Corporate Office Properties Trust Reports First Quarter 2008 Results

COLUMBIA, Md.--(BUSINESS WIRE)--

Corporate Office Properties Trust (COPT) (NYSE:OFC) announced today financial and operating results for the quarter ended March 31, 2008.

    Highlights

    --  13.7% increase in Diluted Funds from Operations ("Diluted
        FFO") per share to $.58 for the first quarter 2008 or $32.4
        million from $.51 for the first quarter 2007 or $28.3 million.

    --  Earnings per diluted share ("Diluted EPS") of $.15 for the
        first quarter 2008 or $7.4 million of net income available to
        common shareholders as compared to $.03 per diluted share for
        the first quarter 2007 or $1.6 million of net income available
        to common shareholders. Included in first quarter 2008 net
        income is a gain on sales of real estate net of minority
        interests and income taxes of $1.9 million or $.04 per share.

    --  11.0% increase in Adjusted Funds from Operations ("AFFO")
        diluted to $24.5 million for the first quarter 2008 as
        compared to $22.1 million for the first quarter 2007.

    --  58.5% Diluted FFO payout ratio for first quarter 2008 as
        compared to 60.4% for the first quarter 2007.

    --  77.4% Diluted AFFO payout ratio for both the first quarters of
        2008 and 2007.

    --  92.9% occupied and 94.1% leased for our wholly-owned portfolio
        as of March 31, 2008.

    --  83.2% renewal rate on expiring leases for the first quarter
        2008, with a 12.3% increase in total straight-line rent for
        renewed space.

    --  5.0% increase in same office property cash NOI for the
        quarter, excluding the effect of a $1.1 million reduction in
        lease termination fees. Including the effect of lower lease
        termination fees, same office property cash NOI increased 2.8%
        for the quarter. The Company's same office portfolio is 82.5%
        of its wholly owned portfolio and consists of 164 properties.

    --  2.5 million square feet under construction, development and
        redevelopment for a total projected cost of $450.6 million at
        March 31, 2008.

    --  $28.6 million in dispositions of wholly owned and joint
        venture properties so far this year, representing 237,000
        square feet.

    --  292,000 square feet of development projects placed into
        service, which includes 89,500 square feet placed into service
        during second and third quarters 2007, that were 74.9% leased
        at March 31, 2008.

"We experienced strong lease renewals for the first quarter and are seeing significant leasing activity for our development pipeline which will positively impact the Company in the second half of 2008," stated Randall M. Griffin, President and CEO, Corporate Office Properties Trust. "In a challenging capital environment, we successfully addressed our capital need for funding most of our development pipeline for the next several years," he stated.

Financial Results

Revenues from real estate operations for the quarter ended March 31, 2008 were $97.3 million, as compared to revenue for the quarter ended March 31, 2007 of $89.0 million.

As of March 31, 2008, the Company had a total market capitalization of $3.9 billion, with $1.8 billion in debt outstanding, equating to a 46.8% debt-to-total market capitalization ratio.

As of March 31, 2008, the Company's total quarterly weighted average interest rate was 5.4% and the Company had 79.1% of the total debt subject to fixed interest rates.

For the first quarter 2008, EBITDA interest coverage ratio was 2.96x and the EBITDA fixed charge coverage ratio was 2.45x.

A reconciliation of non GAAP measures to the comparable GAAP measures are included in the tables that follow the text of this press release.

Operating Results

At March 31, 2008, the Company's wholly-owned portfolio of 230 office properties totaled 17.9 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 $21.87 per square foot.

During the quarter, 588,000 square feet were renewed equating to a 83.2% renewal rate, at an average capital cost of $3.77 per square foot. Total rent on renewed space increased 12.3% on a straight-line basis, as measured from the GAAP straight-line rent in effect preceding the renewal date and increased 6.4% on a cash basis. For renewed and retenanted space of 719,000 square feet, total straight-line rent increased 9.9% and total rent on a cash basis increased 3.9%. The average committed capital cost for renewed and retenanted space was $6.48 per square foot.

The Company recognized total lease termination fees of $56,000, net of write-offs of related straight-line rents and accretion of intangible assets and liabilities for the quarter, as compared to $1.7 million in the first quarter of 2007.

Development Activity

The Company's land inventory (wholly-owned and joint venture) at quarter end totaled 1,753 acres that can support 15.4 million square feet of development.

During the quarter, the Company placed 292,000 square feet of development projects into service, which includes 89,500 square feet placed into service during second and third quarters 2007, that were 74.9% leased at March 31, 2008.

Disposition Activity

So far this year, the Company sold two properties totaling 183,000 square feet in Central New Jersey, reducing the Company's Central New Jersey portfolio to only two properties totaling 201,000 square feet.

    Included in the 183,000 square feet sold, are the following:

    --  142,000 square foot operating property sold for $17.0 million
        and realized a gain of $1.4 million.

    --  41,000 square foot property sold for $3.2 million.

The Company also sold 53,000 square feet of industrial condominiums for $8.4 million held in a joint venture at 13849 Park Center Road in Northern Virginia and realized an after-tax gain of $768,000 (or $554,000, net of minority interests).

The Company recognized a gain of $293,000 during the quarter, associated with $654,000 of condemnation proceeds that the Maryland State Highway Administration awarded to the Company, primarily for the transfer of White Marsh, Maryland land that will facilitate the expansion of Interstate 95.

Subsequent Events

The Company executed the following transactions subsequent to quarter end:

    --  Closed a $225 million construction loan facility that will be
        utilized to fund most of the Company's construction costs for
        its wholly owned properties over the next three years. The
        facility has a one year extension option and interest only
        payments throughout the term. The interest rate is based on a
        pricing grid that is dependent on the Company's leverage, with
        the initial interest rate on the facility of Libor plus 160
        basis points.

    --  41,500 square feet was leased to the University of Maryland's
        Earth System Science Interdisciplinary Center in the first
        116,000 square foot building at M Square Research Park located
        in College Park, Maryland.

    --  44,000 square feet was leased to Plasmon LMS, Inc. in the
        54,000 square foot InterQuest Hybrid II building in Colorado
        Springs, Colorado.

    --  ITT Corporation, Systems Division expanded its lease signed in
        December 2007 to take occupancy of the entire 104,000 square
        foot Patriot Park VI building in Colorado Springs, Colorado.

    Earnings Guidance

The Company's 2008 EPS guidance is $.62 to $.70 per diluted share, including actual gains but excluding any potential gains or losses from the sale of previously depreciated operating properties.

The Company's 2008 FFO guidance is $2.41 to $2.49 per diluted share, representing FFO growth of 8% to 11% compared to 2007 actual results.

    Conference Call

    The Company will hold an investor/analyst conference call:

    Conference Call and Webcast Date: Wednesday, May 7, 2008

    Time: 11:00 a.m. Eastern Time

    Dial In Number: 800-291-5365

    Passcode: 30678420

A replay of this call will be available beginning Wednesday, May 7 at 1:00 p.m. Eastern Time through Wednesday, May 21 at midnight Eastern Time. To access the replay, please call 888-286-8010 and use passcode 90286124.

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 GAAP and non-GAAP measurements 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 March 31, 2008, the Company owned 248 office and data properties totaling 18.7 million rentable square feet, which includes 18 properties totaling 806,000 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. More information on COPT 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 1 of the Company's Annual Report on Form 10-K for the year ended December 31, 2007.

                  Corporate Office Properties Trust
                        Summary Financial Data
                             (unaudited)
            (Amounts in thousands, except per share data)

                                                   Three Months Ended
                                                        March 31,
                                                   -------------------
                                                     2008      2007
                                                   --------- ---------
Revenues
  Real estate revenues                             $ 97,280  $ 89,009
  Service operations revenues                         8,992    10,077
                                                   --------- ---------
    Total revenues                                  106,272    99,086
                                                   --------- ---------
Expenses
  Property operating expenses                        34,563    31,583
  Depreciation and other amortization associated
   with real estate operations                       24,937    25,997
  Service operations expenses                         8,885     9,888
  General and administrative expenses                 5,933     4,877
                                                   --------- ---------
    Total operating expenses                         74,318    72,345
                                                   --------- ---------
Operating income                                     31,954    26,741
Interest expense                                    (20,329)  (19,776)
Amortization of deferred financing costs               (803)     (884)
Gain on sales of non-real estate investments             46         -
                                                   --------- ---------
Income from continuing operations before equity in
 loss of unconsolidated entities, income taxes and
 minority interests                                  10,868     6,081
Equity in loss of unconsolidated entities               (54)      (94)
Income tax expense                                     (112)     (105)
                                                   --------- ---------
Income from continuing operations before minority
 interests                                           10,702     5,882
Minority interests in income from continuing
 operations                                          (1,145)     (411)
                                                   --------- ---------
Income from continuing operations                     9,557     5,471
Income from discontinued operations, net              1,036        76
                                                   --------- ---------
Income before gain on sales of real estate           10,593     5,547
Gain on sales of real estate, net                       802         -
                                                   --------- ---------
Net income                                           11,395     5,547
Preferred share dividends                            (4,025)   (3,993)
                                                   --------- ---------
Net income available to common shareholders        $  7,370  $  1,554
                                                   ========= =========

Earnings per share "EPS" computation
Numerator                                          $  7,370  $  1,554
                                                   ========= =========

Denominator:
Weighted average common shares - basic               47,001    45,678
Dilutive effect of share-based compensation awards      765     1,465
                                                   --------- ---------
Weighted average common shares - diluted             47,766    47,143
                                                   ========= =========

EPS
  Basic                                            $   0.16  $   0.03
                                                   ========= =========
  Diluted                                          $   0.15  $   0.03
                                                   ========= =========
                  Corporate Office Properties Trust
                        Summary Financial Data
                             (unaudited)
       (Amounts in thousands, except per share data and ratios)

                                                    Three Months Ended
                                                        March 31,
                                                    ------------------
                                                      2008      2007
                                                    --------- --------

Net income                                           $11,395  $ 5,547
Add: Real estate-related depreciation and
 amortization                                         24,944   26,300
Add: Depreciation and amortization on
 unconsolidated real estate entities                     164      168
Less: Depreciation and amortization allocable to
 minority interests in other consolidated entities       (49)     (42)
Less: Gain on sales of real estate, excluding
 development portion                                  (1,380)       -
                                                    --------- --------
Funds from operations ("FFO")                         35,074   31,973
Add: Minority interests-common units in the
 Operating Partnership                                 1,324      308
Less: Preferred share dividends                       (4,025)  (3,993)
                                                    --------- --------
Funds from Operations - basic and diluted ("Basic
 and Diluted FFO")                                    32,373   28,288
Less: Straight-line rent adjustments                  (2,656)  (2,571)
Less: Recurring capital expenditures                  (4,782)  (3,141)
Less: Amortization of deferred market rental
 revenue                                                (445)    (511)
                                                    --------- --------
Adjusted Funds from Operations - diluted ("Diluted
 AFFO")                                              $24,490  $22,065
                                                    ========= ========

Weighted average shares
  Weighted average common shares                      47,001   45,678
  Conversion of weighted average common units          8,154    8,411
                                                    --------- --------
  Weighted average common shares/units - basic FFO
   per share                                          55,155   54,089
  Dilutive effect of share-based compensation
   awards                                                765    1,465
                                                    --------- --------
  Weighted average common shares/units - diluted
   FFO per share                                      55,920   55,554
                                                    ========= ========

Diluted FFO per common share                         $  0.58  $  0.51
                                                    ========= ========
Dividends/distributions per common share/unit        $  0.34  $  0.31
                                                    ========= ========
Earnings payout ratio                                  219.6%   934.9%
                                                    ========= ========
Diluted FFO payout ratio                                58.5%    60.4%
                                                    ========= ========
Diluted AFFO payout ratio                               77.4%    77.4%
                                                    ========= ========
EBITDA interest coverage ratio                          2.96x    2.66x
                                                    ========= ========
EBITDA fixed charge coverage ratio                      2.45x    2.21x
                                                    ========= ========

Reconciliation of denominators for diluted EPS and
 diluted FFO per share
Denominator for diluted EPS                           47,766   47,143
Weighted average common units                          8,154    8,411
                                                    --------- --------
Denominator for diluted FFO per share                 55,920   55,554
                                                    ========= ========
                  Corporate Office Properties Trust
                        Summary Financial Data
                             (unaudited)
       (Dollars and shares in thousands, except per share data)

                                               March 31,  December 31,
                                                 2008         2007
                                              ----------- ------------
Balance Sheet Data (in thousands) (as of
 period end)
Investment in real estate, net of accumulated
 depreciation                                 $2,617,079   $2,603,954
Total assets                                   2,936,744    2,931,853
Debt                                           1,845,968    1,825,842
Total liabilities                              1,992,917    1,979,116
Minority interests                               129,125      130,095
Beneficiaries' equity                            814,702      822,642

Debt to Total Assets                                62.9%        62.3%
Debt to Undepreciated Book Value of Real
 Estate Assets                                      61.1%        60.8%
Debt to Total Market Capitalization                 46.8%        48.0%

Property Data (wholly owned properties) (as
 of period end)
Number of operating properties owned                 230          228
Total net rentable square feet owned (in
 thousands)                                       17,908       17,832
Occupancy                                           92.9%        92.6%

Reconciliation of denominator for debt to
 total assets to denominator for debt to
 undepreciated book value of real estate
 assets
Denominator for debt to total assets          $2,936,744   $2,931,853
Assets other than assets included in
 investment in real estate                      (319,665)    (327,899)
Accumulated depreciation on real estate
 assets                                          303,694      288,732
Intangible assets on real estate
 acquisitions, net                               102,647      108,661
                                              ----------- ------------
Denominator for debt to undepreciated book
 value of real estate assets                  $3,023,420   $3,001,347
                                              =========== ============

                                                 Three Months Ended
                                                     March 31,
                                              ------------------------
                                                 2008         2007
                                              ----------- ------------
Reconciliation of tenant improvements and
 incentives, capital improvements and leasing
 costs for operating properties to recurring
 capital expenditures
Total tenant improvements and incentives on
 operating properties                         $    3,847   $    6,517
Total capital improvements on operating
 properties                                        1,017        1,581
Total leasing costs on operating properties        1,245        2,979
Less: Nonrecurring tenant improvements and
 incentives on operating properties                 (795)      (5,858)
Less: Nonrecurring capital improvements on
 operating properties                               (502)        (408)
Less: Nonrecurring leasing costs incurred on
 operating properties                                (30)      (1,698)
Add: Recurring improvements on operating
 properties held through joint ventures                -           28
                                              ----------- ------------
Recurring capital expenditures                $    4,782   $    3,141
                                              =========== ============
                  Corporate Office Properties Trust
                        Summary Financial Data
                             (unaudited)
                        (Dollars in thousands)

                                                   Three Months Ended
                                                        March 31,
                                                   -------------------
                                                     2008      2007
                                                   --------- ---------
Reconciliation of dividends for Earnings Payout
 Ratio to dividends and distributions for FFO &
 AFFO Payout Ratio
Common share dividends for earnings payout ratio   $ 16,182  $ 14,529
Common unit distributions                             2,771     2,554
                                                   --------- ---------
Dividends and distributions for FFO & AFFO payout
 ratio                                             $ 18,953  $ 17,083
                                                   ========= =========

Reconciliation of GAAP net income to earnings
 before interest, income taxes, depreciation and
 amortization ("EBITDA")
Net income                                         $ 11,395  $  5,547
Interest expense on continuing operations            20,329    19,776
Interest expense on discontinued operations              21       488
Income tax expense                                      685       105
Real estate-related depreciation and amortization    24,944    26,300
Amortization of deferred financing costs-
 continuing operations                                  803       884
Other depreciation and amortization                     384       326
Minority interests                                    1,589       426
                                                   --------- ---------
EBITDA                                             $ 60,150  $ 53,852
                                                   ========= =========

Reconciliation of interest expense from continuing
 operations to the denominators for interest
 coverage-EBITDA and fixed charge coverage-EBITDA
Interest expense from continuing operations        $ 20,329  $ 19,776
Interest expense from discontinued operations            21       488
                                                   --------- ---------
Denominator for interest coverage-EBITDA             20,350    20,264
Preferred share dividends                             4,025     3,993
Preferred unit distributions                            165       165
                                                   --------- ---------
Denominator for fixed charge coverage-EBITDA       $ 24,540  $ 24,422
                                                   ========= =========

Reconciliation of same property net operating
 income to same property cash net operating income
 and same property cash net operating income,
 adjusted for lease termination fees
Same property net operating income                 $ 53,575  $ 52,846
Less: Straight-line rent adjustments                 (1,722)   (2,275)
Less: Amortization of deferred market rental
 revenue                                               (376)     (490)
                                                   --------- ---------
Same property cash net operating income            $ 51,477  $ 50,081
Less: Lease termination fees, gross                     (99)   (1,160)
                                                   --------- ---------
Same property cash net operating income, adjusted
 for lease termination fees                        $ 51,378    48,921
                                                   ========= =========
                  Corporate Office Properties Trust
                        Summary Financial Data
                             (unaudited)
            (Amounts in thousands, except per share data)

Reconciliation of projected EPS-diluted to
 projected diluted FFO per share
                                                     Quarter Ending
                                                      June 30, 2008
                                                   -------------------
                                                      Low      High
                                                   --------- ---------
Reconciliation of numerators
--------------------------------------------------
Numerator for projected EPS-diluted                $  5,878  $  6,726
Real estate-related depreciation and amortization
 (1)                                                 25,518    25,518
Minority interests-common units                       1,054     1,206
                                                   --------- ---------
Numerator for projected diluted FFO per share      $ 32,450  $ 33,450
                                                   ========= =========

Reconciliation of denominators
--------------------------------------------------
Denominator for projected EPS-diluted                48,024    48,024
Weighted average common units                         8,126     8,126
                                                   --------- ---------
Denominator for projected diluted FFO per share      56,150    56,150
                                                   ========= =========

Projected EPS - diluted                            $   0.12  $   0.14
                                                   ========= =========
Projected diluted FFO per share                    $   0.58  $   0.60
                                                   ========= =========

(1) The estimate of real estate-related depreciation and amortization
 excludes any impact of potential write-offs resulting from lease
 terminations.
                                                       Year Ending
                                                    December 31, 2008
                                                   -------------------
                                                      Low      High
                                                   --------- ---------
Reconciliation of numerators
--------------------------------------------------
Numerator for projected EPS-diluted                $ 29,683  $ 33,499
Less: Gain on sales of real estate, net of taxes,
 excluding development portion (1)                   (1,380)   (1,380)
Real estate-related depreciation and amortization
 (2)                                                101,873   101,873
Minority interests-common units                       5,324     6,008
                                                   --------- ---------
Numerator for projected diluted FFO per share      $135,500  $140,000
                                                   ========= =========

Reconciliation of denominators
--------------------------------------------------
Denominator for projected EPS-diluted                48,116    48,116
Weighted average common units                         8,114     8,114
                                                   --------- ---------
Denominator for projected diluted FFO per share      56,230    56,230
                                                   ========= =========

Projected EPS - diluted                            $   0.62  $   0.70
                                                   ========= =========
Projected diluted FFO per share                    $   2.41  $   2.49
                                                   ========= =========

(1) Reconciliation excludes any potential gains or losses from the
 sale of previously depreciated operating properties.
(2) 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 March 31,
                               2008 (1)
                        (Dollars in thousands)


                                                       Percentage of
                                           Total           Total
                        Number of        Occupied        Occupied
     Tenant              Leases         Square Feet     Square Feet
-----------------    --------------- ----------------- -------------

United States of
 America         (5)       63            2,500,678         15.0%
Northrop Grumman
 Corporation     (6)       17            1,045,442         6.3%
Booz Allen
 Hamilton, Inc.             8             714,233          4.3%
Computer Sciences
 Corporation     (6)        4             454,645          2.7%
Unisys
 Corporation     (7)        4             760,145          4.6%
L-3
 Communications
 Holdings, Inc.  (6)        3             211,493          1.3%
General Dynamics
 Corporation     (6)       10             298,562          1.8%
The Aerospace
 Corporation                2             231,785          1.4%
Wachovia
 Corporation     (6)        4             183,577          1.1%
Comcast
 Corporation               11             342,266          2.1%
AT&T Corporation (6)        8             306,988          1.8%
ITT Corporation  (6)        8             178,472          1.1%
The Boeing
 Company         (6)        4             143,480          0.9%
Ciena Corporation           3             221,609          1.3%
Science
 Applications
 International
 Corp.                     11             167,007          1.0%
BAE Systems PLC  (6)        7             212,339          1.3%
The Johns Hopkins
 Institutions    (6)        4             124,749          0.7%
Merck & Co., Inc.
 (Unisys)        (7)        2             227,273          1.4%
Magellan Health
 Services, Inc.             2             113,727          0.7%
Wyle
 Laboratories,
 Inc.                       4             174,792          1.1%


Subtotal Top 20
 Office Tenants            179           8,613,262         51.8%
All remaining
 tenants                   761           8,021,314         48.2%
                     -------------------------------------------------
Total/Weighted
 Average                   940          16,634,576        100.0%
                     =================================================


                          Total         Percentage        Weighted
                       Annualized        of Total          Average
                         Rental      Annualized Rental    Remaining
     Tenant          Revenue (2) (3)      Revenue      Lease Term (4)
----------------    ---------------- ----------------- ---------------

United States of
 America        (5)      $58,283           16.0%             6.2
Northrop Grumman
 Corporation    (6)      25,938            7.1%              7.4
Booz Allen
 Hamilton, Inc.          20,202            5.6%              6.3
Computer
 Sciences
 Corporation    (6)      11,774            3.2%              3.3
Unisys
 Corporation    (7)       8,866            2.4%              1.5
L-3
 Communications
 Holdings, Inc. (6)       8,722            2.4%              6.0
General Dynamics
 Corporation    (6)       7,926            2.2%              2.3
The Aerospace
 Corporation              6,844            1.9%              6.7
Wachovia
 Corporation    (6)       6,613            1.8%             10.4
Comcast
 Corporation              6,494            1.8%              3.9
AT&T Corporation(6)       5,605            1.5%              5.1
ITT Corporation (6)       4,276            1.2%              4.4
The Boeing
 Company        (6)       4,128            1.1%              3.5
Ciena
 Corporation              3,742            1.0%              3.9
Science
 Applications
 International
 Corp.                    3,290            0.9%              0.9
BAE Systems PLC (6)       3,099            0.9%              3.7
The Johns
 Hopkins
 Institutions   (6)       2,911            0.8%              8.3
Merck & Co.,
 Inc. (Unisys)  (7)       2,697            0.7%              1.2
Magellan Health
 Services, Inc.           2,613            0.7%              3.3
Wyle
 Laboratories,
 Inc.                     2,469            0.7%              5.0


Subtotal Top 20
 Office Tenants          196,491           54.0%             5.5
All remaining
 tenants                 167,243           46.0%             4.1
                    ----------------------------------
Total/Weighted
 Average                $363,733          100.0%             4.8
                    ==================================
(1) Table excludes owner occupied leasing activity which represents
 146,399 square feet with a weighted average remaining lease term of
 7.0 years as of March 31, 2008.
(2) Total Annualized Rental Revenue is the monthly contractual base
 rent as of March 31, 2008, 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.
(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)