weighted average common 58,910 57,183 58,574 54,818 shares - diluted Diluted EPS $ 0.07 $ 0.22 $ 0.17 $ 0.44
Corporate Office Properties Trust Summary Financial Data (unaudited) (Amounts in thousands, except per share data and ratios) Three Months Ended Six Months Ended June 30, June 30, 2010 2009 2010 2009 Net income $ 9,151 $ 18,051 $ 19,826 $ 36,217 Add: Real estate-related 29,548 28,708 57,151 55,199 depreciation and amortization Add: Depreciation and amortization on unconsolidated 171 161 346 321 real estate entities Less: Gain on sales of operating properties, net of - - (297 ) - income taxes Funds from operations ("FFO") 38,870 46,920 77,026 91,737 Less: Noncontrolling interests - preferred units in the (165 ) (165 ) (330 ) (330 ) Operating Partnership Less: Noncontrolling interests (156 ) 25 (201 ) (25 ) - other consolidated entities Less: Preferred share (4,026 ) (4,026 ) (8,051 ) (8,051 ) dividends Less: Depreciation and amortization allocable to (297 ) (107 ) (579 ) (160 ) noncontrolling interests in other consolidated entities Less: Basic and diluted FFO (346 ) (450 ) (725 ) (903 ) allocable to restricted shares Basic and diluted FFO available to common share and 33,880 42,197 67,140 82,268 common unit holders ("Basic and diluted FFO") Less: Straight-line rent (1,473 ) (1,718 ) (3,819 ) (2,858 ) adjustments Less: Amortization of acquisition intangibles (94 ) (616 ) (364 ) (996 ) included in net operating income Less: Recurring capital (7,080 ) (4,383 ) (13,291 ) (10,266 ) expenditures Add: Amortization of discount on Exchangeable Senior Notes, 1,488 723 2,270 1,421 net of amounts capitalized Diluted adjusted funds from operations available to common $ 26,721 $ 36,203 $ 51,936 $ 69,569 share and common unit holders ("Diluted AFFO") Weighted average shares Weighted average common shares 58,489 56,637 58,169 54,296 Conversion of weighted average 4,558 5,483 4,786 6,363 common units Weighted average common shares/units - basic FFO per 63,047 62,120 62,955 60,659 share Dilutive effect of share-based 421 546 405 522 compensation awards Weighted average common shares/units - diluted FFO per 63,468 62,666 63,360 61,181 share Diluted FFO per share $ 0.53 $ 0.67 $ 1.06 $ 1.34 Diluted FFO per share, excluding operating property $ 0.54 $ 0.67 $ 1.06 $ 1.34 acquisition costs Dividends/distributions per $ 0.3925 $ 0.3725 $ 0.7850 $ 0.7450 common share/unit Diluted FFO payout ratio 73.8 % 55.7 % 74.5 % 55.7 % Diluted AFFO payout ratio 93.6 % 64.9 % 96.3 % 65.9 % EBITDA interest coverage ratio 2.85x 3.90x 2.90x 3.77x EBITDA fixed charge coverage 2.41x 3.13x 2.44x 3.04x ratio Reconciliation of denominators for diluted EPS and diluted FFO per share Denominator for diluted EPS 58,910 57,183 58,574 54,818 Weighted average common units 4,558 5,483 4,786 6,363 Denominator for diluted FFO 63,468 62,666 63,360 61,181 per share
Corporate Office Properties Trust Summary Financial Data (unaudited) (Dollars and shares in thousands, except per share data) June 30, December 31, 2010 2009 Balance Sheet Data (in thousands) (as of period end) Properties, net of $ 3,130,514 $ 3,029,900 accumulated depreciation Total assets 3,467,283 3,380,022 Debt 2,182,375 2,053,841 Total liabilities 2,355,717 2,259,390 Beneficiaries' equity 1,111,566 1,120,632 Debt to total assets 62.9 % 60.8 % Debt to undepreciated book value of real estate 59.1 % 57.8 % assets Debt to total market 45.3 % 44.6 % capitalization Property Data (wholly owned properties) (as of period end) Number of operating 247 245 properties owned Total net rentable square 19,487 19,086 feet owned (in thousands) Occupancy 88.3 % 90.8 % Reconciliation of denominator for debt to total assets to denominator for debt to undepreciated book value of real estate assets Denominator for debt to $ 3,467,283 $ 3,380,022 total assets Assets other than assets included in properties, (336,769 ) (350,122 ) net Accumulated depreciation 464,408 422,612 on real estate assets Intangible assets on real 96,151 100,671 estate acquisitions, net Denominator for debt to undepreciated book value $ 3,691,073 $ 3,553,183 of real estate assets Three Months Ended Six Months Ended June 30, June 30, 2010 2009 2010 2009 Reconciliation of tenant improvements and incentives, capital improvements and leasing costs for operating properties to recurring capital expenditures Total tenant improvements and incentives on $ 4,630 $ 3,794 $ 8,701 $ 8,019 operating properties Total capital improvements 1,248 2,355 2,118 3,868 on operating properties Total leasing costs on 1,350 950 2,688 2,576 operating properties Less: Nonrecurring tenant improvements and (136 ) (2,028 ) (213 ) (2,069 ) incentives on operating properties Less: Nonrecurring capital improvements on operating (17 ) (694 ) (77 ) (1,282 ) properties Less: Nonrecurring leasing costs incurred on (3 ) (16 ) 51 (916 ) operating properties Add: Recurring capital expenditures on operating 8 22 23 70 properties held through joint ventures Recurring capital $ 7,080 $ 4,383 $ 13,291 $ 10,266 expenditures
Corporate Office Properties Trust Summary Financial Data (unaudited) (Dollars in thousands) Three Months Ended Six Months Ended June 30, June 30, 2010 2009 2010 2009 Reconciliation of common share dividends to dividends and distributions for FFO & AFFO payout ratio Common share dividends $ 23,259 $ 21,597 $ 46,419 $ 41,861 Common unit distributions 1,749 1,894 3,616 3,979 Dividends and distributions $ 25,008 $ 23,491 $ 50,035 $ 45,840 for FFO & AFFO payout ratio Reconciliation of diluted FFO to diluted FFO available to common share and common unit holders, excluding operating property acquisition costs Diluted FFO $ 33,880 $ 42,197 $ 67,140 $ 82,268 Operating property acquisition 271 - 290 - costs Diluted FFO available to common share and common unit $ 34,151 $ 42,197 $ 67,430 $ 82,268 holders, excluding operating property acquisition costs Reconciliation of GAAP net income to earnings before interest, income taxes, depreciation and amortization ("EBITDA") Net income $ 9,151 $ 18,051 $ 19,826 $ 36,217 Interest expense on continuing 25,812 18,620 48,450 37,983 operations Interest expense on 109 58 174 119 discontinued operations Income tax expense 7 52 59 122 Real estate-related 29,548 28,708 57,151 55,199 depreciation and amortization Depreciation of furniture, 632 573 1,282 1,112 fixtures and equipment EBITDA $ 65,259 $ 66,062 $ 126,942 $ 130,752 Reconciliation of interest expense from continuing operations to the denominators for interest coverage-EBITDA and fixed charge coverage-EBITDA Interest expense from $ 25,812 $ 18,620 $ 48,450 $ 37,983 continuing operations Interest expense from 109 58 174 119 discontinued operations Less: Amortization of deferred (1,495 ) (1,009 ) (2,621 ) (2,033 ) financing costs Less: Amortization of discount on Exchangeable Senior Notes, (1,488 ) (723 ) (2,270 ) (1,421 ) net of amounts capitalized Denominator for interest 22,938 16,946 43,733 34,648 coverage-EBITDA Preferred share dividends 4,026 4,026 8,051 8,051 Preferred unit distributions 165 165 330 330 Denominator for fixed charge $ 27,129 $ 21,137 $ 52,114 $ 43,029 coverage-EBITDA Reconciliation of same property net operating income to same office property cash net operating income and same office property cash net operating income, excluding gross lease termination fees Same office property net $ 64,309 $ 65,152 $ 124,088 $ 130,511 operating income Less: Straight-line rent (875 ) (1,550 ) (2,355 ) (2,740 ) adjustments Less: Amortization of deferred (491 ) (584 ) (1,062 ) (932 ) market rental revenue Same office property cash net $ 62,943 $ 63,018 $ 120,671 $ 126,839 operating income Less: Lease termination fees, (1,086 ) (558 ) (1,364 ) (4,218 ) gross Same office property cash net operating income, excluding $ 61,857 $ 62,460 $ 119,307 $ 122,621 gross lease termination fees
Corporate Office Properties Trust Summary Financial Data (unaudited) (Amounts in thousands, except per share data) Reconciliation of projected diluted EPS to projected diluted FFO per share Year Ending December 31, 2010 Low High Reconciliation of numerators Numerator for projected diluted EPS $ 29,427 $ 37,305 Real estate-related depreciation and amortization (1) 115,500 116,500 Income allocable to noncontrolling interests-common 2,490 3,140 units in the Operating Partnership Less: Gain on sales of operating properties, net of (297 ) (297 ) income taxes (2) Incremental FFO allocable to restricted shares (420 ) (448 ) Numerator for projected diluted FFO per share $ 146,700 $ 156,200 Reconciliation of denominators Denominator for projected diluted EPS 58,880 58,880 Weighted average common units 4,620 4,620 Denominator for projected diluted FFO per share 63,500 63,500 Projected diluted EPS $ 0.50 $ 0.63 Projected diluted FFO per share $ 2.31 $ 2.46
(1) The estimate of real estate-related depreciation and amortization excludes any impact of potential write-offs resulting from lease terminations. (2) Reconciliation excludes any potential gains or losses from the future sale of operating properties.
Top Twenty Office Tenants of Wholly Owned Properties as of June 30, 2010 (1) (Dollars in thousands) Percentage Total Percentage Weighted of Total Total Annualized of Total Average Number Occupied Occupied Rental Annualized Remaining of Rental Tenant Leases Square Square Revenue Revenue Lease Feet Feet (2) (3) Term (4) United States (5 ) 69 2,679,619 15.6 % 80,729 19.0 % 5.6 of America Northrop Grumman (6 ) 17 1,232,351 7.2 % 31,592 7.4 % 6.9 Corporation Booz Allen 7 721,564 4.2 % 21,023 4.9 % 5.1 Hamilton, Inc. Computer Sciences (6 ) 3 454,986 2.6 % 12,146 2.9 % 3.6 Corporation General Dynamics (6 ) 9 294,924 1.7 % 8,252 1.9 % 0.5 Corporation ITT (6 ) 9 333,169 1.9 % 8,017 1.9 % 4.5 Corporation The Aerospace (6 ) 3 247,253 1.4 % 7,728 1.8 % 4.6 Corporation The MITRE 4 241,745 1.4 % 7,585 1.8 % 4.5 Corporation Wells Fargo & (6 ) 6 215,673 1.3 % 7,470 1.8 % 7.9 Company L-3 Communications (6 ) 4 256,120 1.5 % 7,329 1.7 % 3.7 Holdings, Inc. CareFirst, 2 211,972 1.2 % 7,229 1.7 % 6.3 Inc. Integral (6 ) 4 241,610 1.4 % 6,175 1.5 % 9.6 Systems, Inc. Comcast (6 ) 7 306,123 1.8 % 5,950 1.4 % 3.3 Corporation AT&T (6 ) 6 341,279 2.0 % 5,706 1.3 % 8.4 Corporation Ciena 5 263,724 1.5 % 4,852 1.1 % 2.8 Corporation The Boeing (6 ) 4 150,768 0.9 % 4,715 1.1 % 3.2 Company Unisys 2 176,319 1.0 % 4,671 1.1 % 9.2 Corporation The Johns Hopkins (6 ) 5 139,295 0.8 % 3,507 0.8 % 6.3 Institutions BAE Systems (6 ) 6 186,605 1.1 % 3,039 0.7 % 2.6 PLC Merck & Co., (6 ) 2 225,900 1.3 % 2,892 0.7 % 2.1 Inc. Subtotal Top 20 Office 174 8,920,999 51.8 % 240,607 56.6 % 5.4 Tenants All remaining 688 8,289,199 48.2 % 184,859 43.4 % 3.7 tenants Total/Weighted 862 17,210,198 100.0 % $425,466 100.0 % 4.6 Average
Table excludes owner occupied leasing activity which represents 173,956 (1) square feet with total annualized rental revenue of $4,028 and a weighted average remaining lease term of 5.3 years as of June 30, 2010. Total Annualized Rental Revenue is the monthly contractual base rent as of (2) June 30, 2010, multiplied by 12, plus the estimated annualized expense reimbursements under existing office leases. (3) Order of tenants is based on Annualized Rent. (4) The weighting of the lease term was computed using Total Rental Revenue. Many of our government leases are subject to early termination provisions (5) which are customary to government leases. The weighted average remaining lease term was computed assuming no exercise of such early termination rights. (6) Includes affiliated organizations or agencies.
Source: Corporate Office Properties Trust
Released July 28, 2010