COPT Reports Fourth Quarter and Full Year 2020 Results
EPS of $0.87 for 2020 Exceeded High End of Guidance by 8-Cents;
FFO per Share, as Adjusted for Comparability, of $2.12 Represented 4.4% Growth over 2019 Results & Exceeded High End of Guidance by 2-Cents
Same-Property Cash NOI Increased 1.6% During the Year
Core Portfolio 94.3% Occupied & 95.0% Leased
Record 1.8 Million SF of 99% Leased Developments Placed into Service During 2020
1.5 Million SF of Active Developments are 84% Leased
Operations Minimally Affected by COVID-19 Shutdowns
Monthly Rent Collections During Pandemic Shutdowns Totaled 99.7%
Rent Relief Totaled 1% of Annualized Rental Revenues
Solid Annual Leasing Activity
Total Leasing of 3.6 Million SF for the Year included 1 Million SF of Development Leasing and 416,000 SF of Vacancy Leasing
Record Tenant Retention of 81% for the Year
GAAP Rents on Renewals Increased 6.5% & Cash Rents Rolled Down 2.1%
COLUMBIA, Md.--(BUSINESS WIRE)-- Corporate Office Properties Trust (“COPT” or the “Company”) (NYSE: OFC) announced financial and operating results for the fourth quarter and full year ended December 31, 2020.
Management Comments
Stephen E. Budorick, COPT’s President & Chief Executive Officer, commented, “Notwithstanding the challenges presented by the COVID-19 pandemic, 2020 was a very strong year for our Company. Our operations were minimally impacted by the pandemic shutdowns, as demonstrated by our 99.7% rent collection rate, the record 1.8 million square feet of fully leased developments we placed in service, and the one million square feet of new development leasing we completed during the year. Additionally, fourth quarter and full-year FFO per share, as adjusted for comparability, outperformed the high ends of guidance by 2-cents due to non-recurring items in the quarter.”
He continued, “During 2021, we expect incremental NOI from developments placed in service to drive solid FFO per share growth. The $2.19 midpoint of our 2021 initial guidance is a penny higher than the midpoint implied by the growth guideposts we provided last October and reflects the on-going strength of our operations.”
Financial Highlights
4th Quarter Financial Results:
- Diluted earnings per share (“EPS”) was $0.73 for the quarter ended December 31, 2020 as compared to $0.38 for the fourth quarter of 2019.
- Diluted funds from operations per share (“FFOPS”), as calculated in accordance with Nareit’s definition, was $0.53 for the fourth quarter of 2020 as compared to $0.49 for fourth quarter 2019 results.
- FFOPS, as adjusted for comparability, was $0.56 in the fourth quarter of 2020 as compared to $0.50 for the fourth quarter of 2019.
Full Year 2020 Financial Results:
- EPS for the year ended December 31, 2020 was $0.87 as compared to 2019 EPS of $1.71.
- Per Nareit’s definition, FFOPS for 2020 was $1.50 as compared to $2.02 for 2019.
- FFOPS, as adjusted for comparability, for 2020 was $2.12 as compared to $2.03 for 2019.
Operating Performance Highlights
Operating Portfolio Summary:
- At December 31, 2020, the Company’s core portfolio of 179 operating office and data center shell properties was 94.3% occupied and 95.0% leased.
- During the quarter and the year, the Company placed into service 582,000 and 1.8 million square feet that were 100% and 99% leased, respectively.
Same-Property Performance:
- At December 31, 2020, COPT’s same-property portfolio of 144 buildings was 92.1% occupied and 93.1% leased.
- For the quarter and year ended December 31, 2020, the Company’s same-property cash NOI was flat and increased 1.6%, respectively, over the prior year’s comparable periods.
Leasing:
-
Total Square Feet Leased: For the quarter ended December 31, 2020, the Company leased 869,000 total square feet, including 232,000 square feet of renewals, 495,000 square feet in development projects, and 142,000 square feet of new leases on vacant space.
For the year ended December 31, 2020, the Company executed 3.6 million square feet of total leasing, including 2.2 million square feet of renewals, 1.0 million square feet of development leasing, and 416,000 square feet of vacancy leasing.
- Renewal Rates: During the quarter and year ended December 31, 2020, the Company respectively renewed 59.0% and 80.6% of total expiring square feet.
- Cash Rent Spreads & Average Escalations on Renewing Leases: For the quarter and year ended December 31, 2020, cash rents on renewed space decreased 2.6% and 2.1%, respectively. For the same respective periods, annual escalations on renewing leases averaged 2.5% and 2.4%.
- Lease Terms: In the fourth quarter, lease terms averaged 3.8 years on renewing leases, 15.0 years on development leasing, and 5.3 years on new leasing of vacant space. For the year, lease terms averaged 4.2 years on renewing leases, 14.6 years on development leasing, and 6.2 years on vacancy leasing.
Investment Activity Highlights
- Development Pipeline: As of December 31, 2020, the Company’s development pipeline consisted of 11 properties totaling 1.5 million square feet that were 84% leased. These projects have a total estimated cost of $613.0 million, of which $324.4 million had been incurred.
Balance Sheet and Capital Transaction Highlights
- During the fourth quarter, the Company formed a new joint venture with funds affiliated with Blackstone Real Estate (“B RE-COPT JV”) and sold a 90% interest in two wholly-owned data center shell properties; in a second transaction, COPT sold a 40% interest in six data center shells properties already owned in a 50-50 joint venture. From these two transactions, COPT received approximately $165 million of equity value and recognized gains on the sales totaling $59.4 million.
- In October, the Company redeemed the remaining $177.1 million of its 3.70% Senior Notes due in 2021 for $180.9 million plus accrued interest, and recognized a loss on early extinguishment of debt of $4.1 million.
- Additionally, in December, the Company redeemed all $8.8 million of Series I Preferred Convertible Units and, as a result, had zero preferred equity outstanding at the end of 2020.
- As of December 31, 2020, the Company’s net debt to adjusted book ratio was 39.1% and its net debt to in-place adjusted EBITDA ratio was 6.2x. For the quarter and year ended December 31, 2020, the Company’s adjusted EBITDA fixed charge coverage ratio was 4.1x.
- As of December 31, 2020, and including the effect of interest rate swaps, the Company’s weighted average effective interest rate on its consolidated debt portfolio was 3.4% with a weighted average maturity of 3.3 years; additionally, 82.1% of the Company’s debt was subject to fixed interest rates.
Associated Supplemental Presentation
Prior to the call, the Company will post a slide presentation to accompany management’s prepared remarks for its fourth quarter and year end 2020 conference call, the details of which are provided below. The accompanying slide presentation can be viewed on and downloaded from the ‘Latest Updates’ section of COPT’s Investors website: https://investors.copt.com/
2021 Guidance
The Company details its initial full year and first quarter guidance, with supporting assumptions, in a separate press release issued concurrently with this press release; that release can be found in the ‘News, Presentations & Event Calendar’ section of COPT’s Investors website: https://investors.copt.com/News/news-releases/default.aspx
Conference Call Information
Management will discuss fourth quarter and year end 2020 results on its conference call tomorrow at 12:00 p.m. Eastern Time, details of which are listed below:
|
Conference Call Date: |
Friday, February 5, 2021 |
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|
Time: |
12:00 p.m. Eastern Time |
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|
Telephone Number: (within the U.S.) |
855-463-9057 |
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|
Telephone Number: (outside the U.S.) |
661-378-9894 |
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|
Passcode: |
1548922 |
The conference call will also be available via live webcast in the ‘Latest Updates’ section of COPT’s Investors website: https://investors.copt.com/
Replay Information
A replay of the conference call will be immediately available via webcast on the Investors website. Additionally, a telephonic replay of this call will be available beginning at 3:00 p.m. Eastern Time on Friday, February 5, through 3:00 p.m. Eastern Time on Friday, February 19. To access the replay within the United States, please call 855-859-2056; to access it from outside the United States, please call 404-537-3406. In either case, use passcode 1548922.
Definitions
For definitions of certain terms used in this press release, please refer to the information furnished in the Company’s Supplemental Information Package furnished on a Form 8-K which can be found on its website (www.copt.com). Reconciliations of non-GAAP measures to the most directly comparable GAAP measures are included in the attached tables.
About COPT
COPT is a REIT that owns, manages, leases, develops and selectively acquires office and data center properties. The majority of its portfolio is in locations that support the United States Government and its contractors, most of whom are engaged in national security, defense and information technology (“IT”) related activities servicing what it believes are growing, durable, priority missions (“Defense/IT Locations”). The Company also owns a portfolio of office properties located in select urban/urban-like submarkets in the Greater Washington, DC/Baltimore region with durable Class-A office fundamentals and characteristics (“Regional Office Properties”). As of December 31, 2020, the Company derived 87% of its core portfolio annualized rental revenue from Defense/IT Locations and 13% from its Regional Office Properties. As of the same date and including 17 properties owned through unconsolidated joint ventures, COPT’s core portfolio of 179 office and data center shell properties encompassed 20.8 million square feet and was 95.0% leased; the Company also owned one wholesale data center with a critical load of 19.25 megawatts that was 86.7% leased.
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,” “believe,” “anticipate,” “expect,” “estimate,” “plan” 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. Although the Company believes that the expectations, estimates and projections reflected in such forward-looking statements are based on reasonable assumptions at the time made, 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 and the Company undertakes no obligation to update or supplement any forward-looking statements.
The areas of risk that may affect these expectations, estimates and projections include, but are not limited to, those risks described in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and subsequent Quarterly Reports on Form 10-Q.
Category: Quarterly Results
Source: Corporate Office Properties Trust
|
Corporate Office Properties Trust |
||||||||||||||||
|
Summary Financial Data |
||||||||||||||||
|
(unaudited) |
||||||||||||||||
|
(dollars and shares in thousands, except per share data) |
||||||||||||||||
|
|
For the Three Months
|
|
For the Years Ended
|
|||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
|
Revenues |
|
|
|
|
|
|
|
|||||||||
|
Revenues from real estate operations |
$ |
139,628 |
|
|
$ |
131,968 |
|
|
$ |
538,725 |
|
|
$ |
527,463 |
|
|
|
Construction contract and other service revenues |
24,400 |
|
|
25,817 |
|
|
70,640 |
|
|
113,763 |
|
|||||
|
Total revenues |
164,028 |
|
|
157,785 |
|
|
609,365 |
|
|
641,226 |
|
|||||
|
Operating expenses |
|
|
|
|
|
|
|
|||||||||
|
Property operating expenses |
52,085 |
|
|
51,098 |
|
|
203,840 |
|
|
198,143 |
|
|||||
|
Depreciation and amortization associated with real estate operations |
36,653 |
|
|
32,779 |
|
|
138,193 |
|
|
137,069 |
|
|||||
|
Construction contract and other service expenses |
23,563 |
|
|
24,832 |
|
|
67,615 |
|
|
109,962 |
|
|||||
|
Impairment losses |
— |
|
|
2 |
|
|
1,530 |
|
|
329 |
|
|||||
|
General and administrative expenses |
7,897 |
|
|
7,043 |
|
|
25,269 |
|
|
27,517 |
|
|||||
|
Leasing expenses |
1,993 |
|
|
2,293 |
|
|
7,732 |
|
|
7,885 |
|
|||||
|
Business development expenses and land carry costs |
999 |
|
|
1,292 |
|
|
4,473 |
|
|
4,239 |
|
|||||
|
Total operating expenses |
123,190 |
|
|
119,339 |
|
|
448,652 |
|
|
485,144 |
|
|||||
|
Interest expense |
(17,148 |
) |
|
(16,777 |
) |
|
(67,937 |
) |
|
(71,052 |
) |
|||||
|
Interest and other income |
3,341 |
|
|
1,917 |
|
|
8,574 |
|
|
7,894 |
|
|||||
|
Credit loss recoveries |
772 |
|
|
— |
|
|
933 |
|
|
— |
|
|||||
|
Gain on sales of real estate |
30,204 |
|
|
20,761 |
|
|
30,209 |
|
|
105,230 |
|
|||||
|
Gain on sale of investment in unconsolidated real estate joint venture |
29,416 |
|
|
— |
|
|
29,416 |
|
|
— |
|
|||||
|
Loss on early extinguishment of debt |
(4,069 |
) |
|
— |
|
|
(7,306 |
) |
|
— |
|
|||||
|
Loss on interest rate derivatives |
— |
|
|
— |
|
|
(53,196 |
) |
|
— |
|
|||||
|
Income before equity in income of unconsolidated entities and income taxes |
83,354 |
|
|
44,347 |
|
|
101,406 |
|
|
198,154 |
|
|||||
|
Equity in income of unconsolidated entities |
453 |
|
|
426 |
|
|
1,825 |
|
|
1,633 |
|
|||||
|
Income tax (expense) benefit |
(258 |
) |
|
104 |
|
|
(353 |
) |
|
217 |
|
|||||
|
Net income |
83,549 |
|
|
44,877 |
|
|
102,878 |
|
|
200,004 |
|
|||||
|
Net income attributable to noncontrolling interests: |
|
|
|
|
|
|
|
|||||||||
|
Common units in the Operating Partnership (“OP”) |
(995 |
) |
|
(500 |
) |
|
(1,180 |
) |
|
(2,363 |
) |
|||||
|
Preferred units in the OP |
(69 |
) |
|
(77 |
) |
|
(300 |
) |
|
(564 |
) |
|||||
|
Other consolidated entities |
(817 |
) |
|
(1,515 |
) |
|
(4,024 |
) |
|
(5,385 |
) |
|||||
|
Net income attributable to COPT common shareholders |
$ |
81,668 |
|
|
$ |
42,785 |
|
|
$ |
97,374 |
|
|
$ |
191,692 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Earnings per share (“EPS”) computation: |
|
|
|
|
|
|
|
|||||||||
|
Numerator for diluted EPS: |
|
|
|
|
|
|
|
|||||||||
|
Net income attributable to COPT common shareholders |
$ |
81,668 |
|
|
$ |
42,785 |
|
|
$ |
97,374 |
|
|
$ |
191,692 |
|
|
|
Amount allocable to share-based compensation awards |
(280 |
) |
|
(154 |
) |
|
(404 |
) |
|
(623 |
) |
|||||
|
Redeemable noncontrolling interests |
44 |
|
|
33 |
|
|
— |
|
|
132 |
|
|||||
|
Distributions on dilutive convertible preferred units |
69 |
|
|
— |
|
|
— |
|
|
— |
|
|||||
|
Numerator for diluted EPS |
$ |
81,501 |
|
|
$ |
42,664 |
|
|
$ |
96,970 |
|
|
$ |
191,201 |
|
|
|
Denominator: |
|
|
|
|
|
|
|
|||||||||
|
Weighted average common shares - basic |
111,817 |
|
|
111,670 |
|
|
111,788 |
|
|
111,196 |
|
|||||
|
Dilutive effect of share-based compensation awards |
320 |
|
|
293 |
|
|
288 |
|
|
308 |
|
|||||
|
Dilutive effect of redeemable noncontrolling interests |
117 |
|
|
108 |
|
|
— |
|
|
119 |
|
|||||
|
Dilutive convertible preferred units |
155 |
|
|
— |
|
|
— |
|
|
— |
|
|||||
|
Weighted average common shares - diluted |
112,409 |
|
|
112,071 |
|
|
112,076 |
|
|
111,623 |
|
|||||
|
Diluted EPS |
$ |
0.73 |
|
|
$ |
0.38 |
|
|
$ |
0.87 |
|
|
$ |
1.71 |
|
|
|
Corporate Office Properties Trust |
||||||||||||||||
|
Summary Financial Data |
||||||||||||||||
|
(unaudited) |
||||||||||||||||
|
(in thousands, except per share data) |
||||||||||||||||
|
|
For the Three Months
|
|
For the Years Ended
|
|||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
|
Net income |
$ |
83,549 |
|
|
$ |
44,877 |
|
|
$ |
102,878 |
|
|
$ |
200,004 |
|
|
|
Real estate-related depreciation and amortization |
36,653 |
|
|
32,779 |
|
|
138,193 |
|
|
137,069 |
|
|||||
|
Impairment losses on real estate |
— |
|
|
2 |
|
|
1,530 |
|
|
329 |
|
|||||
|
Gain on sales of real estate |
(30,204 |
) |
|
(20,761 |
) |
|
(30,209 |
) |
|
(105,230 |
) |
|||||
|
Gain on sale of investment in unconsolidated real estate joint venture |
(29,416 |
) |
|
— |
|
|
(29,416 |
) |
|
— |
|
|||||
|
Depreciation and amortization on unconsolidated real estate JVs |
874 |
|
|
781 |
|
|
3,329 |
|
|
2,703 |
|
|||||
|
Funds from operations (“FFO”) |
61,456 |
|
|
57,678 |
|
|
186,305 |
|
|
234,875 |
|
|||||
|
Noncontrolling interests - preferred units in the OP |
(69 |
) |
|
(77 |
) |
|
(300 |
) |
|
(564 |
) |
|||||
|
FFO allocable to other noncontrolling interests |
(1,091 |
) |
|
(1,436 |
) |
|
(15,705 |
) |
|
(5,024 |
) |
|||||
|
Basic FFO allocable to share-based compensation awards |
(272 |
) |
|
(243 |
) |
|
(719 |
) |
|
(905 |
) |
|||||
|
Basic FFO available to common share and common unit holders (“Basic FFO”) |
60,024 |
|
|
55,922 |
|
|
169,581 |
|
|
228,382 |
|
|||||
|
Dilutive preferred units in the OP |
69 |
|
|
77 |
|
|
— |
|
|
— |
|
|||||
|
Redeemable noncontrolling interests |
44 |
|
|
33 |
|
|
147 |
|
|
132 |
|
|||||
|
Diluted FFO available to common share and common unit holders (“Diluted FFO”) |
60,137 |
|
|
56,032 |
|
|
169,728 |
|
|
228,514 |
|
|||||
|
Loss on early extinguishment of debt |
4,069 |
|
|
— |
|
|
7,306 |
|
|
— |
|
|||||
|
Loss on interest rate derivatives |
— |
|
|
— |
|
|
53,196 |
|
|
— |
|
|||||
|
Demolition costs on redevelopment and nonrecurring improvements |
— |
|
|
104 |
|
|
63 |
|
|
148 |
|
|||||
|
Executive transition costs |
— |
|
|
— |
|
|
— |
|
|
4 |
|
|||||
|
Non-comparable professional and legal expenses |
— |
|
|
195 |
|
|
— |
|
|
681 |
|
|||||
|
Dilutive preferred units in the OP |
— |
|
|
— |
|
|
300 |
|
|
— |
|
|||||
|
FFO allocation to other noncontrolling interests resulting from capital event |
— |
|
|
— |
|
|
11,090 |
|
|
— |
|
|||||
|
Diluted FFO comparability adjustments allocable to share-based compensation awards |
(18 |
) |
|
(1 |
) |
|
(327 |
) |
|
(3 |
) |
|||||
|
Diluted FFO available to common share and common unit holders, as adjusted for comparability |
64,188 |
|
|
56,330 |
|
|
241,356 |
|
|
229,344 |
|
|||||
|
Straight line rent adjustments and lease incentive amortization |
3,438 |
|
|
1,386 |
|
|
4,100 |
|
|
255 |
|
|||||
|
Amortization of intangibles included in net operating income |
24 |
|
|
(174 |
) |
|
(162 |
) |
|
(221 |
) |
|||||
|
Share-based compensation, net of amounts capitalized |
1,751 |
|
|
1,735 |
|
|
6,505 |
|
|
6,728 |
|
|||||
|
Amortization of deferred financing costs |
664 |
|
|
541 |
|
|
2,539 |
|
|
2,136 |
|
|||||
|
Amortization of net debt discounts, net of amounts capitalized |
504 |
|
|
382 |
|
|
1,733 |
|
|
1,503 |
|
|||||
|
Accum. other comprehensive loss on derivatives amortized to expense |
— |
|
|
— |
|
|
— |
|
|
79 |
|
|||||
|
Replacement capital expenditures |
(13,973 |
) |
|
(19,862 |
) |
|
(60,944 |
) |
|
(63,789 |
) |
|||||
|
Other diluted AFFO adjustments associated with real estate JVs |
196 |
|
|
(68 |
) |
|
190 |
|
|
212 |
|
|||||
|
Diluted adjusted funds from operations available to common share and common unit holders (“Diluted AFFO”) |
$ |
56,792 |
|
|
$ |
40,270 |
|
|
$ |
195,317 |
|
|
$ |
176,247 |
|
|
|
Diluted FFO per share |
$ |
0.53 |
|
|
$ |
0.49 |
|
|
$ |
1.50 |
|
|
$ |
2.02 |
|
|
|
Diluted FFO per share, as adjusted for comparability |
$ |
0.56 |
|
|
$ |
0.50 |
|
|
$ |
2.12 |
|
|
$ |
2.03 |
|
|
|
Dividends/distributions per common share/unit |
$ |
0.275 |
|
|
$ |
0.275 |
|
|
$ |
1.100 |
|
|
$ |
1.100 |
|
|
|
Corporate Office Properties Trust |
||||||||
|
Summary Financial Data |
||||||||
|
(unaudited) |
||||||||
|
(Dollars and shares in thousands, except per share data) |
||||||||
|
|
December 31,
|
|
December 31,
|
|||||
|
Balance Sheet Data |
|
|
|
|||||
|
Properties, net of accumulated depreciation |
$ |
3,562,549 |
|
|
$ |
3,340,886 |
|
|
|
Total assets |
4,077,023 |
|
|
3,854,453 |
|
|||
|
Debt, per balance sheet |
2,086,918 |
|
|
1,831,139 |
|
|||
|
Total liabilities |
2,357,881 |
|
|
2,105,777 |
|
|||
|
Redeemable noncontrolling interests |
25,430 |
|
|
29,431 |
|
|||
|
Equity |
1,693,712 |
|
|
1,719,245 |
|
|||
|
Net debt to adjusted book |
39.1 |
% |
|
36.8 |
% |
|||
|
|
|
|
|
|||||
|
Core Portfolio Data (as of period end) (1) |
|
|
|
|||||
|
Number of operating properties |
179 |
|
|
168 |
|
|||
|
Total operational square feet (in thousands) |
20,802 |
|
|
19,016 |
|
|||
|
% Occupied |
94.3 |
% |
|
93.1 |
% |
|||
|
% Leased |
95.0 |
% |
|
94.6 |
% |
|||
|
For the Three Months Ended
|
|
For the Years Ended
|
||||||||||
|
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||
|
Payout ratios |
|
|
|
|
|
|
|
|||||
|
Diluted FFO |
51.8 |
% |
|
55.6 |
% |
|
73.3 |
% |
|
54.4 |
% |
|
|
Diluted FFO, as adjusted for comparability |
48.6 |
% |
|
55.3 |
% |
|
51.7 |
% |
|
54.2 |
% |
|
|
Diluted AFFO |
54.9 |
% |
|
77.3 |
% |
|
63.8 |
% |
|
70.5 |
% |
|
|
Adjusted EBITDA fixed charge coverage ratio |
4.1 |
x |
|
3.7 |
x |
|
3.9 |
x |
|
3.7 |
x |
|
|
Net debt plus preferred equity to in-place adjusted EBITDA ratio (2) |
6.2 |
x |
|
6.1 |
x |
|
N/A |
|
N/A |
|||
|
|
|
|
|
|
|
|
|
|||||
|
Reconciliation of denominators for per share measures |
|
|
|
|
|
|
||||||
|
Denominator for diluted EPS |
112,409 |
|
|
112,071 |
|
|
112,076 |
|
|
111,623 |
|
|
|
Weighted average common units |
1,239 |
|
|
1,228 |
|
|
1,236 |
|
|
1,299 |
|
|
|
Redeemable noncontrolling interests |
— |
|
|
— |
|
|
123 |
|
|
— |
|
|
|
Dilutive convertible preferred units |
— |
|
|
176 |
|
|
— |
|
|
— |
|
|
|
Denominator for diluted FFO per share |
113,648 |
|
|
113,475 |
|
|
113,435 |
|
|
112,922 |
|
|
|
Dilutive convertible preferred units |
— |
|
|
— |
|
|
171 |
|
|
— |
|
|
|
Denominator for diluted FFO per share, as adjusted for comparability |
113,648 |
|
|
113,475 |
|
|
113,606 |
|
|
112,922 |
|
|
| (1) |
Represents Defense/IT Locations and Regional Office properties. |
|
| (2) |
Represents net debt plus the total liquidation preference of preferred equity as of period end divided by in-place adjusted EBITDA for the period, as annualized (i.e. three month periods are multiplied by four). |
|
Corporate Office Properties Trust |
||||||||||||||||
|
Summary Financial Data |
||||||||||||||||
|
(unaudited) |
||||||||||||||||
|
(in thousands) |
||||||||||||||||
|
|
For the Three Months
|
|
For the Years
|
|||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
|
Reconciliation of common share dividends to dividends and distributions for payout ratios |
|
|
|
|
|
|
|
|||||||||
|
Common share dividends - unrestricted shares and deferred shares |
$ |
30,764 |
|
|
$ |
30,724 |
|
|
$ |
123,042 |
|
|
$ |
122,823 |
|
|
|
Common unit distributions - unrestricted units |
341 |
|
|
337 |
|
|
1,362 |
|
|
1,405 |
|
|||||
|
Distributions on dilutive preferred units |
69 |
|
|
77 |
|
|
— |
|
|
— |
|
|||||
|
Dividends and distributions for diluted FFO payout ratio |
31,174 |
|
|
31,138 |
|
|
124,404 |
|
|
124,228 |
|
|||||
|
Distributions on dilutive preferred units |
— |
|
|
— |
|
|
300 |
|
|
— |
|
|||||
|
Dividends and distributions for other payout ratios |
$ |
31,174 |
|
|
$ |
31,138 |
|
|
$ |
124,704 |
|
|
$ |
124,228 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Reconciliation of GAAP net income to earnings before interest, income taxes, depreciation and amortization for real estate (“EBITDAre”), adjusted EBITDA and in-place adjusted EBITDA |
|
|
|
|
|
|
|
|||||||||
|
Net income |
$ |
83,549 |
|
|
$ |
44,877 |
|
|
$ |
102,878 |
|
|
$ |
200,004 |
|
|
|
Interest expense |
17,148 |
|
|
16,777 |
|
|
67,937 |
|
|
71,052 |
|
|||||
|
Income tax expense (benefit) |
258 |
|
|
(104 |
) |
|
353 |
|
|
(217 |
) |
|||||
|
Real estate-related depreciation and amortization |
36,653 |
|
|
32,779 |
|
|
138,193 |
|
|
137,069 |
|
|||||
|
Other depreciation and amortization |
513 |
|
|
438 |
|
|
1,837 |
|
|
1,834 |
|
|||||
|
Impairment losses on real estate |
— |
|
|
2 |
|
|
1,530 |
|
|
329 |
|
|||||
|
Gain on sales of real estate |
(30,204 |
) |
|
(20,761 |
) |
|
(30,209 |
) |
|
(105,230 |
) |
|||||
|
Gain on sale of investment in unconsolidated real estate joint venture |
(29,416 |
) |
|
— |
|
|
(29,416 |
) |
|
— |
|
|||||
|
Adjustments from unconsolidated real estate JVs |
1,306 |
|
|
1,206 |
|
|
5,120 |
|
|
4,065 |
|
|||||
|
EBITDAre |
79,807 |
|
|
75,214 |
|
|
258,223 |
|
|
308,906 |
|
|||||
|
Loss on early extinguishment of debt |
4,069 |
|
|
— |
|
|
7,306 |
|
|
— |
|
|||||
|
Loss on interest rate derivatives |
— |
|
|
— |
|
|
53,196 |
|
|
— |
|
|||||
|
Net gain on other investments |
(1,218 |
) |
|
(1 |
) |
|
(966 |
) |
|
(401 |
) |
|||||
|
Credit loss recoveries |
(772 |
) |
|
— |
|
|
(933 |
) |
|
— |
|
|||||
|
Business development expenses |
412 |
|
|
512 |
|
|
2,042 |
|
|
1,939 |
|
|||||
|
Non-comparable professional and legal expenses |
— |
|
|
195 |
|
|
— |
|
|
681 |
|
|||||
|
Demolition costs on redevelopment and nonrecurring improvements |
— |
|
|
104 |
|
|
63 |
|
|
148 |
|
|||||
|
Executive transition costs |
— |
|
|
— |
|
|
— |
|
|
4 |
|
|||||
|
Adjusted EBITDA |
82,298 |
|
|
76,024 |
|
|
$ |
318,931 |
|
|
$ |
311,277 |
|
|||
|
Proforma net operating income adjustment for property changes within period |
1,459 |
|
|
463 |
|
|
|
|
|
|||||||
|
Change in collectability of deferred rental revenue |
678 |
|
|
928 |
|
|
|
|
|
|||||||
|
In-place adjusted EBITDA |
$ |
84,435 |
|
|
$ |
77,415 |
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|||||||||
|
Reconciliation of interest expense to the denominators for fixed charge coverage-Adjusted EBITDA |
|
|
|
|
|
|
|
|||||||||
|
Interest expense |
$ |
17,148 |
|
|
$ |
16,777 |
|
|
$ |
67,937 |
|
|
$ |
71,052 |
|
|
|
Less: Amortization of deferred financing costs |
(664 |
) |
|
(541 |
) |
|
(2,539 |
) |
|
(2,136 |
) |
|||||
|
Less: Amortization of net debt discounts, net of amounts capitalized |
(504 |
) |
|
(382 |
) |
|
(1,733 |
) |
|
(1,503 |
) |
|||||
|
Less: Accum. other comprehensive loss on derivatives amortized to expense |
— |
|
|
— |
|
|
— |
|
|
(79 |
) |
|||||
|
COPT’s share of interest expense of unconsolidated real estate JVs, excluding deferred financing costs |
422 |
|
|
416 |
|
|
1,749 |
|
|
1,332 |
|
|||||
|
Scheduled principal amortization |
1,048 |
|
|
1,010 |
|
|
4,125 |
|
|
4,310 |
|
|||||
|
Capitalized interest |
2,620 |
|
|
3,467 |
|
|
12,060 |
|
|
10,786 |
|
|||||
|
Preferred unit distributions |
69 |
|
|
77 |
|
|
300 |
|
|
564 |
|
|||||
|
Denominator for fixed charge coverage-Adjusted EBITDA |
$ |
20,139 |
|
|
$ |
20,824 |
|
|
$ |
81,899 |
|
|
$ |
84,326 |
|
|
|
Corporate Office Properties Trust |
||||||||||||||||
|
Summary Financial Data |
||||||||||||||||
|
(unaudited) |
||||||||||||||||
|
(in thousands) |
||||||||||||||||
|
|
For the Three Months
|
|
For the Years
|
|||||||||||||
|
|
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
|
Reconciliations of tenant improvements and incentives, building improvements and leasing costs for operating properties to replacement capital expenditures |
|
|
|
|
|
|
|
|||||||||
|
Tenant improvements and incentives |
$ |
9,165 |
|
|
$ |
11,447 |
|
|
$ |
36,342 |
|
|
$ |
38,047 |
|
|
|
Building improvements |
7,523 |
|
|
8,826 |
|
|
34,060 |
|
|
26,598 |
|
|||||
|
Leasing costs |
1,514 |
|
|
2,998 |
|
|
8,432 |
|
|
11,663 |
|
|||||
|
Net (exclusions from) additions to tenant improvements and incentives |
(370 |
) |
|
(426 |
) |
|
1,042 |
|
|
(2,292 |
) |
|||||
|
Excluded building improvements and leasing costs |
(3,859 |
) |
|
(2,983 |
) |
|
(18,932 |
) |
|
(10,227 |
) |
|||||
|
Replacement capital expenditures |
$ |
13,973 |
|
|
$ |
19,862 |
|
|
$ |
60,944 |
|
|
$ |
63,789 |
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
Same Properties cash NOI |
$ |
74,240 |
|
|
$ |
74,223 |
|
|
$ |
292,083 |
|
|
$ |
287,589 |
|
|
|
Straight line rent adjustments and lease incentive amortization |
(1,831 |
) |
|
(2,681 |
) |
|
(5,372 |
) |
|
(3,584 |
) |
|||||
|
Amortization of acquired above- and below-market rents |
99 |
|
|
197 |
|
|
390 |
|
|
312 |
|
|||||
|
Amortization of intangibles and other assets to property operating expenses |
— |
|
|
(23 |
) |
|
(69 |
) |
|
(92 |
) |
|||||
|
Lease termination fees, gross |
399 |
|
|
417 |
|
|
1,451 |
|
|
2,046 |
|
|||||
|
Tenant funded landlord assets and lease incentives |
248 |
|
|
754 |
|
|
812 |
|
|
2,206 |
|
|||||
|
Same Properties NOI |
$ |
73,155 |
|
|
$ |
72,887 |
|
|
$ |
289,295 |
|
|
$ |
288,477 |
|
|
|
|
December 31,
|
|
December 31,
|
|||||
|
Reconciliation of total assets to adjusted book |
|
|
|
|||||
|
Total assets |
$ |
4,077,023 |
|
|
$ |
3,854,453 |
|
|
|
Accumulated depreciation |
1,124,253 |
|
|
1,007,120 |
|
|||
|
Accumulated amortization of real estate intangibles and deferred leasing costs |
217,124 |
|
|
212,547 |
|
|||
|
COPT’s share of liabilities of unconsolidated real estate JVs |
26,710 |
|
|
50,734 |
|
|||
|
COPT’s share of accumulated depreciation and amortization of unconsolidated real estate JVs |
1,489 |
|
|
8,164 |
|
|||
|
Less: Property - operating lease liabilities |
(30,746 |
) |
|
(17,317 |
) |
|||
|
Less: Property - finance lease liabilities |
(28 |
) |
|
(702 |
) |
|||
|
Less: Cash and cash equivalents |
(18,369 |
) |
|
(14,733 |
) |
|||
|
Less: COPT’s share of cash of unconsolidated real estate JVs |
(152 |
) |
|
(498 |
) |
|||
|
Adjusted book |
$ |
5,397,304 |
|
|
$ |
5,099,768 |
|
|
|
|
|
|
|
|||||
|
Reconciliation of debt outstanding to net debt and net debt plus preferred equity |
|
|
|
|||||
|
Debt outstanding (excluding net debt discounts and deferred financing costs) |
$ |
2,127,715 |
|
|
1,893,057 |
|
||
|
Less: Cash and cash equivalents |
(18,369 |
) |
|
(14,733 |
) |
|||
|
Less: COPT’s share of cash of unconsolidated real estate JVs |
(152 |
) |
|
(498 |
) |
|||
|
Net debt |
$ |
2,109,194 |
|
|
$ |
1,877,826 |
|
|
|
Preferred equity |
— |
|
|
8,800 |
|
|||
|
Net debt plus preferred equity |
$ |
2,109,194 |
|
|
$ |
1,886,626 |
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20210204006020/en/
IR Contacts:
Stephanie Krewson-Kelly
443-285-5453
stephanie.kelly@copt.com
Michelle Layne
443-285-5452
michelle.layne@copt.com
Source: Corporate Office Properties Trust
Released February 4, 2021