Slide 1: COPT
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Slide 2: Supplemental Information & Earnings Release - Table of Contents
Corporate Office Properties Trust Supplemental Information & Earnings Release - Unaudited For the Three Months Ended 3/31/22 Overview: Section I Summary Description 1 Equity Research Coverage 2 Selected Financial Summary Data 3 Selected Portfolio Data 4 Financial Statements: Section II Consolidated
Slide 3: Summary Description
Corporate Office Properties Trust Summary Description The Company Corporate Office Properties Trust (the “Company” or “COPT”) is a self-managed real estate investment trust (“REIT”). COPT is listed on the New York Stock Exchange under the symbol “OFC” and is an S&P MidCap 400 Company. We own, manage
Slide 4: Equity Research Coverage
Corporate Office Properties Trust Equity Research Coverage Firm Senior Analyst Phone Email Bank of America Securities Jamie Feldman 646-855-5808 james.feldman@bofa.com BTIG Tom Catherwood 212-738-6410 tcatherwood@btig.com Capital One Securities Chris Lucas 571-633-8151 christopher.lucas@capitalone.c
Slide 5: Selected Financial Summary Data
Corporate Office Properties Trust Selected Financial Summary Data (in thousands, except per share data) Page Three Months Ended SUMMARY OF RESULTS Refer. 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Net income (loss) 6 $ 60,824 $ 14,965 $ 28,794 $ 43,898 $ (6,079) NOI from real estate operations 13 $ 87
Slide 6: Selected Portfolio Data
Corporate Office Properties Trust Selected Portfolio Data (1) 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 # of Properties Total Portfolio 188 186 186 184 182 Consolidated Portfolio 169 167 167 165 165 Core Portfolio 186 184 184 182 180 Same Properties 176 176 176 176 176 % Occupied Total Portfolio 92.0
Slide 7: Consolidated Balance Sheets
Corporate Office Properties Trust Consolidated Balance Sheets (in thousands) 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Assets Properties, net: Operating properties, net $ 3,167,851 $ 3,090,510 $ 3,034,365 $ 2,904,129 $ 2,908,986 Development and redevelopment in progress, including land (1) 194,412 19
Slide 8: Consolidated Statements of Operations
Corporate Office Properties Trust Consolidated Statements of Operations (in thousands) Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Revenues Lease revenue $ 141,389 $ 141,892 $ 138,032 $ 136,454 $ 137,290 Other property revenue 891 756 841 765 540 Construction contract and other servi
Slide 9: Funds from Operations
Corporate Office Properties Trust Funds from Operations (in thousands) Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Net income (loss) $ 60,824 $ 14,965 $ 28,794 $ 43,898 $ (6,079) Real estate-related depreciation and amortization 34,264 36,346 36,611 37,555 37,321 Gain on sales of rea
Slide 10: Diluted Share and Unit Computations
Corporate Office Properties Trust Diluted Share and Unit Computations (in thousands, except per share data) Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 EPS Denominator: Weighted average common shares - basic 112,020 111,990 111,985 111,974 111,888 Dilutive effect of share-based compe
Slide 11: Adjusted Funds from Operations
Corporate Office Properties Trust Adjusted Funds from Operations (in thousands) Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Diluted FFO available to common share and common unit holders, as adjusted for comparability $ 65,992 $ 65,458 $ 65,179 $ 65,605 $ 64,454 Straight line rent adj
Slide 12: EBITDAre and Adjusted EBITDA
Corporate Office Properties Trust EBITDAre and Adjusted EBITDA (in thousands) Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Net income (loss) $ 60,824 $ 14,965 $ 28,794 $ 43,898 $ (6,079) Interest expense 14,424 16,217 15,720 15,942 17,519 Income tax expense 153 42 47 24 32 Real estate
Slide 13: Properties by Segment
Corporate Office Properties Trust Properties by Segment (1) - 3/31/22 (square feet in thousands) # of Operational Properties Square Feet % Occupied % Leased Core Portfolio: Defense/IT Locations: Fort Meade/Baltimore Washington (“BW”) Corridor: National Business Park 32 3,926 93.6% 93.8% Howard Count
Slide 14: NOI from Real Estate Operations and Occupancy by Property Grouping
Corporate Office Properties Trust NOI from Real Estate Operations and Occupancy by Property Grouping - 3/31/22 (dollars and square feet in thousands) As of Period End NOI from Real Estate % of Total Operations Annualized Annualized # of Operational % Occupied Rental Rental Three Months Property Grou
Slide 15: Consolidated Real Estate Revenues and NOI by Segment
Corporate Office Properties Trust Consolidated Real Estate Revenues and NOI by Segment (in thousands) Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Consolidated real estate revenues Defense/IT Locations: Fort Meade/BW Corridor $ 67,214 $ 64,805 $ 66,029 $ 64,840 $ 66,446 NoVA Defense/I
Slide 16: Cash NOI by Segment
Corporate Office Properties Trust Cash NOI by Segment (in thousands) Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Cash NOI Defense/IT Locations: Fort Meade/BW Corridor $ 41,271 $ 42,666 $ 42,301 $ 42,514 $ 39,666 NoVA Defense/IT 10,150 10,187 10,088 10,205 9,786 Lackland Air Force Bas
Slide 17: Same Properties Average Occupancy Rates by Segment
Corporate Office Properties Trust Same Properties (1) Average Occupancy Rates by Segment (square feet in thousands) Three Months Ended # of Operational Properties Square Feet 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Core Portfolio: Defense/IT Locations: Fort Meade/BW Corridor 88 8,305 89.9% 90.3% 89
Slide 18: Same Properties Real Estate Revenues and NOI by Segment
Corporate Office Properties Trust Same Properties Real Estate Revenues and NOI by Segment (in thousands) Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Same Properties real estate revenues Defense/IT Locations: Fort Meade/BW Corridor $ 65,571 $ 63,196 $ 65,382 $ 64,397 $ 66,003 NoVA Def
Slide 19: Same Properties Cash NOI by Segment
Corporate Office Properties Trust Same Properties Cash NOI by Segment (dollars in thousands) Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Same Properties cash NOI Defense/IT Locations: Fort Meade/BW Corridor $ 40,157 $ 41,943 $ 42,188 $ 42,422 $ 39,564 NoVA Defense/IT 10,511 10,596 10
Slide 20: Leasing
Corporate Office Properties Trust Leasing (1)(2) Quarter Ended 3/31/22 (square feet in thousands) Defense/IT Locations Ft Meade/ NoVA Data Total BW Defense/ Navy Redstone Center Defense/IT Regional Corridor IT Support Arsenal Shells Locations Office Other Total Renewed Space Leased Square Feet 328 —
Slide 21: Lease Expiration Analysis
Corporate Office Properties Trust Lease Expiration Analysis as of 3/31/22 (1) (dollars and square feet in thousands, except per square foot amounts) Annualized % of Core/Total Annualized Rental Square Rental Annualized Revenue of Footage of Revenue of Rental Expiring Leases per Leases Expiring Reven
Slide 22: Lease Expiration Analysis (continued)
Annualized % of Core/Total Annualized Rental Square Rental Annualized Revenue of Footage of Revenue of Rental Expiring Leases per Leases Expiring Revenue Occupied Sq. Foot Segment of Lease and Year of Expiration (2) Expiring Leases (3) Expiring (3)(4) (3) Core Portfolio 20,150 $ 570,347 99.1% $ 32.6
Slide 23: 2022 Core Portfolio Quarterly Lease Expiration Analysis
Corporate Office Properties Trust 2022 Core Portfolio Quarterly Lease Expiration Analysis as of 3/31/22 (1) (dollars and square feet in thousands, except per square foot amounts) Annualized % of Core Square Rental Annualized Annualized Rental Footage of Revenue of Rental Revenue of Leases Expiring R
Slide 24: Top 20 Tenants
Corporate Office Properties Trust Top 20 Tenants as of 3/31/22 (1) (dollars and square feet in thousands) % Total of Total Annualized Annualized Weighted Average Rental Revenue Rental Occupied Square Remaining Lease Tenant (2) Revenue (2) Feet Term (3) United States Government (4) $ 212,719 37.0% 5,
Slide 25: Property Dispositions
Corporate Office Properties Trust Property Dispositions (dollars in thousands) % Occupied on Transaction # of Operational Transaction Transaction Value Property Property Segment Location Properties Megawatts Date Date (in millions) 9651 Hornbaker Road (DC-6) Wholesale Data Center Manassas, VA 1 19.2
Slide 26: Summary of Development Projects
Corporate Office Properties Trust Summary of Development Projects as of 3/31/22 (1) (dollars and square feet in thousands) Actual or as of 3/31/22 (2) Anticipated Total Cost to Date Shell Anticipated Rentable % Leased as Anticipated Placed in Completion Operational Property and Segment Location Squa
Slide 27: Development Placed in Service
Corporate Office Properties Trust Development Placed in Service as of 3/31/22 (square feet in thousands) Square Feet Placed in Total Property Service Total Space 2022 Placed in % Leased Service % Property as of Rentable Leased as of Property and Location Segment 3/31/22 Square Feet 1st Quarter 3/31/
Slide 28: Summary of Land Owned/Controlled
Corporate Office Properties Trust Summary of Land Owned/Controlled as of 3/31/22 (1) (in thousands) Estimated Developable Square Carrying Location Acres Feet Amount Land owned/controlled for future development Defense/IT Locations: Fort Meade/BW Corridor: National Business Park 146 1,816 Howard Coun
Slide 29: Capitalization Overview
Corporate Office Properties Trust Capitalization Overview (dollars, shares and units in thousands) Wtd. Avg. Effective Gross Debt Investment Grade Ratings & Outlook Latest Affirmation Maturity Stated Rate Balance at Fitch BBB- Stable 10/8/21 (Years) (1) Rate (2)(3) 3/31/22 Moody’s Baa3 Stable 3/3/21
Slide 30: Summary of Outstanding Debt
Corporate Office Properties Trust Summary of Outstanding Debt as of 3/31/22 (dollars in thousands) Balloon Payment Stated Amount Maturity Stated Amount Due Upon Maturity Unsecured Debt Rate Outstanding Date Secured Debt Rate Outstanding Maturity Date Revolving Credit Facility L + 1.10% $ 160,000 Mar
Slide 31: Summary of Outstanding Debt (continued)
Corporate Office Properties Trust Summary of Outstanding Debt as of 3/31/22 (continued) 800,000 $ (Consolidated debt maturities in thousands) 600,000 400,000 200,000 0 2022 2023 2024 (1) 2025 2026 2029 2031 2033 Unsecured Secured Variable/Fixed Rate Debt Debt Categories Other Unsecured Debt: 0.0% Re
Slide 32: Debt Analysis
Corporate Office Properties Trust Debt Analysis (dollars and square feet in thousands) As of and for As of and for Three Months Three Months Ended Ended Senior Note Covenants (1) Required 3/31/22 Line of Credit & Term Loan Covenants (1) Required 3/31/22 Total Debt / Total Assets < 60% 40.2% Total De
Slide 33: Consolidated Real Estate Joint Ventures
Corporate Office Properties Trust Consolidated Real Estate Joint Ventures as of 3/31/22 (dollars and square feet in thousands) NOI for the COPT Three Months Nominal Operational Ended 3/31/22 Total Assets Venture Ownership Operating Properties Square Feet % Occupied % Leased (1) (2) Level Debt % Subu
Slide 34: Unconsolidated Real Estate Joint Ventures
Corporate Office Properties Trust Unconsolidated Real Estate Joint Ventures (1) (dollars and square feet in thousands) Joint venture information As of 3/31/22 COPT ownership % 10% COPT’s investment $ 39,440 # of Properties 19 Square Feet 3,182 % Occupied 100% COPT’s share of ARR $ 4,649 As of 3/31/2
Slide 35: Supplementary Reconciliations of Non-GAAP Measures
Corporate Office Properties Trust Supplementary Reconciliations of Non-GAAP Measures (in thousands) Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 NOI from real estate operations (1) Real estate revenues $ 144,260 $ 150,883 $ 146,590 $ 144,423 $ 145,164 Property operating expenses (58,1
Slide 36: Supplementary Reconciliations of Non-GAAP Measures
Corporate Office Properties Trust Supplementary Reconciliations of Non-GAAP Measures (in thousands) Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Discontinued operations Revenues from real estate operations $ 1,980 $ 8,235 $ 7,717 $ 7,204 $ 7,334 Property operating expenses (971) (4,98
Slide 37: Supplementary Reconciliations of Non-GAAP Measures (continued)
Corporate Office Properties Trust Supplementary Reconciliations of Non-GAAP Measures (continued) (in thousands) Three Months Ended 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Total interest expense $ 14,424 $ 16,217 $ 15,720 $ 15,942 $ 17,519 Less: Amortization of deferred financing costs (597) (640) (
Slide 38: Supplementary Reconciliations of Non-GAAP Measures (continued)
Corporate Office Properties Trust Supplementary Reconciliations of Non-GAAP Measures (continued) (in thousands) 3/31/22 12/31/21 9/30/21 6/30/21 3/31/21 Total assets $ 4,132,026 $ 4,262,452 $ 4,151,138 $ 4,052,032 $ 4,112,948 Accumulated depreciation 1,182,652 1,152,523 1,122,211 1,104,625 1,082,034
Slide 39: Definitions - Non-GAAP Measures
Corporate Office Properties Trust Definitions Non-GAAP Measures Amortization of acquisition intangibles included in NOI We believe that the measures defined below that are not determined in accordance Represents the amortization of intangible asset and liability categories that is with generally acc
Slide 40: Definitions
Corporate Office Properties Trust Definitions evaluating and comparing the performance of reportable segments, Same Diluted FFO available to common share and common unit holders, as adjusted for Properties groupings and individual properties. We believe that NOI from real comparability (“Diluted FFO
Slide 41: Definitions
Corporate Office Properties Trust Definitions Diluted FFO per share, as adjusted for comparability net income is the most directly comparable GAAP measure to this non-GAAP Defined as (1) Diluted FFO available to common share and common unit holders, measure. as adjusted for comparability divided by
Slide 42: Definitions
Corporate Office Properties Trust Definitions Net debt to in-place adjusted EBITDA ratio and Net debt adjusted for fully-leased These payout ratios are defined as (1) the sum of dividends on unrestricted development to in-place adjusted EBITDA ratio common shares and distributions to holders of inte
Slide 43: Definitions - Other Definitions
Corporate Office Properties Trust Definitions Other Definitions Redevelopment Properties — Properties previously in operations on which activities to substantially renovate such properties were underway or approved. Acquisition Costs — Transaction costs expensed in connection with executed or antici
Slide 44: COPT 1Q 2022 Results Exceed Guidance
6711 Columbia Gateway Drive, Suite 300 Columbia, Maryland 21046 Telephone 443-285-5400 Facsimile 443-285-7650 www.copt.com NYSE: OFC NEWS RELEASE FOR IMMEDIATE RELEASE IR Contacts: Stephanie Krewson-Kelly Michelle Layne 443-285-5453 443-285-5452 stephanie.kelly@copt.com michelle.layne@copt.com COPT
Slide 45: Financial Highlights
continued, “During the quarter, we placed 283,000 square feet of fully-leased developments into service and, among the 1.7 million square feet of active developments currently underway, we expect to place nearly 800,000 square feet of fully-leased projects into service for the year. Lastly, the mid-
Slide 46: Balance sheet and financing highlights
• For the quarter ended March 31, 2022, the Company’s adjusted EBITDA fixed charge coverage ratio was 5.2x. • At March 31, 2022, the Company’s net debt to in-place adjusted EBITDA ratio was 6.6x and its net debt adjusted for fully-leased development to in-place adjusted EBITDA ratio was 6.1x. • At M
Slide 47: About COPT
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 informati
Slide 48: Summary Financial Data (unaudited)
Corporate Office Properties Trust Summary Financial Data (unaudited) (dollars and shares in thousands, except per share data) For the Three Months Ended March 31, 2022 2021 Revenues Revenues from real estate operations $ 142,280 $ 137,830 Construction contract and other service revenues 53,200 16,55
Slide 49: Summary Financial Data (unaudited)
Corporate Office Properties Trust Summary Financial Data (unaudited) (in thousands, except per share data) For the Three Months Ended March 31, 2022 2021 Net income (loss) $ 60,824 $ (6,079) Real estate-related depreciation and amortization 34,264 37,321 Gain on sales of real estate from continuing
Slide 50: Summary Financial Data (unaudited)
Corporate Office Properties Trust Summary Financial Data (unaudited) (Dollars and shares in thousands, except per share data) March 31, December 31, 2022 2021 Balance Sheet Data Properties, net of accumulated depreciation $ 3,580,281 $ 3,532,944 Total assets 4,132,026 4,262,452 Debt, per balance she
Slide 51: Summary Financial Data (unaudited)
Corporate Office Properties Trust Summary Financial Data (unaudited) (in thousands) For the Three Months Ended March 31, 2022 2021 Reconciliation of common share dividends to dividends and distributions for payout ratios Common share dividends - unrestricted shares and deferred shares $ 30,837 $ 30,
Slide 52: Summary Financial Data (unaudited)
Corporate Office Properties Trust Summary Financial Data (unaudited) (in thousands) For the Three Months Ended March 31, 2022 2021 Reconciliations of tenant improvements and incentives, building improvements and leasing costs for operating properties to replacement capital expenditures Tenant improv
Slide 53: Summary Financial Data (unaudited)
Corporate Office Properties Trust Summary Financial Data (unaudited) (in thousands) March 31, December 31, March 31, 2022 2021 2021 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