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