Corporate Office Properties Trust Reports Second Quarter 2009 Results

COLUMBIA, Md.--(BUSINESS WIRE)-- Corporate Office Properties Trust (COPT) (NYSE:OFC) announced today financial and operating results for the quarter ended June 30, 2009.

Highlights

    --  14% increase in diluted Funds from Operations ("FFO") per share to $.67
        or $46.9 million of FFO for the second quarter 2009 from $.59 per share
        or $37.8 million of FFO for the second quarter 2008.
    --  29% increase in diluted earnings per share ("Diluted EPS") to $.22 or
        $12.6 million of net income available to common shareholders for the
        second quarter 2009 as compared to $.17 per diluted share or $8.1
        million of net income available to common shareholders for the second
        quarter 2008.

    --  46% increase in diluted Adjusted Funds from Operations available to
        common share and common unit holders ("Diluted AFFO") to $36.2 million
        for the second quarter 2009 as compared to $24.8 million for the second
        quarter 2008.
    --  92.3% occupied and 93.2% leased for our wholly-owned portfolio as of
        June 30, 2009.
    --  70% renewal rate on expiring leases for second quarter 2009, with an 11%
        increase in total straight-line rents for renewed space.
    --  5% increase in same office property cash NOI for the quarter compared to
        the second quarter 2008. The Company's same office portfolio for the
        quarter ended June 30, 2009 represents 92% of the rentable square feet
        of its consolidated portfolio and consists of 228 properties.

"Continuing our strong 2009 performance, the Company had an excellent second quarter and is well positioned for the second half of 2009. Real estate is a lagging indicator, therefore the full impact of the recession has not yet been felt in the real estate markets. In anticipation of this trend, we have strengthened our financial position with no debt maturing for the remainder of 2009 and continue to tighten operating expenses," stated Randall M. Griffin, President and Chief Executive Officer, Corporate Office Properties Trust. "We are well positioned to accelerate product to meet the imminent demand in several of our markets resulting from BRAC and the cyber initiative," he stated.

Financial Ratios

Diluted FFO payout ratio for the six months ended June 30, 2009 was 56% as compared to 59% for the six months ended June 30, 2008. Diluted AFFO payout ratio for the six months ended June 30, 2009 was 66% as compared to 77% for the six months ended June 30, 2008.

As of June 30, 2009, the Company had a total market capitalization of $3.9 billion, with $1.8 billion in debt outstanding, equating to a 47% debt to total market capitalization ratio.

As of June 30, 2009, the Company's weighted average interest rate was 4.7% and the Company had 74% of the total debt subject to fixed interest rates.

For the second quarter 2009, the Company's EBITDA to interest coverage ratio was 3.7x, and the EBITDA fixed charge coverage ratio was 3.0x.

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, 2009, the Company's wholly-owned portfolio of 243 office properties totaled 18.7 million square feet. The weighted average remaining lease term for the portfolio was 4.7 years and the average rental rate (including tenant reimbursements) was $23.12 per square foot.

For the quarter ended June 30, 2009, 499,000 square feet was renewed equating to a 70% renewal rate, at an average committed cost of $9.42 per square foot. Total rent on renewed space increased 11% on a straight-line basis, as measured from the straight-line rent in effect preceding the renewal date and remained flat on a cash basis. For renewed and retenanted space of 630,000 square feet, total straight-line rent increased 8% and total rent on a cash basis decreased 4%. The average committed cost for renewed and retenanted space was $10.79 per square foot.

Development Activity

At June 30, 2009, the Company had 2.4 million square feet under construction, development and redevelopment for a total projected cost of $498.9 million.

The Company's land inventory (wholly-owned and joint venture) at June 30, 2009 totaled 1,827 acres that can support 16.2 million square feet of development.

During the quarter, the Company placed into service 175,000 square feet located in three newly-constructed properties.

Financing and Capital Transactions

The Company executed the following transactions during the quarter:

    --  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 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%).
        The proceeds were used to repay the Company's maturing debt and pay down
        its Revolving Credit Facility.
    --  Closed on 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%. The proceeds were used to pay down
        the Company's Revolving Credit Facility.

Subsequent Event

The Company repaid its remaining 2009 maturing debt of approximately $22.5 million using proceeds from its unsecured credit facility and closed on a $90.0 million secured loan with a five-year term that carries interest at 7.25%. Most of the proceeds were used to pay down the Company's Revolving Credit Facility.

Earnings Guidance

The Company revised its 2009 diluted EPS guidance from a range of $.70 to $.80 to a range of $.59 to $.67 per diluted share.

The Company revised its 2009 diluted FFO per share guidance from a range of $2.41 to $2.51 to a range of $2.43 to $2.51, representing growth of 2% to 5% compared to 2008 diluted FFO per share, as adjusted, of $2.38. The adjusted 2008 results reflect the change in accounting for exchangeable debt as required by the adoption of the FSP regarding APB 14-1 and excludes gains on extinguishment of exchangeable notes.

Conference Call

The Company will hold an investor/analyst conference call:


Conference Call (within the United States)

Date:                                       Thursday, July 30, 2009

Time:                                       11:00 a.m. Eastern Time

Telephone Number:                           888-679-8034

Passcode:                                   24073962

Conference Call (outside the United States)

Date:                                       Thursday, July 30, 2009

Time:                                       11:00 a.m. Eastern Time

Telephone Number:                           617-213-4847

Passcode:                                   24073962



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=PN9KBNJAM

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 30 at 3:00 p.m. Eastern Time through Thursday, August 13 at midnight Eastern Time. To access the replay within the United States, please call 888-286-8010 and use passcode 48082544. To access the replay outside the United States, please call 617-801-6888 and use passcode 48082544.

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 June 30, 2009, the Company owned 262 office and data properties totaling 19.6 million rentable square feet, which includes 19 properties totaling 852,000 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        Six Months Ended

                              June 30,                  June 30,

                                2009         2008         2009         2008

Revenues

Real estate revenues          $ 105,718    $ 97,946     $ 212,562    $ 194,948

Service operations revenues     103,324      22,424       178,213      33,038

Total revenues                  209,042      120,370      390,775      227,986

Expenses

Property operating expenses     37,162       33,957       76,195       68,499

Depreciation and other
amortization associated with    28,708       24,955       55,199       49,847
real estate operations

Service operations expenses     101,161      21,926       174,484      32,433

General and administrative      5,834        5,934        11,377       11,704
expenses

Business development            446          102          1,092        265
expenses

Total operating expenses        173,311      86,874       318,347      162,748

Operating income                35,731       33,496       72,428       65,238

Interest expense                (18,678 )    (21,162 )    (38,102 )    (43,077 )

Interest and other income       1,252        170          2,330        365

Income from continuing
operations before equity in     18,305       12,504       36,656       22,526
loss of unconsolidated
entities and income taxes

Equity in loss of               (202    )    (56     )    (317    )    (110    )
unconsolidated entities

Income tax (expense) benefit    (52     )    107          (122    )    (5      )

Income from continuing          18,051       12,555       36,217       22,411
operations

Discontinued operations         -            1,314        -            2,580

Income before gain on sales     18,051       13,869       36,217       24,991
of real estate

Gain on sales of real           -            41           -            1,100
estate, net of income taxes

Net income                      18,051       13,910       36,217       26,091

Less net income attributable
to noncontrolling interests

Common units in the             (1,272  )    (1,461  )    (3,076  )    (2,663  )
Operating Partnership

Preferred units in the          (165    )    (165    )    (330    )    (330    )
Operating Partnership

Other                           25           (122    )    (25     )    (222    )

Net income attributable to      16,639       12,162       32,786       22,876
COPT

Preferred share dividends       (4,026  )    (4,026  )    (8,051  )    (8,051  )

Net income attributable to    $ 12,613     $ 8,136      $ 24,735     $ 14,825
COPT common shareholders

Earnings per share "EPS"
computation:

Numerator for diluted EPS:

Net income available to       $ 12,613     $ 8,136      $ 24,735     $ 14,825
common shareholders

Amount allocable to             (242    )    (166    )    (510    )    (336    )
restricted shares

Numerator for diluted EPS       12,371       7,970        24,225       14,489

Denominator:

Weighted average common         56,637       47,110       54,296       47,055
shares - basic

Dilutive effect of stock        546          790          522          746
option awards

Weighted average common         57,183       47,900       54,818       47,801
shares - diluted

Diluted EPS                   $ 0.22       $ 0.17       $ 0.44       $ 0.30




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,

                                  2009        2008        2009         2008

Net income                      $ 18,051    $ 13,910    $ 36,217     $ 26,091

Add: Real estate-related          28,708      24,955      55,199       49,899
depreciation and amortization

Add: Depreciation and
amortization on unconsolidated    161         163         321          327
real estate entities

Less: Gain on sales of
operating properties, net of      -           (1,250 )    -            (2,630  )
income taxes

Funds from operations ("FFO")     46,920      37,778      91,737       73,687

Less: Noncontrolling interests
- preferred units in the          (165   )    (165   )    (330    )    (330    )
Operating Partnership

Less: Noncontrolling interests    25          (122   )    (25     )    (222    )
- other consolidated entities

Less: Preferred share             (4,026 )    (4,026 )    (8,051  )    (8,051  )
dividends

Less: Depreciation and
amortization allocable to         (107   )    (75    )    (160    )    (124    )
noncontrolling interests in
other consolidated entities

Less: Basic and diluted FFO       (450   )    (308   )    (903    )    (582    )
allocable to restricted shares

Basic and diluted FFO
available to common share and     42,197      33,082      82,268       64,378
common unit holders ("Basic
and diluted FFO")

Less: Straight-line rent          (1,718 )    (2,778 )    (2,858  )    (5,434  )
adjustments

Less: Amortization of deferred    (616   )    (458   )    (996    )    (903    )
market rental revenue

Less: Recurring capital           (4,383 )    (5,821 )    (10,266 )    (10,603 )
expenditures

Add: Amortization of discount
on Exchangeable Senior Notes,     723         815         1,421        1,618
net of amounts capitalized

Diluted adjusted funds from
operations available to common  $ 36,203    $ 24,840    $ 69,569     $ 49,056
share and common unit holders
("Diluted AFFO")

Weighted average shares

Weighted average common shares    56,637      47,110      54,296       47,055

Conversion of weighted average    5,483       8,151       6,363        8,153
common units

Weighted average common
shares/units - basic FFO per      62,120      55,261      60,659       55,208
share

Dilutive effect of share-based    546         790         522          746
compensation awards

Weighted average common
shares/units - diluted FFO per    62,666      56,051      61,181       55,954
share

Diluted FFO per share           $ 0.67      $ 0.59      $ 1.34       $ 1.15

Dividends/distributions per     $ 0.3725    $ 0.3400    $ 0.7450     $ 0.6800
common share/unit

Earnings payout ratio             171.2  %    199.1  %    169.2   %    218.3   %

Diluted FFO payout ratio          55.7   %    57.3   %    55.7    %    58.9    %

Diluted AFFO payout ratio         64.9   %    76.4   %    65.9    %    77.3    %

EBITDA interest coverage ratio  3.73x       2.97x       3.62x        2.91x

EBITDA fixed charge coverage    3.01x       2.46x       2.93x        2.42x
ratio

Reconciliation of denominators
for diluted EPS and diluted
FFO per share

Denominator for diluted EPS       57,183      47,900      54,818       47,801

Weighted average common units     5,483       8,151       6,363        8,153

Denominator for diluted FFO       62,666      56,051      61,181       55,954
per share




Corporate Office Properties Trust

Summary Financial Data

(unaudited)

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

                            June 30,       December 31,

                              2009           2008

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

Properties, net of          $ 2,854,136    $ 2,778,466
accumulated depreciation

Total assets                  3,198,675      3,114,239

Debt                          1,831,713      1,856,751

Total liabilities             2,052,268      2,031,816

Beneficiaries' equity         1,146,407      1,082,423

Debt to total assets          57.3      %    59.6      %

Debt to undepreciated book
value of real estate          55.2      %    57.8      %
assets

Debt to total market          46.9      %    47.4      %
capitalization

Property Data (wholly
owned properties) (as of
period end)

Number of operating           243            238
properties owned

Total net rentable square     18,740         18,462
feet owned (in thousands)

Occupancy                     92.3      %    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     $ 3,198,675    $ 3,114,239
total assets

Assets other than assets
included in properties,       (344,539  )    (335,773  )
net

Accumulated depreciation      382,385        343,110
on real estate assets

Intangible assets on real     81,090         91,848
estate acquisitions, net

Denominator for debt to
undepreciated book value    $ 3,317,611    $ 3,213,424
of real estate assets

                            Three Months Ended            Six Months Ended

                            June 30,                      June 30,

                              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           $ 3,826        $ 4,731        $ 8,051     $ 8,578
operating properties

Total capital improvements    2,323          2,631          3,836       3,648
on operating properties

Total leasing costs on        950            520            2,576       1,765
operating properties

Less: Nonrecurring tenant
improvements and              (2,028    )    (1,287    )    (2,069 )    (2,082 )
incentives on operating
properties

Less: Nonrecurring capital
improvements on operating     (694      )    (866      )    (1,282 )    (1,368 )
properties

Less: Nonrecurring leasing
costs incurred on             (16       )    (22       )    (916   )    (52    )
operating properties

Add: Recurring
improvements on operating     22             114            70          114
properties held through
joint ventures

Recurring capital           $ 4,383        $ 5,821        $ 10,266    $ 10,603
expenditures




Corporate Office Properties Trust

Summary Financial Data

(unaudited)

(Dollars in thousands)

                                Three Months Ended      Six Months Ended

                                June 30,                June 30,

                                  2009        2008        2009         2008

Reconciliation of dividends
for earnings payout ratio to
dividends and distributions
for FFO & AFFO payout ratio

Common share dividends for      $ 21,597    $ 16,197    $ 41,861     $ 32,370
earnings payout ratio

Common unit distributions         1,894       2,772       3,979        5,543

Dividends and distributions     $ 23,491    $ 18,969    $ 45,840     $ 37,913
for FFO & AFFO payout ratio

Reconciliation of GAAP net
income to earnings before
interest, income taxes,
depreciation and amortization
("EBITDA")

Net income                      $ 18,051    $ 13,910    $ 36,217     $ 26,091

Interest expense on continuing    18,678      21,162      38,102       43,077
operations

Interest expense on               -           10          -            51
discontinued operations

Income tax expense (benefit)      52          (102   )    122          583

Real estate-related               28,708      24,955      55,199       49,899
depreciation and amortization

Depreciation of furniture,        415         392         803          776
fixtures and equipment

EBITDA                          $ 65,904    $ 60,327    $ 130,443    $ 120,477

Reconciliation of interest
expense from continuing
operations to the denominators
for interest coverage-EBITDA
and fixed charge
coverage-EBITDA

Interest expense from           $ 18,678    $ 21,162    $ 38,102     $ 43,077
continuing operations

Interest expense from             -           10          -            51
discontinued operations

Less amortization of deferred     (1,009 )    (885   )    (2,033  )    (1,662  )
financing costs

Denominator for interest          17,669      20,287      36,069       41,466
coverage-EBITDA

Preferred share dividends         4,026       4,026       8,051        8,051

Preferred unit distributions      165         165         330          330

Denominator for fixed charge    $ 21,860    $ 24,478    $ 44,450     $ 49,847
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        $ 64,988    $ 62,796    $ 128,415    $ 123,218
operating income

Less: Straight-line rent          (860   )    (2,014 )    (1,229  )    (4,123  )
adjustments

Less: Amortization of deferred    (446   )    (362   )    (655    )    (733    )
market rental revenue

Same office property cash net   $ 63,682    $ 60,420    $ 126,531    $ 118,362
operating income

Less: Lease termination fees,     (558   )    (59    )    (4,218  )    (158    )
gross

Same office property cash net
operating income, excluding     $ 63,124    $ 60,361    $ 122,313    $ 118,204
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, 2009

                                                       Low          High

Reconciliation of numerators

Numerator for projected diluted EPS                    $ 33,174     $ 37,714

Real estate-related depreciation and amortization (1)    114,783      114,783

Minority interests-common units                          3,597        4,082

Incremental FFO allocable to restricted shares           (754    )    (779    )

Numerator for projected diluted FFO per share          $ 150,800    $ 155,800

Reconciliation of denominators

Denominator for projected diluted EPS                    56,334       56,334

Weighted average common units                            5,726        5,726

Denominator for projected diluted FFO per share          62,060       62,060

Projected diluted EPS                                  $ 0.59       $ 0.67

Projected diluted FFO per share                        $ 2.43       $ 2.51




(1)  The estimate of real estate-related depreciation and amortization excludes
     any impact of potential write-offs resulting from lease terminations.





Top Twenty Office Tenants of Wholly Owned Properties as of June 30, 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)  66      2,583,040   14.9  %       69,134    17.3  %     6.0
of America

Northrop
Grumman         (6)  15      1,135,594   6.6   %       29,119    7.3   %     6.9
Corporation

Booz Allen           8       710,692     4.1   %       20,968    5.2   %     5.6
Hamilton, Inc.

Computer
Sciences        (6)  4       454,645     2.6   %       12,371    3.1   %     2.0
Corporation

L-3
Communications  (6)  5       267,354     1.5   %       9,863     2.5   %     4.8
Holdings, Inc.

Unisys          (7)  5       760,145     4.4   %       9,097     2.3   %     4.3
Corporation

General
Dynamics        (6)  10      293,329     1.7   %       8,111     2.0   %     1.1
Corporation

Wells Fargo &   (6)  6       215,760     1.2   %       7,583     1.9   %     8.8
Company

Aerospace       (6)  3       245,598     1.4   %       7,569     1.9   %     5.6
Corporation

ITT             (6)  9       290,312     1.7   %       6,859     1.7   %     5.3
Corporation

AT&T            (6)  8       306,988     1.8   %       5,903     1.5   %     4.0
Corporation

Comcast         (6)  11      306,123     1.8   %       5,854     1.5   %     4.3
Corporation

Integral        (6)  4       240,846     1.4   %       5,675     1.4   %     10.5
Systems, Inc.

The Boeing      (6)  4       143,480     0.8   %       4,394     1.1   %     4.2
Company

Ciena                4       229,848     1.3   %       4,346     1.1   %     3.9
Corporation

The Johns
Hopkins         (6)  4       128,827     0.7   %       3,205     0.8   %     7.3
Institutions

BAE Systems     (6)  7       212,339     1.2   %       3,201     0.8   %     3.4
PLC

Science
Applications    (6)  9       137,142     0.8   %       3,127     0.8   %     0.4
International
Corp.

Merck & Co.,    (6)  2       225,900     1.3   %       2,722     0.7   %     3.1
Inc. (Unisys)   (7)

Magellan
Health               2       113,727     0.7   %       2,681     0.7   %     2.1
Services, Inc.

Subtotal Top
20 Office            186     9,001,689   52.0  %       221,781   55.4  %     5.4
Tenants

All remaining        777     8,302,030   48.0  %       178,214   44.6  %     3.7
tenants

Total/Weighted       963     17,303,719  100.0 %     $ 399,995   100.0 %     4.7
Average




     Table excludes owner occupied leasing activity which represents 155,433
(1)  square feet with a weighted average remaining lease term of 6.1 years as of
     June 30, 2009.

     Total Annualized Rental Revenue is the monthly contractual base rent as of
(2)  June 30, 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.

     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.

(7)  Merck & Co., Inc. subleases 219,065 rentable square feet from Unisys'
     960,349 leased rentable square feet in our Greater Philadelphia region.




    Source: Corporate Office Properties Trust (COPT)