ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from | to |
Corporate Office Properties Trust | Maryland | 23-2947217 | ||
(State or other jurisdiction of | (IRS Employer | |||
incorporation or organization) | Identification No.) | |||
Corporate Office Properties, L.P. | Delaware | 23-2930022 | ||
(State or other jurisdiction of | (IRS Employer | |||
incorporation or organization) | Identification No.) |
6711 Columbia Gateway Drive, Suite 300, Columbia, MD | 21046 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer ý | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o | |||
(Do not check if a smaller reporting company) |
Large accelerated filer o | Accelerated filer o | Non-accelerated filer ý | Smaller reporting company o | |||
(Do not check if a smaller reporting company) |
PAGE | ||
Consolidated Financial Statements of Corporate Office Properties Trust | ||
Consolidated Financial Statements of Corporate Office Properties, L.P. | ||
Notes to Consolidated Financial Statements (unaudited) | ||
June 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | |||||||||||
Assets | ||||||||||||||
Properties, net: | ||||||||||||||
Operating properties, net | $ | 2,724,242 | $ | 2,702,693 | $ | 2,757,207 | $ | 2,702,693 | ||||||
Projects in development or held for future development | 530,000 | 511,608 | 513,949 | 511,608 | ||||||||||
Total properties, net | 3,254,242 | 3,214,301 | 3,271,156 | 3,214,301 | ||||||||||
Assets held for sale, net | 22,868 | — | ||||||||||||
Cash and cash equivalents | 76,216 | 54,373 | 40,018 | 54,373 | ||||||||||
Restricted cash and marketable securities | 11,689 | 11,448 | 14,371 | 11,448 | ||||||||||
Accounts receivable (net of allowance for doubtful accounts of $2,282 and $2,976, respectively) | 30,911 | 27,000 | ||||||||||||
Deferred rent receivable (net of allowance of $1,491 and $2,126, respectively) | 93,270 | 89,456 | ||||||||||||
Accounts receivable (net of allowance for doubtful accounts of $750 and $2,976, respectively) | 20,180 | 27,000 | ||||||||||||
Deferred rent receivable (net of allowance of $1,426 and $2,126, respectively) | 95,405 | 89,456 | ||||||||||||
Intangible assets on real estate acquisitions, net | 51,645 | 59,258 | 48,300 | 59,258 | ||||||||||
Deferred leasing and financing costs, net | 65,251 | 66,267 | 65,009 | 66,267 | ||||||||||
Mortgage and other investing receivables | 56,549 | 53,663 | 50,886 | 53,663 | ||||||||||
Prepaid expenses and other assets | 46,859 | 54,186 | 74,863 | 54,186 | ||||||||||
Total assets | $ | 3,709,500 | $ | 3,629,952 | $ | 3,680,188 | $ | 3,629,952 | ||||||
Liabilities and equity | ||||||||||||||
Liabilities: | ||||||||||||||
Debt, net | $ | 2,099,343 | $ | 1,927,703 | $ | 2,049,992 | $ | 1,927,703 | ||||||
Accounts payable and accrued expenses | 105,205 | 98,785 | 123,893 | 98,785 | ||||||||||
Rents received in advance and security deposits | 27,520 | 31,492 | 33,075 | 31,492 | ||||||||||
Dividends and distributions payable | 28,342 | 29,080 | 28,344 | 29,080 | ||||||||||
Deferred revenue associated with operating leases | 12,355 | 10,369 | 13,420 | 10,369 | ||||||||||
Interest rate derivatives | 3,236 | 3,309 | 2,236 | 3,309 | ||||||||||
Other liabilities | 14,818 | 14,207 | 13,288 | 14,207 | ||||||||||
Total liabilities | 2,290,819 | 2,114,945 | 2,264,248 | 2,114,945 | ||||||||||
Commitments and contingencies (Note 17) | ||||||||||||||
Redeemable noncontrolling interest | 18,901 | 17,758 | 18,436 | 17,758 | ||||||||||
Equity: | ||||||||||||||
Corporate Office Properties Trust’s shareholders’ equity: | ||||||||||||||
Preferred Shares of beneficial interest at liquidation preference ($0.01 par value; 25,000,000 shares authorized; issued and outstanding of 7,431,667 at June 30, 2014 and 9,431,667 at December 31, 2013) | 199,083 | 249,083 | ||||||||||||
Common Shares of beneficial interest ($0.01 par value; 125,000,000 shares authorized, shares issued and outstanding of 87,668,308 at June 30, 2014 and 87,394,512 at December 31, 2013) | 877 | 874 | ||||||||||||
Preferred Shares of beneficial interest at liquidation preference ($0.01 par value; 25,000,000 shares authorized; issued and outstanding of 7,431,667 at September 30, 2014 and 9,431,667 at December 31, 2013) | 199,083 | 249,083 | ||||||||||||
Common Shares of beneficial interest ($0.01 par value; 125,000,000 shares authorized, shares issued and outstanding of 87,711,731 at September 30, 2014 and 87,394,512 at December 31, 2013) | 877 | 874 | ||||||||||||
Additional paid-in capital | 1,819,436 | 1,814,015 | 1,822,283 | 1,814,015 | ||||||||||
Cumulative distributions in excess of net income | (688,033 | ) | (641,868 | ) | (692,978 | ) | (641,868 | ) | ||||||
Accumulated other comprehensive (loss) income | (761 | ) | 3,480 | |||||||||||
Accumulated other comprehensive income | 871 | 3,480 | ||||||||||||
Total Corporate Office Properties Trust’s shareholders’ equity | 1,330,602 | 1,425,584 | 1,330,136 | 1,425,584 | ||||||||||
Noncontrolling interests in subsidiaries: | ||||||||||||||
Common units in COPLP | 50,323 | 53,468 | 49,781 | 53,468 | ||||||||||
Preferred units in COPLP | 8,800 | 8,800 | 8,800 | 8,800 | ||||||||||
Other consolidated entities | 10,055 | 9,397 | 8,787 | 9,397 | ||||||||||
Noncontrolling interests in subsidiaries | 69,178 | 71,665 | 67,368 | 71,665 | ||||||||||
Total equity | 1,399,780 | 1,497,249 | 1,397,504 | 1,497,249 | ||||||||||
Total liabilities, redeemable noncontrolling interest and equity | $ | 3,709,500 | $ | 3,629,952 | $ | 3,680,188 | $ | 3,629,952 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||
Rental revenue | $ | 94,332 | $ | 94,421 | $ | 192,367 | $ | 186,270 | $ | 96,207 | $ | 94,641 | $ | 288,574 | $ | 280,911 | ||||||||||||||
Tenant recoveries and other real estate operations revenue | 21,627 | 21,311 | 48,469 | 41,419 | 22,069 | 20,180 | 70,538 | 61,599 | ||||||||||||||||||||||
Construction contract and other service revenues | 23,861 | 20,795 | 45,651 | 35,057 | 34,739 | 16,991 | 80,390 | 52,048 | ||||||||||||||||||||||
Total revenues | 139,820 | 136,527 | 286,487 | 262,746 | 153,015 | 131,812 | 439,502 | 394,558 | ||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||
Property operating expenses | 43,772 | 41,333 | 93,544 | 81,721 | 43,056 | 41,361 | 136,600 | 123,082 | ||||||||||||||||||||||
Depreciation and amortization associated with real estate operations | 30,895 | 27,673 | 74,491 | 54,683 | 30,237 | 28,205 | 104,728 | 82,888 | ||||||||||||||||||||||
Construction contract and other service expenses | 23,136 | 19,382 | 41,760 | 32,859 | 33,593 | 16,306 | 75,353 | 49,165 | ||||||||||||||||||||||
Impairment losses | 1,302 | — | 1,302 | — | 66 | 5,857 | 1,368 | 5,857 | ||||||||||||||||||||||
General, administrative and leasing expenses | 7,528 | 6,583 | 15,671 | 14,403 | 7,211 | 8,027 | 22,882 | 22,430 | ||||||||||||||||||||||
Business development expenses and land carry costs | 1,351 | 1,327 | 2,677 | 2,686 | 1,430 | 1,383 | 4,107 | 4,069 | ||||||||||||||||||||||
Total operating expenses | 107,984 | 96,298 | 229,445 | 186,352 | 115,593 | 101,139 | 345,038 | 287,491 | ||||||||||||||||||||||
Operating income | 31,836 | 40,229 | 57,042 | 76,394 | 37,422 | 30,673 | 94,464 | 107,067 | ||||||||||||||||||||||
Interest expense | (23,478 | ) | (21,102 | ) | (44,305 | ) | (41,392 | ) | (24,802 | ) | (19,342 | ) | (69,107 | ) | (60,734 | ) | ||||||||||||||
Interest and other income | 1,299 | 2,006 | 2,584 | 2,952 | ||||||||||||||||||||||||||
Interest and other income (loss) | 1,191 | (3 | ) | 3,775 | 2,949 | |||||||||||||||||||||||||
Loss on early extinguishment of debt | (270 | ) | (21,470 | ) | (270 | ) | (26,654 | ) | (176 | ) | (374 | ) | (446 | ) | (27,028 | ) | ||||||||||||||
Income (loss) from continuing operations before equity in (loss) income of unconsolidated entities and income taxes | 9,387 | (337 | ) | 15,051 | 11,300 | |||||||||||||||||||||||||
Equity in (loss) income of unconsolidated entities | (47 | ) | 126 | 13 | 167 | |||||||||||||||||||||||||
Income from continuing operations before equity in income of unconsolidated entities and income taxes | 13,635 | 10,954 | 28,686 | 22,254 | ||||||||||||||||||||||||||
Equity in income of unconsolidated entities | 193 | 44 | 206 | 211 | ||||||||||||||||||||||||||
Income tax expense | (92 | ) | (21 | ) | (156 | ) | (37 | ) | (101 | ) | (24 | ) | (257 | ) | (61 | ) | ||||||||||||||
Income (loss) from continuing operations | 9,248 | (232 | ) | 14,908 | 11,430 | |||||||||||||||||||||||||
Income from continuing operations | 13,727 | 10,974 | 28,635 | 22,404 | ||||||||||||||||||||||||||
Discontinued operations | (198 | ) | (4,502 | ) | (187 | ) | (3,241 | ) | 191 | (12,974 | ) | 4 | (16,215 | ) | ||||||||||||||||
Income (loss) before gain on sales of real estate | 9,050 | (4,734 | ) | 14,721 | 8,189 | 13,918 | (2,000 | ) | 28,639 | 6,189 | ||||||||||||||||||||
Gain on sales of real estate | — | 329 | — | 2,683 | 10,630 | — | 10,630 | 2,683 | ||||||||||||||||||||||
Net income (loss) | 9,050 | (4,405 | ) | 14,721 | 10,872 | 24,548 | (2,000 | ) | 39,269 | 8,872 | ||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests: | ||||||||||||||||||||||||||||||
Common units in COPLP | (158 | ) | 671 | (174 | ) | 242 | (768 | ) | 232 | (942 | ) | 474 | ||||||||||||||||||
Preferred units in COPLP | (165 | ) | (165 | ) | (330 | ) | (330 | ) | (165 | ) | (165 | ) | (495 | ) | (495 | ) | ||||||||||||||
Other consolidated entities | (837 | ) | (1,466 | ) | (1,586 | ) | (1,129 | ) | (895 | ) | (1,031 | ) | (2,481 | ) | (2,160 | ) | ||||||||||||||
Net income (loss) attributable to COPT | 7,890 | (5,365 | ) | 12,631 | 9,655 | 22,720 | (2,964 | ) | 35,351 | 6,691 | ||||||||||||||||||||
Preferred share dividends | (4,344 | ) | (4,885 | ) | (8,834 | ) | (10,991 | ) | (3,553 | ) | (4,490 | ) | (12,387 | ) | (15,481 | ) | ||||||||||||||
Issuance costs associated with redeemed preferred shares | (1,769 | ) | (2,904 | ) | (1,769 | ) | (2,904 | ) | — | — | (1,769 | ) | (2,904 | ) | ||||||||||||||||
Net income (loss) attributable to COPT common shareholders | $ | 1,777 | $ | (13,154 | ) | $ | 2,028 | $ | (4,240 | ) | $ | 19,167 | $ | (7,454 | ) | $ | 21,195 | $ | (11,694 | ) | ||||||||||
Net income (loss) attributable to COPT: | ||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 8,077 | $ | (990 | ) | $ | 12,805 | $ | 12,859 | |||||||||||||||||||||
Income from continuing operations | $ | 22,537 | $ | 9,518 | $ | 35,342 | $ | 22,377 | ||||||||||||||||||||||
Discontinued operations, net | (187 | ) | (4,375 | ) | (174 | ) | (3,204 | ) | 183 | (12,482 | ) | 9 | (15,686 | ) | ||||||||||||||||
Net income (loss) attributable to COPT | $ | 7,890 | $ | (5,365 | ) | $ | 12,631 | $ | 9,655 | $ | 22,720 | $ | (2,964 | ) | $ | 35,351 | $ | 6,691 | ||||||||||||
Basic earnings per common share (1) | ||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 0.02 | $ | (0.10 | ) | $ | 0.02 | $ | (0.02 | ) | ||||||||||||||||||||
Income from continuing operations | $ | 0.22 | $ | 0.06 | $ | 0.24 | $ | 0.04 | ||||||||||||||||||||||
Discontinued operations | 0.00 | (0.06 | ) | 0.00 | (0.03 | ) | 0.00 | (0.15 | ) | 0.00 | (0.18 | ) | ||||||||||||||||||
Net income (loss) attributable to COPT common shareholders | $ | 0.02 | $ | (0.16 | ) | $ | 0.02 | $ | (0.05 | ) | $ | 0.22 | $ | (0.09 | ) | $ | 0.24 | $ | (0.14 | ) | ||||||||||
Diluted earnings per common share (1) | ||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 0.02 | $ | (0.10 | ) | $ | 0.02 | $ | (0.02 | ) | ||||||||||||||||||||
Income from continuing operations | $ | 0.22 | $ | 0.06 | $ | 0.24 | $ | 0.04 | ||||||||||||||||||||||
Discontinued operations | 0.00 | (0.06 | ) | 0.00 | (0.03 | ) | 0.00 | (0.15 | ) | 0.00 | (0.18 | ) | ||||||||||||||||||
Net income (loss) attributable to COPT common shareholders | $ | 0.02 | $ | (0.16 | ) | $ | 0.02 | $ | (0.05 | ) | $ | 0.22 | $ | (0.09 | ) | $ | 0.24 | $ | (0.14 | ) | ||||||||||
Dividends declared per common share | $ | 0.275 | $ | 0.275 | $ | 0.550 | $ | 0.550 | $ | 0.275 | $ | 0.275 | $ | 0.825 | $ | 0.825 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Net income (loss) | $ | 9,050 | $ | (4,405 | ) | $ | 14,721 | $ | 10,872 | ||||||
Other comprehensive (loss) income | |||||||||||||||
Unrealized (losses) gains on interest rate derivatives | (3,630 | ) | 7,830 | (5,753 | ) | 8,292 | |||||||||
Losses on interest rate derivatives included in interest expense | 719 | 674 | 1,414 | 1,332 | |||||||||||
Other comprehensive (loss) income | (2,911 | ) | 8,504 | (4,339 | ) | 9,624 | |||||||||
Comprehensive income | 6,139 | 4,099 | 10,382 | 20,496 | |||||||||||
Comprehensive income attributable to noncontrolling interests | (1,081 | ) | (1,422 | ) | (1,992 | ) | (1,774 | ) | |||||||
Comprehensive income attributable to COPT | $ | 5,058 | $ | 2,677 | $ | 8,390 | $ | 18,722 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Net income (loss) | $ | 24,548 | $ | (2,000 | ) | $ | 39,269 | $ | 8,872 | ||||||
Other comprehensive income (loss) | |||||||||||||||
Unrealized gains (losses) on interest rate derivatives | 1,015 | (2,482 | ) | (4,738 | ) | 5,810 | |||||||||
Losses on interest rate derivatives included in interest expense | 756 | 689 | 2,170 | 2,021 | |||||||||||
Equity in other comprehensive income of equity method investee | — | 1,070 | — | 1,070 | |||||||||||
Other comprehensive income (loss) | 1,771 | (723 | ) | (2,568 | ) | 8,901 | |||||||||
Comprehensive income (loss) | 26,319 | (2,723 | ) | 36,701 | 17,773 | ||||||||||
Comprehensive income attributable to noncontrolling interests | (1,968 | ) | (948 | ) | (3,960 | ) | (2,722 | ) | |||||||
Comprehensive income (loss) attributable to COPT | $ | 24,351 | $ | (3,671 | ) | $ | 32,741 | $ | 15,051 |
Preferred Shares | Common Shares | Additional Paid-in Capital | Cumulative Distributions in Excess of Net Income | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Total | Preferred Shares | Common Shares | Additional Paid-in Capital | Cumulative Distributions in Excess of Net Income | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | Total | |||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2012 (80,952,986 common shares outstanding) | $ | 333,833 | $ | 809 | $ | 1,653,672 | $ | (617,455 | ) | $ | (5,435 | ) | $ | 71,075 | $ | 1,436,499 | $ | 333,833 | $ | 809 | $ | 1,653,672 | $ | (617,455 | ) | $ | (5,435 | ) | $ | 71,075 | $ | 1,436,499 | ||||||||||||||||||||||
Redemption of preferred shares (3,390,000 shares) | (84,750 | ) | — | 2,904 | (2,904 | ) | — | — | (84,750 | ) | (84,750 | ) | — | 2,904 | (2,904 | ) | — | — | (84,750 | ) | ||||||||||||||||||||||||||||||||||
Conversion of common units to common shares (279,019 shares) | — | 3 | 3,575 | — | — | (3,578 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||
Conversion of common units to common shares (310,889 shares) | — | 3 | 3,988 | — | — | (3,991 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued to the public (4,485,000 shares) | — | 45 | 117,868 | — | — | — | 117,913 | — | 45 | 117,916 | — | — | — | 117,961 | ||||||||||||||||||||||||||||||||||||||||
Common shares issued under at-the-market program (1,500,000 shares) | — | 15 | 38,432 | — | — | — | 38,447 | |||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of property and noncontrolling interest in other consolidated entity for COPLP common units | — | — | (1,296 | ) | — | — | 2,665 | 1,369 | ||||||||||||||||||||||||||||||||||||||||||||||
Exercise of share options (32,756 shares) | — | — | 636 | — | — | — | 636 | — | — | 642 | — | — | — | 642 | ||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | 1 | 3,847 | — | — | — | 3,848 | — | 2 | 5,700 | — | — | — | 5,702 | ||||||||||||||||||||||||||||||||||||||||
Restricted common share redemptions (68,762 shares) | — | — | (1,784 | ) | — | — | — | (1,784 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Restricted common share redemptions (71,523 shares) | — | — | (1,848 | ) | — | — | — | (1,848 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Adjustments to noncontrolling interests resulting from changes in ownership of COPLP | — | — | (2,495 | ) | — | — | 2,495 | — | — | — | (773 | ) | — | — | 773 | — | ||||||||||||||||||||||||||||||||||||||
Comprehensive income | — | — | — | 9,655 | 9,066 | 1,490 | 20,211 | — | — | — | 6,691 | 8,360 | 1,834 | 16,885 | ||||||||||||||||||||||||||||||||||||||||
Dividends | — | — | — | (58,188 | ) | — | — | (58,188 | ) | — | — | — | (86,700 | ) | — | — | (86,700 | ) | ||||||||||||||||||||||||||||||||||||
Distributions to owners of common and preferred units in COPLP | — | — | — | — | — | (2,422 | ) | (2,422 | ) | — | — | — | — | — | (3,681 | ) | (3,681 | ) | ||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests in other consolidated entities | — | — | — | — | — | 85 | 85 | — | — | — | — | — | 85 | 85 | ||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interest in other consolidated entities | — | — | — | — | — | (8 | ) | (8 | ) | — | — | — | — | — | (8 | ) | (8 | ) | ||||||||||||||||||||||||||||||||||||
Adjustment to arrive at fair value of redeemable noncontrolling interest | — | — | (5,631 | ) | — | — | — | (5,631 | ) | — | — | (6,414 | ) | — | — | — | (6,414 | ) | ||||||||||||||||||||||||||||||||||||
Tax loss from share-based compensation | — | — | (122 | ) | — | — | — | (122 | ) | — | — | (122 | ) | — | — | — | (122 | ) | ||||||||||||||||||||||||||||||||||||
Balance at June 30, 2013 (85,845,403 common shares outstanding) | $ | 249,083 | $ | 858 | $ | 1,772,470 | $ | (668,892 | ) | $ | 3,631 | $ | 69,137 | $ | 1,426,287 | |||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2013 (87,381,395 common shares outstanding) | $ | 249,083 | $ | 874 | $ | 1,812,801 | $ | (700,368 | ) | $ | 2,925 | $ | 68,752 | $ | 1,434,067 | |||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 (87,394,512 common shares outstanding) | $ | 249,083 | $ | 874 | $ | 1,814,015 | $ | (641,868 | ) | $ | 3,480 | $ | 71,665 | $ | 1,497,249 | $ | 249,083 | $ | 874 | $ | 1,814,015 | $ | (641,868 | ) | $ | 3,480 | $ | 71,665 | $ | 1,497,249 | ||||||||||||||||||||||||
Redemption of preferred shares (2,000,000 shares) | (50,000 | ) | — | 1,769 | (1,769 | ) | — | — | (50,000 | ) | (50,000 | ) | — | 1,769 | (1,769 | ) | — | — | (50,000 | ) | ||||||||||||||||||||||||||||||||||
Conversion of common units to common shares (78,498 shares) | — | — | 1,047 | — | — | (1,047 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||
Conversion of common units to common shares (117,149 shares) | — | 1 | 1,544 | — | — | (1,545 | ) | — | ||||||||||||||||||||||||||||||||||||||||||||||
Costs associated with common shares issued to the public | — | — | (7 | ) | — | — | — | (7 | ) | — | — | (7 | ) | — | — | — | (7 | ) | ||||||||||||||||||||||||||||||||||||
Exercise of share options (51,289 shares) | — | — | 1,185 | — | — | — | 1,185 | |||||||||||||||||||||||||||||||||||||||||||||||
Exercise of share options (57,888 shares) | — | — | 1,359 | — | — | — | 1,359 | |||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | 3 | 3,542 | — | — | — | 3,545 | — | 2 | 5,247 | — | — | — | 5,249 | ||||||||||||||||||||||||||||||||||||||||
Restricted common share redemptions (49,454 shares) | — | — | (1,326 | ) | — | — | — | (1,326 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Restricted common share redemptions (51,681 shares) | — | — | (1,389 | ) | — | — | — | (1,389 | ) | |||||||||||||||||||||||||||||||||||||||||||||
Adjustments to noncontrolling interests resulting from changes in ownership of COPLP | — | — | (72 | ) | — | — | 72 | — | — | — | (248 | ) | — | — | 248 | — | ||||||||||||||||||||||||||||||||||||||
Comprehensive income | — | — | — | 12,631 | (4,241 | ) | 976 | 9,366 | — | — | — | 35,351 | (2,609 | ) | 2,313 | 35,055 | ||||||||||||||||||||||||||||||||||||||
Dividends | — | — | — | (57,027 | ) | — | — | (57,027 | ) | — | — | — | (84,692 | ) | — | — | (84,692 | ) | ||||||||||||||||||||||||||||||||||||
Distributions to owners of common and preferred units in COPLP | — | — | — | — | — | (2,483 | ) | (2,483 | ) | — | — | — | — | — | (3,710 | ) | (3,710 | ) | ||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests in other consolidated entities | — | — | — | — | — | 3 | 3 | — | — | — | — | — | 3 | 3 | ||||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests in other consolidated entities | — | — | — | — | — | (8 | ) | (8 | ) | — | — | — | — | — | (1,606 | ) | (1,606 | ) | ||||||||||||||||||||||||||||||||||||
Adjustment to arrive at fair value of redeemable noncontrolling interest | — | — | (717 | ) | — | — | — | (717 | ) | — | — | (7 | ) | — | — | — | (7 | ) | ||||||||||||||||||||||||||||||||||||
Balance at June 30, 2014 (87,668,308 common shares outstanding) | $ | 199,083 | $ | 877 | $ | 1,819,436 | $ | (688,033 | ) | $ | (761 | ) | $ | 69,178 | $ | 1,399,780 | ||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2014 (87,711,731 common shares outstanding) | $ | 199,083 | $ | 877 | $ | 1,822,283 | $ | (692,978 | ) | $ | 871 | $ | 67,368 | $ | 1,397,504 |
For the Six Months Ended June 30, | For the Nine Months Ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Cash flows from operating activities | ||||||||||||||
Revenues from real estate operations received | $ | 232,877 | $ | 233,068 | $ | 358,212 | $ | 359,431 | ||||||
Construction contract and other service revenues received | 35,105 | 28,898 | 62,170 | 48,877 | ||||||||||
Property operating expenses paid | (78,621 | ) | (75,566 | ) | (141,489 | ) | (133,799 | ) | ||||||
Construction contract and other service expenses paid | (34,588 | ) | (33,404 | ) | (58,218 | ) | (53,191 | ) | ||||||
General, administrative, leasing, business development and land carry costs paid | (16,904 | ) | (14,988 | ) | (22,288 | ) | (20,681 | ) | ||||||
Interest expense paid | (35,365 | ) | (41,825 | ) | (54,683 | ) | (59,052 | ) | ||||||
Previously accreted interest expense paid | — | (11,116 | ) | — | (11,116 | ) | ||||||||
Proceeds from sale of trading marketable securities | — | 298 | ||||||||||||
Exit costs on property dispositions | — | (186 | ) | |||||||||||
Payments in connection with early extinguishment of debt | (104 | ) | (23,932 | ) | (104 | ) | (23,969 | ) | ||||||
Interest and other income received | 346 | 390 | 448 | 391 | ||||||||||
Income taxes refund | 204 | 6 | ||||||||||||
Income taxes refunded | 200 | 6 | ||||||||||||
Net cash provided by operating activities | 102,950 | 61,531 | 144,248 | 107,009 | ||||||||||
Cash flows from investing activities | ||||||||||||||
Construction, development and redevelopment | (105,459 | ) | (99,779 | ) | (150,862 | ) | (156,820 | ) | ||||||
Tenant improvements on operating properties | (10,842 | ) | (10,496 | ) | (17,754 | ) | (15,868 | ) | ||||||
Other capital improvements on operating properties | (16,482 | ) | (11,738 | ) | (21,179 | ) | (17,528 | ) | ||||||
Proceeds from dispositions of properties | 1,971 | 12,344 | 57,973 | 12,447 | ||||||||||
Mortgage and other loan receivables funded | (565 | ) | (2,756 | ) | (3,610 | ) | (4,111 | ) | ||||||
Mortgage and other loan receivables payments received | 10,278 | 144 | ||||||||||||
Leasing costs paid | (7,772 | ) | (6,048 | ) | (10,549 | ) | (9,366 | ) | ||||||
Other | (892 | ) | 3,144 | (1,343 | ) | 4,257 | ||||||||
Net cash used in investing activities | (140,041 | ) | (115,329 | ) | (137,046 | ) | (186,845 | ) | ||||||
Cash flows from financing activities | ||||||||||||||
Proceeds from debt | ||||||||||||||
Revolving Credit Facility | 115,000 | 374,000 | 115,000 | 457,000 | ||||||||||
Unsecured senior notes | 297,342 | 347,081 | 297,342 | 592,413 | ||||||||||
Other debt proceeds | 9,931 | 80,232 | 11,569 | 82,886 | ||||||||||
Repayments of debt | ||||||||||||||
Revolving Credit Facility | (115,000 | ) | (226,000 | ) | (115,000 | ) | (457,000 | ) | ||||||
Scheduled principal amortization | (3,437 | ) | (5,003 | ) | (4,914 | ) | (7,229 | ) | ||||||
Other debt repayments | (133,010 | ) | (486,803 | ) | (183,059 | ) | (542,532 | ) | ||||||
Deferred financing costs paid | (653 | ) | (2,099 | ) | (694 | ) | (9,001 | ) | ||||||
Net proceeds from issuance of common shares | 1,178 | 118,768 | 1,352 | 157,307 | ||||||||||
Redemption of preferred shares | (50,000 | ) | (84,750 | ) | (50,000 | ) | (84,750 | ) | ||||||
Common share dividends paid | (48,118 | ) | (45,852 | ) | (72,217 | ) | (69,451 | ) | ||||||
Preferred share dividends paid | (9,626 | ) | (12,355 | ) | (13,179 | ) | (16,845 | ) | ||||||
Distributions paid to noncontrolling interests in COPLP | (2,641 | ) | (2,503 | ) | (3,786 | ) | (3,705 | ) | ||||||
Restricted share redemptions | (1,326 | ) | (1,784 | ) | (1,389 | ) | (1,848 | ) | ||||||
Other | (706 | ) | (532 | ) | (2,582 | ) | (685 | ) | ||||||
Net cash provided by financing activities | 58,934 | 52,400 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 21,843 | (1,398 | ) | |||||||||||
Net cash (used in) provided by financing activities | (21,557 | ) | 96,560 | |||||||||||
Net (decrease) increase in cash and cash equivalents | (14,355 | ) | 16,724 | |||||||||||
Cash and cash equivalents | ||||||||||||||
Beginning of period | 54,373 | 10,594 | 54,373 | 10,594 | ||||||||||
End of period | $ | 76,216 | $ | 9,196 | $ | 40,018 | $ | 27,318 |
For the Six Months Ended June 30, | For the Nine Months Ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Reconciliation of net income to net cash provided by operating activities: | ||||||||||||||
Net income | $ | 14,721 | $ | 10,872 | $ | 39,269 | $ | 8,872 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and other amortization | 75,839 | 58,244 | 106,619 | 87,956 | ||||||||||
Impairment losses | 1,329 | 9,052 | 1,371 | 30,940 | ||||||||||
Settlement of previously accreted interest expense | — | (11,116 | ) | — | (11,116 | ) | ||||||||
Amortization of deferred financing costs | 2,289 | 2,971 | 3,646 | 4,292 | ||||||||||
Increase in deferred rent receivable | (1,754 | ) | (6,598 | ) | (2,738 | ) | (7,995 | ) | ||||||
Amortization of net debt discounts | 400 | 1,328 | 659 | 1,207 | ||||||||||
Loss (gain) on sales of real estate | 4 | (2,683 | ) | |||||||||||
Gain on sales of real estate | (10,654 | ) | (2,683 | ) | ||||||||||
Share-based compensation | 3,056 | 3,296 | 4,563 | 4,869 | ||||||||||
Loss on early extinguishment of debt | 282 | 2,722 | 458 | 3,059 | ||||||||||
Other | (1,664 | ) | (2,472 | ) | (2,446 | ) | (2,284 | ) | ||||||
Changes in operating assets and liabilities: | ||||||||||||||
Increase in accounts receivable | (3,916 | ) | (4,384 | ) | ||||||||||
Increase in restricted cash and marketable securities | (113 | ) | (969 | ) | ||||||||||
Decrease in prepaid expenses and other assets | 3,213 | 5,884 | ||||||||||||
Increase (decrease) in accounts payable, accrued expenses and other liabilities | 13,236 | (1,079 | ) | |||||||||||
Decrease in rents received in advance and security deposits | (3,972 | ) | (3,537 | ) | ||||||||||
Decrease in accounts receivable | 6,815 | 1,523 | ||||||||||||
(Increase) decrease in restricted cash and marketable securities | (2,591 | ) | 418 | |||||||||||
Increase in prepaid expenses and other assets | (26,553 | ) | (12,974 | ) | ||||||||||
Increase in accounts payable, accrued expenses and other liabilities | 24,247 | 18 | ||||||||||||
Increase in rents received in advance and security deposits | 1,583 | 907 | ||||||||||||
Net cash provided by operating activities | $ | 102,950 | $ | 61,531 | $ | 144,248 | $ | 107,009 | ||||||
Supplemental schedule of non-cash investing and financing activities: | ||||||||||||||
Decrease in accrued capital improvements, leasing and other investing activity costs | $ | (7,153 | ) | $ | (12,750 | ) | $ | (174 | ) | $ | (13,094 | ) | ||
(Decrease) increase in fair value of derivatives applied to accumulated other comprehensive (loss) income and noncontrolling interests | $ | (4,369 | ) | $ | 9,592 | |||||||||
(Decrease) increase in fair value of derivatives applied to accumulated other comprehensive income (loss) and noncontrolling interests | $ | (2,613 | ) | $ | 7,785 | |||||||||
Equity in other comprehensive income of an equity method investee | $ | — | $ | 1,070 | ||||||||||
Dividends/distribution payable | $ | 28,342 | $ | 28,602 | $ | 28,344 | $ | 29,077 | ||||||
COPLP common units issued to acquire property and noncontrolling interest in other consolidated entity | $ | — | $ | 5,194 | ||||||||||
Decrease in noncontrolling interests and increase in shareholders’ equity in connection with the conversion of common units into common shares | $ | 1,047 | $ | 3,578 | $ | 1,545 | $ | 3,991 | ||||||
Adjustments to noncontrolling interests resulting from changes in COPLP ownership | $ | 72 | $ | 2,495 | $ | 248 | $ | 773 | ||||||
Increase in redeemable noncontrolling interest and decrease in shareholders’ equity to carry redeemable noncontrolling interest at fair value | $ | 717 | $ | 5,631 | $ | 7 | $ | 6,414 |
June 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | |||||||||||
Assets | ||||||||||||||
Properties, net: | ||||||||||||||
Operating properties, net | $ | 2,724,242 | $ | 2,702,693 | $ | 2,757,207 | $ | 2,702,693 | ||||||
Projects in development or held for future development | 530,000 | 511,608 | 513,949 | 511,608 | ||||||||||
Total properties, net | 3,254,242 | 3,214,301 | 3,271,156 | 3,214,301 | ||||||||||
Assets held for sale, net | 22,868 | — | ||||||||||||
Cash and cash equivalents | 76,216 | 54,373 | 40,018 | 54,373 | ||||||||||
Restricted cash and marketable securities | 4,068 | 3,981 | 6,871 | 3,981 | ||||||||||
Accounts receivable (net of allowance for doubtful accounts of $2,282 and $2,976, respectively) | 30,911 | 27,000 | ||||||||||||
Deferred rent receivable (net of allowance of $1,491 and $2,126, respectively) | 93,270 | 89,456 | ||||||||||||
Accounts receivable (net of allowance for doubtful accounts of $750 and $2,976, respectively) | 20,180 | 27,000 | ||||||||||||
Deferred rent receivable (net of allowance of $1,426 and $2,126, respectively) | 95,405 | 89,456 | ||||||||||||
Intangible assets on real estate acquisitions, net | 51,645 | 59,258 | 48,300 | 59,258 | ||||||||||
Deferred leasing and financing costs, net | 65,251 | 66,267 | 65,009 | 66,267 | ||||||||||
Mortgage and other investing receivables | 56,549 | 53,663 | 50,886 | 53,663 | ||||||||||
Prepaid expenses and other assets | 46,859 | 54,186 | 74,863 | 54,186 | ||||||||||
Total assets | $ | 3,701,879 | $ | 3,622,485 | $ | 3,672,688 | $ | 3,622,485 | ||||||
Liabilities and equity | ||||||||||||||
Liabilities: | ||||||||||||||
Debt, net | $ | 2,099,343 | $ | 1,927,703 | $ | 2,049,992 | $ | 1,927,703 | ||||||
Accounts payable and accrued expenses | 105,205 | 98,785 | 123,893 | 98,785 | ||||||||||
Rents received in advance and security deposits | 27,520 | 31,492 | 33,075 | 31,492 | ||||||||||
Distributions payable | 28,342 | 29,080 | 28,344 | 29,080 | ||||||||||
Deferred revenue associated with operating leases | 12,355 | 10,369 | 13,420 | 10,369 | ||||||||||
Interest rate derivatives | 3,236 | 3,309 | 2,236 | 3,309 | ||||||||||
Other liabilities | 7,197 | 6,740 | 5,788 | 6,740 | ||||||||||
Total liabilities | 2,283,198 | 2,107,478 | 2,256,748 | 2,107,478 | ||||||||||
Commitments and contingencies (Note 17) | ||||||||||||||
Redeemable noncontrolling interest | 18,901 | 17,758 | 18,436 | 17,758 | ||||||||||
Equity: | ||||||||||||||
Corporate Office Properties, L.P.’s equity: | ||||||||||||||
Preferred units | ||||||||||||||
General partner, preferred units outstanding of 7,431,667 at June 30, 2014 and 9,431,667 at December 31, 2013 | 199,083 | 249,083 | ||||||||||||
Limited partner, 352,000 preferred units outstanding at June 30, 2014 and December 31, 2013 | 8,800 | 8,800 | ||||||||||||
Common units, 87,668,308 and 87,394,512 held by the general partner and 3,899,202 and 3,977,700 held by limited partners at June 30, 2014 and December 31, 2013, respectively | 1,182,635 | 1,226,318 | ||||||||||||
Accumulated other comprehensive (loss) income | (825 | ) | 3,605 | |||||||||||
General partner, preferred units outstanding of 7,431,667 at September 30, 2014 and 9,431,667 at December 31, 2013 | 199,083 | 249,083 | ||||||||||||
Limited partner, 352,000 preferred units outstanding at September 30, 2014 and December 31, 2013 | 8,800 | 8,800 | ||||||||||||
Common units, 87,711,731 and 87,394,512 held by the general partner and 3,860,551 and 3,977,700 held by limited partners at September 30, 2014 and December 31, 2013, respectively | 1,179,919 | 1,226,318 | ||||||||||||
Accumulated other comprehensive income | 879 | 3,605 | ||||||||||||
Total Corporate Office Properties, L.P.’s equity | 1,389,693 | 1,487,806 | 1,388,681 | 1,487,806 | ||||||||||
Noncontrolling interests in subsidiaries | 10,087 | 9,443 | 8,823 | 9,443 | ||||||||||
Total equity | 1,399,780 | 1,497,249 | 1,397,504 | 1,497,249 | ||||||||||
Total liabilities, redeemable noncontrolling interest and equity | $ | 3,701,879 | $ | 3,622,485 | $ | 3,672,688 | $ | 3,622,485 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Revenues | ||||||||||||||||||||||||||||||
Rental revenue | $ | 94,332 | $ | 94,421 | $ | 192,367 | $ | 186,270 | $ | 96,207 | $ | 94,641 | $ | 288,574 | $ | 280,911 | ||||||||||||||
Tenant recoveries and other real estate operations revenue | 21,627 | 21,311 | 48,469 | 41,419 | 22,069 | 20,180 | 70,538 | 61,599 | ||||||||||||||||||||||
Construction contract and other service revenues | 23,861 | 20,795 | 45,651 | 35,057 | 34,739 | 16,991 | 80,390 | 52,048 | ||||||||||||||||||||||
Total revenues | 139,820 | 136,527 | 286,487 | 262,746 | 153,015 | 131,812 | 439,502 | 394,558 | ||||||||||||||||||||||
Expenses | ||||||||||||||||||||||||||||||
Property operating expenses | 43,772 | 41,333 | 93,544 | 81,721 | 43,056 | 41,361 | 136,600 | 123,082 | ||||||||||||||||||||||
Depreciation and amortization associated with real estate operations | 30,895 | 27,673 | 74,491 | 54,683 | 30,237 | 28,205 | 104,728 | 82,888 | ||||||||||||||||||||||
Construction contract and other service expenses | 23,136 | 19,382 | 41,760 | 32,859 | 33,593 | 16,306 | 75,353 | 49,165 | ||||||||||||||||||||||
Impairment losses | 1,302 | — | 1,302 | — | 66 | 5,857 | 1,368 | 5,857 | ||||||||||||||||||||||
General, administrative and leasing expenses | 7,528 | 6,583 | 15,671 | 14,403 | 7,211 | 8,027 | 22,882 | 22,430 | ||||||||||||||||||||||
Business development expenses and land carry costs | 1,351 | 1,327 | 2,677 | 2,686 | 1,430 | 1,383 | 4,107 | 4,069 | ||||||||||||||||||||||
Total operating expenses | 107,984 | 96,298 | 229,445 | 186,352 | 115,593 | 101,139 | 345,038 | 287,491 | ||||||||||||||||||||||
Operating income | 31,836 | 40,229 | 57,042 | 76,394 | 37,422 | 30,673 | 94,464 | 107,067 | ||||||||||||||||||||||
Interest expense | (23,478 | ) | (21,102 | ) | (44,305 | ) | (41,392 | ) | (24,802 | ) | (19,342 | ) | (69,107 | ) | (60,734 | ) | ||||||||||||||
Interest and other income | 1,299 | 2,006 | 2,584 | 2,952 | ||||||||||||||||||||||||||
Interest and other income (loss) | 1,191 | (3 | ) | 3,775 | 2,949 | |||||||||||||||||||||||||
Loss on early extinguishment of debt | (270 | ) | (21,470 | ) | (270 | ) | (26,654 | ) | (176 | ) | (374 | ) | (446 | ) | (27,028 | ) | ||||||||||||||
Income (loss) from continuing operations before equity in (loss) income of unconsolidated entities and income taxes | 9,387 | (337 | ) | 15,051 | 11,300 | |||||||||||||||||||||||||
Equity in (loss) income of unconsolidated entities | (47 | ) | 126 | 13 | 167 | |||||||||||||||||||||||||
Income from continuing operations before equity in income of unconsolidated entities and income taxes | 13,635 | 10,954 | 28,686 | 22,254 | ||||||||||||||||||||||||||
Equity in income of unconsolidated entities | 193 | 44 | 206 | 211 | ||||||||||||||||||||||||||
Income tax expense | (92 | ) | (21 | ) | (156 | ) | (37 | ) | (101 | ) | (24 | ) | (257 | ) | (61 | ) | ||||||||||||||
Income (loss) from continuing operations | 9,248 | (232 | ) | 14,908 | 11,430 | |||||||||||||||||||||||||
Income from continuing operations | 13,727 | 10,974 | 28,635 | 22,404 | ||||||||||||||||||||||||||
Discontinued operations | (198 | ) | (4,502 | ) | (187 | ) | (3,241 | ) | 191 | (12,974 | ) | 4 | (16,215 | ) | ||||||||||||||||
Income before gain on sales of real estate | 9,050 | (4,734 | ) | 14,721 | 8,189 | |||||||||||||||||||||||||
Income (loss) before gain on sales of real estate | 13,918 | (2,000 | ) | 28,639 | 6,189 | |||||||||||||||||||||||||
Gain on sales of real estate | — | 329 | — | 2,683 | 10,630 | — | 10,630 | 2,683 | ||||||||||||||||||||||
Net income (loss) | 9,050 | (4,405 | ) | 14,721 | 10,872 | 24,548 | (2,000 | ) | 39,269 | 8,872 | ||||||||||||||||||||
Net income attributable to noncontrolling interests in consolidated entities | (837 | ) | (1,473 | ) | (1,574 | ) | (1,137 | ) | (897 | ) | (1,035 | ) | (2,471 | ) | (2,172 | ) | ||||||||||||||
Net income (loss) attributable to COPLP | 8,213 | (5,878 | ) | 13,147 | 9,735 | 23,651 | (3,035 | ) | 36,798 | 6,700 | ||||||||||||||||||||
Preferred unit distributions | (4,509 | ) | (5,050 | ) | (9,164 | ) | (11,321 | ) | (3,718 | ) | (4,655 | ) | (12,882 | ) | (15,976 | ) | ||||||||||||||
Issuance costs associated with redeemed preferred units | (1,769 | ) | (2,904 | ) | (1,769 | ) | (2,904 | ) | — | — | (1,769 | ) | (2,904 | ) | ||||||||||||||||
Net income (loss) attributable to COPLP common unitholders | $ | 1,935 | $ | (13,832 | ) | $ | 2,214 | $ | (4,490 | ) | $ | 19,933 | $ | (7,690 | ) | $ | 22,147 | $ | (12,180 | ) | ||||||||||
Net income (loss) attributable to COPLP: | ||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 8,408 | $ | (1,311 | ) | $ | 13,329 | $ | 13,074 | |||||||||||||||||||||
Income from continuing operations | $ | 23,460 | $ | 9,988 | $ | 36,789 | $ | 23,062 | ||||||||||||||||||||||
Discontinued operations, net | (195 | ) | (4,567 | ) | (182 | ) | (3,339 | ) | 191 | (13,023 | ) | 9 | (16,362 | ) | ||||||||||||||||
Net income (loss) attributable to COPLP | $ | 8,213 | $ | (5,878 | ) | $ | 13,147 | $ | 9,735 | $ | 23,651 | $ | (3,035 | ) | $ | 36,798 | $ | 6,700 | ||||||||||||
Basic earnings per common unit (1) | ||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 0.02 | $ | (0.10 | ) | $ | 0.02 | $ | (0.02 | ) | ||||||||||||||||||||
Income from continuing operations | $ | 0.22 | $ | 0.06 | $ | 0.24 | $ | 0.04 | ||||||||||||||||||||||
Discontinued operations | 0.00 | (0.06 | ) | 0.00 | (0.03 | ) | 0.00 | (0.15 | ) | 0.00 | (0.18 | ) | ||||||||||||||||||
Net income (loss) attributable to COPLP common unitholders | $ | 0.02 | $ | (0.16 | ) | $ | 0.02 | $ | (0.05 | ) | $ | 0.22 | $ | (0.09 | ) | $ | 0.24 | $ | (0.14 | ) | ||||||||||
Diluted earnings per common unit (1) | ||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 0.02 | $ | (0.10 | ) | $ | 0.02 | $ | (0.02 | ) | ||||||||||||||||||||
Income from continuing operations | $ | 0.22 | $ | 0.06 | $ | 0.24 | $ | 0.04 | ||||||||||||||||||||||
Discontinued operations | 0.00 | (0.06 | ) | 0.00 | (0.03 | ) | 0.00 | (0.15 | ) | 0.00 | (0.18 | ) | ||||||||||||||||||
Net income (loss) attributable to COPLP common unitholders | $ | 0.02 | $ | (0.16 | ) | $ | 0.02 | $ | (0.05 | ) | $ | 0.22 | $ | (0.09 | ) | $ | 0.24 | $ | (0.14 | ) | ||||||||||
Distributions declared per common unit | $ | 0.275 | $ | 0.275 | $ | 0.550 | $ | 0.550 | $ | 0.275 | $ | 0.275 | $ | 0.825 | $ | 0.825 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Net income (loss) | $ | 9,050 | $ | (4,405 | ) | $ | 14,721 | $ | 10,872 | ||||||
Other comprehensive (loss) income | |||||||||||||||
Unrealized (losses) gains on interest rate derivatives | (3,630 | ) | 7,830 | (5,753 | ) | 8,292 | |||||||||
Losses on interest rate derivatives included in interest expense | 719 | 674 | 1,414 | 1,332 | |||||||||||
Other comprehensive (loss) income | (2,911 | ) | 8,504 | (4,339 | ) | 9,624 | |||||||||
Comprehensive income | 6,139 | 4,099 | 10,382 | 20,496 | |||||||||||
Comprehensive income attributable to noncontrolling interests | (884 | ) | (1,579 | ) | (1,666 | ) | (1,289 | ) | |||||||
Comprehensive income attributable to COPLP | $ | 5,255 | $ | 2,520 | $ | 8,716 | $ | 19,207 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Net income (loss) | $ | 24,548 | $ | (2,000 | ) | $ | 39,269 | $ | 8,872 | ||||||
Other comprehensive income (loss) | |||||||||||||||
Unrealized gains (losses) on interest rate derivatives | 1,015 | (2,482 | ) | (4,738 | ) | 5,810 | |||||||||
Losses on interest rate derivatives included in interest expense | 756 | 689 | 2,170 | 2,021 | |||||||||||
Equity in other comprehensive income of equity method investee | — | 1,070 | — | 1,070 | |||||||||||
Other comprehensive income (loss) | 1,771 | (723 | ) | (2,568 | ) | 8,901 | |||||||||
Comprehensive income (loss) | 26,319 | (2,723 | ) | 36,701 | 17,773 | ||||||||||
Comprehensive income attributable to noncontrolling interests | (964 | ) | (1,050 | ) | (2,630 | ) | (2,339 | ) | |||||||
Comprehensive income (loss) attributable to COPLP | $ | 25,355 | $ | (3,773 | ) | $ | 34,071 | $ | 15,434 |
Limited Partner Preferred Units | General Partner Preferred Units | Common Units | Limited Partner Preferred Units | General Partner Preferred Units | Common Units | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Units | Amount | Units | Amount | Units | Amount | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests in Subsidiaries | Total Equity | Units | Amount | Units | Amount | Units | Amount | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests in Subsidiaries | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2012 | 352,000 | $ | 8,800 | 12,821,667 | $ | 333,833 | 85,020,528 | $ | 1,089,391 | $ | (5,708 | ) | $ | 10,183 | $ | 1,436,499 | 352,000 | $ | 8,800 | 12,821,667 | $ | 333,833 | 85,020,528 | $ | 1,089,391 | $ | (5,708 | ) | $ | 10,183 | $ | 1,436,499 | ||||||||||||||||||||||||||||||||
Redemption of preferred units resulting from redemption of preferred shares | — | — | (3,390,000 | ) | (84,750 | ) | — | — | — | — | (84,750 | ) | — | — | (3,390,000 | ) | (84,750 | ) | — | — | — | — | (84,750 | ) | ||||||||||||||||||||||||||||||||||||||||
Issuance of common units resulting from public issuance of common shares | — | — | — | — | 4,485,000 | 117,913 | — | — | 117,913 | — | — | — | — | 4,485,000 | 117,961 | — | — | 117,961 | ||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common units resulting from common shares issued under at-the-market program | — | — | — | — | 1,500,000 | 38,447 | — | — | 38,447 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of property and noncontrolling interest in subsidiary for COPLP common units | — | — | — | — | 221,501 | 3,899 | — | (2,530 | ) | 1,369 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common units resulting from exercise of share options | — | — | — | — | 32,756 | 636 | — | — | 636 | — | — | — | — | 32,756 | 642 | — | — | 642 | ||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 164,404 | 3,848 | — | — | 3,848 | — | — | — | — | 171,287 | 5,702 | — | — | 5,702 | ||||||||||||||||||||||||||||||||||||||||||||||
Restricted common unit redemptions | — | — | — | — | (68,762 | ) | (1,784 | ) | — | — | (1,784 | ) | — | — | — | — | (71,523 | ) | (1,848 | ) | — | — | (1,848 | ) | ||||||||||||||||||||||||||||||||||||||||
Comprehensive loss | — | 330 | — | 10,991 | — | (1,586 | ) | 9,471 | 1,005 | 20,211 | — | 495 | — | 15,481 | — | (9,276 | ) | 8,734 | 1,451 | 16,885 | ||||||||||||||||||||||||||||||||||||||||||||
Distributions to owners of common and preferred units | — | (330 | ) | — | (10,991 | ) | — | (49,289 | ) | — | — | (60,610 | ) | — | (495 | ) | — | (15,481 | ) | — | (74,405 | ) | — | — | (90,381 | ) | ||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests in subsidiaries | — | — | — | — | — | — | — | (8 | ) | (8 | ) | — | — | — | — | — | — | — | (8 | ) | (8 | ) | ||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests in subsidiaries | — | — | — | — | — | — | — | 85 | 85 | — | — | — | — | — | — | — | 85 | 85 | ||||||||||||||||||||||||||||||||||||||||||||||
Adjustment to arrive at fair value of redeemable noncontrolling interest | — | — | — | — | — | (5,631 | ) | — | — | (5,631 | ) | — | — | — | — | — | (6,414 | ) | — | — | (6,414 | ) | ||||||||||||||||||||||||||||||||||||||||||
Tax loss from share-based compensation | — | — | — | — | — | (122 | ) | — | — | (122 | ) | — | — | — | — | — | (122 | ) | — | — | (122 | ) | ||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2013 | 352,000 | $ | 8,800 | 9,431,667 | $ | 249,083 | 89,633,926 | $ | 1,153,376 | $ | 3,763 | $ | 11,265 | $ | 1,426,287 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2013 | 352,000 | $ | 8,800 | 9,431,667 | $ | 249,083 | 91,359,549 | $ | 1,163,977 | $ | 3,026 | $ | 9,181 | $ | 1,434,067 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 31, 2013 | 352,000 | $ | 8,800 | 9,431,667 | $ | 249,083 | 91,372,212 | $ | 1,226,318 | $ | 3,605 | $ | 9,443 | $ | 1,497,249 | 352,000 | $ | 8,800 | 9,431,667 | $ | 249,083 | 91,372,212 | $ | 1,226,318 | $ | 3,605 | $ | 9,443 | $ | 1,497,249 | ||||||||||||||||||||||||||||||||||
Redemption of preferred units resulting from redemption of preferred shares | — | — | (2,000,000 | ) | (50,000 | ) | — | — | — | — | (50,000 | ) | — | — | (2,000,000 | ) | (50,000 | ) | — | — | — | — | (50,000 | ) | ||||||||||||||||||||||||||||||||||||||||
Costs associated with common shares issued to the public | — | — | — | — | — | (7 | ) | — | — | (7 | ) | — | — | — | — | — | (7 | ) | — | — | (7 | ) | ||||||||||||||||||||||||||||||||||||||||||
Issuance of common units resulting from exercise of share options | — | — | — | — | 51,289 | 1,185 | — | — | 1,185 | — | — | — | — | 57,888 | 1,359 | — | — | 1,359 | ||||||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | 193,463 | 3,545 | — | — | 3,545 | — | — | — | — | 193,863 | 5,249 | — | — | 5,249 | ||||||||||||||||||||||||||||||||||||||||||||||
Restricted common unit redemptions | — | — | — | — | (49,454 | ) | (1,326 | ) | — | — | (1,326 | ) | — | — | — | — | (51,681 | ) | (1,389 | ) | — | — | (1,389 | ) | ||||||||||||||||||||||||||||||||||||||||
Comprehensive income | — | 330 | — | 8,834 | — | 3,983 | (4,430 | ) | 649 | 9,366 | — | 495 | — | 12,387 | — | 23,916 | (2,726 | ) | 983 | 35,055 | ||||||||||||||||||||||||||||||||||||||||||||
Distributions to owners of common and preferred units | — | (330 | ) | — | (8,834 | ) | — | (50,346 | ) | — | — | (59,510 | ) | — | (495 | ) | — | (12,387 | ) | — | (75,520 | ) | — | — | (88,402 | ) | ||||||||||||||||||||||||||||||||||||||
Distributions to noncontrolling interests in subsidiaries | — | — | — | — | — | — | — | (8 | ) | (8 | ) | — | — | — | — | — | — | — | (1,606 | ) | (1,606 | ) | ||||||||||||||||||||||||||||||||||||||||||
Contributions from noncontrolling interests in subsidiaries | — | — | — | — | — | — | — | 3 | 3 | — | — | — | — | — | — | — | 3 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||
Adjustment to arrive at fair value of redeemable noncontrolling interest | — | — | — | — | — | (717 | ) | — | — | (717 | ) | — | — | — | — | — | (7 | ) | — | — | (7 | ) | ||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2014 | 352,000 | $ | 8,800 | 7,431,667 | $ | 199,083 | 91,567,510 | $ | 1,182,635 | $ | (825 | ) | $ | 10,087 | $ | 1,399,780 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 30, 2014 | 352,000 | $ | 8,800 | 7,431,667 | $ | 199,083 | 91,572,282 | $ | 1,179,919 | $ | 879 | $ | 8,823 | $ | 1,397,504 |
For the Six Months Ended June 30, | For the Nine Months Ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Cash flows from operating activities | ||||||||||||||
Revenues from real estate operations received | $ | 232,877 | $ | 233,068 | $ | 358,212 | $ | 359,431 | ||||||
Construction contract and other service revenues received | 35,105 | 28,898 | 62,170 | 48,877 | ||||||||||
Property operating expenses paid | (78,621 | ) | (75,566 | ) | (141,489 | ) | (133,799 | ) | ||||||
Construction contract and other service expenses paid | (34,588 | ) | (33,404 | ) | (58,218 | ) | (53,191 | ) | ||||||
General, administrative, leasing, business development and land carry costs paid | (16,904 | ) | (14,988 | ) | (22,288 | ) | (20,681 | ) | ||||||
Interest expense paid | (35,365 | ) | (41,825 | ) | (54,683 | ) | (59,052 | ) | ||||||
Previously accreted interest expense paid | — | (11,116 | ) | — | (11,116 | ) | ||||||||
Proceeds from sale of trading marketable securities | — | 298 | ||||||||||||
Exit costs on property dispositions | — | (186 | ) | |||||||||||
Payments in connection with early extinguishment of debt | (104 | ) | (23,932 | ) | (104 | ) | (23,969 | ) | ||||||
Interest and other income received | 346 | 390 | 448 | 391 | ||||||||||
Income taxes refund | 204 | 6 | ||||||||||||
Income taxes refunded | 200 | 6 | ||||||||||||
Net cash provided by operating activities | 102,950 | 61,531 | 144,248 | 107,009 | ||||||||||
Cash flows from investing activities | ||||||||||||||
Construction, development and redevelopment | (105,459 | ) | (99,779 | ) | (150,862 | ) | (156,820 | ) | ||||||
Tenant improvements on operating properties | (10,842 | ) | (10,496 | ) | (17,754 | ) | (15,868 | ) | ||||||
Other capital improvements on operating properties | (16,482 | ) | (11,738 | ) | (21,179 | ) | (17,528 | ) | ||||||
Proceeds from dispositions of properties | 1,971 | 12,344 | 57,973 | 12,447 | ||||||||||
Mortgage and other loan receivables funded | (565 | ) | (2,756 | ) | (3,610 | ) | (4,111 | ) | ||||||
Mortgage and other loan receivables payments received | 10,278 | 144 | ||||||||||||
Leasing costs paid | (7,772 | ) | (6,048 | ) | (10,549 | ) | (9,366 | ) | ||||||
Other | (892 | ) | 3,144 | (1,343 | ) | 4,257 | ||||||||
Net cash used in investing activities | (140,041 | ) | (115,329 | ) | (137,046 | ) | (186,845 | ) | ||||||
Cash flows from financing activities | ||||||||||||||
Proceeds from debt | ||||||||||||||
Revolving Credit Facility | 115,000 | 374,000 | 115,000 | 457,000 | ||||||||||
Unsecured senior notes | 297,342 | 347,081 | 297,342 | 592,413 | ||||||||||
Other debt proceeds | 9,931 | 80,232 | 11,569 | 82,886 | ||||||||||
Repayments of debt | ||||||||||||||
Revolving Credit Facility | (115,000 | ) | (226,000 | ) | (115,000 | ) | (457,000 | ) | ||||||
Scheduled principal amortization | (3,437 | ) | (5,003 | ) | (4,914 | ) | (7,229 | ) | ||||||
Other debt repayments | (133,010 | ) | (486,803 | ) | (183,059 | ) | (542,532 | ) | ||||||
Deferred financing costs paid | (653 | ) | (2,099 | ) | (694 | ) | (9,001 | ) | ||||||
Net proceeds from issuance of common units | 1,178 | 118,768 | 1,352 | 157,307 | ||||||||||
Redemption of preferred units | (50,000 | ) | (84,750 | ) | (50,000 | ) | (84,750 | ) | ||||||
Common unit distributions paid | (50,429 | ) | (48,025 | ) | (75,508 | ) | (72,661 | ) | ||||||
Preferred unit distributions paid | (9,956 | ) | (12,685 | ) | (13,674 | ) | (17,340 | ) | ||||||
Restricted unit redemptions | (1,326 | ) | (1,784 | ) | (1,389 | ) | (1,848 | ) | ||||||
Other | (706 | ) | (532 | ) | (2,582 | ) | (685 | ) | ||||||
Net cash provided by financing activities | 58,934 | 52,400 | ||||||||||||
Net increase (decrease) in cash and cash equivalents | 21,843 | (1,398 | ) | |||||||||||
Net cash (used in) provided by financing activities | (21,557 | ) | 96,560 | |||||||||||
Net (decrease) increase in cash and cash equivalents | (14,355 | ) | 16,724 | |||||||||||
Cash and cash equivalents | ||||||||||||||
Beginning of period | 54,373 | 10,594 | 54,373 | 10,594 | ||||||||||
End of period | $ | 76,216 | $ | 9,196 | $ | 40,018 | $ | 27,318 |
For the Six Months Ended June 30, | For the Nine Months Ended September 30, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Reconciliation of net income to net cash provided by operating activities: | ||||||||||||||
Net income | $ | 14,721 | $ | 10,872 | $ | 39,269 | $ | 8,872 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||
Depreciation and other amortization | 75,839 | 58,244 | 106,619 | 87,956 | ||||||||||
Impairment losses | 1,329 | 9,052 | 1,371 | 30,940 | ||||||||||
Settlement of previously accreted interest expense | — | (11,116 | ) | — | (11,116 | ) | ||||||||
Amortization of deferred financing costs | 2,289 | 2,971 | 3,646 | 4,292 | ||||||||||
Increase in deferred rent receivable | (1,754 | ) | (6,598 | ) | (2,738 | ) | (7,995 | ) | ||||||
Amortization of net debt discounts | 400 | 1,328 | 659 | 1,207 | ||||||||||
Loss (gain) on sales of real estate | 4 | (2,683 | ) | |||||||||||
Gain on sales of real estate | (10,654 | ) | (2,683 | ) | ||||||||||
Share-based compensation | 3,056 | 3,296 | 4,563 | 4,869 | ||||||||||
Loss on early extinguishment of debt | 282 | 2,722 | 458 | 3,059 | ||||||||||
Other | (1,664 | ) | (2,472 | ) | (2,446 | ) | (2,284 | ) | ||||||
Changes in operating assets and liabilities: | ||||||||||||||
Increase in accounts receivable | (3,916 | ) | (4,384 | ) | ||||||||||
Decrease (increase) in restricted cash and marketable securities | 40 | (670 | ) | |||||||||||
Decrease in prepaid expenses and other assets | 3,213 | 5,884 | ||||||||||||
Decrease in accounts receivable | 6,815 | 1,523 | ||||||||||||
(Increase) decrease in restricted cash and marketable securities | (2,558 | ) | 822 | |||||||||||
Increase in prepaid expenses and other assets | (26,553 | ) | (12,974 | ) | ||||||||||
Increase (decrease) in accounts payable, accrued expenses and other liabilities | 13,083 | (1,378 | ) | 24,214 | (386 | ) | ||||||||
Decrease in rents received in advance and security deposits | (3,972 | ) | (3,537 | ) | ||||||||||
Increase in rents received in advance and security deposits | 1,583 | 907 | ||||||||||||
Net cash provided by operating activities | $ | 102,950 | $ | 61,531 | $ | 144,248 | $ | 107,009 | ||||||
Supplemental schedule of non-cash investing and financing activities: | ||||||||||||||
Decrease in accrued capital improvements, leasing and other investing activity costs | $ | (7,153 | ) | $ | (12,750 | ) | $ | (174 | ) | $ | (13,094 | ) | ||
(Decrease) increase in fair value of derivatives applied to accumulated other comprehensive (loss) income and noncontrolling interests | $ | (4,369 | ) | $ | 9,592 | |||||||||
(Decrease) increase in fair value of derivatives applied to accumulated other comprehensive income (loss) and noncontrolling interests | $ | (2,613 | ) | $ | 7,785 | |||||||||
Equity in other comprehensive income of an equity method investee | $ | — | $ | 1,070 | ||||||||||
Distributions payable | $ | 28,342 | $ | 28,602 | $ | 28,344 | $ | 29,077 | ||||||
COPLP common units issued to acquire property and noncontrolling interest in other consolidated entity | $ | — | $ | 5,194 | ||||||||||
Increase in redeemable noncontrolling interest and decrease in equity to carry redeemable noncontrolling interest at fair value | $ | 717 | $ | 5,631 | $ | 7 | $ | 6,414 |
Description | Quoted Prices in Active Markets for Identical Assets(Level 1) | Significant Other Observable Inputs(Level 2) | Significant Unobservable Inputs(Level 3) | Total | Quoted Prices in Active Markets for Identical Assets(Level 1) | Significant Other Observable Inputs(Level 2) | Significant Unobservable Inputs(Level 3) | Total | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Marketable securities in deferred compensation plan (1) | ||||||||||||||||||||||||||||||||
Mutual funds | $ | 7,309 | $ | — | $ | — | $ | 7,309 | $ | 7,187 | $ | — | $ | — | $ | 7,187 | ||||||||||||||||
Common stocks | 111 | — | — | 111 | 110 | — | — | 110 | ||||||||||||||||||||||||
Other | 201 | — | — | 201 | 203 | — | — | 203 | ||||||||||||||||||||||||
Interest rate derivatives (2) | — | 2,151 | — | 2,151 | — | 2,907 | — | 2,907 | ||||||||||||||||||||||||
Warrants to purchase common stock (2) | — | 255 | — | 255 | — | 192 | — | 192 | ||||||||||||||||||||||||
Total Assets | $ | 7,621 | $ | 2,406 | $ | — | $ | 10,027 | $ | 7,500 | $ | 3,099 | $ | — | $ | 10,599 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Deferred compensation plan liability (3) | $ | — | $ | 7,621 | $ | — | $ | 7,621 | $ | — | $ | 7,500 | $ | — | $ | 7,500 | ||||||||||||||||
Interest rate derivatives | — | 3,236 | — | 3,236 | — | 2,236 | — | 2,236 | ||||||||||||||||||||||||
Total Liabilities | $ | — | $ | 10,857 | $ | — | $ | 10,857 | $ | — | $ | 9,736 | $ | — | $ | 9,736 | ||||||||||||||||
Redeemable noncontrolling interest | $ | — | $ | — | $ | 18,901 | $ | 18,901 | $ | — | $ | — | $ | 18,436 | $ | 18,436 |
Description | Quoted Prices in Active Markets for Identical Assets(Level 1) | Significant Other Observable Inputs(Level 2) | Significant Unobservable Inputs(Level 3) | Total | Quoted Prices in Active Markets for Identical Assets(Level 1) | Significant Other Observable Inputs(Level 2) | Significant Unobservable Inputs(Level 3) | Total | ||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Interest rate derivatives (1) | $ | — | $ | 2,151 | $ | — | $ | 2,151 | $ | — | $ | 2,907 | $ | — | $ | 2,907 | ||||||||||||||||
Warrants to purchase common stock (1) | — | 255 | — | 255 | — | 192 | — | 192 | ||||||||||||||||||||||||
Total Assets | $ | — | $ | 2,406 | $ | — | $ | 2,406 | $ | — | $ | 3,099 | $ | — | $ | 3,099 | ||||||||||||||||
Liabilities: | ||||||||||||||||||||||||||||||||
Interest rate derivatives | $ | — | $ | 3,236 | $ | — | $ | 3,236 | $ | — | $ | 2,236 | $ | — | $ | 2,236 | ||||||||||||||||
Redeemable noncontrolling interest | $ | — | $ | — | $ | 18,901 | $ | 18,901 | $ | — | $ | — | $ | 18,436 | $ | 18,436 |
Fair Value of Properties Held as of June 30, 2014 | ||||||||||||||||||||||||
Quoted Prices in | Significant | Impairment Losses Recognized | ||||||||||||||||||||||
Active Markets for | Significant Other | Unobservable | Three Months | Six Months | ||||||||||||||||||||
Identical Assets | Observable Inputs | Inputs | Ended | Ended | ||||||||||||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | Total | June 30, 2014 | June 30, 2014 | ||||||||||||||||||
Assets (1): | ||||||||||||||||||||||||
Properties, net | $ | — | $ | — | $ | 9,796 | $ | 9,796 | $ | 1,328 | $ | 1,329 |
Valuation Technique | Fair Value on Measurement Date | Unobservable Input | Range (Weighted Average) | |||||
Contracts of sale | $ | 9,796 | Contract prices (1) | (1) |
Fair Value of Properties Held as of September 30, 2013 | ||||||||||||||||||||||||
Quoted Prices in | Significant | Impairment Losses Recognized (1) | ||||||||||||||||||||||
Active Markets for | Significant Other | Unobservable | Three Months | Nine Months | ||||||||||||||||||||
Identical Assets | Observable Inputs | Inputs | Ended | Ended | ||||||||||||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | Total | September 30, 2013 | September 30, 2013 | ||||||||||||||||||
Assets (2): | ||||||||||||||||||||||||
Properties, net | $ | — | $ | — | $ | 142,702 | $ | 142,702 | $ | 21,888 | $ | 30,940 |
Fair Value of Properties Held as of June 30, 2013 | ||||||||||||||||||||||||
Quoted Prices in | Significant | Impairment Losses Recognized | ||||||||||||||||||||||
Active Markets for | Significant Other | Unobservable | Three Months | Six Months | ||||||||||||||||||||
Identical Assets | Observable Inputs | Inputs | Ended | Ended | ||||||||||||||||||||
Description | (Level 1) | (Level 2) | (Level 3) | Total | �� | June 30, 2013 | June 30, 2013 | |||||||||||||||||
Assets (1): | ||||||||||||||||||||||||
Properties, net | $ | — | $ | — | $ | 99,240 | $ | 99,240 | $ | 7,195 | $ | 9,052 |
Valuation Technique | Fair Value on Measurement Date | Unobservable Input | Range (Weighted Average) | Fair Value on Measurement Date | Unobservable Input | Range (Weighted Average) | ||||||||||
Bids for properties indicative of value | $ | 99,240 | Indicative bids (1) | (1) | ||||||||||||
Contract of sale | $ | 110,499 | Contract price (1) | (1) | ||||||||||||
Discounted cash flow | $ | 32,203 | Discount rate | 10.0% to 11.0% (10.9%) | ||||||||||||
Terminal capitalization rate | 9.5% to 10.0% (9.7%) | |||||||||||||||
Market rent growth rate | 3.0% (2) | |||||||||||||||
Expense growth rate | 3.0% (2) |
June 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | |||||||||||
Land | $ | 433,362 | $ | 430,472 | $ | 439,355 | $ | 430,472 | ||||||
Buildings and improvements | 2,946,094 | 2,869,870 | 2,997,450 | 2,869,870 | ||||||||||
Less: accumulated depreciation | (655,214 | ) | (597,649 | ) | (679,598 | ) | (597,649 | ) | ||||||
Operating properties, net | $ | 2,724,242 | $ | 2,702,693 | $ | 2,757,207 | $ | 2,702,693 |
June 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | |||||||||||
Land | $ | 250,694 | $ | 245,676 | $ | 229,286 | $ | 245,676 | ||||||
Construction in progress, excluding land | 279,306 | 265,932 | 284,663 | 265,932 | ||||||||||
Projects in development or held for future development | $ | 530,000 | $ | 511,608 | $ | 513,949 | $ | 511,608 |
Project Name | Location | Date of Sale | Number of Buildings | Total Rentable Square Feet | Transaction Value | Gain on Disposition | ||||||||||||
4969 and 4979 Mercantile Road | White Marsh, MD | 7/14/2014 | 2 | 96,721 | $ | 5,960 | $ | 2,126 | ||||||||||
9930 and 9940 Franklin Square | White Marsh, MD | 7/30/2014 | 2 | 71,992 | 10,475 | 2,303 | ||||||||||||
5020, 5022, 5024 and 5026 Campbell Boulevard | White Marsh, MD | 8/4/2014 | 4 | 134,245 | 12,400 | 666 | ||||||||||||
8 | 302,958 | $ | 28,835 | $ | 5,095 |
Nominal | Nominal | |||||||||||||||||||||||||||||||||||
Ownership | June 30, 2014 | (1) | Ownership | September 30, 2014 | (1) | |||||||||||||||||||||||||||||||
Date | % as of | Total | Encumbered | Total | Date | % as of | Total | Encumbered | Total | |||||||||||||||||||||||||||
Acquired | 6/30/2014 | Nature of Activity | Assets | Assets | Liabilities | Acquired | 9/30/2014 | Nature of Activity | Assets | Assets | Liabilities | |||||||||||||||||||||||||
LW Redstone Company, LLC | 3/23/2010 | 85% | Operates four buildings and developing others (2) | $ | 136,090 | $ | 67,831 | $ | 38,632 | 3/23/2010 | 85% | Operates four buildings and developing others (2) | $ | 139,314 | $ | 67,100 | $ | 42,134 | ||||||||||||||||||
M Square Associates, LLC | 6/26/2007 | 50% | Operates two buildings and developing others (3) | 60,259 | 48,027 | 40,139 | 6/26/2007 | 50% | Operates two buildings and developing others (3) | 60,115 | 47,815 | 39,810 | ||||||||||||||||||||||||
COPT-FD Indian Head, LLC | 10/23/2006 | 75% | Holding land parcel (4) | 6,436 | — | — | ||||||||||||||||||||||||||||||
$ | 202,785 | $ | 115,858 | $ | 78,771 | $ | 199,429 | $ | 114,915 | $ | 81,944 |
(1) | Excludes amounts eliminated in consolidation. |
(2) | This joint venture’s property is in Huntsville, Alabama. |
(3) | This joint venture’s properties are in College Park, Maryland (in the Baltimore/Washington Corridor). |
June 30, 2014 | December 31, 2013 | ||||||
Notes receivable from City of Huntsville | $ | 46,685 | $ | 44,055 | |||
Mortgage loan receivable | 9,864 | 9,608 | |||||
$ | 56,549 | $ | 53,663 |
September 30, 2014 | December 31, 2013 | ||||||
Notes receivable from the City of Huntsville | $ | 47,878 | $ | 44,055 | |||
Other investing loans receivable | 3,008 | 9,608 | |||||
$ | 50,886 | $ | 53,663 |
June 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | |||||||||||
Lease incentives | $ | 12,101 | $ | 8,435 | ||||||||||
Prepaid expenses | 8,392 | 19,308 | $ | 24,497 | $ | 19,308 | ||||||||
Construction contract costs incurred in excess of billings | 17,962 | 2,462 | ||||||||||||
Lease incentives, net | 12,939 | 8,435 | ||||||||||||
Furniture, fixtures and equipment, net | 6,919 | 6,556 | 6,527 | 6,556 | ||||||||||
Construction contract costs incurred in excess of billings | 6,348 | 2,462 | ||||||||||||
Deferred tax asset, net (1) | 4,159 | 4,305 | 4,058 | 4,305 | ||||||||||
Interest rate derivatives | 2,907 | 6,594 | ||||||||||||
Other equity method investments | 2,219 | 2,258 | 2,240 | 2,258 | ||||||||||
Interest rate derivatives | 2,151 | 6,594 | ||||||||||||
Other assets | 4,570 | 4,268 | 3,733 | 4,268 | ||||||||||
Prepaid expenses and other assets | $ | 46,859 | $ | 54,186 | $ | 74,863 | $ | 54,186 |
Maximum | Maximum | |||||||||||||||||||||||||||||
Availability at | Carrying Value at | Scheduled Maturity | Availability at | Carrying Value at | Scheduled Maturity | |||||||||||||||||||||||||
June 30, 2014 | June 30, 2014 | December 31, 2013 | Stated Interest Rates as of | as of | September 30, 2014 | September 30, 2014 | December 31, 2013 | Stated Interest Rates as of | as of | |||||||||||||||||||||
June 30, 2014 | June 30, 2014 | September 30, 2014 | September 30, 2014 | |||||||||||||||||||||||||||
Mortgage and Other Secured Loans: | ||||||||||||||||||||||||||||||
Fixed rate mortgage loans (1) | (2) | $ | 599,448 | $ | 675,060 | 3.96% - 7.87% (3) | 2015-2024 | $ | 600,082 | $ | 675,060 | 3.96% - 10.65% (2) | 2014-2024 | |||||||||||||||||
Variable rate secured loan | 37,288 | 37,691 | LIBOR + 2.25% (4) | November 2015 | 37,087 | 37,691 | LIBOR + 2.25% (3) | November 2015 | ||||||||||||||||||||||
Total mortgage and other secured loans | 636,736 | 712,751 | 637,169 | 712,751 | ||||||||||||||||||||||||||
Revolving Credit Facility | $ | 800,000 | — | — | LIBOR + 0.975% to 1.75% | July 2017 | $ | 800,000 | — | — | LIBOR + 0.975% to 1.75% | July 2017 | ||||||||||||||||||
Term Loan Facilities | (6) | 570,000 | 620,000 | LIBOR + 1.10% to 2.60% (7) | 2015-2019 | (5) | 520,000 | 620,000 | LIBOR + 1.10% to 2.60% (6) | 2015-2019 | ||||||||||||||||||||
Unsecured Senior Notes | ||||||||||||||||||||||||||||||
3.600% Senior Notes | 347,369 | 347,244 | 3.60% | May 2023 | 347,432 | 347,244 | 3.60% | May 2023 | ||||||||||||||||||||||
5.250% Senior Notes | 245,619 | 245,445 | 5.25% | February 2024 | 245,707 | 245,445 | 5.25% | February 2024 | ||||||||||||||||||||||
3.700% Senior Notes (10) | 297,398 | — | 3.70% | June 2021 | ||||||||||||||||||||||||||
3.700% Senior Notes (9) | 297,483 | — | 3.70% | June 2021 | ||||||||||||||||||||||||||
Unsecured notes payable | 1,654 | 1,700 | 0% (11) | 2026 | 1,631 | 1,700 | 0% (10) | 2026 | ||||||||||||||||||||||
4.25% Exchangeable Senior Notes (12) | 567 | 563 | 4.25% | April 2030 | ||||||||||||||||||||||||||
4.25% Exchangeable Senior Notes (11) | 570 | 563 | 4.25% | April 2030 | ||||||||||||||||||||||||||
Total debt, net | $ | 2,099,343 | $ | 1,927,703 | $ | 2,049,992 | $ | 1,927,703 |
(1) | Several of the fixed rate mortgages carry interest rates that were above or below market rates upon assumption and therefore were recorded at their fair value based on applicable effective interest rates. The carrying values of these loans reflect net unamortized premiums totaling $ |
(2) |
The weighted average interest rate on these loans was |
The interest rate on the loan outstanding was |
No borrowings were outstanding on this facility as of the end of the respective periods. |
We have the ability to borrow an |
The weighted average interest rate on these loans was |
The carrying value of these notes included a principal amount of $350.0 million and an unamortized discount totaling $2.6 million as of |
The carrying value of these notes included a principal amount of $250.0 million and an unamortized discount totaling |
Refer to the paragraph below for disclosure pertaining to these notes. |
These notes carry interest rates that were below market rates upon assumption and therefore were recorded at their fair value based on applicable effective interest rates. The carrying value of these notes reflects an unamortized discount totaling $ |
As described further in our 2013 Annual Report on Form 10-K, these notes have an exchange settlement feature that provides that the notes may, under certain circumstances, be exchangeable for cash and, at COPLP’s discretion, COPT common shares at an exchange rate (subject to adjustment) of 20.8513 shares per one thousand dollar principal amount of the notes (exchange rate is as of |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Interest expense at stated interest rate | $ | 6 | $ | 1,891 | $ | 12 | $ | 4,195 | $ | 6 | $ | 6 | $ | 18 | $ | 4,201 | ||||||||||||||
Interest expense associated with amortization of discount | 2 | 747 | 5 | 1,611 | 2 | 2 | 7 | 1,613 | ||||||||||||||||||||||
Total | $ | 8 | $ | 2,638 | $ | 17 | $ | 5,806 | $ | 8 | $ | 8 | $ | 25 | $ | 5,814 |
June 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||||||
Carrying | Estimated | Carrying | Estimated | Carrying | Estimated | Carrying | Estimated | |||||||||||||||||||||||
Amount | Fair Value | Amount | Fair Value | Amount | Fair Value | Amount | Fair Value | |||||||||||||||||||||||
Fixed-rate debt | ||||||||||||||||||||||||||||||
Unsecured Senior Notes | $ | 890,386 | $ | 897,188 | $ | 592,689 | $ | 575,374 | $ | 890,622 | $ | 901,022 | $ | 592,689 | $ | 575,374 | ||||||||||||||
4.25% Exchangeable Senior Notes | 567 | 575 | 563 | 575 | 570 | 575 | 563 | 575 | ||||||||||||||||||||||
Other fixed-rate debt | 601,102 | 589,702 | 676,760 | 650,997 | 601,713 | 578,116 | 676,760 | 650,997 | ||||||||||||||||||||||
Variable-rate debt | 607,288 | 609,085 | 657,691 | 657,527 | 557,087 | 558,665 | 657,691 | 657,527 | ||||||||||||||||||||||
$ | 2,099,343 | $ | 2,096,550 | $ | 1,927,703 | $ | 1,884,473 | $ | 2,049,992 | $ | 2,038,378 | $ | 1,927,703 | $ | 1,884,473 |
Fair Value at | Fair Value at | |||||||||||||||||||||||||||||||||||
Notional Amount | Notional Amount | Fixed Rate | Floating Rate Index | Effective Date | Expiration Date | June 30, 2014 | December 31, 2013 | Notional Amount | Fixed Rate | Floating Rate Index | Effective Date | Expiration Date | September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||
$ | 100,000 | 0.6123% | One-Month LIBOR | 1/3/2012 | 9/1/2014 | $ | (81 | ) | $ | (279 | ) | 100,000 | 0.8320% | One-Month LIBOR | 1/3/2012 | 9/1/2015 | $ | (556 | ) | $ | (861 | ) | ||||||||||||||
100,000 | 100,000 | 0.6100% | One-Month LIBOR | 1/3/2012 | 9/1/2014 | (80 | ) | (277 | ) | 100,000 | 0.8320% | One-Month LIBOR | 1/3/2012 | 9/1/2015 | (556 | ) | (861 | ) | ||||||||||||||||||
37,087 | 37,087 | (1) | 3.8300% | One-Month LIBOR + 2.25% | 11/2/2010 | 11/2/2015 | (515 | ) | (832 | ) | ||||||||||||||||||||||||||
100,000 | 100,000 | 0.8320% | One-Month LIBOR | 1/3/2012 | 9/1/2015 | (720 | ) | (861 | ) | 100,000 | 0.8055% | One-Month LIBOR | 9/2/2014 | 9/1/2016 | (300 | ) | (94 | ) | ||||||||||||||||||
100,000 | 100,000 | 0.8320% | One-Month LIBOR | 1/3/2012 | 9/1/2015 | (720 | ) | (861 | ) | 100,000 | 0.8100% | One-Month LIBOR | 9/2/2014 | 9/1/2016 | (309 | ) | (105 | ) | ||||||||||||||||||
37,288 | (1) | 3.8300% | One-Month LIBOR + 2.25% | 11/2/2010 | 11/2/2015 | (647 | ) | (832 | ) | |||||||||||||||||||||||||||
100,000 | 100,000 | 0.8055% | One-Month LIBOR | 9/2/2014 | 9/1/2016 | (489 | ) | (94 | ) | 100,000 | 1.6730% | One-Month LIBOR | 9/1/2015 | 8/1/2019 | 1,551 | 3,377 | ||||||||||||||||||||
100,000 | 100,000 | 0.8100% | One-Month LIBOR | 9/2/2014 | 9/1/2016 | (499 | ) | (105 | ) | 100,000 | 1.7300% | One-Month LIBOR | 9/1/2015 | 8/1/2019 | 1,356 | 3,217 | ||||||||||||||||||||
100,000 | 100,000 | 1.6730% | One-Month LIBOR | 9/1/2015 | 8/1/2019 | 1,170 | 3,377 | 100,000 | 0.6123% | One-Month LIBOR | 1/3/2012 | 9/1/2014 | — | (279 | ) | |||||||||||||||||||||
100,000 | 100,000 | 1.7300% | One-Month LIBOR | 9/1/2015 | 8/1/2019 | 981 | 3,217 | 100,000 | 0.6100% | One-Month LIBOR | 1/3/2012 | 9/1/2014 | — | (277 | ) | |||||||||||||||||||||
$ | (1,085 | ) | $ | 3,285 | $ | 671 | $ | 3,285 |
(1) | The notional amount of this instrument is scheduled to amortize to $36.2 million. |
June 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | |||||||||||||||||||||
Derivatives | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||||
Interest rate swaps designated as cash flow hedges | Prepaid expenses and other assets | $ | 2,151 | Prepaid expenses and other assets | $ | 6,594 | Prepaid expenses and other assets | $ | 2,907 | Prepaid expenses and other assets | $ | 6,594 | ||||||||||||
Interest rate swaps designated as cash flow hedges | Interest rate derivatives | (3,236 | ) | Interest rate derivatives | (3,309 | ) | Interest rate derivatives | (2,236 | ) | Interest rate derivatives | (3,309 | ) |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Amount of (losses) gains recognized in accumulated other comprehensive (loss) income (“AOCI”) (effective portion) | $ | (3,630 | ) | $ | 7,830 | $ | (5,753 | ) | $ | 8,292 | ||||||||||||||||||||
Amount of gains (losses) recognized in accumulated other comprehensive income (loss) (“AOCI”) (effective portion) | $ | 1,015 | $ | (2,482 | ) | $ | (4,738 | ) | $ | 5,810 | ||||||||||||||||||||
Amount of losses reclassified from AOCI into interest expense (effective portion) | 719 | 674 | 1,414 | 1,332 | 756 | 689 | 2,170 | 2,021 |
For the Six Months Ended June 30, | For the Nine Months Ended September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Beginning balance | $ | 17,758 | $ | 10,298 | $ | 17,758 | $ | 10,298 | ||||||||
Distribution to noncontrolling interest | (590 | ) | (643 | ) | ||||||||||||
Distributions | (976 | ) | (811 | ) | ||||||||||||
Net income attributable to noncontrolling interest | 1,016 | 285 | 1,647 | 888 | ||||||||||||
Adjustment to arrive at fair value of interest | 717 | 5,631 | 7 | 6,414 | ||||||||||||
Ending balance | $ | 18,901 | $ | 15,571 | $ | 18,436 | $ | 16,789 |
Operating Office Property Segments | Operating Office Property Segments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Baltimore/ Washington Corridor | Northern Virginia | San Antonio | Huntsville | Washington, DC - Capitol Riverfront | St. Mary’s & King George Counties | Greater Baltimore | Greater Philadelphia | Colorado Springs | Other | Operating Wholesale Data Center | Total | Baltimore/ Washington Corridor | Northern Virginia | San Antonio | Huntsville | Washington, DC - Capitol Riverfront | St. Mary’s & King George Counties | Greater Baltimore | Greater Philadelphia | Colorado Springs | Other | Operating Wholesale Data Center | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues from real estate operations | $ | 57,456 | $ | 20,898 | $ | 8,758 | $ | 2,404 | $ | 3,831 | $ | 4,202 | $ | 11,024 | $ | 2,366 | $ | (12 | ) | $ | 2,545 | $ | 2,492 | $ | 115,964 | $ | 58,883 | $ | 21,369 | $ | 9,031 | $ | 2,471 | $ | 3,524 | $ | 4,158 | $ | 10,436 | $ | 2,951 | $ | — | $ | 2,541 | $ | 2,876 | $ | 118,240 | |||||||||||||||||||||||||||||||||||||||||||||
Property operating expenses | 19,348 | 7,651 | 4,817 | 859 | 1,754 | 1,289 | 4,500 | 1,144 | 11 | 602 | 1,881 | 43,856 | 19,457 | 7,500 | 5,100 | 763 | 1,824 | 1,277 | 3,810 | 837 | 3 | 257 | 2,053 | 42,881 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOI from real estate operations | $ | 38,108 | $ | 13,247 | $ | 3,941 | $ | 1,545 | $ | 2,077 | $ | 2,913 | $ | 6,524 | $ | 1,222 | $ | (23 | ) | $ | 1,943 | $ | 611 | $ | 72,108 | $ | 39,426 | $ | 13,869 | $ | 3,931 | $ | 1,708 | $ | 1,700 | $ | 2,881 | $ | 6,626 | $ | 2,114 | $ | (3 | ) | $ | 2,284 | $ | 823 | $ | 75,359 | ||||||||||||||||||||||||||||||||||||||||||||
Additions to long-lived assets | $ | 6,289 | $ | 4,805 | $ | — | $ | 334 | $ | 478 | $ | 943 | $ | 1,242 | $ | 88 | $ | — | $ | (93 | ) | $ | 10 | $ | 14,096 | $ | 7,248 | $ | 5,898 | $ | — | $ | 455 | $ | 458 | $ | 5,189 | $ | 3,021 | $ | 625 | $ | — | $ | (125 | ) | $ | 24 | $ | 22,793 | ||||||||||||||||||||||||||||||||||||||||||||
Transfers from non-operating properties | $ | 20,712 | $ | 683 | $ | — | $ | 223 | $ | — | $ | — | $ | 2,953 | $ | 10,198 | $ | 19 | $ | — | $ | 597 | $ | 35,385 | $ | 22,680 | $ | 15,403 | $ | — | $ | 1,496 | $ | — | $ | — | $ | 495 | $ | 2,506 | $ | — | $ | — | $ | 222 | $ | 42,802 | ||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended June 30, 2013 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended September 30, 2013 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues from real estate operations | $ | 59,640 | $ | 22,988 | $ | 8,364 | $ | 1,359 | $ | 4,177 | $ | 4,093 | $ | 10,824 | $ | 2,784 | $ | 6,469 | $ | 2,560 | $ | 2,017 | $ | 125,275 | $ | 59,558 | $ | 23,062 | $ | 7,898 | $ | 1,360 | $ | 4,295 | $ | 4,270 | $ | 10,703 | $ | 3,258 | $ | 6,571 | $ | 2,510 | $ | 1,076 | $ | 124,561 | ||||||||||||||||||||||||||||||||||||||||||||||
Property operating expenses | 19,728 | 8,204 | 4,478 | 310 | 1,874 | 1,223 | 4,097 | 720 | 2,185 | 317 | 1,518 | 44,654 | 19,642 | 7,999 | 4,061 | 382 | 1,946 | 1,299 | 4,143 | 924 | 2,361 | 282 | 1,846 | 44,885 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOI from real estate operations | $ | 39,912 | $ | 14,784 | $ | 3,886 | $ | 1,049 | $ | 2,303 | $ | 2,870 | $ | 6,727 | $ | 2,064 | $ | 4,284 | $ | 2,243 | $ | 499 | $ | 80,621 | $ | 39,916 | $ | 15,063 | $ | 3,837 | $ | 978 | $ | 2,349 | $ | 2,971 | $ | 6,560 | $ | 2,334 | $ | 4,210 | $ | 2,228 | $ | (770 | ) | $ | 79,676 | |||||||||||||||||||||||||||||||||||||||||||||
Additions to long-lived assets | $ | 4,120 | $ | 2,696 | $ | 7 | $ | 3,497 | $ | 241 | $ | 729 | $ | (648 | ) | $ | 285 | $ | 595 | $ | 84 | $ | 176 | $ | 11,782 | $ | 7,292 | $ | 2,459 | $ | 251 | $ | 4 | $ | 86 | $ | 630 | $ | 1,707 | $ | 102 | $ | 1,413 | $ | (88 | ) | $ | 86 | $ | 13,942 | ||||||||||||||||||||||||||||||||||||||||||||
Transfers from non-operating properties | $ | 6,087 | $ | 1,015 | $ | — | $ | (3,283 | ) | $ | — | $ | 6 | $ | (9 | ) | $ | 17,567 | $ | 896 | $ | 2 | $ | 881 | $ | 23,162 | $ | 8,523 | $ | 26,355 | $ | — | $ | (33 | ) | $ | — | $ | — | $ | 9 | $ | 3,414 | $ | 1,860 | $ | — | $ | 2,714 | $ | 42,842 | |||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2014 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues from real estate operations | $ | 118,569 | $ | 45,866 | $ | 17,237 | $ | 4,959 | $ | 7,465 | $ | 8,518 | $ | 22,520 | $ | 5,706 | $ | 6 | $ | 5,121 | $ | 4,893 | $ | 240,860 | $ | 177,452 | $ | 67,235 | $ | 26,268 | $ | 7,430 | $ | 10,989 | $ | 12,676 | $ | 32,956 | $ | 8,657 | $ | 6 | $ | 7,662 | $ | 7,769 | $ | 359,100 | ||||||||||||||||||||||||||||||||||||||||||||||
Property operating expenses | 42,945 | 16,624 | 9,291 | 1,512 | 3,519 | 2,793 | 9,976 | 2,444 | 2 | 933 | 3,569 | 93,608 | 62,402 | 24,124 | 14,391 | 2,275 | 5,343 | 4,070 | 13,786 | 3,281 | 5 | 1,190 | 5,622 | 136,489 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOI from real estate operations | $ | 75,624 | $ | 29,242 | $ | 7,946 | $ | 3,447 | $ | 3,946 | $ | 5,725 | $ | 12,544 | $ | 3,262 | $ | 4 | $ | 4,188 | $ | 1,324 | $ | 147,252 | $ | 115,050 | $ | 43,111 | $ | 11,877 | $ | 5,155 | $ | 5,646 | $ | 8,606 | $ | 19,170 | $ | 5,376 | $ | 1 | $ | 6,472 | $ | 2,147 | $ | 222,611 | ||||||||||||||||||||||||||||||||||||||||||||||
Additions to long-lived assets | $ | 12,030 | $ | 8,300 | $ | (6 | ) | $ | 2,841 | $ | 541 | $ | 1,782 | $ | 2,254 | $ | 99 | $ | — | $ | (38 | ) | $ | 22 | $ | 27,825 | $ | 19,278 | $ | 14,198 | $ | (6 | ) | $ | 3,296 | $ | 999 | $ | 6,971 | $ | 5,275 | $ | 724 | $ | — | $ | (163 | ) | $ | 46 | $ | 50,618 | ||||||||||||||||||||||||||||||||||||||||||
Transfers from non-operating properties | $ | 27,623 | $ | 27,271 | $ | — | $ | 20,325 | $ | — | $ | — | $ | 3,027 | $ | 13,374 | $ | 30 | $ | — | $ | 675 | $ | 92,325 | $ | 50,303 | $ | 42,674 | $ | — | $ | 21,821 | $ | — | $ | — | $ | 3,522 | $ | 15,880 | $ | 30 | $ | — | $ | 897 | $ | 135,127 | ||||||||||||||||||||||||||||||||||||||||||||||
Segment assets at June 30, 2014 | $ | 1,259,974 | $ | 634,834 | $ | 117,328 | $ | 97,838 | $ | 97,136 | $ | 95,553 | $ | 300,139 | $ | 104,436 | $ | — | $ | 78,918 | $ | 165,143 | $ | 2,951,299 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six Months Ended June 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment assets at September 30, 2014 | $ | 1,278,713 | $ | 648,248 | $ | 116,837 | $ | 98,334 | $ | 96,131 | $ | 100,009 | $ | 274,931 | $ | 107,051 | $ | — | $ | 78,240 | $ | 164,192 | $ | 2,962,686 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenues from real estate operations | $ | 118,300 | $ | 45,930 | $ | 16,121 | $ | 2,099 | $ | 8,421 | $ | 8,085 | $ | 21,543 | $ | 5,271 | $ | 13,151 | $ | 5,061 | $ | 3,370 | $ | 247,352 | $ | 177,858 | $ | 68,992 | $ | 24,019 | $ | 3,459 | $ | 12,716 | $ | 12,355 | $ | 32,246 | $ | 8,529 | $ | 19,722 | $ | 7,571 | $ | 4,446 | $ | 371,913 | ||||||||||||||||||||||||||||||||||||||||||||||
Property operating expenses | 39,781 | 16,021 | 8,366 | 492 | 3,823 | 2,416 | 8,265 | 1,558 | 4,622 | 542 | 2,834 | 88,720 | 59,423 | 24,020 | 12,427 | 874 | 5,769 | 3,715 | 12,408 | 2,482 | 6,983 | 824 | 4,680 | 133,605 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOI from real estate operations | $ | 78,519 | $ | 29,909 | $ | 7,755 | $ | 1,607 | $ | 4,598 | $ | 5,669 | $ | 13,278 | $ | 3,713 | $ | 8,529 | $ | 4,519 | $ | 536 | $ | 158,632 | $ | 118,435 | $ | 44,972 | $ | 11,592 | $ | 2,585 | $ | 6,947 | $ | 8,640 | $ | 19,838 | $ | 6,047 | $ | 12,739 | $ | 6,747 | $ | (234 | ) | $ | 238,308 | |||||||||||||||||||||||||||||||||||||||||||||
Additions to long-lived assets | $ | 6,880 | $ | 4,240 | $ | 17 | $ | 3,497 | $ | 398 | $ | 1,004 | $ | 54 | $ | 285 | $ | 910 | $ | 175 | $ | 176 | $ | 17,636 | $ | 14,172 | $ | 6,699 | $ | 268 | $ | 3,501 | $ | 484 | $ | 1,634 | $ | 1,761 | $ | 387 | $ | 2,323 | $ | 87 | $ | 262 | $ | 31,578 | ||||||||||||||||||||||||||||||||||||||||||||||
Transfers from non-operating properties | $ | 29,084 | $ | 10,854 | $ | — | $ | 20,957 | $ | — | $ | 12 | $ | 104 | $ | 24,617 | $ | 2,679 | $ | 2 | $ | 66,449 | $ | 154,758 | $ | 37,607 | $ | 37,209 | $ | — | $ | 20,924 | $ | — | $ | 12 | $ | 113 | $ | 28,031 | $ | 4,539 | $ | 2 | $ | 69,163 | $ | 197,600 | ||||||||||||||||||||||||||||||||||||||||||||||
Segment assets at June 30, 2013 | $ | 1,271,384 | $ | 571,851 | $ | 118,827 | $ | 51,663 | $ | 101,476 | $ | 97,084 | $ | 313,788 | $ | 102,098 | $ | 171,745 | $ | 81,334 | $ | 167,312 | $ | 3,048,562 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment assets at September 30, 2013 | $ | 1,275,972 | $ | 593,335 | $ | 118,701 | $ | 50,737 | $ | 99,852 | $ | 96,679 | $ | 305,947 | $ | 105,112 | $ | 158,690 | $ | 80,749 | $ | 168,039 | $ | 3,053,813 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Segment revenues from real estate operations | $ | 115,964 | $ | 125,275 | $ | 240,860 | $ | 247,352 | $ | 118,240 | $ | 124,561 | $ | 359,100 | $ | 371,913 | ||||||||||||||
Construction contract and other service revenues | 23,861 | 20,795 | 45,651 | 35,057 | 34,739 | 16,991 | 80,390 | 52,048 | ||||||||||||||||||||||
Less: Revenues from discontinued operations (Note 15) | (5 | ) | (9,543 | ) | (24 | ) | (19,663 | ) | 36 | (9,740 | ) | 12 | (29,403 | ) | ||||||||||||||||
Total revenues | $ | 139,820 | $ | 136,527 | $ | 286,487 | $ | 262,746 | $ | 153,015 | $ | 131,812 | $ | 439,502 | $ | 394,558 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Segment property operating expenses | $ | 43,856 | $ | 44,654 | $ | 93,608 | $ | 88,720 | $ | 42,881 | $ | 44,885 | $ | 136,489 | $ | 133,605 | ||||||||||||||
Less: Property operating expenses from discontinued operations (Note 15) | (84 | ) | (3,321 | ) | (64 | ) | (6,999 | ) | 175 | (3,524 | ) | 111 | (10,523 | ) | ||||||||||||||||
Total property operating expenses | $ | 43,772 | $ | 41,333 | $ | 93,544 | $ | 81,721 | $ | 43,056 | $ | 41,361 | $ | 136,600 | $ | 123,082 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Construction contract and other service revenues | $ | 23,861 | $ | 20,795 | $ | 45,651 | $ | 35,057 | $ | 34,739 | $ | 16,991 | $ | 80,390 | $ | 52,048 | ||||||||||||||
Construction contract and other service expenses | (23,136 | ) | (19,382 | ) | (41,760 | ) | (32,859 | ) | (33,593 | ) | (16,306 | ) | (75,353 | ) | (49,165 | ) | ||||||||||||||
NOI from service operations | $ | 725 | $ | 1,413 | $ | 3,891 | $ | 2,198 | $ | 1,146 | $ | 685 | $ | 5,037 | $ | 2,883 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
NOI from real estate operations | $ | 72,108 | $ | 80,621 | $ | 147,252 | $ | 158,632 | $ | 75,359 | $ | 79,676 | $ | 222,611 | $ | 238,308 | ||||||||||||||
NOI from service operations | 725 | 1,413 | 3,891 | 2,198 | 1,146 | 685 | 5,037 | 2,883 | ||||||||||||||||||||||
Interest and other income | 1,299 | 2,006 | 2,584 | 2,952 | ||||||||||||||||||||||||||
Equity in (loss) income of unconsolidated entities | (47 | ) | 126 | 13 | 167 | |||||||||||||||||||||||||
Interest and other income (loss) | 1,191 | (3 | ) | 3,775 | 2,949 | |||||||||||||||||||||||||
Equity in income of unconsolidated entities | 193 | 44 | 206 | 211 | ||||||||||||||||||||||||||
Income tax expense | (92 | ) | (21 | ) | (156 | ) | (37 | ) | (101 | ) | (24 | ) | (257 | ) | (61 | ) | ||||||||||||||
Other adjustments: | — | — | — | — | ||||||||||||||||||||||||||
Depreciation and other amortization associated with real estate operations | (30,895 | ) | (27,673 | ) | (74,491 | ) | (54,683 | ) | (30,237 | ) | (28,205 | ) | (104,728 | ) | (82,888 | ) | ||||||||||||||
Impairment losses | (1,302 | ) | — | (1,302 | ) | — | (66 | ) | (5,857 | ) | (1,368 | ) | (5,857 | ) | ||||||||||||||||
General, administrative and leasing expenses | (7,528 | ) | (6,583 | ) | (15,671 | ) | (14,403 | ) | (7,211 | ) | (8,027 | ) | (22,882 | ) | (22,430 | ) | ||||||||||||||
Business development expenses and land carry costs | (1,351 | ) | (1,327 | ) | (2,677 | ) | (2,686 | ) | (1,430 | ) | (1,383 | ) | (4,107 | ) | (4,069 | ) | ||||||||||||||
Interest expense on continuing operations | (23,478 | ) | (21,102 | ) | (44,305 | ) | (41,392 | ) | (24,802 | ) | (19,342 | ) | (69,107 | ) | (60,734 | ) | ||||||||||||||
NOI from discontinued operations | 79 | (6,222 | ) | 40 | (12,664 | ) | (139 | ) | (6,216 | ) | (99 | ) | (18,880 | ) | ||||||||||||||||
Loss on early extinguishment of debt | (270 | ) | (21,470 | ) | (270 | ) | (26,654 | ) | (176 | ) | (374 | ) | (446 | ) | (27,028 | ) | ||||||||||||||
Income (loss) from continuing operations | $ | 9,248 | $ | (232 | ) | $ | 14,908 | $ | 11,430 | |||||||||||||||||||||
Income from continuing operations | $ | 13,727 | $ | 10,974 | $ | 28,635 | $ | 22,404 |
June 30, 2014 | June 30, 2013 | September 30, 2014 | September 30, 2013 | |||||||||||
Segment assets | $ | 2,951,299 | $ | 3,048,562 | $ | 2,962,686 | $ | 3,053,813 | ||||||
Non-operating property assets | 535,462 | 513,752 | 518,951 | 530,389 | ||||||||||
Other assets | 222,739 | 137,321 | 198,551 | 171,386 | ||||||||||
Total COPT consolidated assets | $ | 3,709,500 | $ | 3,699,635 | $ | 3,680,188 | $ | 3,755,588 |
Percentile Rank | Earned PSUs Payout % | |
75th or greater | 200% of PSUs granted | |
50th or greater | 100% of PSUs granted | |
25th | 50% of PSUs granted | |
Below 25th | 0% of PSUs granted |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Deferred | ||||||||||||||||||||||||||||||
Federal | $ | (79 | ) | $ | (17 | ) | $ | (132 | ) | $ | (30 | ) | $ | (83 | ) | $ | (20 | ) | $ | (215 | ) | $ | (50 | ) | ||||||
State | (13 | ) | (4 | ) | (24 | ) | (7 | ) | (18 | ) | (4 | ) | (42 | ) | (11 | ) | ||||||||||||||
Total income tax expense | $ | (92 | ) | $ | (21 | ) | $ | (156 | ) | $ | (37 | ) | $ | (101 | ) | $ | (24 | ) | $ | (257 | ) | $ | (61 | ) |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenue from real estate operations | $ | 5 | $ | 9,543 | $ | 24 | $ | 19,663 | |||||||
Property operating expenses | (84 | ) | (3,321 | ) | (64 | ) | (6,999 | ) | |||||||
Depreciation and amortization | — | (1,262 | ) | — | (2,504 | ) | |||||||||
Impairment losses | (26 | ) | (7,195 | ) | (27 | ) | (9,052 | ) | |||||||
General, administrative and leasing expenses | — | — | — | (1 | ) | ||||||||||
Interest expense | — | (2,267 | ) | — | (4,348 | ) | |||||||||
Loss on sales of real estate | — | — | (4 | ) | — | ||||||||||
Loss on early extinguishment of debt | (93 | ) | — | (116 | ) | — | |||||||||
Discontinued operations | $ | (198 | ) | $ | (4,502 | ) | $ | (187 | ) | $ | (3,241 | ) |
June 30, 2014 | ||||
Properties, net | $ | 22,219 | ||
Deferred rent receivable | 151 | |||
Intangible assets on real estate acquisitions, net | 164 | |||
Deferred leasing costs, net | 334 | |||
Assets held for sale, net | $ | 22,868 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||
Revenue from real estate operations | $ | (36 | ) | $ | 9,740 | $ | (12 | ) | $ | 29,403 | |||||
Property operating expenses | 175 | (3,524 | ) | 111 | (10,523 | ) | |||||||||
Depreciation and amortization | — | (1,005 | ) | — | (3,509 | ) | |||||||||
Impairment recoveries (losses) | 24 | (16,217 | ) | (3 | ) | (25,269 | ) | ||||||||
General, administrative and leasing expenses | — | — | — | (1 | ) | ||||||||||
Interest expense | — | (1,968 | ) | — | (6,316 | ) | |||||||||
Gain on sales of real estate | 28 | — | 24 | — | |||||||||||
Loss on early extinguishment of debt | — | — | (116 | ) | — | ||||||||||
Discontinued operations | $ | 191 | $ | (12,974 | ) | $ | 4 | $ | (16,215 | ) |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 9,248 | $ | (232 | ) | $ | 14,908 | $ | 11,430 | |||||||||||||||||||||
Income from continuing operations | $ | 13,727 | $ | 10,974 | $ | 28,635 | $ | 22,404 | ||||||||||||||||||||||
Gain on sales of real estate, net | — | 329 | — | 2,683 | 10,630 | — | 10,630 | 2,683 | ||||||||||||||||||||||
Preferred share dividends | (4,344 | ) | (4,885 | ) | (8,834 | ) | (10,991 | ) | (3,553 | ) | (4,490 | ) | (12,387 | ) | (15,481 | ) | ||||||||||||||
Issuance costs associated with redeemed preferred shares | (1,769 | ) | (2,904 | ) | (1,769 | ) | (2,904 | ) | — | — | (1,769 | ) | (2,904 | ) | ||||||||||||||||
Income from continuing operations attributable to noncontrolling interests | (1,171 | ) | (1,087 | ) | (2,103 | ) | (1,254 | ) | (1,820 | ) | (1,456 | ) | (3,923 | ) | (2,710 | ) | ||||||||||||||
Income from continuing operations attributable to restricted shares | (108 | ) | (102 | ) | (229 | ) | (220 | ) | (103 | ) | (97 | ) | (332 | ) | (317 | ) | ||||||||||||||
Numerator for basic EPS from continuing operations attributable to COPT common shareholders | 1,856 | (8,881 | ) | 1,973 | (1,256 | ) | ||||||||||||||||||||||||
Dilutive effect of common units in COPLP on diluted EPS from continuing operations | — | (478 | ) | — | (108 | ) | ||||||||||||||||||||||||
Numerator for diluted EPS from continuing operations attributable to COPT common shareholders | $ | 1,856 | $ | (9,359 | ) | $ | 1,973 | $ | (1,364 | ) | ||||||||||||||||||||
Numerator for basic EPS from continuing operations attributable to COPT common shareholders | $ | 1,856 | $ | (8,881 | ) | $ | 1,973 | $ | (1,256 | ) | ||||||||||||||||||||
Numerator for basic and diluted EPS from continuing operations attributable to COPT common shareholders | $ | 18,881 | $ | 4,931 | $ | 20,854 | $ | 3,675 | ||||||||||||||||||||||
Discontinued operations | (198 | ) | (4,502 | ) | (187 | ) | (3,241 | ) | 191 | (12,974 | ) | 4 | (16,215 | ) | ||||||||||||||||
Discontinued operations attributable to noncontrolling interests | 11 | 127 | 13 | 37 | (8 | ) | 492 | 5 | 529 | |||||||||||||||||||||
Numerator for basic EPS on net income (loss) attributable to COPT common shareholders | 1,669 | (13,256 | ) | 1,799 | (4,460 | ) | ||||||||||||||||||||||||
Dilutive effect of common units in COPLP | — | (671 | ) | — | (242 | ) | ||||||||||||||||||||||||
Numerator for diluted EPS on net income (loss) attributable to COPT common shareholders | $ | 1,669 | $ | (13,927 | ) | $ | 1,799 | $ | (4,702 | ) | ||||||||||||||||||||
Numerator for basic and diluted EPS on net income (loss) attributable to COPT common shareholders | $ | 19,064 | $ | (7,551 | ) | $ | 20,863 | $ | (12,011 | ) | ||||||||||||||||||||
Denominator (all weighted averages): | ||||||||||||||||||||||||||||||
Denominator for basic EPS (common shares) | 87,214 | 85,425 | 87,148 | 83,422 | 87,290 | 86,760 | 87,196 | 84,547 | ||||||||||||||||||||||
Dilutive effect of common units | — | 3,801 | — | 3,847 | ||||||||||||||||||||||||||
Dilutive effect of share-based compensation awards | 201 | — | 156 | — | 195 | — | 169 | — | ||||||||||||||||||||||
Denominator for diluted EPS (common shares) | 87,415 | 89,226 | 87,304 | 87,269 | 87,485 | 86,760 | 87,365 | 84,547 | ||||||||||||||||||||||
Basic EPS: | ||||||||||||||||||||||||||||||
Income (loss) from continuing operations attributable to COPT common shareholders | $ | 0.02 | $ | (0.10 | ) | $ | 0.02 | $ | (0.02 | ) | ||||||||||||||||||||
Income from continuing operations attributable to COPT common shareholders | $ | 0.22 | $ | 0.06 | $ | 0.24 | $ | 0.04 | ||||||||||||||||||||||
Discontinued operations attributable to COPT common shareholders | 0.00 | (0.06 | ) | 0.00 | (0.03 | ) | 0.00 | (0.15 | ) | 0.00 | (0.18 | ) | ||||||||||||||||||
Net income (loss) attributable to COPT common shareholders | $ | 0.02 | $ | (0.16 | ) | $ | 0.02 | $ | (0.05 | ) | $ | 0.22 | $ | (0.09 | ) | $ | 0.24 | $ | (0.14 | ) | ||||||||||
Diluted EPS: | ||||||||||||||||||||||||||||||
Income (loss) from continuing operations attributable to COPT common shareholders | $ | 0.02 | $ | (0.10 | ) | $ | 0.02 | $ | (0.02 | ) | ||||||||||||||||||||
Income from continuing operations attributable to COPT common shareholders | $ | 0.22 | $ | 0.06 | $ | 0.24 | $ | 0.04 | ||||||||||||||||||||||
Discontinued operations attributable to COPT common shareholders | 0.00 | (0.06 | ) | 0.00 | (0.03 | ) | 0.00 | (0.15 | ) | 0.00 | (0.18 | ) | ||||||||||||||||||
Net income (loss) attributable to COPT common shareholders | $ | 0.02 | $ | (0.16 | ) | $ | 0.02 | $ | (0.05 | ) | $ | 0.22 | $ | (0.09 | ) | $ | 0.24 | $ | (0.14 | ) |
Weighted Average Shares Excluded from Denominator | Weighted Average Shares Excluded from Denominator | |||||||||||||||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Conversion of common units | 3,912 | — | 3,934 | — | 3,876 | 3,804 | 3,915 | 3,832 | ||||||||||||||
Conversion of Series I Preferred Units | 176 | 176 | 176 | 176 | 176 | 176 | 176 | 176 | ||||||||||||||
Conversion of Series K Preferred Shares | 434 | 434 | 434 | 434 | 434 | 434 | 434 | 434 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||||||
Income (loss) from continuing operations | $ | 9,248 | $ | (232 | ) | $ | 14,908 | $ | 11,430 | |||||||||||||||||||||
Income from continuing operations | $ | 13,727 | $ | 10,974 | $ | 28,635 | $ | 22,404 | ||||||||||||||||||||||
Gain on sales of real estate, net | — | 329 | — | 2,683 | 10,630 | — | 10,630 | 2,683 | ||||||||||||||||||||||
Preferred unit distributions | (4,509 | ) | (5,050 | ) | (9,164 | ) | (11,321 | ) | (3,718 | ) | (4,655 | ) | (12,882 | ) | (15,976 | ) | ||||||||||||||
Issuance costs associated with redeemed preferred units | (1,769 | ) | (2,904 | ) | (1,769 | ) | (2,904 | ) | — | — | (1,769 | ) | (2,904 | ) | ||||||||||||||||
Income from continuing operations attributable to noncontrolling interests | (840 | ) | (1,408 | ) | (1,579 | ) | (1,039 | ) | (897 | ) | (986 | ) | (2,476 | ) | (2,025 | ) | ||||||||||||||
Income from continuing operations attributable to restricted units | (108 | ) | (102 | ) | (229 | ) | (220 | ) | (103 | ) | (97 | ) | (332 | ) | (317 | ) | ||||||||||||||
Numerator for basic and diluted EPU from continuing operations attributable to COPLP common unitholders | $ | 2,022 | $ | (9,367 | ) | $ | 2,167 | $ | (1,371 | ) | $ | 19,639 | $ | 5,236 | $ | 21,806 | $ | 3,865 | ||||||||||||
Discontinued operations | (198 | ) | (4,502 | ) | (187 | ) | (3,241 | ) | 191 | (12,974 | ) | 4 | (16,215 | ) | ||||||||||||||||
Discontinued operations attributable to noncontrolling interests | 3 | (65 | ) | 5 | (98 | ) | — | (49 | ) | 5 | (147 | ) | ||||||||||||||||||
Numerator for basic and diluted EPU on net income attributable to COPLP common unitholders | $ | 1,827 | $ | (13,934 | ) | $ | 1,985 | $ | (4,710 | ) | $ | 19,830 | $ | (7,787 | ) | $ | 21,815 | $ | (12,497 | ) | ||||||||||
Denominator (all weighted averages): | ||||||||||||||||||||||||||||||
Denominator for basic EPU (common units) | 91,126 | 89,226 | 91,082 | 87,269 | 91,166 | 90,564 | 91,111 | 88,379 | ||||||||||||||||||||||
Dilutive effect of share-based compensation awards | 201 | — | 156 | — | 195 | — | 169 | — | ||||||||||||||||||||||
Denominator for basic and diluted EPU (common units) | 91,327 | 89,226 | 91,238 | 87,269 | 91,361 | 90,564 | 91,280 | 88,379 | ||||||||||||||||||||||
Basic EPU: | ||||||||||||||||||||||||||||||
Income (loss) from continuing operations attributable to COPLP common unitholders | $ | 0.02 | $ | (0.10 | ) | $ | 0.02 | $ | (0.02 | ) | ||||||||||||||||||||
Income from continuing operations attributable to COPLP common unitholders | $ | 0.22 | $ | 0.06 | $ | 0.24 | $ | 0.04 | ||||||||||||||||||||||
Discontinued operations attributable to COPLP common unitholders | 0.00 | (0.06 | ) | 0.00 | (0.03 | ) | 0.00 | (0.15 | ) | 0.00 | (0.18 | ) | ||||||||||||||||||
Net income (loss) attributable to COPLP common unitholders | $ | 0.02 | $ | (0.16 | ) | $ | 0.02 | $ | (0.05 | ) | $ | 0.22 | $ | (0.09 | ) | $ | 0.24 | $ | (0.14 | ) | ||||||||||
Diluted EPU: | ||||||||||||||||||||||||||||||
Income (loss) from continuing operations attributable to COPLP common unitholders | $ | 0.02 | $ | (0.10 | ) | $ | 0.02 | $ | (0.02 | ) | ||||||||||||||||||||
Income from continuing operations attributable to COPLP common unitholders | $ | 0.22 | $ | 0.06 | $ | 0.24 | $ | 0.04 | ||||||||||||||||||||||
Discontinued operations attributable to COPLP common unitholders | 0.00 | (0.06 | ) | 0.00 | (0.03 | ) | 0.00 | (0.15 | ) | 0.00 | (0.18 | ) | ||||||||||||||||||
Net income (loss) attributable to COPLP common unitholders | $ | 0.02 | $ | (0.16 | ) | $ | 0.02 | $ | (0.05 | ) | $ | 0.22 | $ | (0.09 | ) | $ | 0.24 | $ | (0.14 | ) |
Weighted Average Units Excluded from Denominator | Weighted Average Units Excluded from Denominator | |||||||||||||||||||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||
Conversion of Series I preferred units | 176 | 176 | 176 | 176 | 176 | 176 | 176 | 176 | ||||||||||||||
Conversion of Series K preferred units | 434 | 434 | 434 | 434 | 434 | 434 | 434 | 434 |
June 30, 2014 | December 31, 2013 | September 30, 2014 | December 31, 2013 | |||||||||||
Occupancy rates at period end | ||||||||||||||
Total | 89.3 | % | 89.1 | % | 91.5 | % | 89.1 | % | ||||||
Baltimore/Washington Corridor | 91.7 | % | 91.7 | % | 92.9 | % | 91.7 | % | ||||||
Northern Virginia | 88.9 | % | 88.6 | % | 90.9 | % | 88.6 | % | ||||||
San Antonio | 96.6 | % | 96.6 | % | 96.6 | % | 96.6 | % | ||||||
Huntsville | 81.5 | % | 80.7 | % | 88.4 | % | 80.7 | % | ||||||
Washington, DC - Capitol Riverfront | 75.7 | % | 76.4 | % | 72.6 | % | 76.4 | % | ||||||
St. Mary’s and King George Counties | 93.2 | % | 89.8 | % | 91.2 | % | 89.8 | % | ||||||
Greater Baltimore | 78.4 | % | 77.2 | % | 85.2 | % | 77.2 | % | ||||||
Greater Philadelphia | 88.9 | % | 93.7 | % | 96.2 | % | 93.7 | % | ||||||
Other | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | ||||||
Average contractual annual rental rate per square foot at period end (1) | $ | 29.10 | $ | 28.99 | $ | 29.14 | $ | 28.99 |
(1) | Includes estimated expense reimbursements. |
Rentable Square Feet | Occupied Square Feet | Rentable Square Feet | Occupied Square Feet | |||||||
(in thousands) | (in thousands) | |||||||||
December 31, 2013 | 17,370 | 15,484 | 17,370 | 15,484 | ||||||
Square feet vacated upon lease expiration (1) | — | (497 | ) | — | (571 | ) | ||||
Occupancy of previously vacated space in connection with new leases (2) | — | 306 | — | 516 | ||||||
Square feet constructed or redeveloped | 528 | 442 | 763 | 767 | ||||||
Dispositions | (303 | ) | (148 | ) | ||||||
Square feet removed from operations for redevelopment | (304 | ) | — | (304 | ) | — | ||||
Square feet of properties to be conveyed | (665 | ) | (623 | ) | (665 | ) | (623 | ) | ||
Other changes | (6 | ) | (1 | ) | 2 | 3 | ||||
June 30, 2014 | 16,923 | 15,111 | ||||||||
September 30, 2014 | 16,863 | 15,428 |
(1) | Includes lease terminations and space reductions occurring in connection with lease renewals. |
(2) | Excludes occupancy of vacant square feet acquired or developed. |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||
NOI from real estate operations | $ | 72,108 | $ | 80,621 | $ | 147,252 | $ | 158,632 | $ | 75,359 | $ | 79,676 | $ | 222,611 | $ | 238,308 | ||||||||||||||
NOI from service operations | 725 | 1,413 | 3,891 | 2,198 | 1,146 | 685 | 5,037 | 2,883 | ||||||||||||||||||||||
NOI from discontinued operations | 79 | (6,222 | ) | 40 | (12,664 | ) | (139 | ) | (6,216 | ) | (99 | ) | (18,880 | ) | ||||||||||||||||
Depreciation and amortization associated with real estate operations | (30,895 | ) | (27,673 | ) | (74,491 | ) | (54,683 | ) | (30,237 | ) | (28,205 | ) | (104,728 | ) | (82,888 | ) | ||||||||||||||
Impairment losses | (1,302 | ) | — | (1,302 | ) | — | (66 | ) | (5,857 | ) | (1,368 | ) | (5,857 | ) | ||||||||||||||||
General, administrative and leasing expenses | (7,528 | ) | (6,583 | ) | (15,671 | ) | (14,403 | ) | (7,211 | ) | (8,027 | ) | (22,882 | ) | (22,430 | ) | ||||||||||||||
Business development expenses and land carry costs | (1,351 | ) | (1,327 | ) | (2,677 | ) | (2,686 | ) | (1,430 | ) | (1,383 | ) | (4,107 | ) | (4,069 | ) | ||||||||||||||
Operating income | $ | 31,836 | $ | 40,229 | $ | 57,042 | $ | 76,394 | $ | 37,422 | $ | 30,673 | $ | 94,464 | $ | 107,067 |
Comparison of the Three Months Ended June 30, 2014 to the Three Months Ended June 30, 2013 | ||||||||||||||||||||||
For the Three Months Ended June 30, | For the Three Months Ended September 30, | |||||||||||||||||||||
2014 | 2013 | Variance | 2014 | 2013 | Variance | |||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||
Revenues | ||||||||||||||||||||||
Revenues from real estate operations | $ | 115,959 | $ | 115,732 | $ | 227 | $ | 118,276 | $ | 114,821 | $ | 3,455 | ||||||||||
Construction contract and other service revenues | 23,861 | 20,795 | 3,066 | 34,739 | 16,991 | 17,748 | ||||||||||||||||
Total revenues | 139,820 | 136,527 | 3,293 | 153,015 | 131,812 | 21,203 | ||||||||||||||||
Expenses | ||||||||||||||||||||||
Property operating expenses | 43,772 | 41,333 | 2,439 | 43,056 | 41,361 | 1,695 | ||||||||||||||||
Depreciation and amortization associated with real estate operations | 30,895 | 27,673 | 3,222 | 30,237 | 28,205 | 2,032 | ||||||||||||||||
Construction contract and other service expenses | 23,136 | 19,382 | 3,754 | 33,593 | 16,306 | 17,287 | ||||||||||||||||
Impairment losses | 1,302 | — | 1,302 | 66 | 5,857 | (5,791 | ) | |||||||||||||||
General, administrative and leasing expenses | 7,528 | 6,583 | 945 | 7,211 | 8,027 | (816 | ) | |||||||||||||||
Business development expenses and land carry costs | 1,351 | 1,327 | 24 | 1,430 | 1,383 | 47 | ||||||||||||||||
Total operating expenses | 107,984 | 96,298 | 11,686 | 115,593 | 101,139 | 14,454 | ||||||||||||||||
Operating income | 31,836 | 40,229 | (8,393 | ) | 37,422 | 30,673 | 6,749 | |||||||||||||||
Interest expense | (23,478 | ) | (21,102 | ) | (2,376 | ) | (24,802 | ) | (19,342 | ) | (5,460 | ) | ||||||||||
Interest and other income | 1,299 | 2,006 | (707 | ) | ||||||||||||||||||
Interest and other income (loss) | 1,191 | (3 | ) | 1,194 | ||||||||||||||||||
Loss on early extinguishment of debt | (270 | ) | (21,470 | ) | 21,200 | (176 | ) | (374 | ) | 198 | ||||||||||||
Equity in (loss) income of unconsolidated entities | (47 | ) | 126 | (173 | ) | |||||||||||||||||
Equity in income of unconsolidated entities | 193 | 44 | 149 | |||||||||||||||||||
Income tax expense | (92 | ) | (21 | ) | (71 | ) | (101 | ) | (24 | ) | (77 | ) | ||||||||||
Income (loss) from continuing operations | 9,248 | (232 | ) | 9,480 | ||||||||||||||||||
Income from continuing operations | 13,727 | 10,974 | 2,753 | |||||||||||||||||||
Discontinued operations | (198 | ) | (4,502 | ) | 4,304 | 191 | (12,974 | ) | 13,165 | |||||||||||||
Gain on sales of real estate | — | 329 | (329 | ) | 10,630 | — | 10,630 | |||||||||||||||
Net income (loss) | $ | 9,050 | $ | (4,405 | ) | $ | 13,455 | $ | 24,548 | $ | (2,000 | ) | $ | 26,548 |
NOI from Real Estate Operations | ||||||||||||||||||||||
For the Three Months Ended June 30, | For the Three Months Ended September 30, | |||||||||||||||||||||
2014 | 2013 | Variance | 2014 | 2013 | Variance | |||||||||||||||||
(Dollars in thousands, except per square foot data) | (Dollars in thousands, except per square foot data) | |||||||||||||||||||||
Revenues | ||||||||||||||||||||||
Same Office Properties | $ | 104,648 | $ | 104,657 | $ | (9 | ) | $ | 105,409 | $ | 104,219 | $ | 1,190 | |||||||||
Constructed office properties placed in service | 6,222 | 1,952 | 4,270 | 7,510 | 2,677 | 4,833 | ||||||||||||||||
Properties held for sale | 730 | 739 | (9 | ) | ||||||||||||||||||
Properties to be conveyed | 1,859 | 5,287 | (3,428 | ) | 2,000 | 5,094 | (3,094 | ) | ||||||||||||||
Dispositions | 4 | 9,546 | (9,542 | ) | 216 | 10,425 | (10,209 | ) | ||||||||||||||
Other | 2,501 | 3,094 | (593 | ) | 3,105 | 2,146 | 959 | |||||||||||||||
115,964 | 125,275 | (9,311 | ) | 118,240 | 124,561 | (6,321 | ) | |||||||||||||||
Property operating expenses | ||||||||||||||||||||||
Same Office Properties | 37,592 | 36,718 | 874 | 37,518 | 36,199 | 1,319 | ||||||||||||||||
Constructed office properties placed in service | 1,910 | 430 | 1,480 | 1,877 | 736 | 1,141 | ||||||||||||||||
Properties held for sale | 364 | 327 | 37 | |||||||||||||||||||
Properties to be conveyed | 1,328 | 1,895 | (567 | ) | 1,268 | 1,795 | (527 | ) | ||||||||||||||
Dispositions | 83 | 3,435 | (3,352 | ) | (65 | ) | 4,002 | (4,067 | ) | |||||||||||||
Other | 2,579 | 1,849 | 730 | 2,283 | 2,153 | 130 | ||||||||||||||||
43,856 | 44,654 | (798 | ) | 42,881 | 44,885 | (2,004 | ) | |||||||||||||||
NOI from real estate operations | ||||||||||||||||||||||
Same Office Properties | 67,056 | 67,939 | (883 | ) | 67,891 | 68,020 | (129 | ) | ||||||||||||||
Constructed office properties placed in service | 4,312 | 1,522 | 2,790 | 5,633 | 1,941 | 3,692 | ||||||||||||||||
Properties held for sale | 366 | 412 | (46 | ) | ||||||||||||||||||
Properties to be conveyed | 531 | 3,392 | (2,861 | ) | 732 | 3,299 | (2,567 | ) | ||||||||||||||
Dispositions | (79 | ) | 6,111 | (6,190 | ) | 281 | 6,423 | (6,142 | ) | |||||||||||||
Other | (78 | ) | 1,245 | (1,323 | ) | 822 | (7 | ) | 829 | |||||||||||||
$ | 72,108 | $ | 80,621 | $ | (8,513 | ) | $ | 75,359 | $ | 79,676 | $ | (4,317 | ) | |||||||||
Same Office Properties rent statistics | ||||||||||||||||||||||
Average occupancy rate | 90.8 | % | 90.4 | % | 0.4 | % | 91.6 | % | 90.8 | % | 0.8 | % | ||||||||||
Average straight-line rent per occupied square foot (1) | $ | 6.16 | $ | 6.17 | $ | (0.01 | ) | $ | 6.13 | $ | 6.21 | $ | (0.08 | ) |
(1) | Includes minimum base rents, net of abatements, and lease incentives on a straight-line basis for the three-month periods set forth above. |
For the Three Months Ended September 30, | ||||||||||||
2014 | 2013 | Variance | ||||||||||
(in thousands) | ||||||||||||
Construction contract and other service revenues | $ | 34,739 | $ | 16,991 | $ | 17,748 | ||||||
Construction contract and other service expenses | 33,593 | 16,306 | 17,287 | |||||||||
NOI from service operations | $ | 1,146 | $ | 685 | $ | 461 |
Comparison of the Six Months Ended June 30, 2014 to the Six Months Ended June 30, 2013 | ||||||||||||||||||||||
For the Six Months Ended June 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||
2014 | 2013 | Variance | 2014 | 2013 | Variance | |||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||
Revenues | ||||||||||||||||||||||
Revenues from real estate operations | $ | 240,836 | $ | 227,689 | $ | 13,147 | $ | 359,112 | $ | 342,510 | $ | 16,602 | ||||||||||
Construction contract and other service revenues | 45,651 | 35,057 | 10,594 | 80,390 | 52,048 | 28,342 | ||||||||||||||||
Total revenues | 286,487 | 262,746 | 23,741 | 439,502 | 394,558 | 44,944 | ||||||||||||||||
Expenses | ||||||||||||||||||||||
Property operating expenses | 93,544 | 81,721 | 11,823 | 136,600 | 123,082 | 13,518 | ||||||||||||||||
Depreciation and amortization associated with real estate operations | 74,491 | 54,683 | 19,808 | 104,728 | 82,888 | 21,840 | ||||||||||||||||
Construction contract and other service expenses | 41,760 | 32,859 | 8,901 | 75,353 | 49,165 | 26,188 | ||||||||||||||||
Impairment losses | 1,302 | — | 1,302 | 1,368 | 5,857 | (4,489 | ) | |||||||||||||||
General, administrative and leasing expenses | 15,671 | 14,403 | 1,268 | 22,882 | 22,430 | 452 | ||||||||||||||||
Business development expenses and land carry costs | 2,677 | 2,686 | (9 | ) | 4,107 | 4,069 | 38 | |||||||||||||||
Total operating expenses | 229,445 | 186,352 | 43,093 | 345,038 | 287,491 | 57,547 | ||||||||||||||||
Operating income | 57,042 | 76,394 | (19,352 | ) | 94,464 | 107,067 | (12,603 | ) | ||||||||||||||
Interest expense | (44,305 | ) | (41,392 | ) | (2,913 | ) | (69,107 | ) | (60,734 | ) | (8,373 | ) | ||||||||||
Interest and other income | 2,584 | 2,952 | (368 | ) | 3,775 | 2,949 | 826 | |||||||||||||||
Loss on early extinguishment of debt | (270 | ) | (26,654 | ) | 26,384 | (446 | ) | (27,028 | ) | 26,582 | ||||||||||||
Equity in income of unconsolidated entities | 13 | 167 | (154 | ) | 206 | 211 | (5 | ) | ||||||||||||||
Income tax expense | (156 | ) | (37 | ) | (119 | ) | (257 | ) | (61 | ) | (196 | ) | ||||||||||
Income from continuing operations | 14,908 | 11,430 | 3,478 | 28,635 | 22,404 | 6,231 | ||||||||||||||||
Discontinued operations | (187 | ) | (3,241 | ) | 3,054 | 4 | (16,215 | ) | 16,219 | |||||||||||||
Gain on sales of real estate | — | 2,683 | (2,683 | ) | 10,630 | 2,683 | 7,947 | |||||||||||||||
Net income | $ | 14,721 | $ | 10,872 | $ | 3,849 | $ | 39,269 | $ | 8,872 | $ | 30,397 |
NOI from Real Estate Operations | ||||||||||||||||||||
For the Six Months Ended June 30, | For the Nine Months Ended September 30, | |||||||||||||||||||
2014 | 2013 | Variance | 2014 | 2013 | Variance | |||||||||||||||
(Dollars in thousands, except per square foot data) | (Dollars in thousands, except per square foot data) | |||||||||||||||||||
Revenues | ||||||||||||||||||||
Same Office Properties | $ | 214,132 | $ | 207,058 | $ | 7,074 | $ | 319,541 | $ | 311,277 | $ | 8,264 | ||||||||
Constructed office properties placed in service | 12,208 | 3,341 | 8,867 | 19,762 | 6,062 | 13,700 | ||||||||||||||
Properties held for sale | 1,435 | 1,413 | 22 | |||||||||||||||||
Properties to be conveyed | 7,253 | 10,438 | (3,185 | ) | 9,253 | 15,532 | (6,279 | ) | ||||||||||||
Dispositions | 23 | 19,667 | (19,644 | ) | 1,698 | 31,505 | (29,807 | ) | ||||||||||||
Other | 5,809 | 5,435 | 374 | 8,846 | 7,537 | 1,309 | ||||||||||||||
240,860 | 247,352 | (6,492 | ) | 359,100 | 371,913 | (12,813 | ) | |||||||||||||
Property operating expenses | ||||||||||||||||||||
Same Office Properties | 81,415 | 72,789 | 8,626 | 118,933 | 108,988 | 9,945 | ||||||||||||||
Constructed office properties placed in service | 3,460 | 840 | 2,620 | 5,385 | 1,624 | 3,761 | ||||||||||||||
Properties held for sale | 886 | 653 | 233 | |||||||||||||||||
Properties to be conveyed | 3,148 | 3,697 | (549 | ) | 4,416 | 5,492 | (1,076 | ) | ||||||||||||
Dispositions | 63 | 7,269 | (7,206 | ) | 885 | 11,924 | (11,039 | ) | ||||||||||||
Other | 4,636 | 3,472 | 1,164 | 6,870 | 5,577 | 1,293 | ||||||||||||||
93,608 | 88,720 | 4,888 | 136,489 | 133,605 | 2,884 | |||||||||||||||
NOI from real estate operations | ||||||||||||||||||||
Same Office Properties | 132,717 | 134,269 | (1,552 | ) | 200,608 | 202,289 | (1,681 | ) | ||||||||||||
Constructed office properties placed in service | 8,748 | 2,501 | 6,247 | 14,377 | 4,438 | 9,939 | ||||||||||||||
Properties held for sale | 549 | 760 | (211 | ) | ||||||||||||||||
Properties to be conveyed | 4,105 | 6,741 | (2,636 | ) | 4,837 | 10,040 | (5,203 | ) | ||||||||||||
Dispositions | (40 | ) | 12,398 | (12,438 | ) | 813 | 19,581 | (18,768 | ) | |||||||||||
Other | 1,173 | 1,963 | (790 | ) | 1,976 | 1,960 | 16 | |||||||||||||
$ | 147,252 | $ | 158,632 | $ | (11,380 | ) | $ | 222,611 | $ | 238,308 | $ | (15,697 | ) | |||||||
Same Office Properties rent statistics | ||||||||||||||||||||
Average occupancy rate | 90.8 | % | 90.1 | % | 0.7 | % | 91.1 | % | 90.3 | % | 0.8 | % | ||||||||
Average straight-line rent per occupied square foot (1) | $ | 12.30 | $ | 12.28 | $ | 0.02 | $ | 18.44 | $ | 18.49 | $ | (0.05 | ) |
(1) | Includes minimum base rents, net of abatements, and lease incentives on a straight-line basis for the |
For the Nine Months Ended September 30, | ||||||||||||
2014 | 2013 | Variance | ||||||||||
(in thousands) | ||||||||||||
Construction contract and other service revenues | $ | 80,390 | $ | 52,048 | $ | 28,342 | ||||||
Construction contract and other service expenses | 75,353 | 49,165 | 26,188 | |||||||||
NOI from service operations | $ | 5,037 | $ | 2,883 | $ | 2,154 |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||||
(Dollars and shares in thousands, except per share data) | (Dollars and shares in thousands, except per share data) | |||||||||||||||||||||||||||||
Net income (loss) | $ | 9,050 | $ | (4,405 | ) | $ | 14,721 | $ | 10,872 | $ | 24,548 | $ | (2,000 | ) | $ | 39,269 | $ | 8,872 | ||||||||||||
Real estate-related depreciation and amortization | 30,895 | 28,935 | 74,491 | 57,187 | 30,237 | 29,210 | 104,728 | 86,397 | ||||||||||||||||||||||
Impairment losses on previously depreciated operating properties | 1,328 | 7,195 | 1,329 | 9,052 | ||||||||||||||||||||||||||
Loss on sales of previously depreciated operating properties | — | — | 4 | — | ||||||||||||||||||||||||||
Impairment (recoveries) losses on previously depreciated operating properties | (7 | ) | 22,074 | 1,322 | 31,126 | |||||||||||||||||||||||||
Gain on sales of previously depreciated operating properties | (5,123 | ) | — | (5,119 | ) | — | ||||||||||||||||||||||||
FFO | 41,273 | 31,725 | 90,545 | 77,111 | 49,655 | 49,284 | 140,200 | 126,395 | ||||||||||||||||||||||
Less: Noncontrolling interests-preferred units in COPLP | (165 | ) | (165 | ) | (330 | ) | (330 | ) | (165 | ) | (165 | ) | (495 | ) | (495 | ) | ||||||||||||||
Less: FFO allocable to other noncontrolling interests | (758 | ) | (1,270 | ) | (1,519 | ) | (1,997 | ) | (830 | ) | (833 | ) | (2,349 | ) | (2,830 | ) | ||||||||||||||
Less: Preferred share dividends | (4,344 | ) | (4,885 | ) | (8,834 | ) | (10,991 | ) | (3,553 | ) | (4,490 | ) | (12,387 | ) | (15,481 | ) | ||||||||||||||
Less: Issuance costs associated with redeemed preferred shares | (1,769 | ) | (2,904 | ) | (1,769 | ) | (2,904 | ) | — | — | (1,769 | ) | (2,904 | ) | ||||||||||||||||
Basic and Diluted FFO allocable to restricted shares | (146 | ) | (89 | ) | (351 | ) | (272 | ) | ||||||||||||||||||||||
Basic and diluted FFO allocable to restricted shares | (191 | ) | (178 | ) | (542 | ) | (450 | ) | ||||||||||||||||||||||
Basic and Diluted FFO | $ | 34,091 | $ | 22,412 | $ | 77,742 | $ | 60,617 | $ | 44,916 | $ | 43,618 | $ | 122,658 | $ | 104,235 | ||||||||||||||
Gain on sales of non-operating properties | — | (329 | ) | — | (2,683 | ) | (5,535 | ) | — | (5,535 | ) | (2,683 | ) | |||||||||||||||||
Impairment losses on other properties | 49 | — | 49 | — | ||||||||||||||||||||||||||
Loss on early extinguishment of debt | 363 | 21,470 | 386 | 26,654 | 176 | 374 | 562 | 27,028 | ||||||||||||||||||||||
Issuance costs associated with redeemed preferred shares | 1,769 | 2,904 | 1,769 | 2,904 | — | — | 1,769 | 2,904 | ||||||||||||||||||||||
FFO on properties in default to be conveyed | 3,629 | — | 3,629 | — | ||||||||||||||||||||||||||
FFO on properties in default to be conveyed (1) | 3,806 | — | 7,435 | — | ||||||||||||||||||||||||||
Diluted FFO comparability adjustments allocable to restricted shares | (26 | ) | — | (26 | ) | — | 7 | — | (19 | ) | — | |||||||||||||||||||
Diluted FFO, as adjusted for comparability | $ | 39,826 | $ | 46,457 | $ | 83,500 | $ | 87,492 | $ | 43,419 | $ | 43,992 | $ | 126,919 | $ | 131,484 | ||||||||||||||
Weighted average common shares | 87,214 | 85,425 | 87,148 | 83,422 | 87,290 | 86,760 | 87,196 | 84,547 | ||||||||||||||||||||||
Conversion of weighted average common units | 3,912 | 3,801 | 3,934 | 3,847 | 3,876 | 3,804 | 3,915 | 3,832 | ||||||||||||||||||||||
Weighted average common shares/units - Basic FFO | 91,126 | 89,226 | 91,082 | 87,269 | 91,166 | 90,564 | 91,111 | 88,379 | ||||||||||||||||||||||
Dilutive effect of share-based compensation awards | 201 | 96 | 156 | 74 | 195 | 45 | 169 | 63 | ||||||||||||||||||||||
Weighted average common shares/units - Diluted FFO | 91,327 | 89,322 | 91,238 | 87,343 | 91,361 | 90,609 | 91,280 | 88,442 | ||||||||||||||||||||||
Diluted FFO per share | $ | 0.37 | $ | 0.25 | $ | 0.85 | $ | 0.69 | $ | 0.49 | $ | 0.48 | $ | 1.34 | $ | 1.18 | ||||||||||||||
Diluted FFO per share, as adjusted for comparability | $ | 0.44 | $ | 0.52 | $ | 0.92 | $ | 1.00 | $ | 0.48 | $ | 0.49 | $ | 1.39 | $ | 1.49 | ||||||||||||||
Numerator for diluted EPS | $ | 1,669 | $ | (13,927 | ) | $ | 1,799 | $ | (4,702 | ) | $ | 19,064 | $ | (7,551 | ) | $ | 20,863 | $ | (12,011 | ) | ||||||||||
Income allocable to noncontrolling interests-common units in COPLP | 158 | — | 174 | — | 768 | (232 | ) | 942 | (474 | ) | ||||||||||||||||||||
Real estate-related depreciation and amortization | 30,895 | 28,935 | 74,491 | 57,187 | 30,237 | 29,210 | 104,728 | 86,397 | ||||||||||||||||||||||
Impairment losses on previously depreciated operating properties | 1,328 | 7,195 | 1,329 | 9,052 | ||||||||||||||||||||||||||
Impairment (recoveries) losses on previously depreciated operating properties | (7 | ) | 22,074 | 1,322 | 31,126 | |||||||||||||||||||||||||
Numerator for diluted EPS allocable to restricted shares | 108 | 102 | 229 | 220 | 103 | 97 | 332 | 317 | ||||||||||||||||||||||
Depreciation and amortization allocable to noncontrolling interests in other consolidated entities | (180 | ) | (235 | ) | (360 | ) | (509 | ) | (180 | ) | (238 | ) | (540 | ) | (747 | ) | ||||||||||||||
Increase (decrease) in noncontrolling interests unrelated to earnings | 259 | 431 | 427 | (359 | ) | |||||||||||||||||||||||||
Increase in noncontrolling interests unrelated to earnings | 245 | 436 | 672 | 77 | ||||||||||||||||||||||||||
Basic and diluted FFO allocable to restricted shares | (146 | ) | (89 | ) | (351 | ) | (272 | ) | (191 | ) | (178 | ) | (542 | ) | (450 | ) | ||||||||||||||
Loss on sales of previously depreciated operating properties | — | — | 4 | — | ||||||||||||||||||||||||||
Gain on sales of previously depreciated operating properties | (5,123 | ) | — | (5,119 | ) | — | ||||||||||||||||||||||||
Basic and Diluted FFO | $ | 34,091 | $ | 22,412 | $ | 77,742 | $ | 60,617 | $ | 44,916 | $ | 43,618 | $ | 122,658 | $ | 104,235 | ||||||||||||||
Gain on sales of non-operating properties | — | (329 | ) | — | (2,683 | ) | (5,535 | ) | — | (5,535 | ) | (2,683 | ) | |||||||||||||||||
Impairment losses on other properties | 49 | — | 49 | — | ||||||||||||||||||||||||||
Loss on early extinguishment of debt | 363 | 21,470 | 386 | 26,654 | 176 | 374 | 562 | 27,028 | ||||||||||||||||||||||
Issuance costs associated with redeemed preferred shares | 1,769 | 2,904 | 1,769 | 2,904 | — | — | 1,769 | 2,904 | ||||||||||||||||||||||
FFO on properties in default to be conveyed | 3,629 | — | 3,629 | — | ||||||||||||||||||||||||||
FFO on properties in default to be conveyed (1) | 3,806 | — | 7,435 | — | ||||||||||||||||||||||||||
Diluted FFO comparability adjustments allocable to restricted shares | (26 | ) | — | (26 | ) | — | 7 | — | (19 | ) | — | |||||||||||||||||||
Diluted FFO, as adjusted for comparability | $ | 39,826 | $ | 46,457 | $ | 83,500 | $ | 87,492 | $ | 43,419 | $ | 43,992 | $ | 126,919 | $ | 131,484 | ||||||||||||||
Denominator for diluted EPS | 87,415 | 89,226 | 87,304 | 87,269 | 87,485 | 86,760 | 87,365 | 84,547 | ||||||||||||||||||||||
Weighted average common units | 3,912 | — | 3,934 | — | 3,876 | 3,804 | 3,915 | 3,832 | ||||||||||||||||||||||
Anti-dilutive EPS effect of share-based compensation awards | — | 96 | — | 74 | — | 45 | — | 63 | ||||||||||||||||||||||
Denominator for diluted FFO per share measures | 91,327 | 89,322 | 91,238 | 87,343 | 91,361 | 90,609 | 91,280 | 88,442 |
Construction, development and redevelopment | $ | 108,154 | $ | 152,960 | ||||||
Tenant improvements on operating properties | 8,968 | (1) | 19,214 | (1) | ||||||
Capital improvements on operating properties | 9,513 | 17,637 | ||||||||
$ | 126,635 | $ | 189,811 |
For the Periods Ending December 31, | For the Periods Ending December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||||||||||||||||||||||||||||
Contractual obligations (1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt (2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balloon payments due upon maturity | $ | — | $ | 339,751 | $ | 274,605 | $ | 404,110 | $ | — | $ | 1,068,428 | $ | 2,086,894 | $ | 150,000 | $ | 289,751 | $ | 274,605 | $ | 254,110 | $ | — | $ | 1,063,561 | $ | 2,032,027 | ||||||||||||||||||||||||||
Scheduled principal payments | 3,037 | 6,218 | 4,734 | 1,505 | 1,374 | 5,854 | 22,722 | 1,654 | 6,794 | 5,337 | 2,137 | 2,036 | 10,021 | 27,979 | ||||||||||||||||||||||||||||||||||||||||
Interest on debt (3) | 50,948 | 81,421 | 64,125 | 46,221 | 41,888 | 161,599 | 446,202 | 22,826 | 72,338 | 55,573 | 42,683 | 41,874 | 160,919 | 396,213 | ||||||||||||||||||||||||||||||||||||||||
New construction and redevelopment obligations (4)(5) | 55,332 | 30,752 | — | — | — | — | 86,084 | 46,529 | 36,752 | — | — | — | — | 83,281 | ||||||||||||||||||||||||||||||||||||||||
Third-party construction and development obligations (5)(6) | 21,510 | 13,922 | — | — | — | — | 35,432 | 16,358 | 26,017 | — | — | — | — | 42,375 | ||||||||||||||||||||||||||||||||||||||||
Capital expenditures for operating properties (5)(7) | 42,212 | 8,286 | — | — | — | — | 50,498 | 39,966 | 8,072 | — | — | — | — | 48,038 | ||||||||||||||||||||||||||||||||||||||||
Operating leases (8) | 465 | 799 | 748 | 725 | 698 | 75,369 | 78,804 | 231 | 882 | 824 | 752 | 726 | 77,397 | 80,812 | ||||||||||||||||||||||||||||||||||||||||
Other purchase obligations | 476 | 411 | 335 | 66 | 10 | — | 1,298 | 2,223 | 758 | 683 | 298 | 10 | — | 3,972 | ||||||||||||||||||||||||||||||||||||||||
Total contractual cash obligations | $ | 173,980 | $ | 481,560 | $ | 344,547 | $ | 452,627 | $ | 43,970 | $ | 1,311,250 | $ | 2,807,934 | $ | 279,787 | $ | 441,364 | $ | 337,022 | $ | 299,980 | $ | 44,646 | $ | 1,311,898 | $ | 2,714,697 |
(1) | The contractual obligations set forth in this table exclude property operations contracts that may be terminated with notice of one month or less. |
(2) | Represents scheduled principal amortization payments and maturities only and therefore excludes a net discount of $ |
(3) | Represents interest costs for our outstanding debt as of |
(4) | Represents contractual obligations pertaining to new construction and redevelopment activities. |
(5) | Due to the long-term nature of certain construction and development contracts and leases included in these lines, the amounts reported in the table represent our estimate of the timing for the related obligations being payable. |
(6) | Represents contractual obligations pertaining to projects for which we are acting as construction manager on behalf of unrelated parties who are our clients. We expect to be reimbursed in full for these costs by our clients. |
(7) | Represents contractual obligations pertaining to recurring and nonrecurring capital expenditures for our operating properties. We expect to finance these costs primarily using cash flow from operations. |
(8) | We expect to pay these items using cash flow from operations. |
For the Periods Ending December 31, | For the Periods Ending December 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | 2014 | 2015 | 2016 | 2017 | 2018 | Thereafter | Total | |||||||||||||||||||||||||||||||||||||||||
Debt: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed rate debt (1) | $ | 2,626 | $ | 109,092 | $ | 279,339 | $ | 155,615 | $ | 1,374 | $ | 954,282 | $ | 1,502,328 | $ | 151,444 | $ | 109,668 | $ | 279,942 | $ | 6,247 | $ | 2,036 | $ | 953,582 | $ | 1,502,919 | ||||||||||||||||||||||||||
Weighted average interest rate | 6.52 | % | 5.58 | % | 6.56 | % | 5.64 | % | 4.61 | % | 4.10 | % | 4.83 | % | 10.61 | % | 5.57 | % | 6.56 | % | 5.18 | % | 4.61 | % | 4.10 | % | 5.33 | % | ||||||||||||||||||||||||||
Variable rate debt (2) | $ | 411 | $ | 236,877 | $ | — | $ | 250,000 | $ | — | $ | 120,000 | $ | 607,288 | $ | 210 | $ | 186,877 | $ | — | $ | 250,000 | $ | — | $ | 120,000 | $ | 557,087 |
(1) | Represents principal maturities only and therefore excludes net discounts of $ |
(2) | As of |
Fair Value at | Fair Value at | |||||||||||||||||||||||||||||||||||
Notional Amount | Notional Amount | Fixed Rate | Floating Rate Index | Effective Date | Expiration Date | June 30, 2014 | December 31, 2013 | Notional Amount | Fixed Rate | Floating Rate Index | Effective Date | Expiration Date | September 30, 2014 | December 31, 2013 | ||||||||||||||||||||||
$ | 100,000 | 0.6123% | One-Month LIBOR | 1/3/2012 | 9/1/2014 | $ | (81 | ) | $ | (279 | ) | 100,000 | 0.8320% | One-Month LIBOR | 1/3/2012 | 9/1/2015 | $ | (556 | ) | $ | (861 | ) | ||||||||||||||
100,000 | 100,000 | 0.6100% | One-Month LIBOR | 1/3/2012 | 9/1/2014 | (80 | ) | (277 | ) | 100,000 | 0.8320% | One-Month LIBOR | 1/3/2012 | 9/1/2015 | (556 | ) | (861 | ) | ||||||||||||||||||
37,087 | 37,087 | (1) | 3.8300% | One-Month LIBOR + 2.25% | 11/2/2010 | 11/2/2015 | (515 | ) | (832 | ) | ||||||||||||||||||||||||||
100,000 | 100,000 | 0.8320% | One-Month LIBOR | 1/3/2012 | 9/1/2015 | (720 | ) | (861 | ) | 100,000 | 0.8055% | One-Month LIBOR | 9/2/2014 | 9/1/2016 | (300 | ) | (94 | ) | ||||||||||||||||||
100,000 | 100,000 | 0.8320% | One-Month LIBOR | 1/3/2012 | 9/1/2015 | (720 | ) | (861 | ) | 100,000 | 0.8100% | One-Month LIBOR | 9/2/2014 | 9/1/2016 | (309 | ) | (105 | ) | ||||||||||||||||||
37,288 | (1) | 3.8300% | One-Month LIBOR + 2.25% | 11/2/2010 | 11/2/2015 | (647 | ) | (832 | ) | |||||||||||||||||||||||||||
100,000 | 100,000 | 0.8055% | One-Month LIBOR | 9/2/2014 | 9/1/2016 | (489 | ) | (94 | ) | 100,000 | 1.6730% | One-Month LIBOR | 9/1/2015 | 8/1/2019 | 1,551 | 3,377 | ||||||||||||||||||||
100,000 | 100,000 | 0.8100% | One-Month LIBOR | 9/2/2014 | 9/1/2016 | (499 | ) | (105 | ) | 100,000 | 1.7300% | One-Month LIBOR | 9/1/2015 | 8/1/2019 | 1,356 | 3,217 | ||||||||||||||||||||
100,000 | 100,000 | 1.6730% | One-Month LIBOR | 9/1/2015 | 8/1/2019 | 1,170 | 3,377 | 100,000 | 0.6123% | One-Month LIBOR | 1/3/2012 | 9/1/2014 | — | (279 | ) | |||||||||||||||||||||
100,000 | 100,000 | 1.7300% | One-Month LIBOR | 9/1/2015 | 8/1/2019 | 981 | 3,217 | 100,000 | 0.6100% | One-Month LIBOR | 1/3/2012 | 9/1/2014 | — | (277 | ) | |||||||||||||||||||||
$ | (1,085 | ) | $ | 3,285 | $ | 671 | $ | 3,285 |
(1) | The notional amount of this instrument is scheduled to amortize to $36.2 million. |
(a) | During the three months ended |
EXHIBIT NO. | DESCRIPTION | |
10.1 | Letter Agreement, dated August 28, 2014, between Corporate Office Properties Trust, Corporate Office Properties, L.P., and Wayne H. Lingafelter (filed with the Company’s Current Report on Form 8-K dated September 3, 2014 and incorporated herein by reference). | |
10.2 | ||
12.1 | COPT’s Statement regarding Computation of Earnings to Combined Fixed Charges and Preferred Share Dividends (filed herewith). | |
12.2 | COPLP’s Statement regarding Computation of Consolidated Ratio of Earnings to Fixed Charges (filed herewith). | |
31.1 | Certification of the Chief Executive Officer of Corporate Office Properties Trust required by Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended (filed herewith). | |
31.2 | Certification of the Chief Financial Officer of Corporate Office Properties Trust required by Rule 13a-14(a) under the Securities Exchange Act of 1934, as amended (filed herewith). | |
31.3 | Certification of the Chief Executive Officer of Corporate Office Properties, L.P. required by Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended (filed herewith). | |
31.4 | Certification of the Chief Financial Officer of Corporate Office Properties, L.P. required by Rule 15d-14(a) under the Securities Exchange Act of 1934, as amended (filed herewith). | |
32.1 | Certification of the Chief Executive Officer of Corporate Office Properties Trust required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Exchange Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.) (Furnished herewith). | |
32.2 | Certification of the Chief Financial Officer of Corporate Office Properties Trust required by Rule 13a-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Exchange Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended). (Furnished herewith). | |
32.3 | Certification of the Chief Executive Officer of Corporate Office Properties, L.P. required by Rule 15d-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Exchange Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended.) (Furnished herewith). | |
32.4 | Certification of the Chief Financial Officer of Corporate Office Properties, L.P. required by Rule 15d-14(b) under the Securities Exchange Act of 1934, as amended. (This exhibit shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Further, this exhibit shall not be deemed to be incorporated by reference into any filing under the Securities Exchange Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended). (Furnished herewith). | |
101.INS | XBRL Instance Document (furnished herewith). | |
101.SCH | XBRL Taxonomy Extension Schema Document (furnished herewith). | |
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document (furnished herewith). | |
101.LAB | XBRL Extension Labels Linkbase (furnished herewith). | |
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document (furnished herewith). | |
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document (furnished herewith). |
CORPORATE OFFICE PROPERTIES TRUST | CORPORATE OFFICE PROPERTIES, L.P. | ||
By: Corporate Office Properties Trust, | |||
its General Partner | |||
/s/ Roger A. Waesche, Jr. | /s/ Roger A. Waesche, Jr. | ||
Roger A. Waesche, Jr. | Roger A. Waesche, Jr. | ||
President and Chief Executive Officer | President and Chief Executive Officer | ||
/s/ Stephen E. Riffee | /s/ Stephen E. Riffee | ||
Stephen E. Riffee | Stephen E. Riffee | ||
Executive Vice President and Chief Financial Officer | Executive Vice President and Chief Financial Officer | ||
Dated: | Dated: |