Slide 1: 4Q 2022 Supplemental Information Package
4Q 2022 SUPPLEMENTAL INFORMATION PACKAGE Corporate Office Properties Trust
Slide 2: Supplemental Information & Earnings Release contents
Corporate Office Properties Trust Supplemental Information & Earnings Release - Unaudited For the Period Ended 12/31/22 Overview: Section I Summary Description 1 Equity Research Coverage 2 Selected Financial Summary Data 3 Selected Portfolio Data 5 Financial Statements: Section II Consolidated Balan
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 Camille Bonnel 416-369-2140 camille.bonnel@bofa.com BTIG Tom Catherwood 212-738-6410 tcatherwood@btig.com Citigroup Global Markets Michael Griffin 212-816-5871 michael.a.griffin@citi
Slide 5: Selected Financial Summary Data
Corporate Office Properties Trust Selected Financial Summary Data (in thousands, except per share data) Page Three Months Ended Years Ended SUMMARY OF RESULTS Refer. 12/31/22 9/30/22 6/30/22 3/31/22 12/31/21 12/31/22 12/31/21 Net income 7 $ 52,087 $ 32,316 $ 33,595 $ 60,824 $ 14,965 $ 178,822 $ 81,5
Slide 6: Selected Financial Summary Data (continued)
Corporate Office Properties Trust Selected Financial Summary Data (continued) (in thousands, except ratios) Page Three Months Ended Years Ended PAYOUT RATIOS AND CAPITALIZATION Refer. 12/31/22 9/30/22 6/30/22 3/31/22 12/31/21 12/31/22 12/31/21 GAAP Payout ratio: Net income N/A 60.3% 97.1% 93.4% 51.6
Slide 7: Selected Portfolio Data
Corporate Office Properties Trust Selected Portfolio Data (1) 12/31/22 9/30/22 6/30/22 3/31/22 12/31/21 # of Properties Total Portfolio 194 188 188 188 186 Consolidated Portfolio 173 169 169 169 167 Core Portfolio 192 186 186 186 184 Same Properties 174 174 174 174 174 % Occupied Total Portfolio 92.
Slide 8: Consolidated Balance Sheets
Corporate Office Properties Trust Consolidated Balance Sheets (in thousands) 12/31/22 9/30/22 6/30/22 3/31/22 12/31/21 Assets Properties, net: Operating properties, net $ 3,258,899 $ 3,169,992 $ 3,180,790 $ 3,167,851 $ 3,090,510 Development and redevelopment in progress, including land (1) 109,332 3
Slide 9: Consolidated Statements of Operations
Corporate Office Properties Trust Consolidated Statements of Operations (in thousands) Three Months Ended Years Ended 12/31/22 9/30/22 6/30/22 3/31/22 12/31/21 12/31/22 12/31/21 Revenues Lease revenue $ 150,022 $ 146,481 $ 142,277 $ 141,389 $ 141,892 $ 580,169 $ 553,668 Other property revenue 1,163
Slide 10: Funds from Operations
Corporate Office Properties Trust Funds from Operations (in thousands) Three Months Ended Years Ended 12/31/22 9/30/22 6/30/22 3/31/22 12/31/21 12/31/22 12/31/21 Net income $ 52,087 $ 32,316 $ 33,595 $ 60,824 $ 14,965 $ 178,822 $ 81,578 Real estate-related depreciation and amortization (1) 36,907 35
Slide 11: Diluted Share and Unit Computations
Corporate Office Properties Trust Diluted Share and Unit Computations (in thousands, except per share data) Three Months Ended Years Ended 12/31/22 9/30/22 6/30/22 3/31/22 12/31/21 12/31/22 12/31/21 EPS Denominator: Weighted average common shares - basic 112,096 112,093 112,082 112,020 111,990 112,0
Slide 12: Adjusted Funds from Operations
Corporate Office Properties Trust Adjusted Funds from Operations (in thousands) Three Months Ended Years Ended 12/31/22 9/30/22 6/30/22 3/31/22 12/31/21 12/31/22 12/31/21 Diluted FFO available to common share and common unit holders, as adjusted for comparability (1) $ 68,794 $ 66,595 $ 67,584 $ 65,
Slide 13: EBITDAre and Adjusted EBITDA
Corporate Office Properties Trust EBITDAre and Adjusted EBITDA (in thousands) Three Months Ended Years Ended 12/31/22 9/30/22 6/30/22 3/31/22 12/31/21 12/31/22 12/31/21 Net income $ 52,087 $ 32,316 $ 33,595 $ 60,824 $ 14,965 $ 178,822 $ 81,578 Interest expense 16,819 15,123 14,808 14,424 16,217 61,1
Slide 14: Properties by Segment - 12/31/22
Corporate Office Properties Trust Properties by Segment - 12/31/22 (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 33 4,108 93.9% 97.8% Howard County 3
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 Years Ended 12/31/22 9/30/22 6/30/22 3/31/22 12/31/21 12/31/22 12/31/21 Consolidated real estate revenues Defense/IT Locations: Fort Meade/BW Corridor $ 69,778 $ 69,209 $ 67,589 $
Slide 16: Cash NOI by Segment
Corporate Office Properties Trust Cash NOI by Segment (in thousands) Three Months Ended Years Ended 12/31/22 9/30/22 6/30/22 3/31/22 12/31/21 12/31/22 12/31/21 Cash NOI from real estate operations (1) Defense/IT Locations: Fort Meade/BW Corridor $ 45,106 $ 44,723 $ 43,613 $ 41,271 $ 42,666 $ 174,713
Slide 17: NOI from Real Estate Operations and Occupancy by Property Grouping
Corporate Office Properties Trust NOI from Real Estate Operations and Occupancy by Property Grouping - 12/31/22 (dollars and square feet in thousands) As of Period End NOI from Real Estate Operations % of Total (3) Annualized Annualized # of Operational % Occupied Rental Rental Three Months Property
Slide 18: 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 Years Ended # of Operational Properties Square Feet 12/31/22 9/30/22 6/30/22 3/31/22 12/31/21 12/31/22 12/31/21 Core Portfolio: Defense/IT Locations: Fort Meade/BW C
Slide 19: 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 Years Ended 12/31/22 9/30/22 6/30/22 3/31/22 12/31/21 12/31/22 12/31/21 Same Properties real estate revenues Defense/IT Locations: Fort Meade/BW Corridor $ 66,995 $ 67,512 $ 65
Slide 20: Same Properties Cash NOI by Segment
Corporate Office Properties Trust Same Properties Cash NOI by Segment (dollars in thousands) Three Months Ended Years Ended 12/31/22 9/30/22 6/30/22 3/31/22 12/31/21 12/31/22 12/31/21 Same Properties cash NOI from real estate operations (“cash NOI”) Defense/IT Locations: Fort Meade/BW Corridor $ 43,
Slide 21: Leasing - Three Months Ended 12/31/22
Corporate Office Properties Trust Leasing (1)(2) Three Months Ended 12/31/22 (square feet in thousands) Defense/IT Locations Ft Meade/ NoVA Total BW Defense/ Navy Redstone Defense/IT Regional Corridor IT Support Arsenal Locations Office Other Total Renewed Space Leased Square Feet 161 67 79 211 517
Slide 22: Leasing - Years Ended 12/31/22
Corporate Office Properties Trust Leasing (1)(2) Years Ended 12/31/22 (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 1,033
Slide 23: Lease Expiration Analysis as of 12/31/22
Corporate Office Properties Trust Lease Expiration Analysis as of 12/31/22 (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 Reve
Slide 24: 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 21,208 $ 604,248 99.1% $ 33.2
Slide 25: 2023 Core Portfolio Quarterly Lease Expiration Analysis
Corporate Office Properties Trust 2023 Core Portfolio Quarterly Lease Expiration Analysis as of 12/31/22 (1) (dollars and square feet in thousands, except per square foot amounts) Annualized % of Core Annualized Rental Square Rental Annualized Revenue of Footage of Revenue of Rental Expiring Leases
Slide 26: Top 20 Tenants as of 12/31/22
Corporate Office Properties Trust Top 20 Tenants as of 12/31/22 (1) (dollars and square feet in thousands) % Weighted Total of Total Average Annualized Annualized Occupied Remaining Rental Revenue Rental Square Lease Term Tenant (2) Revenue (2) Feet (3) United States Government (4) $ 216,226 35.5% 5
Slide 27: Property Dispositions
Corporate Office Properties Trust Property Dispositions (dollars and square feet in thousands) Operational % Occupied on Transaction # of Megawatts (“MW”)/ Transaction Transaction Value Property Property Segment Location Properties Square Feet Date Date (in millions) Quarter Ended 3/31/22 9651 Hornb
Slide 28: Summary of Development Projects
Corporate Office Properties Trust Summary of Development Projects as of 12/31/22 (1) (dollars and square feet in thousands) Actual or as of 12/31/22 (2) Anticipated Total Cost to Date Shell Anticipated Rentable % Leased as Anticipated Placed in Completion Operational Property and Segment Location Sq
Slide 29: Development Placed in Service
Corporate Office Properties Trust Development Placed in Service as of 12/31/22 (square feet in thousands) Total Property Square Feet Placed in Service Total Space 2022 Placed in % Leased Rentable Service % as of Square 1st 2nd 3rd 4th Total Leased as of Property and Location Property Segment 1/31/23
Slide 30: Summary of Land Owned/Controlled
Corporate Office Properties Trust Summary of Land Owned/Controlled as of 12/31/22 (1) (dollars and square feet 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 P
Slide 31: Capitalization Overview
Corporate Office Properties Trust Capitalization Overview (dollars, shares and units in thousands) Wtd. Avg. Effective Amount Maturity Stated Rate Outstanding (Years) (1) Rate (2)(3) at 12/31/22 Investment Grade Ratings & Outlook Latest Affirmation Debt Fitch BBB- Stable 9/28/22 Secured debt 2.3 4.5
Slide 32: Summary of Outstanding Debt
Corporate Office Properties Trust Summary of Outstanding Debt as of 12/31/22 (dollars in thousands) Balloon Payment Amount Maturity Amount Due Upon Maturity Unsecured Debt Stated Rate Outstanding Date Secured Debt Stated Rate Outstanding Maturity Date SOFR+ Revolving Credit Facility 0.10%+1.05% $ 21
Slide 33: Consolidated debt maturities
Corporate Office Properties Trust Summary of Outstanding Debt as of 12/31/22 (continued) $700,000 $ Consolidated debt maturities (in thousands) $600,000 $500,000 $400,000 $300,000 $200,000 $100,000 $0 2023 2024 2025 2026 2027 (1) 2028 (2) 2029 2031 2033 Unsecured Secured Variable/Fixed Rate Debt Deb
Slide 34: 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 12/31/22 Line of Credit & Term Loan Covenants (1)(2) Required 12/31/22 Total Debt / Total Assets < 60% 40.0% Tot
Slide 35: Consolidated Real Estate Joint Ventures
Corporate Office Properties Trust Consolidated Real Estate Joint Ventures as of 12/31/22 (dollars and square feet in thousands) NOI from Real Estate Operations (1) Venture Level COPT Operational Three Months Total Assets Debt Nominal Operating Properties Square Feet % Occupied % Leased Ended Year En
Slide 36: Unconsolidated Real Estate Joint Ventures
Corporate Office Properties Trust Unconsolidated Real Estate Joint Ventures as of 12/31/22 (1) (dollars and square feet in thousands) Joint venture information COPT ownership % 10% COPT’s investment $ 20,001 (2) # of Properties 21 Square Feet 3,547 % Occupied 100% COPT’s share of ARR $ 5,167 Balance
Slide 37: Supplementary Reconciliations of Non-GAAP Measure
Corporate Office Properties Trust Supplementary Reconciliations of Non-GAAP Measure (in thousands) Three Months Ended Years Ended 12/31/22 9/30/22 6/30/22 3/31/22 12/31/21 12/31/22 12/31/21 Net income $ 52,087 $ 32,316 $ 33,595 $ 60,824 $ 14,965 $ 178,822 $ 81,578 Construction contract and other ser
Slide 38: Supplementary Reconciliations of Non-GAAP Measures (continued)
Corporate Office Properties Trust Supplementary Reconciliations of Non-GAAP Measures (continued) (in thousands) Three Months Ended Years Ended 12/31/22 9/30/22 6/30/22 3/31/22 12/31/21 12/31/22 12/31/21 Real estate revenues Lease revenue Fixed contractual payments $ 116,349 $ 113,700 $ 112,691 $ 112
Slide 39: Supplementary Reconciliations of Non-GAAP Measures (continued)
Corporate Office Properties Trust Supplementary Reconciliations of Non-GAAP Measures (continued) (in thousands) Three Months Ended Years Ended 12/31/22 9/30/22 6/30/22 3/31/22 12/31/21 12/31/22 12/31/21 Total interest expense $ 16,819 $ 15,123 $ 14,808 $ 14,424 $ 16,217 $ 61,174 $ 65,398 Less: Amort
Slide 40: Supplementary Reconciliations of Non-GAAP Measures (continued)
Corporate Office Properties Trust Supplementary Reconciliations of Non-GAAP Measures (continued) (in thousands) 12/31/22 9/30/22 6/30/22 3/31/22 12/31/21 Total assets $ 4,257,275 $ 4,269,329 $ 4,185,193 $ 4,132,026 $ 4,262,452 Accumulated depreciation 1,267,434 1,245,313 1,213,711 1,182,652 1,152,52
Slide 41: Definitions - Non-GAAP Measures
Corporate Office Properties Trust Definitions Non-GAAP Measures measure for assessing our un-levered performance and ability to repay outstanding debt from operations. We believe that net income is the most directly comparable GAAP We believe that the measures defined below that are not determined i
Slide 42: Definitions
Corporate Office Properties Trust Definitions funded landlord improvements, absent an adjustment from us, would result in large one- time lump sum amounts in Cash NOI that we do not believe are reflective of a property’s Diluted FFO available to common share and common unit holders, as adjusted for
Slide 43: Definitions
Corporate Office Properties Trust Definitions believe that diluted EPS is the most directly comparable GAAP measure to this non- subsequent to the commencement of a period made in order to reflect a full period of GAAP measure. ownership/operations; (b) properties removed from service or in which we
Slide 44: Definitions
Corporate Office Properties Trust Definitions Net debt to in-place adjusted EBITDA ratio and Net debt adjusted for fully-leased Pro forma net debt, pro forma net debt adjusted for fully-leased development, pro forma development to in-place adjusted EBITDA ratio in-place adjusted EBITDA and associate
Slide 45: Definitions - Other Definitions
Corporate Office Properties Trust Definitions Other Definitions Defense/IT Locations — Represents properties in locations that support the United States Government and its contractors, most of whom are engaged in national security, Acquisition Costs — Transaction costs expensed in connection with ex
Slide 46: COPT Reports Full Year 2022 Results
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: Venkat Kommineni, CFA Michelle Layne 443-285-5587 443-285-5452 venkat.kommineni@copt.com michelle.layne@copt.com COPT R
Slide 47: Financial Highlights
Financial Highlights 4th Quarter Financial Results: • Diluted earnings per share (“EPS”) was $0.45 for the quarter ended December 31, 2022 compared to $0.12 for the quarter ended December 31, 2021. • Diluted funds from operations per share (“FFOPS”), as calculated in accordance with Nareit’s definit
Slide 48: Investment Activity Highlights
Investment Activity Highlights • Development Pipeline: The Company’s development pipeline consists of 10 properties totaling 1.5 million square feet that were 89% leased at January 31, 2023. These projects represent a total estimated investment of $487.5 million, of which $127.5 million has been spe
Slide 49: Definitions and About COPT
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 com
Slide 50: 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 For the Years Ended Ended December 31, December 31, 2022 2021 2022 2021 Revenues Lease revenue $ 150,022 $ 141,892 $ 580,169 $ 553,668 Other property rev
Slide 51: Summary Financial Data (unaudited)
Corporate Office Properties Trust Summary Financial Data (unaudited) (in thousands, except per share data) For the Three Months For the Years Ended Ended December 31, December 31, 2022 2021 2022 2021 Net income $ 52,087 $ 14,965 $ 178,822 $ 81,578 Real estate-related depreciation and amortization 36
Slide 52: Summary Financial Data (unaudited)
Corporate Office Properties Trust Summary Financial Data (unaudited) (Dollars and shares in thousands, except per share data) December 31, December 31, 2022 2021 Balance Sheet Data Properties, net of accumulated depreciation $ 3,556,398 $ 3,532,944 Total assets $ 4,257,275 $ 4,262,452 Debt per balan
Slide 53: Summary Financial Data (unaudited)
Corporate Office Properties Trust Summary Financial Data (unaudited) (in thousands) For the Three Months For the Years Ended Ended December 31, December 31, 2022 2021 2022 2021 Numerators for Payout Ratios GAAP: Common share dividends - unrestricted shares and deferred shares $ 30,844 $ 30,814 $ 123
Slide 54: Summary Financial Data (unaudited)
Corporate Office Properties Trust Summary Financial Data (unaudited) (in thousands) For the Three Months For the Years Ended Ended December 31, December 31, 2022 2021 2022 2021 Reconciliation of interest expense to the denominator for fixed charge coverage-Adjusted EBITDA Interest expense $ 16,819 $
Slide 55: Summary Financial Data (unaudited)
Corporate Office Properties Trust Summary Financial Data (unaudited) (in thousands) December 31, December 31, 2022 2021 Reconciliation of total assets to adjusted book Total assets $ 4,257,275 $ 4,262,452 Accumulated depreciation 1,267,434 1,152,523 Accumulated depreciation included in assets held f