Corporate Office Properties Trust Reports 2009 Year End Results

COLUMBIA, Md.--(BUSINESS WIRE)-- Corporate Office Properties Trust (COPT) (NYSE: OFC) announced today financial and operating results for the full year and quarter ended December 31, 2009.

Shareholder Return

The Company's shareholders earned a total return of 25% for the year 2009. For the past ten years, the Company's shareholders earned a total return of 693%, the second highest ten year return among all equity REITs based on numbers compiled by NAREIT as of December 31, 2009.

2009 Highlights

    --  5% increase in Diluted Funds from Operations ("Diluted FFO") per share
        excluding non-comparable items to $2.49 for the year ended 2009 from
        $2.38 for 2008. Excluded from 2009 were operating property acquisition
        costs which under prior accounting rules would have been capitalized.
        Excluded from 2008 was a gain on early extinguishment of debt upon the
        repurchase of exchangeable notes. Including these items, we reported
        2009 diluted FFO per share of $2.46 and 2008 diluted FFO per share of
        $2.52.
    --  8% decrease in diluted earnings per share ("Diluted EPS") to $.70 for
        the year ended 2009 as compared to $.76 per diluted share for the year
        ended 2008.
    --  18% increase in diluted Adjusted Funds from Operations ("AFFO") to
        $117.9 million for the year ended 2009 as compared to $100.1 million for
        the year ended 2008.
    --  63% Diluted FFO payout ratio and 81% Diluted AFFO payout ratio for the
        year.
    --  1.1 million square feet under construction that is 54% leased as of
        February 5, 2010.
    --  759,000 square feet in 10 development properties placed into service for
        the year.
    --  90.7% occupied and 91.3% leased for our wholly-owned portfolio as of
        December 31, 2009.
    --  73% renewal rate on expiring leases for the year, representing
        approximately 1.8 million square feet renewed with an average capital
        cost of $7.76 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.
    --  5% increase in same office property cash NOI for the year, including
        gross lease termination fees. Excluding gross lease termination fees,
        same office property cash NOI increased 3% for the year. The Company's
        same office portfolio for the year ended December 31, 2009 represents
        83% of the rentable square feet of its consolidated portfolio and
        consists of 220 properties.
    --  5.4% increase of quarterly common cash dividend in September 2009.

"The Company continued to perform well in 2009 despite a challenging economic environment. We had FFO growth and positive same office results along with opportunistic acquisitions," stated Randall M. Griffin, President and Chief Executive Officer, Corporate Office Properties Trust. "Importantly, our development activity continues to be entirely focused on our super core clients - the U.S. Government and Defense Information Technology tenants. As expected, we are starting to see an acceleration in demand due to BRAC and the Cyber Initiative, which should help position us for an earlier rebound from the impacts of the recession," he stated.

Financial Ratios

As of December 31, 2009, the Company had a total market capitalization of $4.6 billion, with $2.1 billion in debt outstanding, equating to a 45% debt-to-total market capitalization ratio.

As of December 31, 2009, the Company's weighted average interest rate was 5% and the Company had 75% of the total debt subject to fixed interest rates.

For the year 2009, the Company's EBITDA to interest expense coverage ratio was 3.27x, and the EBITDA fixed charge coverage ratio was 2.69x.

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 December 31, 2009, the Company's wholly-owned portfolio of 249 office properties totaled 19.1 million square feet. The weighted average remaining lease term for the portfolio was 4.8 years and the average rental rate (including tenant reimbursements) was $24.63 per square foot.

For the year, 2.2 million square feet was renewed and retenanted. Total straight-line rent for renewed and retenanted space increased 2% and total rent on a cash basis decreased 6%. The average committed cost for renewed and retenanted space was $9.17 per square foot.

For the quarter ended December 31, 2009, 408,000 square feet was renewed equating to a 79% renewal rate, at an average committed cost of $13.12 per square foot. Total rent on renewed space increased 5% on a straight-line basis, as measured from the straight-line rent in effect preceding the renewal date and decreased 4% on a cash basis. For renewed and retenanted space of 509,000 square feet, total straight-line rent increased 3% and total rent on a cash basis decreased 6%. The average committed cost for renewed and retenanted space was $14.14 per square foot.

The Company recognized lease termination fees of $4.6 million, net of write-offs of related straight-line rents and accretion of intangible assets and liabilities for the year ended December 31, 2009, as compared to $481,000 for the year ended December 31, 2008.

Development Activity

At December 31, 2009, the Company had 2.4 million square feet under construction, development and redevelopment for a total projected cost of $476.9 million.

The Company's land inventory (wholly-owned and joint venture) at December 31, 2009 totaled 1,818 acres that can support 16.6 million square feet of development.

Acquisition Activity

For 2009, the Company acquired 697,000 square feet for $172.5 million that included:

    --  61,000 square foot building and adjacent land that can support
        approximately 90,000 square feet of additional development for $12.5
        million, located at 12515 Academy Ridge in Colorado Springs, Colorado.
        The building is 100% leased long term to Real Time Logic, Inc., a wholly
        owned subsidiary of Integral Systems, Inc.
    --  474,000 square foot office tower, a parking lot, a utility distribution
        center, four waterfront lots and riparian rights for $123.2 million, all
        part of the Canton Crossing planned unit development in Baltimore,
        Maryland. The office tower was 90% leased on the date of acquisition.
    --  162,000 square foot building and a 0.9 acre adjacent land parcel for
        $38.0 million, located at 1550 West Nursery Road in Linthicum, Maryland.
        The building is 100% leased long term to Northrop Grumman Corporation.

Financing and Capital Transactions

The Company executed the following transactions during the year:

    --  Issued approximately 3.0 million common shares in an underwritten public
        offering made in conjunction with the Company's inclusion in the S&P
        MidCap 400 Index on April 1, 2009. The shares were issued at a public
        offering price of $24.35 per share for net proceeds after underwriting
        discounts but before offering expenses of $72.1 million. The net
        proceeds were used to pay down the Company's Revolving Credit Facility
        and for general corporate purposes.
    --  Closed on the following borrowings, using the proceeds primarily to
        repay maturing debt and pay down its Revolving Credit Facility:

  • a $23.4 million joint venture construction loan with a two-year term and the right to extend for an additional year that carries interest at LIBOR plus 2.75%.
  • a $50.0 million secured loan with a five-year term that carries interest at LIBOR plus 3.0% (subject to a LIBOR floor of 2.5%).
  • a $90.0 million secured loan with a five-year term that carries interest at 7.25%.
  • a $185.0 million secured loan with a seven-year term that carries interest at 7.25%.

Subsequent Events

The Company executed the following leases subsequent to quarter end.

    --  125,000 square foot building located at 324 Sentinel Way in Annapolis
        Junction, Maryland. The building is 100% leased, long-term.

    --  250,000 square feet in 2 buildings located at 8000 and 8030 Potranco
        Road in San Antonio, Texas. The buildings are 100% leased, long-term.

Conference Call

The Company will hold an investor/analyst conference call:

Conference Call (within the United States)

Date: Thursday, February 11, 2010

Time: 10:00 a.m. Eastern Time

Telephone Number: 888-679-8033

Passcode: 10883637

Conference Call (outside the United States)

Date: Thursday, February 11, 2010

Time: 10:00 a.m. Eastern Time

Telephone Number: 617-213-4846

Passcode: 10883637

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=PXUDU6UW7

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, February 11 at 2:00 p.m. Eastern Time through Thursday, February 25 at midnight Eastern Time. To access the replay within in the United States, please call 888-286-8010 and use passcode 38751918. To access the replay outside the United States, please call 617-801-6888 and use passcode 38751918.

The conference call 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 call 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 December 31, 2009, the Company owned 269 office and data properties totaling 20.2 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", "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;
    --  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, 2008.


Corporate Office Properties Trust

Summary Financial Data

(unaudited)

(Amounts in thousands, except per share data)

                              Three Months Ended        Year Ended

                              December 31,              December 31,

                              2009         2008         2009         2008

Revenues

Real estate revenues          $ 108,850    $ 102,961    $ 424,432    $ 397,220

Service operations revenues     69,553       65,345       343,087      188,385

Total revenues                  178,403      168,306      767,519      585,605

Expenses

Property operating expenses     42,604       36,766       157,314      141,052

Depreciation and other
amortization associated with    27,281       27,094       108,609      101,937
real estate operations

Service operations expenses     68,230       64,052       336,519      184,142

General and administrative      5,965        6,488        23,240       24,096
expenses

Business development            2,149        769          3,699        1,233
expenses

Total operating expenses        146,229      135,169      629,381      452,460

Operating income                32,174       33,137       138,138      133,145

Interest expense                (23,278 )    (21,201 )    (82,208 )    (86,414 )

Interest and other income       215          1,146        5,164        2,070

Gain on early extinguishment    -            8,101        -            8,101
of debt

Income from continuing
operations before equity in
income (loss) of
unconsolidated

entities and income taxes       9,111        21,183       61,094       56,902

Equity in income (loss) of      134          20           (941    )    (147    )
unconsolidated entities

Income tax expense              (27     )    (99     )    (196    )    (201    )

Income from continuing          9,218        21,104       59,957       56,554
operations

Discontinued operations, net    328          333          1,342        3,658
of income taxes

Income before gain on sales     9,546        21,437       61,299       60,212
of real estate

Gain on sales of real           -            -            -            1,104
estate, net of income taxes

Net income                      9,546        21,437       61,299       61,316

Less net income attributable
to noncontrolling interests

Common units in the             (463    )    (2,389  )    (4,495  )    (6,519  )
Operating Partnership

Preferred units in the          (165    )    (165    )    (660    )    (660    )
Operating Partnership

Other                           170          (40     )    185          (172    )

Net income attributable to      9,088        18,843       56,329       53,965
COPT

Preferred share dividends       (4,026  )    (4,026  )    (16,102 )    (16,102 )

Net income attributable to    $ 5,062      $ 14,817     $ 40,227     $ 37,863
COPT common shareholders

Earnings per share "EPS"
computation:

Numerator for diluted EPS:

Net income available to       $ 5,062      $ 14,817     $ 40,227     $ 37,863
common shareholders

Amount allocable to             (247    )    (200    )    (1,010  )    (728    )
restricted shares

Numerator for diluted EPS       4,815        14,617       39,217       37,135

Denominator:

Weighted average common         57,604       51,120       55,930       48,132
shares - basic

Dilutive effect of stock        413          567          477          688
option awards

Weighted average common         58,017       51,687       56,407       48,820
shares - diluted

Diluted EPS                   $ 0.08       $ 0.28       $ 0.70       $ 0.76




Corporate Office Properties Trust

Summary Financial Data

(unaudited)

(Amounts in thousands, except per share data and ratios)

                               Three Months Ended       Year Ended
                               December 31,
                                                        December 31,

                               2009         2008        2009         2008

Net income                     $ 9,546      $ 21,437    $ 61,299     $ 61,316

Add: Real estate-related         27,475       27,290      109,386      102,772
depreciation and amortization

Add: Depreciation and
amortization on                  159          159         640          648
unconsolidated real estate
entities

Less: Gain on sales of
operating properties, net of     -            -           -            (2,630  )
income taxes

Funds from operations ("FFO")    37,180       48,886      171,325      162,106

Less: Noncontrolling
interests - preferred units      (165    )    (165   )    (660    )    (660    )
in the Operating Partnership

Less: Noncontrolling
interests - other                170          (40    )    185          (172    )
consolidated entities

Less: Preferred share            (4,026  )    (4,026 )    (16,102 )    (16,102 )
dividends

Less: Depreciation and
amortization allocable to
noncontrolling interests in
other

consolidated entities            (242    )    (72    )    (493    )    (270    )

Less: Basic and diluted FFO
allocable to restricted          (331    )    (407   )    (1,629  )    (1,310  )
shares

Basic and diluted FFO
available to common share and
common unit holders ("Basic

and diluted FFO")                32,586       44,176      152,626      143,592

Less: Straight-line rent         1,676        (1,927 )    (3,847  )    (10,211 )
adjustments

Less: Amortization of
deferred market rental           (679    )    (606   )    (2,126  )    (2,064  )
revenue

Less: Recurring capital          (13,900 )    (8,682 )    (31,738 )    (26,293 )
expenditures

Add: Amortization of discount
on Exchangeable Senior Notes,    772          778         2,955        3,224
net of amounts capitalized

Less: Gain on early              -            (8,101 )    -            (8,101  )
extinguishment of debt

Diluted adjusted funds from
operations available to
common share and common unit

holders ("Diluted AFFO")       $ 20,455     $ 25,638    $ 117,870    $ 100,147

Weighted average shares

Weighted average common          57,604       51,120      55,930       48,132
shares

Conversion of weighted           5,078        7,993       5,717        8,107
average common units

Weighted average common
shares/units - basic FFO per     62,682       59,113      61,647       56,239
share

Dilutive effect of
share-based compensation         413          567         477          688
awards

Weighted average common
shares/units - diluted FFO       63,095       59,680      62,124       56,927
per share

Diluted FFO per share          $ 0.52       $ 0.74      $ 2.46       $ 2.52

Diluted FFO per share,
excluding operating property
acquisition costs and gain on

early extinguishment of debt   $ 0.55       $ 0.61      $ 2.49       $ 2.38

Dividends/distributions per    $ 0.3925     $ 0.3725    $ 1.5300     $ 1.4250
common share/unit

Earnings payout ratio            452.1   %    130.1  %    217.8   %    187.1   %

Diluted FFO payout ratio         76.3    %    50.3   %    62.6    %    57.3    %

Diluted AFFO payout ratio        121.6   %    86.7   %    81.1    %    82.2    %

EBITDA interest coverage       2.75x        3.49x       3.27x        3.06x
ratio

EBITDA fixed charge coverage   2.31x        2.89x       2.69x        2.54x
ratio

Reconciliation of
denominators for diluted EPS
and diluted FFO per share

Denominator for diluted EPS      58,017       51,687      56,407       48,820

Weighted average common units    5,078        7,993       5,717        8,107

Denominator for diluted FFO      63,095       59,680      62,124       56,927
per share




Corporate Office Properties Trust

Summary Financial Data

(unaudited)

(Dollars and shares in thousands, except per share data)

                            December 31,   December 31,

                            2009           2008

Balance Sheet Data (in
thousands) (as of period
end)

Properties, net of          $ 3,029,900    $ 2,778,466
accumulated depreciation

Total assets                  3,380,022      3,114,239

Debt                          2,053,841      1,856,751

Total liabilities             2,259,390      2,031,816

Beneficiaries' equity         1,120,632      1,082,423

Debt to total assets          60.8      %    59.6      %

Debt to undepreciated book
value of real estate          57.8      %    57.8      %
assets

Debt to total market          44.6      %    47.4      %
capitalization

Property Data (wholly
owned properties)

(as of period end)

Number of operating           249            238
properties owned

Total net rentable square     19,101         18,462
feet owned (in thousands)

Occupancy                     90.7      %    93.2      %

Reconciliation of
denominator for debt to
total assets to

denominator for debt to
undepreciated book value
of

real estate assets

Denominator for debt to     $ 3,380,022    $ 3,114,239
total assets

Assets other than assets
included in properties,       (350,122  )    (335,773  )
net

Accumulated depreciation      422,612        343,110
on real estate assets

Intangible assets on real     100,671        91,848
estate acquisitions, net

Denominator for debt to
undepreciated book value    $ 3,553,183    $ 3,213,424
of real estate assets

                            Three Months Ended            Year Ended

                            December 31,                  December 31,

                            2009           2008           2009        2008

Reconciliation of tenant
improvements and
incentives, capital

improvements and leasing
costs for operating
properties to

recurring capital
expenditures

Total tenant improvements
and incentives on           $ 2,426        $ 5,472        $ 14,030    $ 20,355
operating properties

Total capital improvements    9,408          4,434          16,171      11,261
on operating properties

Total leasing costs on        2,801          1,269          7,232       4,033
operating properties

Less: Nonrecurring tenant
improvements and              (851      )    (1,615    )    (3,631 )    (5,692 )
incentives on operating
properties

Less: Nonrecurring capital
improvements on operating     (117      )    (836      )    (1,457 )    (3,503 )
properties

Less: Nonrecurring leasing
costs incurred on             (186      )    (49       )    (1,102 )    (318   )
operating properties

Add: Recurring capital
expenditures on operating     419            7              495         157
properties held through
joint ventures

Recurring capital           $ 13,900       $ 8,682        $ 31,738    $ 26,293
expenditures




Corporate Office Properties Trust

Summary Financial Data

(unaudited)

(Dollars in thousands)

                                Three Months Ended      Year Ended

                                December 31,            December 31,

                                2009        2008        2009         2008

Reconciliation of dividends
for earnings payout ratio to

dividends and distributions
for FFO & AFFO payout ratio

Common share dividends for      $ 22,884    $ 19,283    $ 87,596     $ 70,836
earnings payout ratio

Common unit distributions         1,988       2,946       7,962        11,510

Dividends and distributions     $ 24,872    $ 22,229    $ 95,558     $ 82,346
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
and gain on early
extinguishment of debt

Diluted FFO                     $ 32,586    $ 44,176    $ 152,626    $ 143,592

Operating property acquisition    1,967       -           1,967        -
costs

Gain on early extinguishment      -           (8,101 )    -            (8,101  )
of debt

Gain on early extinguishment
of debt allocable to              -           75          -            75
restricted shares

Diluted FFO available to
common share and common unit
holders,

excluding operating property
acquisition costs and gain on
early

extinguishment of debt          $ 34,553    $ 36,150    $ 154,593    $ 135,566

Reconciliation of GAAP net
income to earnings before
interest,

income taxes, depreciation and
amortization ("EBITDA")

Net income                      $ 9,546     $ 21,437    $ 61,299     $ 61,316

Interest expense on continuing    23,278      21,201      82,208       86,414
operations

Interest expense on               54          89          212          507
discontinued operations

Income tax expense                27          99          196          779

Real estate-related               27,475      27,290      109,386      102,772
depreciation and amortization

Depreciation of furniture,        676         548         2,425        2,196
fixtures and equipment

EBITDA                          $ 61,056    $ 70,664    $ 255,726    $ 253,984

Reconciliation of interest
expense from continuing
operations

to the denominators for
interest coverage-EBITDA

and fixed charge
coverage-EBITDA

Interest expense from           $ 23,278    $ 21,201    $ 82,208     $ 86,414
continuing operations

Interest expense from             54          89          212          507
discontinued operations

Less: Amortization of deferred    (1,125 )    (1,038 )    (4,214  )    (3,843  )
financing costs

Denominator for interest          22,207      20,252      78,206       83,078
coverage-EBITDA

Preferred share dividends         4,026       4,026       16,102       16,102

Preferred unit distributions      165         165         660          660

Denominator for fixed charge    $ 26,398    $ 24,443    $ 94,968     $ 99,840
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        $ 62,384    $ 63,540    $ 239,070    $ 234,579
operating income

Less: Straight-line rent          767         (2,064 )    (948    )    (8,186  )
adjustments

Less: Amortization of deferred    (580   )    (532   )    (1,429  )    (1,554  )
market rental revenue

Same office property cash net   $ 62,571    $ 60,944    $ 236,693    $ 224,839
operating income

Less: Lease termination fees,     (347   )    (201   )    (5,531  )    (569    )
gross

Same office property cash net
operating income, excluding

gross lease termination fees    $ 62,224    $ 60,743    $ 231,162    $ 224,270





Top Twenty Office Tenants of Wholly Owned Properties as of December 31, 2009 (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      2,673,290   15.4  %       79,268    18.6  %     6.0
of America

Northrop
Grumman         (6)  17      1,302,589   7.5   %       33,676    7.9   %     7.1
Corporation

Booz Allen           10      742,116     4.3   %       21,626    5.1   %     5.5
Hamilton, Inc.

Computer
Sciences        (6)  3       454,986     2.6   %       12,475    2.9   %     1.6
Corporation

General
Dynamics        (6)  10      299,153     1.7   %       8,302     1.9   %     1.0
Corporation

L-3
Communications  (6)  5       266,943     1.5   %       7,759     1.8   %     4.2
Holdings, Inc.

Wells Fargo &   (6)  6       215,673     1.2   %       7,648     1.8   %     8.4
Company

The Aerospace   (6)  3       247,253     1.4   %       7,629     1.8   %     5.1
Corporation

ITT             (6)  8       305,689     1.8   %       7,223     1.7   %     4.8
Corporation

CareFirst,           2       211,972     1.2   %       6,737     1.6   %     6.7
Inc.

Comcast         (6)  8       309,823     1.8   %       6,065     1.4   %     3.7
Corporation

Integral        (6)  4       241,610     1.4   %       6,062     1.4   %     10.1
Systems, Inc.

AT&T            (6)  6       307,313     1.8   %       5,931     1.4   %     3.5
Corporation

The Boeing      (6)  4       150,768     0.9   %       4,704     1.1   %     3.7
Company

Unisys               2       258,498     1.5   %       4,631     1.1   %     9.5
Corporation

Ciena                4       229,842     1.3   %       4,391     1.0   %     3.4
Corporation

The Johns
Hopkins         (6)  5       139,295     0.8   %       3,584     0.8   %     5.6
Institutions

BAE Systems     (6)  7       211,805     1.2   %       3,243     0.8   %     6.8
PLC

Merck & Co.,    (6)  2       225,900     1.3   %       2,777     0.7   %     2.9
Inc.

Lockheed
Martin               6       145,067     0.8   %       2,723     0.6   %     2.6
Corporation

Subtotal Top
20 Office            181     8,939,585   51.6  %       236,454   55.4  %     5.5
Tenants

All remaining        711     8,383,059   48.4  %       190,144   44.6  %     3.8
tenants

Total/Weighted       892     17,322,644  100.0 %     $ 426,598   100.0 %     4.8
Average




(1) Table excludes owner occupied leasing activity which represents 164,205
square feet with total annualized rental revenue of $3,847

and a weighted average remaining lease term of 5.6 years as of December 31,
2009.

(2) Total Annualized Rental Revenue is the monthly contractual base rent as of
December 31, 2009, 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.

(5) Many of our government leases are subject to early termination provisions
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