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
Released February 10, 2010