Corporate Office Properties Trust Reports Strong Second Quarter 2007 Results
COLUMBIA, Md.--(BUSINESS WIRE)--
Corporate Office Properties Trust (COPT) (NYSE:OFC) announced today financial and operating results for the quarter ended June 30, 2007.
Highlights
-- Earnings per diluted share ("EPS") of $.08 for the second
quarter 2007 compared to $.13 per diluted share for the second
quarter 2006, representing a 38.5% decrease per share.
Included in second quarter 2007 is a $9.3 million increase in
depreciation and amortization associated with real estate
operations, as compared to the second quarter 2006,
contributing to the significant decline in EPS. The
acquisition of the Nottingham portfolio generated depreciation
and amortization of $6.2 million, representing the majority of
the $9.3 million increase in depreciation and amortization.
During the second quarter 2007, a $1.0 million gain from the
sale of a non-real estate investment, TractManager, Inc., was
recognized.
-- 16.3% increase in Funds from Operations ("FFO") per diluted
share to $.57 or $31.8 million for second quarter 2007
compared to $.49 or $25.2 million for second quarter 2006.
-- 14.1% increase in Adjusted Funds from Operations ("AFFO")
diluted to $21.6 million for second quarter 2007 as compared
to $18.9 million for second quarter 2006.
-- 54.0% Diluted FFO payout ratio, 79.5% Diluted AFFO payout
ratio for the quarter.
-- $14.0 million acquisition of the remaining 50.0% undivided
interest in a 132 acre land parcel that can support 1.75
million square feet of office development in Colorado Springs,
Colorado.
-- 92.7% occupied and 93.3% leased for our wholly owned portfolio
as of June 30, 2007.
-- 3.1 million square feet under construction, development and
redevelopment for a total projected cost of $569.7 million.
-- 69.3% of leases expiring during the quarter were renewed, with
a 5.7% increase in total straight line rent for renewed space.
"We are pleased with our strong FFO growth for the quarter," stated Randall M. Griffin, President and Chief Executive Officer. "We placed 247,000 square feet of 100% leased development into service this quarter, almost half of the anticipated square feet to be placed into service by year end. We continue to see positive leasing activity and we are adding projects to our construction and development pipelines," he added.
Financial Results
EPS for the quarter ended June 30, 2007 totaled $.08 per diluted share, or $3.9 million of net income available to common shareholders, as compared to $.13 per diluted share, or $5.5 million for the quarter ended June 30, 2006. Included in the second quarter 2007 is a $9.3 million increase in depreciation and amortization associated with real estate operations, as compared to the second quarter 2006, contributing to the significant decline in EPS. The acquisition of the Nottingham portfolio generated depreciation and amortization of $6.2 million, the primary driver of the $9.3 million increase. During the second quarter 2007, the Company recognized a $1.0 million gain from the sale of a non-real estate investment, TractManager, Inc., as described below.
Diluted FFO per share for the quarter ended June 30, 2007 increased 16.3% to $31.8 million, or $.57 per diluted share, as compared to $25.2 million, or $.49 per diluted share, for the quarter ended June 30, 2006. Included in FFO is a $1.0 million gain from the sale of TractManager, Inc. The Company's Diluted FFO payout ratio was 54.0% for second quarter 2007 compared to 56.4% for the comparable 2006 period.
Diluted AFFO for the quarter ended June 30, 2007 increased 14.1% to $21.6 million, as compared to $18.9 million for the quarter ended June 30, 2006. The Company's AFFO Payout ratio was 79.5% for second quarter 2007 compared to 75.0% for the comparable 2006 period.
As of June 30, 2007, the Company had a total market capitalization of $4.3 billion, with $1.8 billion in debt outstanding, equating to a 41.2% debt-to-total market capitalization ratio. The Company's total quarterly weighted average interest rate was 5.9% and 83.4% of total debt is subject to fixed interest rates. For the second quarter 2007, EBITDA Interest coverage ratio was 2.77x and EBITDA Fixed Charge coverage was 2.31x.
Operating Results
At June 30, 2007, the Company's wholly owned portfolio of 229 office properties totaling 17.7 million square feet was 92.7% occupied and 93.3% leased. The weighted average remaining lease term for the portfolio was 4.9 years and the average rental rate (including tenant reimbursements of operating costs) was $21.09 per square foot.
During the quarter, 476,000 square feet was renewed, equating to a 69.3% renewal rate, at an average committed capital cost of $4.91 per square foot. Total rent on renewed space increased 5.7% on a straight line basis and decreased 1.1% on a cash basis. For renewed and retenanted space of 612,000 square feet, total straight-line rent increased 6.1%, and total cash rent increased 0.5%. The average capital cost for renewed and retenanted space was $7.55 per square foot.
Same property cash NOI increased by 2.9%, or $1.3 million for the quarter compared to the quarter ended June 30, 2006. Same office property cash NOI was positively impacted by an increase in occupancy, primarily in our Northern Virginia region. The Company's same office portfolio consists of 157 properties and represents 74.4% of our wholly owned portfolio as of June 30, 2007.
The Company recognized lease termination fees of $708,000 for the quarter, net of write-offs of related straight line rents and the write-off of previously unamortized deferred market revenue, as compared to $665,000 in the second quarter 2006.
Development Activity
At quarter end June 30, the Company's development pipeline consisted of:
-- Ten buildings under construction totaling 1.0 million square
feet for a total projected cost of $211.7 million, that are
48.5% leased.
-- Twelve buildings under development totaling 1.3 million square
feet for a total projected cost of $265.8 million.
-- Three projects under redevelopment totaling 741,000 square
feet for a total projected cost of $92.2 million.
The Company's land inventory (wholly owned and joint venture) at quarter end totaled 1,576 acres that can support 13.9 million square feet of development.
During the quarter, the Company placed two buildings totaling 247,000 square feet into service. The largest building is a 193,000 square foot development property fully leased through June 2022 to the Northrop Grumman Corporation. The building will house the Virginia Information Technologies Agency (VITA) and Northrop Grumman operations.
Acquisition Activity
During the quarter, the Company acquired the remaining 50.0% undivided interest in 132 acres of land that can support 1.75 million square feet of office development in Colorado Springs, Colorado for $14.0 million. In connection with this transaction, 262,165 common units were issued by the Company's operating partnership and were valued at $12.5 million, or $47.68 per unit.
Disposition Activity
During the quarter, the Company disposed of most of its investment in TractManager, Inc., as part of their merger with Tudor Ventures and GE Healthcare Financial Services. The Company received $2.5 million and recognized a $1.0 million gain in connection with the disposition. TractManager, Inc. is an entity that developed an Internet-based contract imaging and management system for sale to real estate owners and healthcare providers. The Company will continue to use the cost method of accounting for its $128,000 remaining investment.
Financing and Capital Transactions
During the quarter, the Company closed a $150.0 million, 5.65% fixed interest rate loan which matures on June 1, 2017 and requires interest only payments. $120.5 million of the loan proceeds were used to retire existing indebtedness scheduled to mature June 2007. The remaining proceeds and cash reserves were used to repay $30.0 million of borrowings outstanding under the Company's unsecured revolving credit facility.
Earnings Guidance
The Company has revised its 2007 EPS guidance from $.37 - $.44 to $.34 - $.39 per diluted share. The Company has also updated its 2007 FFO guidance to a range of $2.20 - $2.25 per diluted share from $2.18 - $2.25 per diluted share.
Conference Call
The Company will hold an investor/analyst conference call:
Conference Call and Webcast Date: Wednesday, August 1, 2007
Time: 11:00 a.m. Eastern Time
Dial In Number: 866-713-8566
Passcode: 97519594
A replay of this call will be available beginning Wednesday, August 1, 2007 at 2:00 p.m. Eastern Time through Wednesday, August 15, 2007 at midnight Eastern Time. To access the replay, please call 888-286-8010 and use passcode 18361175.
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) is a fully integrated, self-managed real estate investment trust (REIT) that focuses on the ownership, management, leasing, acquisition and development of suburban office properties located primarily in submarkets within the Greater Washington, DC region. As of June 30, 2007, the Company owned 247 office properties totaling 18.5 million rentable square feet, which includes 18 properties totaling 806,000 square feet held through joint ventures. The Company has implemented a core customer expansion strategy that is built around meeting, through acquisitions and development, the multi-location requirements of the Company's existing strategic tenants. The Company's property management services team provides comprehensive property and asset management to company owned properties and select third party clients. The Company's development and construction services team provides a wide range of development and construction management services for company owned properties, as well as land planning, design/build services, consulting, and merchant development to select third party clients. The Company's shares are traded on the New York Stock Exchange under the symbol OFC. More information on Corporate Office Properties Trust can be found on the Internet 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, 2006.
Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(Amounts in thousands, except per share data)
Three Months Ended
June 30,
---------------------
2007 2006
---------- ----------
Revenues
Real estate revenues $ 90,952 $ 70,769
Service operations revenues 11,693 14,140
---------- ----------
Total revenues 102,645 84,909
---------- ----------
Expenses
Property operating expenses 29,038 21,640
Depreciation and other amortization associated
with real estate operations 27,429 18,095
Service operations expenses 11,262 13,461
General and administrative expenses 5,085 3,705
---------- ----------
Total operating expenses 72,814 56,901
---------- ----------
Operating income 29,831 28,008
Interest expense (20,541) (17,132)
Amortization of deferred financing costs (921) (606)
Gain on sale of non-real estate investment 1,033 -
---------- ----------
Income from continuing operations before equity
in loss of unconsolidated entities, income
taxes and minority interests 9,402 10,270
Equity in loss of unconsolidated entities (57) (32)
Income tax expense (178) (206)
---------- ----------
Income from continuing operations before
minority interests 9,167 10,032
Minority interests in income from continuing
operations (959) (1,235)
---------- ----------
Income from continuing operations 8,208 8,797
(Loss) income from discontinued operations, net
of minority interests (492) 294
---------- ----------
Income before gain on sales of real estate 7,716 9,091
Gain on sales of real estate, net 161 25
---------- ----------
Net income 7,877 9,116
Preferred share dividends (4,025) (3,653)
---------- ----------
Net income available to common shareholders $ 3,852 $ 5,463
========== ==========
Earnings per share "EPS" computation
Numerator $ 3,852 $ 5,463
========== ==========
Denominator:
Weighted average common shares - basic 46,686 41,510
Dilutive effect of share-based compensation
awards 1,105 1,721
---------- ----------
Weighted average common shares - diluted 47,791 43,231
========== ==========
EPS
Basic $ 0.08 $ 0.13
========== ==========
Diluted $ 0.08 $ 0.13
========== ==========
Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(Amounts in thousands, except per share data and ratios)
Three Months Ended
June 30,
-------------------
2007 2006
--------- ---------
Net income $ 7,877 $ 9,116
Add: Real estate-related depreciation and
amortization 27,087 18,490
Add: Depreciation and amortization on
unconsolidated real estate entities 169 109
Less: Depreciation and amortization allocable to
minority interests in other consolidated entities (47) (44)
Loss on sales of real estate, excluding
development portion 11 6
--------- ---------
Funds from operations ("FFO") 35,097 27,677
Add: Minority interests-common units in the
Operating Partnership 765 1,157
Less: Preferred share dividends (4,025) (3,653)
--------- ---------
Funds from Operations - basic and diluted ("Basic
and Diluted FFO") 31,837 25,181
Less: Straight-line rent adjustments (3,224) (2,315)
Less: Recurring capital expenditures (6,526) (3,425)
Less: Amortization of deferred market rental
revenue (473) (495)
--------- ---------
Adjusted Funds from Operations - diluted ("Diluted
AFFO") $ 21,614 $ 18,946
========= =========
Weighted average shares
Weighted average common shares 46,686 41,510
Conversion of weighted average common units 8,313 8,465
--------- ---------
Weighted average common shares/units - basic FFO
per share 54,999 49,975
Dilutive effect of share-based compensation
awards 1,105 1,721
--------- ---------
Weighted average common shares/units - diluted
FFO per share 56,104 51,696
========= =========
Diluted FFO per common share $ 0.57 $ 0.49
========= =========
Dividends/distributions per common share/unit $ 0.31 $ 0.28
========= =========
Earnings payout ratio 379.4% 217.0%
========= =========
Diluted FFO payout ratio 54.0% 56.4%
========= =========
Diluted AFFO payout ratio 79.5% 75.0%
========= =========
EBITDA interest coverage ratio 2.77x 2.70x
========= =========
EBITDA fixed charge coverage ratio 2.31x 2.22x
========= =========
Reconciliation of denominators for diluted EPS and
diluted FFO per share
Denominator for diluted EPS 47,791 43,231
Weighted average common units 8,313 8,465
--------- ---------
Denominator for diluted FFO per share 56,104 51,696
========= =========
Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(Amounts in thousands, except per share data)
Six Months Ended
June 30,
---------------------
2007 2006
---------- ----------
Revenues
Real estate revenues $ 180,627 $ 139,991
Service operations revenues 21,770 30,449
---------- ----------
Total revenues 202,397 170,440
---------- ----------
Expenses
Property operating expenses 60,786 42,701
Depreciation and other amortization associated
with real estate operations 53,998 36,767
Service operations expenses 21,150 29,165
General and administrative expenses 9,699 7,668
---------- ----------
Total operating expenses 145,633 116,301
---------- ----------
Operating income 56,764 54,139
Interest expense (40,417) (34,161)
Amortization of deferred financing costs (1,805) (1,162)
Gain on sale of non-real estate investment 1,033 -
---------- ----------
Income from continuing operations before equity
in loss of unconsolidated entities, income
taxes and minority interests 15,575 18,816
Equity in loss of unconsolidated entities (151) (55)
Income tax expense (283) (421)
---------- ----------
Income from continuing operations before
minority interests 15,141 18,340
Minority interests in income from continuing
operations (1,385) (2,193)
---------- ----------
Income from continuing operations 13,756 16,147
(Loss) income from discontinued operations, net
of minority interests (493) 2,771
---------- ----------
Income before gain on sales of real estate 13,263 18,918
Gain on sales of real estate, net 161 135
---------- ----------
Net income 13,424 19,053
Preferred share dividends (8,018) (7,307)
---------- ----------
Net income available to common shareholders $ 5,406 $ 11,746
========== ==========
Earnings per share "EPS" computation
Numerator $ 5,406 $ 11,746
========== ==========
Denominator:
Weighted average common shares - basic 46,185 40,594
Dilutive effect of share-based compensation
awards 1,305 1,801
---------- ----------
Weighted average common shares - diluted 47,490 42,395
========== ==========
EPS
Basic $ 0.12 $ 0.29
========== ==========
Diluted $ 0.11 $ 0.28
========== ==========
Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(Amounts in thousands, except per share data and ratios)
Six Months Ended
June 30,
---------------------
2007 2006
---------- ----------
Net income $ 13,424 $ 19,053
Add: Real estate-related depreciation and
amortization 53,387 37,558
Add: Depreciation and amortization on
unconsolidated real estate entities 337 194
Less: Depreciation and amortization allocable to
minority interests in other consolidated
entities (89) (77)
Loss (gain) on sales of real estate, excluding
development portion 11 (2,453)
---------- ----------
Funds from operations ("FFO") 67,070 54,275
Add: Minority interests-common units in the
Operating Partnership 1,073 2,563
Less: Preferred share dividends (8,018) (7,307)
---------- ----------
Funds from Operations - basic and diluted
("Basic and Diluted FFO") 60,125 49,531
Less: Straight-line rent adjustments (5,795) (4,437)
Less: Recurring capital expenditures (9,667) (6,233)
Less: Amortization of deferred market rental
revenue (984) (1,050)
---------- ----------
Adjusted Funds from Operations - diluted
("Diluted AFFO") $ 43,679 $ 37,811
========== ==========
Weighted average shares
Weighted average common shares 46,185 40,594
Conversion of weighted average common units 8,361 8,493
---------- ----------
Weighted average common shares/units - basic
FFO per share 54,546 49,087
Dilutive effect of share-based compensation
awards 1,305 1,801
---------- ----------
Weighted average common shares/units - diluted
FFO per share 55,851 50,888
========== ==========
Diluted FFO per common share $ 1.08 $ 0.97
========== ==========
Dividends/distributions per common share/unit $ 0.62 $ 0.56
========== ==========
Earnings payout ratio 539.1% 196.7%
========== ==========
Diluted FFO payout ratio 57.0% 56.2%
========== ==========
Diluted AFFO payout ratio 78.5% 73.6%
========== ==========
Reconciliation of denominators for diluted EPS
and diluted FFO per share
Denominator for diluted EPS 47,490 42,395
Weighted average common units 8,361 8,493
---------- ----------
Denominator for diluted FFO per share 55,851 50,888
========== ==========
Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(Dollars and shares in thousands, except per share data)
June 30, December 31,
2007 2006
------------ ------------
Balance Sheet Data (in thousands) (as of
period end):
Investment in real estate, net of
accumulated depreciation $ 2,524,573 $ 2,111,310
Total assets 2,854,729 2,419,601
Debt 1,752,478 1,498,537
Total liabilities 1,886,209 1,629,111
Minority interests 130,751 116,187
Beneficiaries' equity 837,769 674,303
Debt to Total Assets 61.4% 61.9%
Debt to Undepreciated Book Value of Real
Estate Assets 60.4% 62.0%
Debt to Total Market Capitalization 41.2% 34.9%
Property Data (wholly owned properties)
(as of period end):
Number of operating properties owned 229 170
Total net rentable square feet owned (in
thousands) 17,710 15,050
Occupancy 92.7% 92.8%
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 $ 2,854,729 $ 2,419,601
Assets other than assets included in
investment in real estate (330,156) (308,291)
Accumulated depreciation on real estate
assets 255,248 219,574
Intangible assets on real estate
acquisitions, net 123,861 87,325
------------ ------------
Denominator for debt to undepreciated book
value of real estate assets $ 2,903,682 $ 2,418,209
============ ============
Three Months Ended Six Months Ended
June 30, June 30,
------------------- -------------------
2007 2006 2007 2006
--------- --------- --------- ---------
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 $ 7,673 $ 3,317 $ 14,190 $ 6,190
Total capital improvements on
operating properties 2,387 2,536 3,968 5,659
Total leasing costs on
operating properties 2,014 1,421 4,993 2,367
Less: Nonrecurring tenant
improvements and incentives
on operating properties (3,636) (1,752) (9,494) (3,033)
Less: Nonrecurring capital
improvements on operating
properties (1,446) (1,068) (1,854) (3,587)
Less: Nonrecurring leasing
costs incurred on operating
properties (494) (1,076) (2,192) (1,434)
Add: Recurring improvements on
operating properties held
through joint ventures 28 47 56 71
--------- --------- --------- ---------
Recurring capital expenditures $ 6,526 $ 3,425 $ 9,667 $ 6,233
========= ========= ========= =========
Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(Dollars in thousands)
Three Months Ended Six Months Ended
June 30, June 30,
------------------ ----------------
2007 2006 2007 2006
--------- -------- -------- -------
Reconciliation of dividends for
Earnings Payout Ratio to
dividends and distributions for
FFO & AFFO Payout Ratio
Common share dividends for
earnings payout ratio $14,613 $11,853 $29,142 $23,110
Common unit distributions 2,574 2,357 5,128 4,731
--------- -------- -------- -------
Dividends and distributions for
FFO & AFFO payout ratio $17,187 $14,210 $34,270 $27,841
========= ======== ======== =======
Reconciliation of GAAP net income
to earnings before interest,
income taxes, depreciation and
amortization ("EBITDA")
Net income $ 7,877 $ 9,116
Interest expense on continuing
operations 20,541 17,132
Interest expense on discontinued
operations 533 504
Income tax expense 181 206
Real estate-related depreciation
and amortization 27,087 18,490
Amortization of deferred
financing costs-continuing
operations 921 606
Amortization of deferred
financing costs-discontinued
operations - 3
Other depreciation and
amortization 342 260
Minority interests 899 1,297
--------- --------
EBITDA $58,381 $47,614
========= ========
Reconciliation of interest
expense from continuing
operations to the denominators
for interest coverage-EBITDA and
fixed charge coverage-EBITDA
Interest expense from continuing
operations $20,541 $17,132
Interest expense from
discontinued operations 533 504
--------- --------
Denominator for interest
coverage-EBITDA 21,074 17,636
Preferred share dividends 4,025 3,653
Preferred unit distributions 165 165
--------- --------
Denominator for fixed charge
coverage-EBITDA $25,264 $21,454
========= ========
Reconciliation of same property
net operating income to same
property cash net operating
income
Same property net operating
income $48,419 $47,686
Less: Straight-line rent
adjustments (1,532) (2,065)
Less: Amortization of deferred
market rental revenue (245) (300)
--------- --------
Same property cash net operating
income $46,642 $45,321
========= ========
Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(Amounts in thousands, except per share data)
Year Ending
December 31, 2007
-----------------
Reconciliation of projected EPS-diluted to projected
diluted FFO per share Low High
-------- --------
Reconciliation of numerators
----------------------------------------------------
Numerator for projected EPS-diluted $ 16,350 $ 18,750
Real estate-related depreciation and amortization 103,544 103,544
Minority interests-common units 3,017 3,460
-------- --------
Numerator for projected diluted FFO per share $122,911 $125,754
======== ========
Reconciliation of denominators
----------------------------------------------------
Denominator for projected EPS-diluted 47,616 47,616
Weighted average common units 8,340 8,340
-------- --------
Denominator for projected diluted FFO per share 55,956 55,956
======== ========
Projected EPS - diluted $ 0.34 $ 0.39
======== ========
Projected diluted FFO per share $ 2.20 $ 2.25
======== ========
Top Twenty Office Tenants of Wholly Owned Properties as of June 30,
2007 (1)
(Dollars in thousands)
Percentage of
Total Total
Number of Occupied Occupied
Tenant Leases Square Feet Square Feet
------------------------------- --------- ----------- -------------
United States of America (5) 50 2,314,064 14.1%
Northrop Grumman Corporation (6) 21 954,163 5.8%
Booz Allen Hamilton, Inc. 9 723,409 4.4%
Computer Sciences Corporation (6) 4 454,645 2.8%
L-3 Communications Holdings,
Inc. (6) 4 221,635 1.4%
Unisys Corporation (7) 4 760,145 4.6%
General Dynamics Corporation 8 270,456 1.6%
Wachovia Corporation (6) 5 189,478 1.2%
The Aerospace Corporation 2 221,785 1.4%
AT&T Corporation (6) 9 337,052 2.1%
Comcast Corporation 9 280,586 1.7%
The Boeing Company (6) 4 143,480 0.9%
Ciena Corporation 3 221,609 1.4%
Science Applications
International Corp. 12 170,839 1.0%
Lockheed Martin Corporation 6 163,685 1.0%
Magellan Health Services, Inc. 3 142,199 0.9%
BAE Systems PLC (6) 7 212,339 1.3%
Merck & Co., Inc. (Unisys) (7) 2 227,273 1.4%
The Johns Hopkins University 4 115,854 0.7%
Wyle Laboratories, Inc. 4 174,792 1.1%
Subtotal Top 20 Office Tenants 170 8,299,488 50.6%
All remaining tenants 772 8,113,632 49.4%
------------------------------------
Total/Weighted Average 942 16,413,120 100.0%
====================================
Total Percentage Weighted
Annualized of Total Average
Rental Annualized Rental Remaining
Tenant Revenue (2)(3) Revenue Lease Term (4)
------------------- --------------- ----------------- --------------
United States of
America (5) $51,895 15.0% 6.1
Northrop Grumman
Corporation (6) 23,320 6.7% 6.6
Booz Allen
Hamilton, Inc. 19,641 5.7% 7.0
Computer Sciences
Corporation (6) 11,347 3.3% 3.9
L-3 Communications
Holdings, Inc. (6) 8,844 2.6% 6.5
Unisys Corporation (7) 8,665 2.5% 2.2
General Dynamics
Corporation 7,005 2.0% 2.7
Wachovia
Corporation (6) 6,745 1.9% 10.9
The Aerospace
Corporation 6,504 1.9% 7.4
AT&T Corporation (6) 6,013 1.7% 5.3
Comcast Corporation 5,242 1.5% 4.5
The Boeing Company (6) 4,079 1.2% 2.5
Ciena Corporation 3,675 1.1% 4.7
Science
Applications
International
Corp. 3,244 0.9% 0.4
Lockheed Martin
Corporation 3,048 0.9% 2.0
Magellan Health
Services, Inc. 3,021 0.9% 3.4
BAE Systems PLC (6) 2,841 0.8% 3.5
Merck & Co., Inc.
(Unisys) (7) 2,621 0.8% 2.0
The Johns Hopkins
University 2,478 0.7% 8.5
Wyle Laboratories,
Inc. 2,435 0.7% 5.2
Subtotal Top 20
Office Tenants 182,661 52.8% 5.6
All remaining
tenants 163,509 47.2% 4.2
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Total/Weighted
Average $346,170 100.0% 4.9
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(1) Table excludes owner occupied leasing activity which represents
147,004 square feet with a weighted average remaining lease term
of 7.5 years as of June 30, 2007.
(2) Total Annualized Rental Revenue is the monthly contractual base
rent as of June 30, 2007, 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
Released July 31, 2007