COPT 4Q and Full Year 2021 Results Exceed Guidance

Rhea-AI Summary

Corporate Office Properties Trust (COPT) reported a diluted EPS of $0.12 for 4Q21, down from $0.73 in 4Q20, with full-year EPS at $0.68 versus $0.87 in 2020. Adjusted FFO per share increased 8% to $2.29 for the full year, driven by a 1.2% increase in same-property cash NOI and strong leasing activity, totaling 3.9 million square feet in 2021. The company's active development pipeline stands at 1.7 million square feet, 96% leased. Recent property sales raised $222.5 million, bolstering its balance sheet. COPT continues to focus on Defense/IT Locations, generating 88% of its revenue from this sector.

Positive

• 8% growth in FFO per share from 2020 to 2021.
• 1.2% increase in same-property cash NOI during 2021, exceeding guidance.
• 96% of the 1.7 million square feet in active development pipeline is leased.
• Strong leasing performance with 3.9 million square feet leased in 2021, surpassing goals.
• High tenant retention rates of 73% in Q4 and 74% for the year.

Negative

• Diluted EPS for 4Q21 decreased to $0.12 from $0.73 in 4Q20.
• Full year EPS declined from $0.87 in 2020 to $0.68 in 2021.
• FFOPS decreased from $1.50 in 2020 to $1.40 in 2021.

Reported EPS of $0.12 in 4Q21 and $0.68 for Full Year

4Q & FY FFO per Share, as Adjusted for Comparability, of $0.58 & $2.29, Respectively, Exceeded Previously Elevated Guidance

1.2% Increase in Same-Property Cash NOI During 2021 also Exceeded Guidance

Core Portfolio 92.6% Occupied & 94.4% Leased at Year End

Active Development Pipeline Stands at 1.7 Million SF, 96% Leased

Strong Leasing Achievement

Total Leasing of 1.2 Million SF in the Quarter and 3.9 Million SF for the Year Included 196,000 SF and 616,000 SF of Vacancy Leasing, Respectively

Strong Tenant Retention of 73% in the Quarter and 74% for the Year

1.2 Million SF of Development Leasing During 2021 Exceeded Management Goal by 18%

Post Year-End Sale of DC-6 Raised $222.5 Million to Fund Value-Accretive Development

COLUMBIA, Md.--(BUSINESS WIRE)-- Corporate Office Properties Trust (“COPT” or the “Company”) (NYSE: OFC) announced results for the fourth quarter and full year ended December 31, 2021.

Management Comments

Stephen E. Budorick, COPT’s President & Chief Executive Officer, commented, “Our unique investment strategy of allocating capital to Defense/IT Locations that support priority missions at U.S. defense installations continues to produce strong results that are not correlated to traditional office fundamentals and distinguishes us from other office REITs. The 8% growth in FFO per share, as adjusted for comparability we generated in 2021 exceeded our previously elevated guidance and was driven by solid same-property cash NOI growth of 1.2% and strong lease achievement that included 616,000 square feet of vacancy leasing. Demand for our Defense/IT Locations drove 1.2 million square feet of development leasing, exceeding our goal by 18%. Our 1.7 million square foot pipeline of active development projects that are 96% leased will drive earnings growth this year and beyond.” He continued, “Our balance sheet is strong and inflation-protected. Since the third quarter 2020, we refinanced and issued $1.8 billion of new debt, equating to 150% of our then-existing senior notes, locking-in low rates for long durations. Additionally, the equity we harvested from the sale of DC-6 on January 25, 2022, strengthened our balance sheet and provided us with capital to fund our highly leased development pipeline and the next wave of value accretive development projects with the U.S. Government and defense contractors who support the priority missions our Defense/IT Locations serve.”

Financial Highlights

4^th Quarter Financial Results:

• Diluted earnings per share (“EPS”) was $0.12 for the quarter ended December 31, 2021 compared to $0.73 for the fourth quarter of 2020.

• Diluted funds from operations per share (“FFOPS”), as calculated in accordance with Nareit’s definition, was $0.21 for the fourth quarter of 2021 compared to $0.53 for fourth quarter 2020.

• FFOPS, as adjusted for comparability, was $0.58 for the fourth quarter of 2021 compared to $0.56 for the fourth quarter of 2020.

Full Year 2021 Financial Results:

• EPS for the year ended December 31, 2021 was $0.68 as compared to 2020 EPS of $0.87.

• Per Nareit’s definition, FFOPS for 2021 was $1.40 as compared to $1.50 for 2020.

• FFOPS, as adjusted for comparability, for 2021 was $2.29 as compared to $2.12 for 2020.

Operating Performance Highlights

Operating Portfolio Summary:

• At December 31, 2021, the Company’s core portfolio of 184 operating office and data center shell properties was 92.6% occupied and 94.4% leased.

• During the quarter and the year, the Company placed into service 57,000 and 766,000 square feet of developments that were 18% and 84% leased, respectively.

Same-Property Performance:

• At December 31, 2021, COPT’s same-property portfolio of 159 buildings was 91.3% occupied and 93.4% leased. Same-property occupancy at year end was in-line with Company guidance.

• For the quarter and year ended December 31, 2021, the Company’s same-property cash NOI increased 0.5% and 1.2%, respectively, over the prior year’s comparable periods. For the full year, same-property cash NOI exceeded the high end of the Company’s guidance by 20 basis points.

Leasing:

• Total Square Feet Leased: For the quarter ended December 31, 2021, the Company leased 1.2 million square feet, including 701,000 square feet of renewals, 196,000 square feet of new leases on vacant space, and 263,000 square feet in development projects.
  
  For the year ended December 31, 2021, the Company executed 3.9 million square feet of leasing, including 2.1 million square feet of renewals, 616,000 square feet of vacancy leasing, and 1.2 million square feet in development projects. Development leasing achievement for the year exceeded the Company’s 1 million square foot goal.

• Tenant Retention Rates: During the quarter and year ended December 31, 2021, the Company renewed 73.4% and 74.2%, respectively, of expiring square feet, which was in-line with previously elevated guidance for the year.

• Rent Spreads & Average Escalations on Renewing Leases: For the quarter and year ended December 31, 2021, straight-line rents on renewals increased 2.9% and 5.2%, respectively, and cash rents on renewed space decreased 5.8% and 2.2%, respectively. For the same time periods, annual escalations on renewing leases averaged 2.3%.

• Lease Terms: In the fourth quarter of 2021, lease terms averaged 8.5 years on renewing leases, 7.5 years on new leasing of vacant space, and 11.0 years on development leasing. For the year, lease terms averaged 5.4 years on renewing leases, 8.2 years on vacancy leasing, and 13.4 years on development leasing.

Investment Activity Highlights

• Development Pipeline: The Company’s development pipeline consists of 11 properties totaling 1.7 million square feet that were 96% leased at December 31, 2021. These projects represent a total estimated investment of $542.4 million, of which $209.9 million has been spent.

Balance Sheet and Capital Transaction Highlights

• In November, the Company issued $400 million of 2.9% senior unsecured notes due 2033. The Company used net proceeds from this issuance to redeem its 5.0% senior unsecured notes due 2025 and retire a $49.4 million mortgage loan.

• In December, the Company sold 2500 Riva Road in Annapolis, MD, a property that was removed from service in 2019, for $30 million. The Company used proceeds from the sale to pay down borrowings under its line of credit and recognized a gain on sale of $26 million.

• On January 25, 2022, the Company sold 100% of COPT DC-6 (“DC-6”), the only asset in the Company’s Wholesale Data Center reporting segment for $222.5 million. There was no debt on the asset.

• At December 31, 2021, the Company’s net debt to in-place adjusted EBITDA ratio was 6.7x, and was 6.3x as adjusted to reflect the effects of the DC-6 sale. Also at December 31, 2021, the Company’s net debt adjusted for fully-leased development to in-place adjusted EBITDA ratio was 6.2x, and was 5.8x as adjusted to reflect the effects of the DC-6 sale.

• At December 31, 2021, and including the effect of interest rate swaps, the Company’s weighted average effective interest rate on its consolidated debt portfolio was 2.69% with a weighted average maturity of 6.8 years; additionally, 94.5% of the Company’s debt was subject to fixed interest rates.

• For the quarter and year ended December 31, 2021, the Company’s adjusted EBITDA fixed charge coverage ratio was 4.9x and 4.7x, respectively.

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 full year 2021 conference call; the presentation can be viewed and downloaded from the ‘Latest Updates’ section of COPT’s Investors website: https://investors.copt.com/

2022 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 full year 2021 results on its conference call tomorrow at 12:00 p.m. Eastern Time, details of which are listed below:

Conference Call Date:				Friday, February 11, 2022
Time:				12:00 p.m. Eastern Time
Telephone Number: (within the U.S.)				855-463-9057
Telephone Number: (outside the U.S.)				661-378-9894
Passcode:				5193227

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 11, through 3:00 p.m. Eastern Time on Friday, February 25. 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 5193227.

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 the Company believes are growing, durable, priority missions (such properties, “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, 2021, the Company derived 88% of its core portfolio annualized rental revenue from Defense/IT Locations and 12% from its Regional Office Properties. As of the same date and including 19 properties owned through unconsolidated joint ventures, COPT’s core portfolio of 184 office and data center shell properties encompassed 21.6 million square feet and was 94.4% leased; the Company also owned one wholesale data center that it sold on January 25, 2022.

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, 2020.

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 Ended December 31,				For the Years Ended December 31,
		2021		2020		2021		2020
Revenues
Revenues from real estate operations		$    142,648		$    132,207		$    556,570		$    511,714
Construction contract and other service revenues		43,284		24,400		107,876		70,640
Total revenues		185,932		156,607		664,446		582,354
Operating expenses
Property operating expenses		56,459		48,870		213,377		190,796
Depreciation and amortization associated with real estate operations		34,504		33,814		137,543		126,503
Construction contract and other service expenses		42,089		23,563		104,053		67,615
Impairment losses		—		—		—		1,530
General and administrative expenses		6,589		7,897		27,213		25,269
Leasing expenses		2,568		1,993		8,914		7,732
Business development expenses and land carry costs		1,088		999		4,647		4,473
Total operating expenses		143,297		117,136		495,747		423,918
Interest expense		(16,217)		(17,148)		(65,398)		(67,937)
Interest and other income		1,968		3,341		7,879		8,574
Credit loss recoveries		88		772		1,128		933
Gain on sales of real estate		25,879		30,204		65,590		30,209
Gain on sale of investment in unconsolidated real estate joint venture		—		29,416		—		29,416
Loss on early extinguishment of debt		(41,073)		(4,069)		(100,626)		(7,306)
Loss on interest rate derivatives		—		—		—		(53,196)
Income from continuing operations before equity in income of unconsolidated entities and income taxes		13,280		81,987		77,272		99,129
Equity in income of unconsolidated entities		314		453		1,093		1,825
Income tax expense		(42)		(258)		(145)		(353)
Income from continuing operations		13,552		82,182		78,220		100,601
Discontinued operations		1,413		1,367		3,358		2,277
Net Income		14,965		83,549		81,578		102,878
Net income attributable to noncontrolling interests:
Common units in the Operating Partnership (“OP”)		(181)		(995)		(1,012)		(1,180)
Preferred units in the OP		—		(69)		—		(300)
Other consolidated entities		(1,076)		(817)		(4,025)		(4,024)
Net income attributable to COPT common shareholders		$      13,708		$      81,668		$      76,541		$      97,374
Earnings per share (“EPS”) computation:
Numerator for diluted EPS:
Net income attributable to COPT common shareholders		$      13,708		$      81,668		$      76,541		$      97,374
Amount allocable to share-based compensation awards		(116)		(280)		(417)		(404)
Redeemable noncontrolling interests		(46)		44		(128)		—
Distributions on dilutive convertible preferred units		—		69		—		—
Numerator for diluted EPS		$      13,546		$      81,501		$      75,996		$      96,970
Denominator:
Weighted average common shares - basic		111,990		111,817		111,960		111,788
Dilutive effect of share-based compensation awards		386		320		330		288
Dilutive effect of redeemable noncontrolling interests		124		117		128		—
Dilutive convertible preferred units		—		155		—		—
Weighted average common shares - diluted		112,500		112,409		112,418		112,076
Diluted EPS		$          0.12		$          0.73		$          0.68		$          0.87

Corporate Office Properties Trust Summary Financial Data (unaudited) (in thousands, except per share data)
		For the Three Months Ended December 31,				For the Years Ended December 31,
		2021		2020		2021		2020
Net income		$      14,965		$      83,549		$      81,578		$    102,878
Real estate-related depreciation and amortization		36,346		36,653		147,833		138,193
Impairment losses on real estate		—		—		—		1,530
Gain on sales of real estate from continuing and discontinued operations		(25,879)		(30,204)		(65,590)		(30,209)
Gain on sale of investment in unconsolidated real estate joint venture		—		(29,416)		—		(29,416)
Depreciation and amortization on unconsolidated real estate JVs		526		874		1,981		3,329
Funds from operations (“FFO”)		25,958		61,456		165,802		186,305
FFO allocable to other noncontrolling interests		(1,458)		(1,091)		(5,483)		(15,705)
Basic FFO allocable to share-based compensation awards		(149)		(272)		(777)		(719)
Noncontrolling interests - preferred units in the OP		—		(69)		—		(300)
Basic FFO available to common share and common unit holders (“Basic FFO”)		24,351		60,024		159,542		169,581
Dilutive preferred units in the OP		—		69		—		—
Redeemable noncontrolling interests		(13)		44		(11)		147
Diluted FFO adjustments allocable to share-based compensation awards		6		—		32		—
Diluted FFO available to common share and common unit holders (“Diluted FFO”)		24,344		60,137		159,563		169,728
Loss on early extinguishment of debt		41,073		4,069		100,626		7,306
Loss on interest rate derivatives		—		—		—		53,196
Loss on interest rate derivatives included in interest expense		221		—		221		—
Demolition costs on redevelopment and nonrecurring improvements		(8)		—		423		63
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		(172)		(18)		(507)		(327)
Diluted FFO available to common share and common unit holders, as adjusted for comparability		65,458		64,188		260,326		241,356
Straight line rent adjustments and lease incentive amortization		(3,835)		3,438		(10,286)		4,100
Amortization of intangibles and other assets included in net operating income		40		24		162		(162)
Share-based compensation, net of amounts capitalized		2,018		1,751		7,979		6,505
Amortization of deferred financing costs		640		664		2,980		2,539
Amortization of net debt discounts, net of amounts capitalized		615		504		2,244		1,733
Replacement capital expenditures		(32,317)		(13,973)		(70,973)		(60,944)
Other diluted AFFO adjustments associated with real estate JVs		204		196		824		190
Diluted adjusted funds from operations available to common share and common unit holders (“Diluted AFFO”)		$      32,823		$      56,792		$    193,256		$    195,317
Diluted FFO per share		$          0.21		$          0.53		$          1.40		$          1.50
Diluted FFO per share, as adjusted for comparability		$          0.58		$          0.56		$          2.29		$          2.12
Dividends/distributions per common share/unit		$        0.275		$        0.275		$          1.10		$          1.10

Corporate Office Properties Trust Summary Financial Data (unaudited) (Dollars and shares in thousands, except per share data)
		December 31, 2021		December 31, 2020
Balance Sheet Data
Properties, net of accumulated depreciation		$  3,532,944		$  3,362,285
Total assets		4,262,452		4,077,023
Debt, per balance sheet		2,272,304		2,086,918
Total liabilities		2,578,479		2,357,881
Redeemable noncontrolling interests		26,898		25,430
Equity		1,657,075		1,693,712
Net debt to adjusted book		40.5%		39.1%
Core Portfolio Data (as of period end) (1)
Number of operating properties		184		179
Total operational square feet (in thousands)		21,553		20,802
% Occupied		92.6%		94.3%
% Leased		94.4%		95.0%

		For the Three Months Ended December 31,				For the Years Ended December 31,
		2021		2020		2021		2020
Payout ratios
Diluted FFO		128.0%		51.8%		78.1%		73.3%
Diluted FFO, as adjusted for comparability		47.6%		48.6%		47.9%		51.7%
Diluted AFFO		95.0%		54.9%		64.5%		63.8%
Adjusted EBITDA fixed charge coverage ratio		4.9x		4.1x		4.7x		3.9x
Net debt to in-place adjusted EBITDA ratio (2)		6.7x		6.2x		N/A		N/A
Pro forma net debt to in-place adjusted EBITDA ratio (2)(3)		6.3x		N/A		N/A		N/A
Net debt adj. for fully-leased development to in-place adj. EBITDA ratio (4)		6.2x		5.9x		N/A		N/A
Pro forma net debt adj. for fully-leased development to in-place adj. EDITDA ratio (3)(4)		5.8x		N/A		N/A		N/A
Reconciliation of denominators for per share measures
Denominator for diluted EPS		112,500		112,409		112,418		112,076
Weighted average common units		1,259		1,239		1,257		1,236
Redeemable noncontrolling interests		—		—		—		123
Denominator for diluted FFO per share		113,759		113,648		113,675		113,435
Dilutive convertible preferred units		—		—		—		171
Denominator for diluted FFO per share, as adjusted for comparability		113,759		113,648		113,675		113,606

(1)		Represents Defense/IT Locations and Regional Office properties.
(2)		Represents net debt as of period end divided by in-place adjusted EBITDA for the period, as annualized (i.e. three month periods are multiplied by four).
(3)		Includes adjustments associated with the sale on 1/25/22 of the Company’s wholesale data center and use of resulting proceeds to repay debt.
(4)		Represents net debt less costs incurred on properties under development that were 100% leased 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 Ended December 31,				For the Years Ended December 31,
		2021		2020		2021		2020
Reconciliation of common share dividends to dividends and distributions for payout ratios
Common share dividends - unrestricted shares and deferred shares		$      30,814		$      30,764		$    123,243		$    123,042
Common unit distributions - unrestricted units		346		341		1,387		1,362
Common unit distributions - dilutive restricted units		7		—		25		—
Distributions on dilutive preferred units		—		69		—		—
Dividends and distributions for diluted FFO payout ratio		31,167		31,174		124,655		124,404
Distributions on dilutive preferred units		—		—		—		300
Dividends and distributions for other payout ratios		$      31,167		$      31,174		$    124,655		$    124,704
Reconciliation of GAAP net income (loss) to earnings before interest, income taxes, depreciation and amortization for real estate (“EBITDAre”), adjusted EBITDA, in-place adjusted EBITDA and pro forma in-place adjusted EBITDA
Net income		$      14,965		$      83,549		$      81,578		$    102,878
Interest expense		16,217		17,148		65,398		67,937
Income tax expense		42		258		145		353
Real estate-related depreciation and amortization		36,346		36,653		147,833		138,193
Other depreciation and amortization		622		513		2,811		1,837
Impairment losses on real estate		—		—		—		1,530
Gain on sales of real estate		(25,879)		(30,204)		(65,590)		(30,209)
Gain on sale of investment in unconsolidated real estate joint venture		—		(29,416)		—		(29,416)
Adjustments from unconsolidated real estate JVs		763		1,306		2,930		5,120
EBITDAre		43,076		79,807		235,105		258,223
Loss on early extinguishment of debt		41,073		4,069		100,626		7,306
Loss on interest rate derivatives		—		—		—		53,196
Net gain on other investments		—		(1,218)		(63)		(966)
Credit loss recoveries		(88)		(772)		(1,128)		(933)
Business development expenses		628		412		2,233		2,042
Demolition costs on redevelopment and nonrecurring improvements		(8)		—		423		63
Adjusted EBITDA		84,681		82,298		$    337,196		$    318,931
Pro forma net operating income adjustment for property changes within period		—		1,459
Change in collectability of deferred rental revenue		—		678
Other		1,578		—
In-place adjusted EBITDA		86,259		84,435
Pro forma NOI adjustment for sale of Wholesale Data Center		(3,074)		N/A
Pro forma in-place adjusted EBITDA		$      83,185		$      84,435
Reconciliation of interest expense to the denominators for fixed charge coverage-Adjusted EBITDA
Interest expense		$      16,217		$      17,148		$      65,398		$      67,937
Less: Amortization of deferred financing costs		(640)		(664)		(2,980)		(2,539)
Less: Amortization of net debt discounts, net of amounts capitalized		(615)		(504)		(2,244)		(1,733)
Less: Loss on interest rate derivatives included in interest expense		(221)		—		(221)		—
COPT’s share of interest expense of unconsolidated real estate JVs, excluding deferred financing costs		237		422		943		1,749
Scheduled principal amortization		950		1,048		3,860		4,125
Capitalized interest		1,192		2,620		6,467		12,060
Preferred unit distributions		—		69		—		300
Denominator for fixed charge coverage-Adjusted EBITDA		$      17,120		$      20,139		$      71,223		$      81,899

Corporate Office Properties Trust Summary Financial Data (unaudited) (in thousands)
		For the Three Months Ended December 31,				For the Years Ended December 31,
		2021		2020		2021		2020
Reconciliations of tenant improvements and incentives, building improvements and leasing costs for operating properties to replacement capital expenditures
Tenant improvements and incentives		$      19,724		$        9,165		$      43,820		$      36,342
Building improvements		17,778		7,523		35,970		34,060
Leasing costs		5,863		1,514		12,736		8,432
Net (exclusions from) additions to tenant improvements and incentives		(5,093)		(370)		(4,704)		1,042
Excluded building improvements and leasing costs		(5,955)		(3,859)		(16,849)		(18,932)
Replacement capital expenditures		$      32,317		$      13,973		$      70,973		$      60,944
Same Properties cash NOI		$      76,866		$      76,515		$    304,178		$    300,539
Straight line rent adjustments and lease incentive amortization		(2,604)		(1,416)		(6,534)		(2,998)
Amortization of acquired above- and below-market rents		100		99		396		390
Amortization of intangibles and other assets to property operating expenses		—		—		—		(69)
Lease termination fees, net		(893)		141		2,416		834
Tenant funded landlord assets and lease incentives		187		249		997		939
Cash NOI adjustments in unconsolidated real estate JV		35		45		154		195
Same Properties NOI		$      73,691		$      75,633		$    301,607		$    299,830

		December 31, 2021		December 31, 2020
Reconciliation of total assets to adjusted book
Total assets		$      4,262,452		$      4,077,023
Accumulated depreciation		1,152,523		1,052,007
Accumulated depreciation included in assets held for sale		82,385		72,246
Accumulated amortization of intangibles on property acquisitions and deferred leasing costs		215,925		212,700
Accumulated amortization of intangibles on property acquisitions and deferred leasing costs included in assets held for sale		4,547		4,424
COPT’s share of liabilities of unconsolidated real estate JVs		27,312		26,710
COPT’s share of accumulated depreciation and amortization of unconsolidated real estate JVs		3,744		1,489
Less: Property - operating lease liabilities		(29,342)		(30,746)
Less: Property - finance lease liabilities		—		(28)
Less: Cash and cash equivalents		(13,262)		(18,369)
Less: COPT’s share of cash of unconsolidated real estate JVs		(434)		(152)
Adjusted book		$      5,705,850		$      5,397,304

Corporate Office Properties Trust Summary Financial Data (unaudited) (in thousands)
		December 31, 2021		December 31, 2020
Reconciliation of debt to net debt, net debt adjusted for fully-leased development and pro forma net debt adjusted for fully-leased development
Debt, per balance sheet		$      2,272,304		$      2,086,918
Net discounts and deferred financing costs		25,982		14,547
COPT’s share of unconsolidated JV gross debt		26,250		26,250
Gross debt		$      2,324,536		$      2,127,715
Less: Cash and cash equivalents		(13,262)		(18,369)
Less: COPT’s share of cash of unconsolidated real estate JVs		(434)		(152)
Net debt		$      2,310,840		$      2,109,194
Costs incurred on fully-leased development properties		(162,884)		(114,532)
Net debt adjusted for fully-leased development		$      2,147,956		$      1,994,662
Net debt		$      2,310,840		$      2,109,194
Debt pay down from Wholesale Data Center sale proceeds		(216,000)		N/A
Pro forma net debt		$      2,094,840		$      2,109,194
Costs incurred on fully-leased development properties		(162,884)		(114,532)
Pro forma net debt adjusted for fully-leased development		$      1,931,956		$      1,994,662

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220210005918/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

FAQ

What are the 4Q21 financial results for stock symbol OFC?

COPT reported a diluted EPS of $0.12 for 4Q21, down from $0.73 in 4Q20.

How much did COPT earn in FFO per share for the full year 2021?

COPT earned $2.29 per share in FFO, an 8% increase from 2020.

What is the leasing activity for COPT in 2021?

COPT leased a total of 3.9 million square feet in 2021, exceeding their goals.

What percentage of COPT’s development pipeline is leased?

As of December 31, 2021, 96% of COPT's development pipeline, totaling 1.7 million square feet, is leased.

What is the tenant retention rate for COPT in 2021?

COPT achieved a tenant retention rate of 74% for the year 2021.