Copt Defense Properties · NYSE:CDP
Copt Defense Properties — Corporate Office Properties Trust — Investor Presentation (June 2003)
19 slides from Copt Defense Properties's investor presentation, Jun 5, 2003
Slide 1: 2002 Accomplishments
iO iS 00 CCOMPLISHMEN 12.5% Increase in FFO/Share, from $1.28 to $1.44 21.5% Increase in Total Market Cap 4.8% Increase in Common Dividends Paid 94% Average Occupancy $107 Million of Acquisitions 412,000 Square Feet of Development Placed into Service CEL Survey — 3" in Nation/Tenant Satisfaction
Slide 2: Top Performing Office REIT
Top PERFORMING OFFICE REIT’ 2002 Total Return’? 2. Amertvest Properties , Inc 16% 3. Great Lakes REIT, nc 14% 4. Parkway Properties Inc 13% 5. Brandywine Realty Trust 12% 6. Prentiss Properties Trust 11% 7. Alexandria Real Estate Equities, nc. 10% 8. SL Green Realty Corp. 3% 9. HRPT Properties Trust
Slide 3: 2003 Goals
2003 O fe) = FFO Per Share - $1.54 / $1.56 ™ EPS - $0.70 ™ Occupancy - 94% ™ Market Cap - $1.5 Billion ™ Acquire $140 Million ™ Sell $40 Million Development » Lease Up Existing to 95% + Start 3-4 New Buildings Increase Dividends at Least 5% a, |
Slide 4: Strong Fundamentals: Greater Washington Suburban Office REIT
TRONG FUNDAMEN Strategy: A Greater Washington Suburban Office REIT = 4 Largest Regional Economy in the US. = 4%in US. Job Growth for 2002 = Lowest Unemployment Rate in the Country at 3.6% = Federal Government (40% of GDP, 11% Workforce) ™ 3 Major Airports (Among Fastest Growing in U.S.) ™ Highest Ed
Slide 5: Northern Virginia Strategy
ORTHERN VIRGINIA STRAT a Announced Strategy January 2001 11 Submarkets, 140 Million Square Feet Concentrate in 4 Submarkets Government and Defense Contractor Driven Acquire Strategic Properties with Following Criteria: - Well Leased, No Rollover Exposure for 2 Years - Strong Credit Tenants - Below M
Slide 6: Development Summary
DEVELOPMENT SUMMARY ™ Construction Deliveries in 2000-2002 + $167 Million + 14 Buildings, 1,092,000 square feet + 84% leased upon delivery’ ™ Construction Deliveries in 2003 + $13 Million + 2 Buildings, 106,000 square feet + 49% leased upon delivery = Long-Term Development Pipeline + 300 Acres under
Slide 7: Corporate Office Services Strategy
CoRPORATE OFFICE SERVICES STRATEGY ™ Provide Real Estate Services to Institutional Clients = Capitalize on Existing Tenant Relationships = Maximize Existing Management " Generate Incremental Revenue/Profits a8 El
Slide 8: FFO Per Share Growth
428% GROWTH FFO PER SHARE $150 $1.25 $1.00 $075 sao $0.25 so.00 i a ar a ar ao fee a Sedo Wbie maigt conc wines w O1SRID.ovalFFO Br TaUTmIgN AUTOvagea ae Roma GFCUTea he pages ea OWORTTE? ‘OS FFO estat renee awuted eetnam red on 1OUSeaniige ware Gokchgadwmere BrSFAS Te?) aude beequesteporng by ors a
Slide 9: Capital Raising Strategy
APITAL RAISING STRATE ™ Access Equity Through Public and Private Markets * $39 million raised privately since ’99, $121 million publicly ™ Recycle Capital Through Disposing of Fully Valued Assets * Target 5% of total assets per annum ™ Fixed-rate Non-recourse Mortgage Debt + Consistent availability
Slide 10: Equity Capital Raised 1999-2002
EQUuITY CAPITAL RAISED 1999-2002 (in millions) Perpetual Preferred Offering 7/99 $31 Perpetual Preferred Offering 4/01 $29 Perpetual Preferred Offering 9/01 $35 UPG Convertible Preferred @ $10.50 $24 Convertible Preferred @ $11.36 $12 Common Shares @ $12.04 — 3/02 $25 Common Units @ $10.50 $4 Refina
Slide 11: Equity Capital Raised
QUITY CAPITAL RAISED 200 Total Capital Raised $95.1 Million ™ Asset Sales + Constellation Centre Sold 3/31/03 — Net Proceeds $8.3 Million + 695 Route 46, Joint Venture Interest Sold 3/14/03 — Net Proceeds $7.3 Million ™ Public Offering + $79.5 Million + §.29 Million Shares Purchased at $15.03 (5.8%
Slide 12: Debt Summary
DEBT SUMMARY Debt Maturities (000's) 2003 (April - Dec) $26,511 2004 106,333 2005 154,143 2006 73,297 Thereafter 347,706 $707,990 Fixed / Floating (000's' Fixed $496,084 Floating 111,906 Swapped Floating 100,000 % $707,990 E para a oT8 109, ze mer ex Arb opto execeea
Slide 13: Capitalization
APITALIZATION 68 nition) Current Preferred (Liquidation Value) $ 135 10% Common Shares & Units ($14.90*/Share) + Management/insiders 129 10% + Public (62% Institutional) __ 359 27% Total Market Equity $ 623 47% Total Debt $ 708 53% Total Market Capitalization $1,331 100% fie E Tad CEG ps ASO SHS SY,
Slide 14: Recent Acquisition
RECENT ACQUISITION Ss 13200 Woodland Park Drive Herndon, VA $71.2 million 404,665 square feet Acquired 6/303
Slide 15: Disclosure: SFAS 141 Reclassification
OFC DISCLOSURE Footnote Reaarding Reclassification In Connection With SEAS 141 Accounting SFAS 141 was effective July 1, 2001 for acquisitions of operating real estate initiated after June 30, 2001. The effect of SFAS 141 on the Company's accounting far in-place operating leases is as follows: Value
Slide 16: Disclosure: SFAS 141 Reclassification (cont.)
DISCLOSURE Footnote Regarding Reclassification In Connection With SEAS 1.41 Accounting con't ‘The Company reclassified certain items in connection with its accounting under SFAS 141 in the quarter ended March 31, 2003. The primary effects of the reclassification ta the Company's financial statements
Slide 17: Disclosure: Definitions of Non-GAAP Measures
Funds from Operations: ‘Adjusted Fundsfrom Operations (aFFO) & NY! DISCLOSURE Definitions —Non GAAP Measure Funds ftom operations means natinceme (los) computed using GAAP. exuding gains (ortlosses) trom debt restuctuing and sales of real estate, plus real esate-related depreciation and amorization
Slide 18: Disclosure: Definitions
GAAP Industry Classification NAREIT Total Annualized Revere & NY! DISCLOSURE Definitions —Non GAAP Measure Generally aocepted accounting pindples. ‘Wa clasitythe revenue from our leases int industry groupings based solely on Managements knowledge ofthe tenant? operations in leased space. Clocasional
Slide 19: Searchable text section of graphics
Searchable text section of graphics shown above 2002 ACCOMPLISHMENTS • 12.5% Increase in FFO/Share, from $1.28 to $1.44 • 21.5% Increase in Total Market Cap • 4.8% Increase in Common Dividends Paid • 94% Average Occupancy • $107 Million of Acquisitions • 412,000 Square Feet of Development Placed int
Corporate Office Properties Trust — Investor Presentation (June 2003) on 6ix