COPT Defense Properties 8K Results of Operations and Financial Condition | CDP 27 Oct 16

Exhibit 99.1

Corporate Office Properties Trust

Summary Description

The Company: Corporate Office Properties Trust (the “Company” or “COPT”) is a self-managed office real estate investment trust (“REIT”). COPT is listed on the New York Stock Exchange under the symbol “OFC” and is a S&P MidCap 400 Company. We own, manage, lease, develop and selectively acquire office and data center properties. The majority of our portfolio is in locations that support United States Government agencies and their contractors, most of whom are engaged in national security, defense and information technology (“IT”) related activities servicing what we believe are growing, durable priority missions; we refer to these properties as Defense/IT Locations. We also own a complementary portfolio of office properties located in select urban/urban-like submarkets within our regional footprint with durable Class-A office fundamentals and characteristics; these properties are included in a segment referred to as Regional Office Properties. As of September 30, 2016, we derived 86% of our core portfolio annualized revenue from Defense/IT Locations and 14% from our Regional Office Properties. As of September 30, 2016, our core portfolio of 146 office properties, including six owned through an unconsolidated joint venture, encompassed 15.9 million square feet and was 94.4% leased. As of the same date, we also owned a wholesale data center with a critical load of 19.25 megawatts in operations.



Management:	Investor Relations:
Stephen E. Budorick, President & CEO	Stephanie M. Krewson-Kelly, VP of IR
Anthony Mifsud, EVP & CFO	443-285-5453, stephanie.kelly@copt.com
	Michelle Layne, Manager of IR
	443-285-5452, michelle.layne@copt.com

Corporate Credit Rating: BBB- (Fitch), Baa3 (Moody’s), and BBB- (S&P); All Stable Outlook

Disclosure Statement: This supplemental package contains forward-looking statements within the meaning of the Federal securities laws. Forward-looking statements can be identified by the use of words such as “may,” “will,” “should,” “could,” “believe,” “anticipate,” “expect,” “estimate,” “plan” or other comparable terminology. Forward-looking statements are inherently subject to risks and uncertainties, many of which we cannot predict with accuracy and some of which we might not even anticipate. Although we believe that the expectations, estimates and projections reflected in such forward-looking statements are based on reasonable assumptions at the time made, we can give no assurance that these expectations, estimates and projections will be achieved. Future events and actual results may differ materially from those discussed in the forward-looking statements. Important factors that may affect these expectations, estimates and projections include, but are not limited to: general economic and business conditions, which will, among other things, affect office property and data center demand and rents, tenant creditworthiness, interest rates, financing availability and property values; adverse changes in the real estate markets, including, among other things, increased competition with other companies; governmental actions and initiatives, including risks associated with the impact of a prolonged government shutdown or budgetary reductions or impasses, such as a reduction in rental revenues, non-renewal of leases and/or a curtailment of demand for additional space by our strategic customers; our ability to borrow on favorable terms; risks of real estate acquisition and development activities, including, among other things, risks that development projects may not be completed on schedule, that tenants may not take occupancy or pay rent or that development or operating costs may be greater than anticipated; risks of investing through joint venture structures, including risks that our joint venture partners may not fulfill their financial obligations as investors or may take actions that are inconsistent with our objectives; changes in our plans for properties or views of market economic conditions or failure to obtain development rights, either of which could result in recognition of impairment losses; our ability to satisfy and operate effectively under Federal income tax rules relating to real estate investment trusts and partnerships; the dilutive effects of issuing additional common shares; our ability to achieve projected results; and environmental requirements. We undertake no obligation to update or supplement any forward-looking statements. For further information, please refer to our filings with the Securities and Exchange Commission, particularly the section entitled “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2015.

Corporate Office Properties Trust

Equity Research Coverage




Firm	Senior Analyst	Phone	Email
Bank of America Merrill Lynch	Jamie Feldman	646-855-5808	james.feldman@baml.com
BTIG	Tom Catherwood	212-738-6410	tcatherwood@btig.com
Capital One Securities	Chris Lucas	571-633-8151	christopher.lucas@capitalone.com
Citigroup Global Markets	Manny Korchman	212-816-1382	emmanuel.korchman@citi.com
Credit Suisse	Derek van Dijkum	212-325-9752	derek.vandijkum@credit-suisse.com
Evercore ISI	Steve Sakwa	212-446-9462	steve.sakwa@evercoreisi.com
Green Street Advisors	Jed Reagan	949-640-8780	jreagan@greenstreetadvisors.com
Jefferies & Co.	Jonathan Petersen	212-284-1705	jpetersen@jefferies.com
JP Morgan	Tony Paolone	212-622-6682	anthony.paolone@jpmorgan.com
KeyBanc Capital Markets	Craig Mailman	917-368-2316	cmailman@key.com
Mizuho Securities USA Inc.	Richard Anderson	212-205-8445	richard.anderson@us.mizuho-sc.com
Raymond James	Bill Crow	727-567-2594	bill.crow@raymondjames.com
Robert W. Baird & Co., Inc.	Dave Rodgers	216-737-7341	drodgers@rwbaird.com
Stifel Financial Corp.	John Guinee	443-224-1307	jwguinee@stifel.com
SunTrust Robinson Humphrey, Inc.	Michael Lewis	212-319-5659	michael.lewis@suntrust.com

With the exception of Green Street Advisors, the above-listed firms are those whose analysts publish research material on the Company and whose estimates of our FFO per share can be tracked through Thomson’s First Call Corporation. Any opinions, estimates, or forecasts the above analysts make regarding COPT’s future performance are their own and do not represent the views, estimates, or forecasts of COPT’s management.

Corporate Office Properties Trust

Selected Financial Summary Data

(in thousands, except per share data)



	Page	Three Months Ended															Nine Months Ended
SUMMARY OF RESULTS	Refer.	9/30/16			6/30/16			3/31/16			12/31/15			9/30/15			9/30/16			9/30/15
Net income (loss)	6	$	29,272		$	(48,316	)	$	8,096		$	62,617		$	94,294		$	(10,948	)	$	126,261
NOI from real estate operations	14	$	82,010		$	85,783		$	81,212		$	85,979		$	84,789		$	249,005		$	238,601
Same Office Property NOI	16	$	61,295		$	61,264		$	59,280		$	61,322		$	61,589		$	181,839		$	179,753
Same Office Property Cash NOI	17	$	60,952		$	61,437		$	59,709		$	60,928		$	60,297		$	182,098		$	174,942
Adjusted EBITDA	10	$	76,834		$	79,625		$	74,906		$	79,718		$	78,932		$	231,365		$	220,149
Diluted AFFO avail. to common share and unit holders	9	$	37,998		$	42,937		$	36,835		$	31,592		$	36,570		$	117,770		$	115,106
Dividend per common share	N/A	$	0.275		$	0.275		$	0.275		$	0.275		$	0.275		$	0.825		$	0.825

Per share - diluted:
EPS	8	$	0.25		$	(0.54	)	$	0.03		$	0.59		$	0.91		$	(0.26	)	$	1.15
FFO - NAREIT	8	$	0.49		$	0.36		$	0.39		$	0.31		$	1.32		$	1.25		$	2.24
FFO - as adjusted for comparability	8	$	0.51		$	0.52		$	0.47		$	0.52		$	0.52		$	1.50		$	1.49

Numerators for diluted per share amounts:
Diluted EPS	6	$	23,642		$	(51,068	)	$	3,156		$	55,581		$	86,251		$	(24,270	)	$	112,035
Diluted FFO available to common share and unit holders	7	$	48,449		$	35,194		$	38,560		$	30,488		$	130,241		$	122,203		$	218,966
Diluted FFO available to common share and unit holders, as adjusted for comparability	7	$	50,461		$	50,630		$	46,007		$	50,858		$	50,684		$	147,098		$	144,966

Payout ratios:
Diluted FFO	N/A	55.8		%	76.8		%	70.1		%	88.6		%	21.2		%	66.4		%	37.0		%
Diluted FFO - as adjusted for comparability	N/A	53.6		%	53.4		%	58.8		%	53.1		%	53.3		%	55.2		%	55.9		%
Diluted AFFO	N/A	71.2		%	63.0		%	73.4		%	85.5		%	73.9		%	68.9		%	70.4		%

CAPITALIZATION
Total Market Capitalization	29	$	4,887,466		$	5,228,793		$	4,947,152		$	4,449,015		$	4,406,333
Total Equity Market Capitalization	29	$	2,996,247		$	3,116,093		$	2,788,272		$	2,351,785		$	2,273,260
Gross debt	30	$	1,921,219		$	2,112,700		$	2,158,880		$	2,097,230		$	2,133,073
Net debt to adjusted book (1)	32	41.2		%	43.6		%	43.3		%	42.6		%	43.8		%	N/A			N/A
Net debt plus preferred equity to adjusted book (1)	32	45.8		%	48.0		%	47.6		%	47.0		%	48.0		%	N/A			N/A
Adjusted EBITDA fixed charge coverage ratio	32	3.1		x	2.9		x	2.7		x	2.9		x	2.9		x	2.9		x	3.0		x
Net debt to in-place adjusted EBITDA ratio	32	6.3		x	6.6		x	7.0		x	6.5		x	6.6		x	N/A			N/A
Net debt plus pref. equity to in-place adj. EBITDA ratio	32	7.0		x	7.2		x	7.6		x	7.2		x	7.3		x	N/A			N/A

OTHER
Revenue from early termination of leases	N/A	$	437		$	338		$	712		$	400		$	159		$	1,487		$	1,423
Capitalized interest costs	N/A	$	1,242		$	1,309		$	1,753		$	1,510		$	1,559		$	4,304		$	5,641


(1)	Effective this quarter, we commenced reporting for these ratios in lieu of debt to adjusted book. Please refer to to the section entitled “Definitions” for additional information regarding these ratios.

Corporate Office Properties Trust

Selected Portfolio Data




	9/30/16		6/30/16		3/31/16		12/31/15		9/30/15
	(1)
# of Operating Office Properties
Total Portfolio	168		181		179		177		183
Consolidated Portfolio	162		181		179		177		183
Core Portfolio	146		146		153		157		164
Same Office Properties	129		129		129		129		129

% Occupied
Total Portfolio	91.3	%	92.6	%	92.3	%	92.7	%	92.3	%
Consolidated Portfolio	90.8	%	92.6	%	92.3	%	92.7	%	92.3	%
Core Portfolio	93.0	%	92.3	%	91.6	%	92.7	%	91.3	%
Same Office Properties	91.4	%	91.1	%	90.7	%	91.6	%	91.3	%

% Leased
Total Portfolio	92.8	%	92.6	%	92.3	%	92.7	%	92.3	%
Consolidated Portfolio	92.4	%	92.6	%	92.3	%	92.7	%	92.3	%
Core Portfolio	94.4	%	93.8	%	93.3	%	93.9	%	92.1	%
Same Office Properties	93.2	%	92.7	%	92.5	%	93.0	%	92.0	%

Square Feet of Office Properties (in thousands)
Total Portfolio	17,488		18,402		18,250		18,053		18,825
Consolidated Portfolio	16,526		18,402		18,250		18,053		18,825
Core Portfolio	15,938		16,018		16,556		17,038		17,515
Same Office Properties	13,041		13,041		13,041		13,041		13,041

Wholesale Data Center (in megawatts (“MWs”))
Initial Stabilization Critical Load	19.25		19.25		19.25		19.25		19.25
MWs Leased (2)	15.81		15.81		16.81		17.81		17.81
MWs Operational	19.25		19.25		19.25		19.25		19.25


(1)	As of 9/30/2016, our total portfolio included 19 properties held for sale totaling 1.3 million square feet that were 81.3% occupied and 84.0% leased. Our total portfolio and core portfolio included six properties owned through an unconsolidated joint venture totaling 962,000 square feet that were 100% occupied and leased.


(2)	Leased to tenants with further expansion rights of up to a combined 16.87 megawatts as of September 30, 2016.

Corporate Office Properties Trust

Consolidated Balance Sheets

(dollars in thousands)



	9/30/16			6/30/16			3/31/16			12/31/15			9/30/15
Assets
Properties, net
Operating properties, net	$	2,632,069		$	2,782,330		$	2,863,262		$	2,920,529		$	2,932,843
Construction and redevelopment in progress, including land (1)	72,043			69,070			98,198			137,043			77,268
Land held (1)	324,226			318,327			317,971			292,176			337,489
Total properties, net	3,028,338			3,169,727			3,279,431			3,349,748			3,347,600
Assets held for sale	161,454			300,584			225,897			96,782			150,572
Cash and cash equivalents	47,574			13,317			62,489			60,310			3,840
Restricted cash and marketable securities	7,583			8,302			7,763			7,716			9,286
Investment in unconsolidated real estate joint venture	25,721			—			—			—			—
Accounts receivable, net	25,790			32,505			28,776			29,167			23,706
Deferred rent receivable, net	87,526			92,316			96,936			105,484			103,064
Intangible assets on real estate acquisitions, net	84,081			88,788			93,526			98,338			106,174
Deferred leasing costs, net	41,470			42,632			44,768			53,868			51,509
Investing receivables	51,119			50,162			48,998			47,875			46,821
Prepaid expenses and other assets, net	73,538			43,359			49,324			60,024			69,520
Total assets	$	3,634,194		$	3,841,692		$	3,937,908		$	3,909,312		$	3,912,092
Liabilities and equity
Liabilities:
Debt	$	1,873,836		$	2,094,486		$	2,140,212		$	2,077,752		$	2,114,859
Accounts payable and accrued expenses	112,306			92,848			78,597			91,755			98,551
Rents received in advance and security deposits	28,740			32,035			33,457			37,148			34,504
Dividends and distributions payable	30,225			30,219			30,217			30,178			30,182
Deferred revenue associated with operating leases	9,898			17,560			19,093			19,758			20,113
Interest rate derivatives	17,272			20,245			15,072			3,160			5,844
Other liabilities	38,282			31,123			15,046			13,779			8,524
Total liabilities	2,110,559			2,318,516			2,331,694			2,273,530			2,312,577
Redeemable noncontrolling interests	22,848			22,473			22,333			19,218			19,608
Equity:
COPT’s shareholders’ equity:
Preferred shares at liquidation preference	199,083			199,083			199,083			199,083			199,083
Common shares	948			947			947			945			945
Additional paid-in capital	2,008,787			2,007,328			2,005,523			2,004,507			2,002,730
Cumulative distributions in excess of net income	(759,262		)	(756,940		)	(679,935		)	(657,172		)	(686,986		)
Accumulated other comprehensive loss	(16,314		)	(17,712		)	(12,862		)	(2,838		)	(5,823		)
Total COPT’s shareholders’ equity	1,433,242			1,432,706			1,512,756			1,544,525			1,509,949
Noncontrolling interests in subsidiaries
Common units in the Operating Partnership	46,757			47,550			51,031			52,359			50,992
Preferred units in the Operating Partnership	8,800			8,800			8,800			8,800			8,800
Other consolidated entities	11,988			11,647			11,294			10,880			10,166
Total noncontrolling interests in subsidiaries	67,545			67,997			71,125			72,039			69,958
Total equity	1,500,787			1,500,703			1,583,881			1,616,564			1,579,907
Total liabilities, redeemable noncontrolling interest and equity	$	3,634,194		$	3,841,692		$	3,937,908		$	3,909,312		$	3,912,092
(1) Please refer to pages 24-26 and 28 for detail.

Corporate Office Properties Trust

Consolidated Statements of Operations

(in thousands, except per share data)



	Three Months Ended															Nine Months Ended
	9/30/16			6/30/16			3/31/16			12/31/15			9/30/15			9/30/16			9/30/15
Revenues
Rental revenue	$	103,956		$	107,524		$	105,382		$	107,514		$	109,080		$	316,862		$	312,826
Tenant recoveries and other real estate operations revenue	26,998			26,400			27,705			26,963			24,606			81,103			71,761
Construction contract and other service revenues	11,149			12,003			11,220			8,848			17,058			34,372			97,554
Total revenues	142,103			145,927			144,307			143,325			150,744			432,337			482,141
Expenses
Property operating expenses	49,952			48,141			51,875			48,498			48,897			149,968			145,996
Depreciation and amortization associated with real estate operations	32,015			33,248			34,527			36,237			38,403			99,790			103,788
Construction contract and other service expenses	10,341			11,478			10,694			7,773			16,132			32,513			94,923
Impairment losses	27,699			69,692			2,446			19,744			2,307			99,837			3,545
General and administrative expenses	7,242			6,512			10,130			6,609			5,783			23,884			17,917
Leasing expenses	1,613			1,514			1,753			1,888			1,656			4,880			4,947
Business development expenses and land carry costs	1,716			2,363			2,418			2,521			5,573			6,497			10,986
Total operating expenses	130,578			172,948			113,843			123,270			118,751			417,369			382,102
Operating income (loss)	11,525			(27,021		)	30,464			20,055			31,993			14,968			100,039
Interest expense	(18,301		)	(22,639		)	(23,559		)	(22,347		)	(24,121		)	(64,499		)	(66,727		)
Interest and other income	1,391			1,330			1,156			1,300			692			3,877			3,217
(Loss) gain on early extinguishment of debt	(59		)	5			17			(402		)	85,745			(37		)	85,677
(Loss) income from continuing operations before equity in income of unconsolidated entities and income taxes	(5,444		)	(48,325		)	8,078			(1,394		)	94,309			(45,691		)	122,206
Equity in income of unconsolidated entities	594			10			10			10			18			614			52
Income tax benefit (expense)	21			(1		)	8			(46		)	(48		)	28			(153		)
(Loss) income from continuing operations	(4,829		)	(48,316		)	8,096			(1,430		)	94,279			(45,049		)	122,105
Discontinued operations	—			—			—			—			—			—			156
(Loss) income before gain on sales of real estate	(4,829		)	(48,316		)	8,096			(1,430		)	94,279			(45,049		)	122,261
Gain on sales of real estate	34,101			—			—			64,047			15			34,101			4,000
Net income (loss)	29,272			(48,316		)	8,096			62,617			94,294			(10,948		)	126,261
Net (income) loss attributable to noncontrolling interests
Common units in the Operating Partnership	(901		)	1,976			(127		)	(2,172		)	(3,357		)	948			(4,231		)
Preferred units in the Operating Partnership	(165		)	(165		)	(165		)	(165		)	(165		)	(495		)	(495		)
Other consolidated entities	(907		)	(914		)	(978		)	(916		)	(972		)	(2,799		)	(2,599		)
Net income (loss) attributable to COPT	27,299			(47,419		)	6,826			59,364			89,800			(13,294		)	118,936
Preferred share dividends	(3,552		)	(3,553		)	(3,552		)	(3,553		)	(3,552		)	(10,657		)	(10,657		)
Net income (loss) attributable to COPT common shareholders	$	23,747		$	(50,972	)	$	3,274		$	55,811		$	86,248		$	(23,951	)	$	108,279
Dividends on dilutive convertible preferred shares	—			—			—			—			372			—			—
Common units in the Operating Partnership	—			—			—			—			—			—			4,231
Amount allocable to share-based compensation awards	(105		)	(96		)	(118		)	(230		)	(369		)	(319		)	(475		)
Numerator for diluted EPS	$	23,642		$	(51,068	)	$	3,156		$	55,581		$	86,251		$	(24,270	)	$	112,035

Corporate Office Properties Trust

Funds from Operations

(in thousands)



	Three Months Ended															Nine Months Ended
	9/30/16			6/30/16			3/31/16			12/31/15			9/30/15			9/30/16			9/30/15
Net income (loss)	$	29,272		$	(48,316	)	$	8,096		$	62,617		$	94,294		$	(10,948	)	$	126,261
Real estate-related depreciation and amortization	32,015			33,248			34,527			36,237			38,403			99,790			103,788
Impairment losses on previously depreciated operating properties	25,857			55,124			847			331			2,307			81,828			3,779
Gain on sales of previously depreciated operating properties	(34,101		)	—			—			(64,047		)	(15		)	(34,101		)	(15		)
Depreciation and amortization on unconsolidated real estate JV (1)	207			—			—			—			—			207			—
FFO - per NAREIT (2)(3)	53,250			40,056			43,470			35,138			134,989			136,776			233,813
Preferred share dividends	(3,552		)	(3,553		)	(3,552		)	(3,553		)	(3,552		)	(10,657		)	(10,657		)
Noncontrolling interests - preferred units in the Operating Partnership	(165		)	(165		)	(165		)	(165		)	(165		)	(495		)	(495		)
FFO allocable to other noncontrolling interests (4)	(894		)	(1,014		)	(1,027		)	(817		)	(1,027		)	(2,935		)	(2,769		)
Basic and diluted FFO allocable to restricted shares	(190		)	(130		)	(166		)	(115		)	(541		)	(486		)	(926		)
Basic FFO available to common share and common unit holders (3)	48,449			35,194			38,560			30,488			129,704			122,203			218,966
Dividends on dilutive convertible preferred shares	—			—			—			—			372			—			—
Distributions on dilutive preferred units in the Operating Partnership	—			—			—			—			165			—			—
Diluted FFO available to common share and common unit holders (3)	48,449			35,194			38,560			30,488			130,241			122,203			218,966
Operating property acquisition costs	—			—			—			32			2,695			—			4,102
Gain on sales of non-operating properties	—			—			—			—			—			—			(3,985		)
Impairment losses on non-operating properties	1,842			14,568			1,599			19,413			—			18,009			—
(Gain) loss on interest rate derivatives	(1,523		)	319			1,551			386			—			347			—
Loss (gain) on early extinguishment of debt	59			(5		)	(17		)	402			(85,745		)	37			(86,057		)
Add: Negative FFO of properties conveyed to extinguish debt in default (5)	—			—			—			—			2,766			—			10,456
Demolition costs on redevelopment properties	—			370			208			225			930			578			1,171
Executive transition costs	1,639			247			4,137			—			—			6,023			—
Diluted FFO comparability adjustments allocable to restricted shares	(5		)	(63		)	(31		)	(88		)	334			(99		)	313
Dividends and distributions on antidilutive preferred securities (6)	—			—			—			—			(537		)	—			—
Diluted FFO avail. to common share and common unit holders, as adj. for comparability (3)	$	50,461		$	50,630		$	46,007		$	50,858		$	50,684		$	147,098		$	144,966

(1) FFO adjustment pertaining to COPT’s share of an unconsolidated real estate joint venture reported on page 34.
(2) Please see reconciliation on page 36 for components of FFO per NAREIT.
(3) Please refer to the section entitled “Definitions” for a definition of this measure.
(4) Pertains to noncontrolling interests in consolidated real estate joint ventures reported on page 33.
(5) Interest expense exceeded NOI from these properties by the amounts in the statement.
(6) These securities were dilutive for Diluted FFO purposes but antidilutive for Diluted FFO as adjusted for comparability purposes.

Corporate Office Properties Trust

Diluted Share and Unit Computations

(in thousands)



	Three Months Ended															Nine Months Ended
	9/30/16			6/30/16			3/31/16			12/31/15			9/30/15			9/30/16			9/30/15
EPS Denominator:
Weighted average common shares - basic	94,433			94,300			94,203			94,164			94,153			94,312			93,830
Dilutive convertible preferred shares	—			—			—			—			434			—			—
Common units in the Operating Partnership	—			—			—			—			—			—			3,697
Dilutive effect of share-based compensation awards	81			—			95			—			21			—			82
Weighted average common shares - diluted	94,514			94,300			94,298			94,164			94,608			94,312			97,609
Diluted EPS	$	0.25		$	(0.54	)	$	0.03		$	0.59		$	0.91		$	(0.26	)	$	1.15

Weighted Average Shares for period ended:
Common Shares Outstanding	94,433			94,300			94,203			94,164			94,153			94,312			93,830
Dilutive effect of share-based compensation awards	81			117			95			—			21			98			82
Common Units	3,591			3,676			3,677			3,677			3,679			3,648			3,697
Dilutive convertible preferred shares (1)	—			—			—			—			434			—			—
Dilutive noncontrolling interests - preferred units in the Operating Partnership (1)	—			—			—			—			176			—			—
Denominator for diluted FFO per share	98,105			98,093			97,975			97,841			98,463			98,058			97,609
Antidilutive preferred securities for diluted FFO, as adjusted for comparability (1)	—			—			—			—			(610		)	—			—
Denominator for diluted FFO per share, as adjusted for comparability	98,105			98,093			97,975			97,841			97,853			98,058			97,609
Weighted average common units	(3,591		)	(3,676		)	(3,677		)	(3,677		)	(3,679		)	(3,648		)	—
Anti-dilutive EPS effect of share-based compensation awards	—			(117		)	—			—			—			(98		)	—
Dilutive convertible preferred shares	—			—			—			—			434			—			—
Denominator for diluted EPS	94,514			94,300			94,298			94,164			94,608			94,312			97,609
Diluted FFO per share - NAREIT	$	0.49		$	0.36		$	0.39		$	0.31		$	1.32		$	1.25		$	2.24
Diluted FFO per share - as adjusted for comparability	$	0.51		$	0.52		$	0.47		$	0.52		$	0.52		$	1.50		$	1.49

(1) These securities were dilutive for Diluted FFO purposes but antidilutive for Diluted FFO as adjusted for comparability purposes.

Corporate Office Properties Trust

Adjusted Funds from Operations

(in thousands)




	Three Months Ended															Nine Months Ended
	9/30/16			6/30/16			3/31/16			12/31/15			9/30/15			9/30/16			9/30/15
Diluted FFO available to common share and common unit holders, as adjusted for comparability	$	50,461		$	50,630		$	46,007		$	50,858		$	50,684		$	147,098		$	144,966
Straight line rent adjustments and lease incentive amortization	691			480			(965		)	(2,677		)	(5,625		)	206			(10,820		)
Straight line rent adjustments on properties conveyed to extinguish debt in default	—			—			—			—			(19		)	—			(115		)
Amortization of intangibles included in NOI	349			338			338			365			474			1,025			1,063
Share-based compensation, net of amounts capitalized	1,258			1,485			1,632			1,625			1,739			4,375			4,949
Amortization of deferred financing costs	1,126			1,178			1,176			1,127			1,203			3,480			3,339
Amortization of net debt discounts, net of amounts capitalized	332			325			319			317			321			976			849
Replacement capital expenditures (1)	(16,120		)	(11,546		)	(11,720		)	(20,086		)	(12,126		)	(39,386		)	(29,180		)
Diluted AFFO adjustments allocable to other noncontrolling interests (2)	42			47			48			63			(81		)	137			55
Diluted AFFO adjustments on unconsolidated real estate JV (3)	(141		)	—			—			—			—			(141		)	—
Diluted AFFO available to common share and common unit holders (“diluted AFFO”)	$	37,998		$	42,937		$	36,835		$	31,592		$	36,570		$	117,770		$	115,106
Replacement capital expenditures (1)
Tenant improvements and incentives	$	21,470		$	6,784		$	8,766		$	6,836		$	6,374		$	37,020		$	17,408
Building improvements	5,707			5,302			3,953			16,674			4,223			14,962			11,969
Leasing costs	5,182			1,613			1,183			3,518			2,547			7,978			4,986
Less: Excluded tenant improvements and incentives	(12,706		)	(885		)	(1,353		)	(393		)	205			(14,944		)	(1,045		)
Less: Excluded building improvements	(3,533		)	(1,121		)	(557		)	(6,551		)	(1,155		)	(5,211		)	(3,328		)
Less: Excluded leasing costs	—			(147		)	(272		)	2			(68		)	(419		)	(810		)
Replacement capital expenditures	$	16,120		$	11,546		$	11,720		$	20,086		$	12,126		$	39,386		$	29,180

(1) Please refer to the section entitled “Definitions” for a definition of this measure.
(2) AFFO adjustments pertaining to noncontrolling interests on consolidated joint ventures reported on page 33.
(3) AFFO adjustments pertaining to COPT’s share of an unconsolidated real estate joint venture reported on page 34.

Corporate Office Properties Trust

Adjusted EBITDA

(in thousands)



	Three Months Ended															Nine Months Ended
	9/30/16			6/30/16			3/31/16			12/31/15			9/30/15			9/30/16			9/30/15
Net income (loss)	$	29,272		$	(48,316	)	$	8,096		$	62,617		$	94,294		$	(10,948	)	$	126,261
Interest expense on continuing and discontinued operations	18,301			22,639			23,559			22,347			24,121			64,499			66,727
Income tax (benefit) expense	(21		)	1			(8		)	46			48			(28		)	153
Depreciation of furniture, fixtures and equipment	513			524			602			597			590			1,639			1,609
Real estate-related depreciation and amortization	32,015			33,248			34,527			36,237			38,403			99,790			103,788
Impairment losses	27,699			69,692			2,446			19,744			2,307			99,837			3,779
Loss (gain) on early extinguishment of debt on continuing and discontinued operations	59			(5		)	(17		)	402			(85,745		)	37			(86,057		)
Gain on sales of operating properties	(34,101		)	—			—			(64,047		)	(15		)	(34,101		)	(15		)
Gain on sales of non-operational properties	—			—			—			—			—			—			(3,985		)
Net loss (gain) on investments in unconsolidated entities included in interest and other income	27			(36		)	(23		)	6			98			(32		)	121
Business development expenses	1,016			1,261			1,379			1,512			1,221			3,656			3,263
Operating property acquisition costs	—			—			—			32			2,695			—			4,102
EBITDA from properties conveyed to extinguish debt in default	—			—			—			—			(15		)	—			(768		)
Demolition costs on redevelopment properties	—			370			208			225			930			578			1,171
Adjustments from unconsolidated real estate JV (1)	415			—			—			—			—			415			—
Executive transition costs	1,639			247			4,137			—			—			6,023			—
Adjusted EBITDA	$	76,834		$	79,625		$	74,906		$	79,718		$	78,932		$	231,365		$	220,149
Proforma NOI adjustment for property changes within period	(2,469		)	109			471			(1,738		)	1,309
In-place adjusted EBITDA	$	74,365		$	79,734		$	75,377		$	77,980		$	80,241

(1) Includes COPT’s share of adjusted EBITDA adjustments in an unconsolidated real estate JV (see page 34).

Corporate Office Properties Trust

Office Properties by Segment (1) - 9/30/2016

(square feet in thousands)



	Operational Properties (5)						Construction/Redevelopment (7)
	# of Properties	Operational Square Feet	Occupancy %		Leased %		# of Properties	Construction/Redevelopment Square Feet	Operational Square Feet (6)	Total Square Feet
Core Portfolio: (2)
Defense IT Locations: (3)
Fort Meade/Baltimore Washington (“BW”) Corridor:
National Business Park	29	3,485	95.7	%	96.6	%	2	336		336
Howard County	35	2,752	91.6	%	93.6	%	1	18	4	22
Other	17	1,363	94.9	%	96.0	%	2	82		82
Total Fort Meade/BW Corridor	81	7,600	94.1	%	95.4	%	5	436	4	440
Northern Virginia (“NoVA”) Defense/IT	11	1,599	83.5	%	87.4	%	2	401		401
Lackland AFB (San Antonio, Texas)	7	953	100.0	%	100.0	%	—	—	—	—
Navy Support	21	1,261	73.6	%	78.1	%	—	—	—	—
Redstone Arsenal (Huntsville, Alabama)	7	642	100.0	%	100.0	%	1	8	11	19
Data Center Shells
Consolidated Properties	6	897	100.0	%	100.0	%	2	365		365
Unconsolidated JV Properties (4)	6	962	100.0	%	100.0	%
Total Defense/IT Locations	139	13,914	92.5	%	94.1	%	10	1,210	15	1,225
Regional Office (5)	7	2,024	96.2	%	96.8	%	—	—	—	—
Core Portfolio	146	15,938	93.0	%	94.4	%	10	1,210	15	1,225
Properties Held for Sale	19	1,264	81.3	%	84.0	%	—	—	—	—
Other Properties	3	286	44.0	%	44.0	%	—	—	—	—
Total Portfolio	168	17,488	91.3	%	92.8	%	10	1,210	15	1,225
Consolidated Properties	162	16,526	90.8	%	92.4	%	10	1,210	15	1,225


(1)	This presentation sets forth Core Portfolio data by segment followed by data for the remainder of the portfolio.


(2)	Represents Defense/IT Locations and Regional Office properties excluding properties held for sale.


(3)	Includes properties in locations that support United States Government agencies and their contractors, most of whom are engaged in national security, defense and IT related activities servicing what we believe are growing, durable, priority missions.


(4)	See page 34 for additional disclosure regarding an unconsolidated real estate joint venture.


(5)	Includes office properties located in select urban/urban-like submarkets within our regional footprint with durable Class-A office fundamentals and characteristics.


(6)	Number of properties includes buildings under construction or redevelopment once those buildings become partially operational. Operational square feet includes square feet in operations for two partially operational properties; NOI and cash NOI for these properties was $19,000 for the three months ended 9/30/16.


(7)	This schedule includes properties under, or contractually committed for, construction or redevelopment as of 9/30/16 and 310 Sentinel Way and NOVA Office B, properties that were complete but are held for future lease to the United States Government. Please refer to pages 25 and 26.

Corporate Office Properties Trust

NOI from Real Estate Operations and Occupancy by Property Grouping

(dollars and square feet in thousands)



	9/30/16
	# of Operating Office Properties	Office Operational Square Feet			Office Property Annualized Rental Revenue (2)		Percentage of Total Office Annualized Rental Revenue (2)		NOI from Real Estate Operations for Three Months Ended		NOI from Real Estate Operations for Nine Months Ended
Property Grouping	# of Operating Office Properties	Office Operational Square Feet	% Occupied (1)	% Leased (1)	Office Property Annualized Rental Revenue (2)		Percentage of Total Office Annualized Rental Revenue (2)		9/30/16		9/30/16
Core Portfolio:
Same Office Properties (3)	126	12,755	92.5%	94.3%	$	380,062	80.6	%	$	60,689	$	180,168
Office Properties Placed in Service (4)	11	1,048	89.5%	89.5%	23,430		5.0	%	4,261		11,323
Acquired Office Properties (5)	3	1,173	95.5%	95.5%	33,935		7.2	%	4,890		15,754
Unconsolidated real estate JV (6)	6	962	100.0%	100.0%	5,233		1.1	%	1,008		1,008
Wholesale Data Center and Other	N/A	N/A	N/A	N/A	N/A		N/A		3,195		11,120
Total Core Portfolio	146	15,938	93.0%	94.4%	442,660		93.9	%	74,043		219,373
Office Properties Held for Sale (7)	19	1,264	81.3%	84.0%	25,256		5.3	%	4,161		11,519
Disposed Office Properties	N/A	N/A	N/A	N/A	N/A		N/A		3,200		16,442
Other Office Properties (Same Office)	3	286	44.0%	44.0%	3,641		0.8	%	606		1,671
Total Portfolio	168	17,488	91.3%	92.8%	$	471,557	100.0	%	$	82,010	$	249,005
Consolidated Properties	162	16,526	90.8%	92.4%	$	466,324	98.9	%	$	81,002	$	247,997

	9/30/16
	# of Operating Office Properties	Office Operational Square Feet			Office Property Annualized Rental Revenue (2)		Percentage of Core Portfolio Annualized Rental Revenue (2)		NOI from Real Estate Operations for Three Months Ended		NOI from Real Estate Operations for Nine Months Ended
Property Grouping	# of Operating Office Properties	Office Operational Square Feet	% Occupied (1)	% Leased (1)	Office Property Annualized Rental Revenue (2)		Percentage of Core Portfolio Annualized Rental Revenue (2)		9/30/16		9/30/16
Core Portfolio:
Defense/IT Locations
Consolidated properties	133	12,952	91.9%	93.6%	374,965		84.7	%	60,155		177,853
Unconsolidated real estate JV (6)	6	962	100.0%	100.0%	5,233		1.2	%	1,008		1,008
Total Defense/IT Locations	139	13,914	92.5%	94.1%	380,198		85.9	%	61,163		178,861
Regional Office	7	2,024	96.2%	96.8%	62,462		14.1	%	9,336		28,882
Wholesale Data Center and Other	N/A	N/A	N/A	N/A	N/A		N/A		3,544		11,630
Total Core Portfolio	146	15,938	93.0%	94.4%	$	442,660	100.0	%	$	74,043	$	219,373


(1)	Percentages calculated based on operational square feet.


(2)	Excludes Annualized Rental Revenue from our wholesale data center, DC-6, of $20.5 million as of 9/30/16. With regard to properties owned through unconsolidated real estate joint ventures, we include the portion of Annualized Rental Revenue allocable to COPT’s ownership interest.


(3)	Properties continually owned and 100% operational since at least 1/1/15, excluding properties disposed or held for sale.


(4)	Newly constructed or redeveloped properties placed in service that were not fully operational by 1/1/15.


(5)	Includes properties acquired in 2015.


(6)	Represents total information pertaining to properties owned through an unconsolidated real estate joint venture except for the amounts reported for Annualized Rental Revenue and NOI from real estate operations, which represent the portion allocable to COPT’s ownership interest. See page 34 for additional disclosure regarding this joint venture.


(7)	The carrying value of operating property assets held for sale as of 9/30/16 totaled $139.7 million.

Corporate Office Properties Trust

Consolidated Real Estate Revenues and NOI by Segment

(dollars in thousands)



	Three Months Ended										Nine Months Ended
	9/30/16		6/30/16		3/31/16		12/31/15		9/30/15		9/30/16		9/30/15
Consolidated real estate revenues
Defense/IT Locations:
Fort Meade/BW Corridor	$	61,460	$	60,912	$	62,509	$	61,683	$	61,400	$	184,881	$	182,591
NoVA Defense/IT	12,231		12,057		12,116		11,816		12,875		36,404		37,383
Lackland Air Force Base	12,532		11,651		10,225		12,233		9,018		34,408		27,426
Navy Support	7,232		6,998		6,934		6,840		6,886		21,164		21,337
Redstone Arsenal	3,189		3,191		3,116		3,063		3,061		9,496		8,165
Data Center Shells-Consolidated	5,175		7,288		6,330		5,930		5,665		18,793		15,816
Total Defense/IT locations	101,819		102,097		101,230		101,565		98,905		305,146		292,718
Regional Office	20,499		23,283		23,502		25,023		26,782		67,284		73,142
Wholesale Data Center	6,809		6,804		6,493		6,099		6,078		20,106		12,933
Other	1,827		1,740		1,862		1,790		1,921		5,429		5,798
Consolidated real estate revenues	$	130,954	$	133,924	$	133,087	$	134,477	$	133,686	$	397,965	$	384,591

NOI
Defense/IT Locations:
Fort Meade/BW Corridor	$	40,862	$	40,534	$	39,263	$	41,476	$	41,294	$	120,659	$	119,489
NoVA Defense/IT	7,769		7,750		7,575		7,829		7,725		23,094		21,263
Lackland Air Force Base	4,933		4,807		4,805		4,894		4,465		14,545		12,761
Navy Support	3,858		4,323		3,410		3,686		3,599		11,591		11,262
Redstone Arsenal	2,077		2,231		2,138		2,171		2,173		6,446		5,560
Data Center Shells
Consolidated properties	4,647		6,462		5,520		5,358		5,133		16,629		14,090
COPT’s share of unconsolidated real estate JV (1)	1,008		—		—		—		—		1,008		—
Total Defense/IT locations	65,154		66,107		62,711		65,414		64,389		193,972		184,425
Regional Office	12,344		14,562		13,671		15,608		17,186		40,577		46,392
Wholesale Data Center	3,492		4,153		3,832		4,138		2,070		11,477		4,492
Other	1,020		961		998		819		1,144		2,979		3,292
NOI from real estate operations	$	82,010	$	85,783	$	81,212	$	85,979	$	84,789	$	249,005	$	238,601

(1) See page 34 for additional disclosure regarding an unconsolidated real estate joint venture.

Corporate Office Properties Trust

Cash NOI by Segment

(dollars in thousands)



	Three Months Ended															Nine Months Ended
	9/30/16			6/30/16			3/31/16			12/31/15			9/30/15			9/30/16			9/30/15

Cash NOI (1)
Defense/IT Locations:
Fort Meade/BW Corridor	$	40,253		$	39,588		$	38,502		$	39,668		$	39,841		$	118,343		$	114,749
NoVA Defense/IT	7,234			7,614			7,922			8,045			6,793			22,770			17,833
Lackland Air Force Base	4,855			4,718			4,716			4,745			3,680			14,289			10,348
Navy Support	3,524			4,218			3,196			3,597			3,565			10,938			10,970
Redstone Arsenal	2,411			2,534			2,473			2,267			1,881			7,418			5,561
Data Center Shells
Consolidated properties	4,549			6,077			5,108			5,024			4,802			15,734			12,742
COPT’s share of unconsolidated real estate JV (2)	862			—			—			—			—			862			—
Total Defense/IT locations	63,688			64,749			61,917			63,346			60,562			190,354			172,203
Regional Office	12,480			14,152			13,000			15,031			15,943			39,632			44,179
Wholesale Data Center	3,439			4,052			3,728			4,011			1,952			11,219			4,983
Other	935			892			823			835			1,117			2,650			3,222
Cash NOI from real estate operations (1)	$	80,542		$	83,845		$	79,468		$	83,223		$	79,574		$	243,855		$	224,587
Straight line rent adjustments and lease incentive amortization	(1,086		)	(897		)	546			2,254			5,217			(1,437		)	9,604
Add: Amortization of deferred market rental revenue	(201		)	(189		)	(190		)	(178		)	(293		)	(580		)	(542		)
Less: Amortization of below-market cost arrangements	(241		)	(241		)	(240		)	(284		)	(289		)	(722		)	(805		)
Add: Lease termination fee, gross	471			417			980			417			190			1,868			1,956
Add: Cash NOI on tenant funded landlord assets	2,379			2,848			648			547			390			5,875			3,801
Cash NOI adjustments in unconsolidated real estate JV	146			—			—			—			—			146			—
NOI from real estate operations	$	82,010		$	85,783		$	81,212		$	85,979		$	84,789		$	249,005		$	238,601


(1)	Effective in the current quarter, we changed our definition of Cash NOI used for the above segment presentation to exclude the effects of gross lease termination fees and revenue recognized as a result of tenant-funded landlord assets. As a result of this change, our definition is consistent with the definition of Cash NOI used for our Same Office Property presentation.


(2)	See page 34 for additional disclosure regarding an unconsolidated real estate joint venture.

Corporate Office Properties Trust

Same Office Properties (1) Average Occupancy Rates by Segment

(square feet in thousands)



	Number of Buildings	Rentable Square Feet	Three Months Ended										Nine Months Ended
	Number of Buildings	Rentable Square Feet	9/30/16		6/30/16		3/31/16		12/31/15		9/30/15		9/30/16		9/30/15
Core Portfolio:
Defense/IT Locations:
Fort Meade/BW Corridor	78	7,425	95.0	%	94.9	%	95.0	%	96.6	%	96.0	%	95.0	%	95.5	%
NoVA Defense/IT	9	1,203	76.4	%	74.1	%	74.5	%	75.9	%	75.4	%	75.0	%	75.9	%
Lackland Air Force Base	6	792	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Navy Support	20	1,233	75.2	%	74.6	%	74.0	%	73.9	%	73.3	%	74.6	%	77.7	%
Redstone Arsenal	5	563	99.4	%	98.8	%	97.5	%	95.7	%	94.5	%	98.6	%	89.5	%
Data Center Shells	3	451	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Total Defense/IT Locations	121	11,667	91.7	%	91.4	%	91.3	%	92.4	%	91.8	%	91.5	%	91.8	%
Regional Office	5	1,088	98.2	%	98.8	%	97.5	%	96.0	%	95.1	%	98.2	%	94.4	%
Core Portfolio Same Office Properties	126	12,755	92.3	%	92.0	%	91.8	%	92.7	%	92.1	%	92.0	%	92.0	%
Other Same Office Properties	3	286	44.0	%	43.5	%	43.5	%	44.2	%	43.8	%	43.7	%	45.3	%
Total Same Office Properties	129	13,041	91.2	%	90.9	%	90.8	%	91.6	%	91.1	%	91.0	%	91.0	%

Corporate Office Properties Trust Same Office Properties (1) Period End Occupancy Rates by Segment (square feet in thousands)
	Number of Buildings	Rentable Square Feet
	Number of Buildings	Rentable Square Feet	9/30/16		6/30/16		3/31/16		12/31/15		9/30/15
Core Portfolio:
Defense/IT Locations:
Fort Meade/BW Corridor	78	7,425	95.1	%	94.8	%	94.8	%	96.5	%	96.3	%
NoVA Defense/IT	9	1,203	78.1	%	73.9	%	74.5	%	75.8	%	76.1	%
Lackland Air Force Base	6	792	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Navy Support	20	1,233	75.3	%	76.4	%	73.4	%	73.8	%	73.1	%
Redstone Arsenal	5	563	100.0	%	98.8	%	98.8	%	96.7	%	95.2	%
Data Center Shells	3	451	100.0	%	100.0	%	100.0	%	100.0	%	100.0	%
Total Defense/IT Locations	121	11,667	92.0	%	91.5	%	91.2	%	92.4	%	92.1	%
Regional Office	5	1,088	97.8	%	99.3	%	98.0	%	96.3	%	95.2	%
Core Portfolio Same Office Properties	126	12,755	92.5	%	92.1	%	91.8	%	92.7	%	92.3	%
Other Same Office Properties	3	286	44.0	%	43.5	%	43.5	%	44.4	%	43.8	%
Total Same Office Properties	129	13,041	91.4	%	91.1	%	90.7	%	91.6	%	91.3	%

(1) Same office properties represent buildings continually owned and 100% operational since at least January 1, 2015, excluding properties disposed or held for sale.

Corporate Office Properties Trust

Same Office Property Real Estate Revenues and NOI by Segment

(dollars in thousands)



	Three Months Ended										Nine Months Ended
	9/30/16		6/30/16		3/31/16		12/31/15		9/30/15		9/30/16		9/30/15
Same office property real estate revenues
Defense/IT Locations:
Fort Meade/BW Corridor	$	57,675	$	57,011	$	58,918	$	58,128	$	57,879	$	173,604	$	172,757
NoVA Defense/IT	6,650		6,500		6,755		6,666		6,668		19,905		20,210
Lackland Air Force Base	10,536		10,031		8,699		10,564		7,912		29,266		24,889
Navy Support	7,232		6,998		6,934		6,840		6,887		21,164		21,337
Redstone Arsenal	2,828		2,847		2,771		2,718		2,716		8,446		7,669
Data Center Shells	3,050		3,095		3,040		3,051		3,081		9,185		9,189
Total Defense/IT Locations	87,971		86,482		87,117		87,967		85,143		261,570		256,051
Regional Office	9,402		9,379		9,158		8,954		9,550		27,939		27,805
Other Properties	1,016		951		930		965		1,072		2,897		3,082
Same office property real estate revenues	$	98,389	$	96,812	$	97,205	$	97,886	$	95,765	$	292,406	$	286,938
Same office property NOI
Defense/IT Locations:
Fort Meade/BW Corridor	$	38,416	$	38,097	$	37,396	$	39,117	$	38,958	$	113,909	$	113,519
NoVA Defense/IT	4,119		3,969		4,000		4,158		4,093		12,088		12,040
Lackland Air Force Base	3,741		3,746		3,749		3,746		3,672		11,236		11,063
Navy Support	3,875		4,340		3,435		3,706		3,605		11,650		11,268
Redstone Arsenal	1,961		1,981		1,872		1,905		1,872		5,814		5,122
Data Center Shells	2,758		2,764		2,769		2,770		2,771		8,291		8,307
Total Defense/IT Locations	54,870		54,897		53,221		55,402		54,971		162,988		161,319
Regional Office	5,819		5,790		5,571		5,509		5,976		17,180		16,815
Other Properties	606		577		488		411		642		1,671		1,619
Same office property NOI	$	61,295	$	61,264	$	59,280	$	61,322	$	61,589	$	181,839	$	179,753

Corporate Office Properties Trust

Same Office Property Cash NOI (1) by Segment

(dollars in thousands)



	Three Months Ended															Nine Months Ended
	9/30/16			6/30/16			3/31/16			12/31/15			9/30/15			9/30/16			9/30/15
Same office property cash NOI
Defense/IT Locations:
Fort Meade/BW Corridor	$	38,322		$	37,907		$	37,114		$	38,222		$	38,245		$	113,343		$	109,825
NoVA Defense/IT	3,340			3,545			3,999			4,138			3,971			10,884			11,588
Lackland Air Force Base	3,742			3,748			3,751			3,748			3,574			11,241			10,768
Navy Support	3,542			4,234			3,221			3,617			3,570			10,997			10,975
Redstone Arsenal	2,312			2,307			2,229			2,118			1,887			6,848			5,526
Data Center Shells	2,915			2,890			2,883			2,877			2,865			8,688			8,514
Total Defense/IT Locations	54,173			54,631			53,197			54,720			54,112			162,001			157,196
Regional Office	6,218			6,252			6,042			5,801			5,547			18,512			16,113
Other Properties	561			554			470			407			638			1,585			1,633
Same office property cash NOI	$	60,952		$	61,437		$	59,709		$	60,928		$	60,297		$	182,098		$	174,942
Straight line rent adjustments and lease incentive amortization	(2,230		)	(3,172		)	(1,761		)	(338		)	965			(7,163		)	3,175
Add: Amortization of deferred market rental revenue	22			34			34			28			16			90			71
Less: Amortization of below-market cost arrangements	(218		)	(219		)	(218		)	(259		)	(264		)	(655		)	(775		)
Add: Lease termination fee, gross	390			336			953			416			185			1,679			1,950
Add: Cash NOI on tenant-funded landlord assets	2,379			2,848			563			547			390			5,790			390
Same office property NOI	$	61,295		$	61,264		$	59,280		$	61,322		$	61,589		$	181,839		$	179,753
Percentage change in same office property cash NOI (1)	1.1		%													4.1		%


(1)	Represents the change between the current period and the same period in the prior year.

Corporate Office Properties Trust

Leasing - Total Office Portfolio (1)

Quarter Ended September 30, 2016

(square feet in thousands)



	Ft Meade/BW Corridor			NoVA Defense/IT			Navy Support			Regional Office			Total Office
Renewed Space
Leased Square Feet	79			213			71			234			597
Expiring Square Feet	120			213			85			302			720
Vacating Square Feet	41			—			13			68			123
Retention Rate (% based upon square feet)	65.6		%	100.0		%	84.4		%	77.4		%	82.9		%
Statistics for Completed Leasing:
Average Committed Cost per Square Foot	$	27.86		$	14.86		$	11.21		$	71.58		$	38.36
Weighted Average Lease Term in Years	5.9			7.0			3.7			9.9			7.6
GAAP Rent Per Square Foot
Renewal GAAP Rent	$	29.37		$	32.10		$	28.31		$	35.51		$	32.62
Expiring GAAP Rent	$	28.06		$	30.84		$	30.76		$	38.18		$	33.34
Change in GAAP Rent	4.7		%	4.1		%	(8.0		)%	(7.0		)%	(2.2		)%
Cash Rent Per Square Foot
Renewal Cash Rent	$	29.11		$	31.22		$	28.26		$	35.36		$	32.21
Expiring Cash Rent	$	30.46		$	32.78		$	32.11		$	43.36		$	36.54
Change in Cash Rent	(4.4		)%	(4.8		)%	(12.0		)%	(18.5		)%	(11.9		)%
Average escalations per year	2.5		%	2.3		%	2.1		%	2.3		%	2.3		%
New Leases
Development and Redevelopment Space
Leased Square Feet	19			7			—			—			26
Statistics for Completed Leasing:
Average Committed Cost per Square Foot	$	71.64		$	100.40		$	—		$	—		$	79.36
Weighted Average Lease Term in Years	8.5			11.4			—			—			9.3
GAAP Rent Per Square Foot	$	28.43		$	32.11		$	—		$	—		$	29.42
Cash Rent Per Square Foot	$	25.56		$	30.73		$	—		$	—		$	26.95
Other New Leases (2)
Leased Square Feet	25			12			56			25			118
Statistics for Completed Leasing:
Average Committed Cost per Square Foot	$	39.65		$	74.35		$	57.92		$	40.87		$	51.98
Weighted Average Lease Term in Years	5.4			7.4			6.9			6.3			6.5
GAAP Rent Per Square Foot	$	25.28		$	28.16		$	33.80		$	28.47		$	30.30
Cash Rent Per Square Foot	$	25.11		$	27.66		$	37.20		$	28.40		$	31.81
Total Square Feet Leased	123			231			128			259			741
Average escalations per year	2.7		%	2.3		%	1.0		%	2.3		%	2.2		%


(1)	Activity is exclusive of owner occupied space and leases with less than a one-year term. Weighted average lease term was calculated assuming no exercise of any existing early termination rights. Committed costs for leasing are reported above in the period of lease execution. Actual capital expenditures for leasing are reported on page 9 in the period such costs are incurred.

(2) Other New Leases includes acquired first generation space and vacated second generation space.

Corporate Office Properties Trust

Leasing - Total Office Portfolio (1)

Nine Months Ended September 30, 2016

(square feet in thousands)



	Ft Meade/BW Corridor			NoVA Defense/IT			Navy Support			Redstone Arsenal			Data Center Shells			Regional Office			Other			Total Office
Renewed Space
Leased Square Feet	652			295			120			1			—			263			23			1,353
Expiring Square Feet	874			351			134			1			—			332			32			1,725
Vacating Square Feet	222			56			14			—			—			69			10			371
Retention Rate (% based upon square feet)	74.6		%	84.0		%	89.3		%	100.0		%	—		%	79.2		%	70.1		%	78.5		%
Statistics for Completed Leasing:
Average Committed Cost per Square Foot	$	12.30		$	11.37		$	10.52		$	6.14		$	—		$	67.92		$	—		$	22.52
Weighted Average Lease Term in Years	5.6			5.6			3.1			0.5			—			9.4			1.0			6.0
GAAP Rent Per Square Foot
Renewal GAAP Rent	$	33.90		$	31.41		$	27.23		$	27.08		$	—		$	35.04		$	22.85		$	32.80
Expiring GAAP Rent	$	30.59		$	29.68		$	29.77		$	26.55		$	—		$	37.04		$	20.79		$	31.40
Change in GAAP Rent	10.8		%	5.9		%	(8.5		)%	2.0		%	—		%	(5.4		)%	9.9		%	4.5		%
Cash Rent Per Square Foot
Renewal Cash Rent	$	32.43		$	30.30		$	27.18		$	25.50		$	—		$	34.76		$	22.85		$	31.78
Expiring Cash Rent	$	32.50		$	31.25		$	30.79		$	25.00		$	—		$	41.75		$	22.85		$	33.70
Change in Cash Rent	(0.2		)%	(3.0		)%	(11.7		)%	2.0		%	—		%	(16.7		)%	—		%	(5.7		)%
Average escalations per year	2.8		%	2.3		%	2.1		%	—		%	—		%	2.3		%	—		%	2.5		%
New Leases
Development and Redevelopment Space
Leased Square Feet	23			35			—			—			513			—			—			571
Statistics for Completed Leasing:
Average Committed Cost per Square Foot	$	64.53		$	89.01		$	—		$	—		$	—		$	—		$	—		$	8.10
Weighted Average Lease Term in Years	7.3			10.2			—			—			10.0			—			—			9.9
GAAP Rent Per Square Foot	$	28.43		$	34.24		$	—		$	—		$	13.57		$	—		$	—		$	15.44
Cash Rent Per Square Foot	$	26.02		$	32.58		$	—		$	—		$	12.45		$	—		$	—		$	14.24
Other New Leases (2)
Leased Square Feet	173			50			89			7			—			42			6			367
Statistics for Completed Leasing:
Average Committed Cost per Square Foot	$	34.81		$	58.90		$	47.65		$	56.66		$	—		$	40.75		$	36.57		$	42.31
Weighted Average Lease Term in Years	6.6			6.2			5.6			6.2			—			7.4			3.8			6.3
GAAP Rent Per Square Foot	$	28.74		$	26.24		$	32.05		$	25.18		$	—		$	28.88		$	21.09		$	29.01
Cash Rent Per Square Foot	$	27.95		$	25.86		$	34.29		$	23.40		$	—		$	28.15		$	20.49		$	29.00
Total Square Feet Leased	848			380			209			8			513			304			29			2,292
Average escalations per year	2.8		%	2.4		%	1.3		%	2.8		%	2.3		%	2.3		%	1.6		%	2.4		%
Average escalations excl. data center shells																						2.5		%


(1)	Activity is exclusive of owner occupied space and leases with less than a one-year term. Weighted average lease term was calculated assuming no exercise of any existing early termination rights. Committed costs for leasing are reported above in the period of lease execution. Actual capital expenditures for leasing are reported on page 9 in the period such costs are incurred.

(2) Other New Leases includes acquired first generation space and vacated second generation space.

Corporate Office Properties Trust

Lease Expiration Analysis as of 9/30/16 (1)

(dollars and square feet in thousands, except per square foot amounts)



Year and Region of Lease (2)	Number of Leases Expiring	Square Footage of Leases Expiring	Annual Rental Revenue of Expiring Leases (3)		Percentage of Total Annualized Rental Revenue Expiring (3)		Annual Rental Revenue of Expiring Leases per Occupied Square Foot
Core Portfolio
Ft Meade/BW Corridor	14	283	$	9,926	2.2	%	$35.12
NoVA Defense/IT	5	35	654		0.1	%	18.48
Navy Support	4	57	1,048		0.2	%	18.27
Regional Office	10	96	3,426		0.8	%	35.70
2016	33	471	15,054		3.4	%	31.94
Ft Meade/BW Corridor	38	1,164	37,615		8.5	%	32.33
NoVA Defense/IT	3	28	1,118		0.3	%	39.45
Navy Support	16	135	2,760		0.6	%	20.37
Redstone Arsenal	1	2	34		—	%	19.89
Regional Office	11	114	3,949		0.9	%	34.59
2017	69	1,443	45,476		10.3	%	31.51
Ft Meade/BW Corridor	44	985	33,160		7.5	%	33.67
NoVA Defense/IT	5	206	7,630		1.7	%	37.11
Navy Support	17	181	5,320		1.2	%	29.47
Redstone Arsenal	3	251	6,478		1.5	%	25.78
Data Center Shells-Consolidated properties	1	155	2,498		0.6	%	16.11
Regional Office	9	126	4,049		0.9	%	32.21
2018	79	1,904	59,135		13.4	%	31.07
Ft Meade/BW Corridor	43	1,477	48,097		10.9	%	32.56
NoVA Defense/IT	6	258	9,798		2.2	%	37.99
Navy Support	10	59	1,596		0.4	%	26.88
Redstone Arsenal	4	71	1,465		0.3	%	20.63
Regional Office	11	169	4,637		1.0	%	27.39
2019	74	2,034	65,593		14.8	%	32.24
Ft Meade/BW Corridor	38	1,049	34,135		7.7	%	32.54
NoVA Defense/IT	4	121	3,272		0.7	%	26.94
Lackland Air Force Base	2	250	9,092		2.1	%	36.32
Navy Support	17	175	7,012		1.6	%	40.14
Redstone Arsenal	3	141	2,984		0.7	%	21.22
Regional Office	11	67	2,017		0.5	%	29.96
2020	75	1,803	58,512		13.2	%	32.45
Thereafter
Consolidated Properties	172	6,199	193,657		43.7	%	28.51
Unconsolidated JV Properties	6	962	5,233		1.2	%	10.88
Core Portfolio	508	14,816	$	442,660	100.0	%	$29.88



Year and Region of Lease (2)	Number of Leases Expiring	Square Footage of Leases Expiring		Annual Rental Revenue of Expiring Leases (3)		Percentage of Total Annualized Rental Revenue Expiring (3)		Annual Rental Revenue of Expiring Leases per Occupied Square Foot
Core Portfolio	508	14,816		$	442,660	100.0	%	$29.88
Office Properties Held for Sale and Other
Ft Meade/BW Corridor	19	231		5,095		17.6	%	22.05
NoVA Defense/IT	14	306		8,559		29.6	%	27.94
Regional Office	27	353		8,371		29.0	%	23.71
Other	16	263		6,872		23.8	%	26.12
Office Properties Held for Sale and Other Total Average	76	1,153		28,897		100.0	%	25.05
Total Portfolio	584	$	15,969	$	471,557			$29.53
Consolidated Portfolio	578	15,007		$	466,324
Unconsolidated JV Properties	6	962		$	5,233

Note: As of September 30, 2016, the weighted average lease term is 4.9 years for the Core Portfolio, 4.8 for the Total Portfolio and 4.6 for the Consolidated Portfolio.

Wholesale Data Center Lease Expiration Analysis



Year of Lease Expiration	Number of Leases Expiring	Raised Floor Square Footage	Critical Load(MW)	Total Annual Rental Revenue of Expiring Leases (3)(000's)
2017	1	9	2.00	$	2,280
2018	2	1	0.26	536
2019	1	6	1.00	2,274
2020	2	19	11.45	13,871
2022	1	6	1.00	1,559
			15.71	$	20,519

(1)

This expiration analysis reflects occupied space of our total portfolio (including consolidated and unconsolidated properties) and includes the effect of early renewals completed on existing leases but excludes the effect of new tenant leases on square feet yet to commence as of September 30, 2016 of 266,000 for the portfolio, including 232,000 for the Core Portfolio. With regard to properties owned through unconsolidated real estate joint ventures, the amounts reported above reflect 100% of the properties’ square footage but only reflect the portion of Annualized Rental Revenue that was allocable to COPT’s ownership interest.


(2)	A number of our leases are subject to certain early termination provisions. The year of lease expiration was computed assuming no exercise of such early termination rights.


(3)	Total Annualized Rental Revenue is the monthly contractual base rent as of September 30, 2016 multiplied by 12 plus the estimated annualized expense reimbursements under existing leases. The amounts reported above for Annualized Rental Revenue include the portion of properties owned through an unconsolidated real estate joint venture that was allocable to COPT’s ownership interest.

Corporate Office Properties Trust

Top 20 Office Tenants as of 9/30/16 (1)

(Based on Annualized Rental Revenue of

office properties, dollars and square feet in thousands)



Tenant		Number of Leases	Total Occupied Square Feet	Percentage of Total Occupied Square Feet		Total Annualized Rental Revenue (2)		Percentage of Total Annualized Rental Revenue (2)		Weighted Average Remaining Lease Term (3)
United States Government	(4)	61	3,760	23.5	%	$	141,192	29.9	%	4.7
Northrop Grumman Corporation		8	757	4.7	%	22,509		4.8	%	3.7
The Boeing Company		11	685	4.3	%	20,204		4.3	%	2.8
General Dynamics Corporation		7	528	3.3	%	19,536		4.1	%	4.8
Vadata Inc.	(1)	9	1,408	8.8	%	12,040		2.6	%	8.6
Computer Sciences Corporation		3	279	1.7	%	10,811		2.3	%	2.4
CareFirst, Inc.		2	300	1.9	%	10,422		2.2	%	6.4
Booz Allen Hamilton, Inc.		6	294	1.8	%	9,994		2.1	%	4.5
Wells Fargo & Company		3	190	1.2	%	8,353		1.8	%	10.8
CACI Technologies, Inc.		3	225	1.4	%	7,285		1.5	%	4.0
AT&T Corporation		3	308	1.9	%	6,019		1.3	%	2.6
The Raytheon Company		6	168	1.1	%	5,967		1.3	%	2.4
KEYW Corporation		2	211	1.3	%	5,895		1.3	%	7.2
Science Applications International Corp.		4	146	0.9	%	5,122		1.1	%	4.2
Miles & Stockbridge, PC		2	156	1.0	%	5,052		1.1	%	11.0
Transamerica Life Insurance Company		2	159	1.0	%	4,815		1.0	%	5.2
Harris Corporation		6	170	1.1	%	4,710		1.0	%	5.5
University of Maryland		3	172	1.1	%	4,692		1.0	%	4.8
Kratos Defense and Security Solutions		1	131	0.8	%	4,638		1.0	%	3.6
The Mitre Corporation		4	122	0.8	%	4,267		0.9	%	3.2
Subtotal Top 20 Office Tenants		146	10,168	63.7	%	313,523		66.5	%	5.2
All remaining tenants		438	5,801	36.3	%	158,034		33.5	%	4.2
Total/Weighted Average		584	15,969	100.0	%	$	471,557	100.0	%	4.8

(1) Includes Annualized Rental Revenue in six properties owned through an unconsolidated JV of $5.23 million (see page 34 for additional information).

(2) Total Annualized Rental Revenue is the monthly contractual base rent as of 9/30/16, multiplied by 12, plus the estimated annualized expense reimbursements under existing leases. With regard to properties owned through unconsolidated real estate joint ventures, the amounts reported above reflect 100% of the properties’ square footage but only reflect the portion of Annualized Rental Revenue that was allocable to COPT’s ownership interest.

(3) A number of our leases are subject to certain early termination provisions. The year of lease expiration was computed assuming no exercise of such early termination rights. The weighting of the lease term was computed using Total Rental Revenue.

(4) Substantially all of our government leases are subject to early termination provisions which are customary in government leases. The weighted average remaining lease term was computed assuming no exercise of such early termination rights. As of 9/30/16, $2.5 million in Annualized Rental Revenue (or 1.8% of our Annualized Rental Revenue from the United States Government) was through the General Services Administration (GSA).

Corporate Office Properties Trust

Property Dispositions

(dollars in thousands)



	Property Segment/Subsegment	Business Park/Submarket	Number of Buildings	Square Feet	Transaction Date	Occupancy on Transaction Date	Transaction Price
Quarter Ended 3/31/16
Colorado Springs Land	N/A	N/A	N/A	N/A	Various	N/A	$	5,701

Quarter Ended 9/30/16
50% interest in DC8, 9, 10, 11, 12 and 14	Data Center Shells	Ashburn and Prince William County	6	962	7/21/2016	100.0%	73,821		(1)
Arborcrest Corporate Campus properties	Regional Office	Greater Philadelphia	4	654	8/4/2016	100.0%	142,800
8003 Corporate Drive	Regional Office	White Marsh	1	18	8/17/2016	100.0%	2,400
1341 and 1343 Ashton Road	Fort Meade/BW Corridor	BWI South	2	25	9/9/2016	60.7%	2,900
8007, 8013, 8015, 8019 and 8023-8027 Corporate Drive	Regional Office	White Marsh	5	130	9/21/2016	77.8%	14,513
1302, 1304 and 1306 Concourse Drive	Fort Meade/BW Corridor	Airport Square	3	299	9/29/2016	83.1%	48,100
Subtotal - Quarter Ended 9/30/16			21	2,088			284,534

Subsequent to 9/30/16 (through 10/26/16)
2900 Towerview Road	NoVA Defense/IT	Route 28 South	1	151	10/19/2016	100.0%	12,100
Colorado Springs Land	N/A	N/A	N/A	N/A	10/26/2016	N/A	2,000
Subtotal - Subsequent to 9/30/16 (through 10/26/16)			1	151			14,100

Year to Date Dispositions through 10/26/16			22	2,239			$	304,335

(1) We sold a 50% interest in these six data centers by contributing them into a newly-formed joint venture for an aggregate property value of $147.6 million. We obtained $60 million in non-recourse mortgage loans on the properties immediately prior to contributing the properties and received the net proceeds.

Corporate Office Properties Trust

Construction, Redevelopment and Land Owned/Controlled as of 9/30/16

(dollars and square feet in thousands)



	Construction Projects (1)			Redevelopment Projects (2)			Land Owned/Controlled (3)			Total
Segment	Rentable Square Feet
Defense/IT Locations:
Fort Meade/BW Corridor	336			104			4,175			4,615
NoVA Defense/IT	401			—			1,614			2,015
Lackland Air Force Base	—			—			1,033			1,033
Navy Support	—			—			109			109
Redstone Arsenal	19			—			4,084			4,103
Data Center Shells	365			—			422			787
Subtotal Defense/IT Locations	1,121			104			11,437			12,662
Regional Office	—			—			1,089			1,089
Other	—			—			1,578			1,578
Total	1,121			104			14,104			15,329
	Costs to date by region
Defense/IT Locations:
Fort Meade/BW Corridor	$	62,889		$	20,346		$	133,997		$	217,232
NoVA Defense/IT	44,072			—			92,890			136,962
Lackland Air Force Base	—			—			20,197			20,197
Navy Support	—			—			2,590			2,590
Redstone Arsenal	4,578			—			18,417			22,995
Data Center Shells	23,475			—			9,838			33,313
Subtotal Defense/IT Locations	135,014			20,346			277,929			433,289
Regional Office	—			—			64,591			64,591
Other	—			—			29,319			29,319
Total	$	135,014		$	20,346		$	371,839		$	527,199

Reconciliation to amounts included in projects in development or held for future development, including land costs, as reported on consolidated balance sheet
Operating properties	(73,779		)	(6,216		)	(25,833		)	(105,828		)
Assets held for sale	—			—			(21,780		)	(21,780		)
Deferred leasing costs and other assets	(3,017		)	(305		)	—			(3,322		)
Projects in development or held for future development, including associated land costs (4)	$	58,218		$	13,825		$	324,226		$	396,269


(1)	Represents construction projects as listed on page 25.


(2)	Represents redevelopment projects as listed on page 26.


(3)	Represents our land owned/controlled as listed on page 28.


(4)	Represents total of costs included in lines on our consolidated balance sheet entitled “construction and redevelopment in progress, including land” and “land owned/controlled”.

Corporate Office Properties Trust

Summary of Construction Projects as of 9/30/16 (1)

(dollars and square feet in thousands)



	Property Segment	Park/Submarket	Total Rentable Square Feet	Percentage Leased as of 9/30/16	as of 9/30/16 (2)						Actual or Anticipated Shell Completion Date	Anticipated Operational Date (3)
					Anticipated Total Cost		Cost to Date		Cost to Date Placed in Service

Property and Location
Under Construction
Bethlehem Technology Park - DC19 Manassas, Virginia	Data Center Shells	Manassas	149	100%	21,608		16,468		—		4Q 16	4Q 16
Bethlehem Technology Park - DC20 Manassas, Virginia	Data Center Shells	Manassas	216	100%	29,913		7,007		—		2Q 17	2Q 17
2100 Rideout Road Huntsville, Alabama (4)	Redstone Arsenal	Redstone Gateway	19	58%	5,123		4,578		3,100		2Q 16	2Q 17
NOVA Office D Northern Virginia	NoVA Defense/IT	Other	240	100%	49,344		12,768		—		3Q 17	3Q 17
540 National Business Parkway Annapolis Junction, Maryland	Ft. Meade/BW Corridor	National Bus. Park	145	49%	43,712		23,514		—		1Q 17	1Q 18
Total Under Construction			769	89%	$	149,700	$	64,335	$	3,100

Held for Lease to Government
310 Sentinel Way Annapolis Junction, Maryland	Ft Meade/BW Corridor	National Bus. Park	191	8%	54,352		39,375		39,375		(1)	(1)
NOVA Office B Northern Virginia	NoVA Defense/IT	Other	161	0%	41,500		31,304		31,304		(1)	(1)
Total Held for Lease to Government			352	4%	$	95,852	$	70,679	$	70,679

Total Construction Projects			1,121	63%	$	245,552	$	135,014	$	73,779


(1)	Includes properties under, or contractually committed for, construction as of 9/30/16 and 310 Sentinel Way and NOVA Office B, two properties that were complete but held for future lease to the United States Government.


(2)	Cost includes land, construction, leasing costs and allocated portion of structured parking and other shared infrastructure, if applicable.


(3)	Anticipated operational date is the estimated date when leases have commenced on 100% of a property’s space or one year from the cessation of major construction activities.


(4)	Although classified as under construction, 11,000 square feet were operational as of 9/30/16; NOI and cash NOI for this property was $22,000 for the three months ended 9/30/16.

Corporate Office Properties Trust

Summary of Redevelopment Projects as of 9/30/16

(dollars and square feet in thousands)




	Property Segment	Park/Submarket	Total Rentable Square Feet	Percentage Leased as of 9/30/16 (2)	as of 9/30/16 (1)										Actual or Anticipated Shell Completion Date	Anticipated Operational Date (3)
					Historical Basis, Net		Incremental Redevelopment Cost		Anticipated Total Cost		Cost to Date		Cost to Date Placed in Service

Property and Location
7134 Columbia Gateway Drive Columbia, Maryland (4)	Ft Meade/BW Corridor	Howard Co. Perimeter	22	38%	$	1,703	$	2,547	$	4,250	$	3,659	$	2,213	1Q 16	1Q 17
1201 Winterson Rd (AS13) Linthicum, Maryland	Ft Meade/BW Corridor	Airport Square	68	0%	2,959		12,892		15,851		10,876		2,959		1Q 16	1Q 17
Airport Landing (2) Linthicum, Maryland	Ft Meade/BW Corridor	Airport Square
Retail Buildings			14	56%	785		6,401		7,186		5,369		785		4Q 16	4Q 17
Pad Site			N/A	100%	259		183		442		442		259		4Q 16	4Q 16
Total Under Redevelopment			104	19%	$	5,706	$	22,023	$	27,729	$	20,346	$	6,216


(1)	Cost includes construction, leasing costs and allocated portion of shared infrastructure.

(2)

The redevelopment of Airport Landing involves the demolition of the existing office property to develop a retail center to serve the submarket. Upon completion, the project’s retail amenities will include: newly constructed retail property totaling 14,000 square feet; and a 1.2 acre retail pad site already under ground lease for 20 years to a national food service provider. The total percentage leased reported above for redevelopment projects was calculated by including the square footage of the building to be constructed on the pad site by the lessee.


(3)	Anticipated operational date is the estimated date when leases have commenced on 100% of a property’s space or one year from the cessation of major construction activities.


(4)	Although classified as under redevelopment, 4,000 square feet were operational as of 9/30/16; NOI and cash NOI for this property was $(3,000) for the three months ended 9/30/16.

Corporate Office Properties Trust

Office Property Construction and Redevelopment Placed in Service as of 9/30/16

(square feet in thousands)



			Total Property
			% Leased as of 9/30/16	Rentable Square Feet						Space Placed in Service % Leased as of 9/30/16
	Property Segment	Park/Submarket				Square Feet Placed in Service in 2016
Property and Location	Property Segment	Park/Submarket			Prior Year	1st Quarter	2nd Quarter	3rd Quarter	Total 2016
Patriot Point - DC15 Ashburn, Virginia	Data Center Shells	Ashburn	100%	149	—	149	—	—	149	100%
Patriot Point - DC16 Ashburn, Virginia	Data Center Shells	Ashburn	100%	149	—	—	149	—	149	100%
6708 Alexander Bell Drive Columbia, Maryland	Ft Meade/BW Corridor	Howard Co. Perimeter	0%	51	—	51	—	—	51	0%
7134 Columbia Gateway Drive Columbia, Maryland	Ft Meade/BW Corridor	Howard Co. Perimeter	36%	22	—	—	4	—	4	100%
Patriot Point - DC17 Ashburn, Virginia	Data Center Shells	Ashburn	100%	149	—	—	—	149	149	100%
7880 Milestone Parkway Hanover, Maryland	Ft Meade/BW Corridor	Arundel Preserve	73%	120	88	—	—	32	32	73%
2100 Rideout Road Huntsville, Alabama	Redstone Arsenal	Redstone Gateway	58%	19	—	—	—	11	11	100%
Total Construction/Redevelopment Placed Into Service			84%	659	88	200	153	192	545	87%

Corporate Office Properties Trust

Summary of Land Owned/Controlled as of 9/30/16 (1)



Location	Acres		Estimated Developable Square Feet (in thousands)		Costs to Date (2)
Land Owned/Controlled for Future Development
Defense IT Locations:
Fort Meade/BW Corridor:
National Business Park	233		1,956
Howard County	27		590
Other	143		1,629
Total Fort Meade/BW Corridor	403		4,175
NoVA Defense/IT	64		1,614
Lackland AFB	68		1,033
Navy Support	44		109
Redstone Arsenal	428		4,084
Data Center Shells	42		422
Total Defense/IT Locations	1,049		11,437
Regional Office	10		1,089
Total land owned/controlled for future development	1,059		12,526		$	316,687

Other land owned/controlled	146		1,578		7,539
Land held for sale	153		2,122		21,780

Land owned/controlled	1,358		16,226		$	346,006
Land held for sale	(153	)	(2,122	)	(21,780		)
Land held, net	1,205		14,104		$	324,226


(1)	This land inventory schedule excludes all properties listed as construction or redevelopment as detailed on pages 25 and 26, and includes properties under ground lease to us.


(2)	Represents total costs to date included in “projects in development or held for future development, including associated land costs,” as reported on page 24 (in thousands).


(3)	Includes land owned under a long-term master lease agreement to LW Redstone Company, a consolidated joint venture (see page 33). As this land is developed in the future, the joint venture will execute site-specific leases under the master lease agreement. Rental payments will commence under the site-specific leases as cash rents under tenant leases commence at the respective properties.

Corporate Office Properties Trust

Capitalization Overview

(dollars, shares and units in thousands)



	Wtd. Avg.						Gross Debt
	Maturity		Stated		Effective		Balance at
	(Years)		Rate		Rate (1)		9/30/2016
Debt
Secured debt	7.4		4.05	%	4.00	%	$	169,308
Unsecured debt	6.0		3.66	%	3.78	%	1,721,911
Total Consolidated Debt	6.1		3.70	%	3.80	%	$	1,891,219

Fixed rate debt (2)	6.9		4.30	%	4.44	%	$	1,821,219
Variable rate debt	3.9		2.17	%	2.17	%	70,000
Total Consolidated Debt							$	1,891,219

Preferred Equity		Redeemable
5.6% Series K Convertible Preferred Shares (3)			Jan-17				$	26,583
7.375% Series L Redeemable Preferred Shares			Jun-17				172,500
7.5% Series I Convertible Preferred Units (4)			Sep-19				8,800
Total Preferred Equity							$	207,883

Common Equity
Common Shares							94,765
Common Units							3,590
Total Common Shares and Units							98,355

Closing Common Share Price on 9/30/16							$	28.35
Common Equity Market Capitalization							$	2,788,364

Total Equity Market Capitalization							$	2,996,247

Total Market Capitalization							$	4,887,466

(1) Excludes the effect of deferred financing cost amortization.
(2) Includes the effect of interest rate swaps that hedge the risk of changes in interest rates on variable rate debt.
(3) 532,000 shares outstanding with a liquidation preference of $50 per share, and convertible into 434,000 common units.
(4) 352,000 units outstanding with a liquidation preference of $25 per unit, and convertible into 176,000 common units.



Investment Grade Ratings & Outlook:			Latest Affirmation
Fitch	BBB-	Stable	10/4/16
Moody’s	Baa3	Stable	7/28/16
Standard & Poor’s	BBB-	Stable	5/24/16

Corporate Office Properties Trust

Summary of Outstanding Debt as of 9/30/16

(dollars in thousands)



														Balloon
														Payment
	Stated		Amount			Maturity			Stated			Amount		Due Upon		Maturity
Unsecured Debt	Rate		Outstanding			Date		Secured Debt	Rate			Outstanding		Maturity		Date
Revolving Credit Facility	L + 1.20%		$	—		May-19	(1)(2)	7015 Albert Einstein Drive	7.87	%		$	1,306	$	—	Nov-19
Senior Unsecured Notes								7200 Redstone Gateway (6)	L + 1.85%			13,676		12,132		Oct-20
3.70% due 2021	3.70	%	$	300,000		Jun-21		7740 Milestone Parkway	3.96	%		18,702		15,902		Feb-23
3.60% due 2023	3.60	%	350,000			May-23		100 & 30 Light Street	4.32	%		54,699		47,676		Jun-23
5.25% due 2024	5.25	%	250,000			Feb-24		1000, 1200 and 1100 Redstone
5.00% due 2025	5.00	%	300,000			Jul-25		Gateway (6)	4.47	%	(7)	36,117		27,649		Jun-24
Subtotal - Senior Unsecured Notes	4.32	%	$	1,200,000				M Square (5825 & 5850
Unsecured Bank Term Loans								University Research Court)(6)	3.82	%		44,808		35,603		Jun-26
2019 Maturity	L + 2.1%		$	120,000		Aug-19	(3)	Total Secured Debt	4.05	%		$	169,308
2020 Maturity	L + 1.4%		300,000			May-20	(2)
2022 Maturity (5)	L + 1.8%		100,000			Dec-22	(4)
Subtotal - Term Loans	2.17	%	520,000
Other Unsecured Debt	—	%	1,911			May-26
Total Unsecured Debt	3.66	%	$	1,721,911

Debt Summary
Total Unsecured Debt	3.66	%	$	1,721,911
Total Secured Debt	4.05	%	169,308
Consolidated Debt	3.70	%	$	1,891,219
Net discounts and deferred
financing costs			(17,383		)
Debt, per balance sheet			$	1,873,836

Consolidated Debt			$	1,891,219
COPT's share of unconsolidated JV debt (8)			30,000
Gross debt			$	1,921,219


(1)	The Company’s $800 million line of credit matures in May 2019 and may be extended for two six-month periods, at our option.


(2)	Pre-payable anytime without penalty.


(3)	On October 12, 2016, we repaid this loan.


(4)	Pre-payable beginning December 2017 without penalty.


(5)	An additional $150.0 million in borrowings is available to be drawn under this loan through December 2016.


(6)	These properties are owned through consolidated joint ventures.


(7)	Represents the weighted average rate of three loans on the properties.


(8)	See page 34 for additional disclosure regarding an unconsolidated real estate joint venture.

Corporate Office Properties Trust

Summary of Outstanding Debt as of 9/30/16 (continued)

_____________________________________________________________________________________________________________

(1) Includes the effect of interest rate swaps in effect that hedge the risk of changes in interest rates on variable rate debt.

(2) On October 12, 2016, we repaid a $120.0 million term loan that was scheduled to mature in August 2019 primarily using cash on hand and proceeds from our Revolving Credit Facility.

Corporate Office Properties Trust

Debt Analysis

(dollars, shares and units in thousands, except per share amounts)



		As of and for Three					As of and for Three
		Months Ended			Line of Credit &		Months Ended
Senior Note Covenants (1)	Required	9/30/2016			Term Loan Covenants (1)	Required	9/30/2016
Total Debt / Total Assets	< 60%	42.3%			Total Debt / Total Assets	< 60%	36.3%
Secured Debt / Total Assets	< 40%	3.8%			Secured Debt / Total Assets	< 40%	3.4%
Debt Service Coverage	> 1.5x	3.4x			Adjusted EBITDA / Fixed Charges	> 1.5x	3.1x
Unencumbered Assets / Unsecured Debt	> 150%	239.1%			Unsecured Debt / Unencumbered Assets	< 60%	36.0%
					Unencumbered Adjusted NOI / Unsecured Interest Expense	> 1.75x	3.9x

Debt Ratios (2)	Source				Unencumbered Portfolio Analysis
Gross debt	p. 30	$	1,921,219		# of unencumbered properties		152
Adjusted book	p. 38	$	4,543,861		% of total portfolio		94		%
Net debt / adjusted book ratio		41.2		%	Unencumbered square feet in-service		15,009
Net debt plus pref. equity / adj. book ratio		45.8		%	% of total portfolio		91		%
Net debt	p. 38	$	1,873,201		NOI from unencumbered real estate operations		$	75,686
In-place adjusted EBITDA	p. 10	$	74,365		% of total NOI from real estate operations		92		%
Net debt / in-place adjusted EBITDA ratio		6.3		x	Adjusted EBITDA from unencumbered real estate operations		$	70,494
Net debt plus pref. equity / in-place adj. EBITDA ratio		7.0		x	% of total adjusted EBITDA from real estate operations		92		%
Denominator for debt service coverage	p. 37	$	19,492		Unencumbered adjusted book		$	4,142,579
Denominator for fixed charges	p. 37	$	24,451		% of total adjusted book		91		%
Adjusted EBITDA	p. 10	$	76,834
Adjusted EBITDA debt service coverage ratio		3.9		x
Adjusted EBITDA fixed charge coverage ratio		3.1		x

(1) The covenants are calculated as defined in the applicable agreements, and the calculations differ between those agreements.

(2) All coverage computations include discontinued operations.

Corporate Office Properties Trust

Consolidated Real Estate Joint Ventures as of 9/30/16

(dollars and square feet in thousands)



Operating Properties	Operational Square Feet	Occupancy %	Leased %	NOI for Three Months Ended 9/30/16 (2)		NOI for Nine Months Ended 9/30/16 (2)		Total Assets (1)		Venture Level Debt		% COPT Owned
Suburban Maryland:
M Square Associates, LLC (2 properties)	242	100.0%	100.0%	$	1,380	$	4,127	$	58,481	$	44,808	50%
Huntsville, AL:
LW Redstone Company, LLC (6 properties)	505	100.0%	100.0%	1,785		5,415		90,964		49,793		85%
Total/Average	747	100.0%	100.0%	$	3,165	$	9,542	$	149,445	$	94,601



Non-operational Properties	Estimated Developable Square Feet	Total Assets (1)		Venture Level Debt		% COPT Owned
Suburban Maryland:
M Square Research Park	525	$	7,572	$	—	50%
Huntsville, Alabama:
Redstone Gateway (3)	4,084	66,204		—		85%
Washington, DC:
Stevens Place	189	40,282		—		95%
Total	4,798	$	114,058	$	—

(1) Total assets includes the total assets recorded on the books of the consolidated joint venture plus any outside investment basis.


(2)	Represents gross NOI of the joint venture operating properties before allocation to joint venture partners.


(3)	Total assets include $48.1 million due from the City of Huntsville (including accrued interest) in connection with infrastructure costs funded by the joint venture.

Corporate Office Properties Trust

Unconsolidated Real Estate Joint Venture as of 9/30/16

(dollars and square feet in thousands)



	Data Center Shells
Joint venture information
COPT ownership %	50		%
Investment in unconsolidated real estate joint venture	$	25,721
Number of properties	6
Square feet	962
Percentage occupied	100		%
				COPT’s Share (1)
Balance sheet information
Operating properties, net	$	129,192		$	64,596
Total Assets	$	148,398		$	74,199
Debt	$	59,542		$	29,771


Operating information	Three Months Ended 9/30/16 (2)
Revenue	$	2,269		$	1,167
Operating expenses	(319		)	(159		)
NOI and EBITDA	1,950			1,008
Interest expense	(416		)	(208		)
Depreciation and amortization	(582		)	(207		)
Net income	$	952		$	593

NOI (per above)	$	1,950		$	1,008
Straight line rent adjustments	(163		)	(146		)
Cash NOI	$	1,787		$	862

(1) COPT's share represents the portion allocable to our ownership interest.

(2) Represents activity commencing upon the formation of the joint venture on July 21, 2016.

Corporate Office Properties Trust Supplementary Reconciliations of Non-GAAP Measures (dollars in thousands)

	Three Months Ended															Nine Months Ended
	9/30/16			6/30/16			3/31/16			12/31/15			9/30/15			9/30/16			9/30/15
GAAP revenues from real estate operations from continuing operations	$	130,954		$	133,924		$	133,087		$	134,477		$	133,686		$	397,965		$	384,587
Revenues from discontinued operations	—			—			—			—			—			—			4
Real estate revenues	$	130,954		$	133,924		$	133,087		$	134,477		$	133,686		$	397,965		$	384,591

GAAP property operating expenses from continuing operations	$	49,952		$	48,141		$	51,875		$	48,498		$	48,897		$	149,968		$	145,996
Property operating expenses from discontinued operations	—			—			—			—			—			—			(6		)
Real estate property operating expenses	$	49,952		$	48,141		$	51,875		$	48,498		$	48,897		$	149,968		$	145,990

Discontinued Operations
Revenues from real estate operations	$	—		$	—		$	—		$	—		$	—		$	—		$	4
Property operating expenses	—			—			—			—			—			—			6
Gain on early extinguishment of debt	—			—			—			—			—			—			380
Impairment losses	—			—			—			—			—			—			(234		)
Gain on sales of depreciated real estate properties	—			—			—			—			—			—			—
Discontinued operations	$	—		$	—		$	—		$	—		$	—		$	—		$	156

Gain on sales of real estate, net, per statements of operations	$	34,101		$	—		$	—		$	64,047		$	15		$	34,101		$	4,000
Gain on sales of non-operating properties	—			—			—			—			—			—			(3,985		)
Gain on sales of operating properties	$	34,101		$	—		$	—		$	64,047		$	15		$	34,101		$	15

Impairment losses, per statements of operations	$	27,699		$	69,692		$	2,446		$	19,744		$	2,307		$	99,837		$	3,545
Impairment losses on discontinued operations	—			—			—			—			—			—			234
Total impairment losses	$	27,699		$	69,692		$	2,446		$	19,744		$	2,307		$	99,837		$	3,779
Impairment losses on previously depreciated operating properties	(25,857		)	(55,124		)	(847		)	(331		)	(2,307		)	(81,828		)	(3,779		)
Impairment losses on non-operating properties	$	1,842		$	14,568		$	1,599		$	19,413		$	—		$	18,009		$	—

Corporate Office Properties Trust Supplementary Reconciliations of Non-GAAP Measures (continued) (dollars in thousands)

	Three Months Ended															Nine Months Ended
	9/30/16			6/30/16			3/31/16			12/31/15			9/30/15			9/30/16			9/30/15
NOI from real estate operations (1)
Real estate revenues	$	130,954		$	133,924		$	133,087		$	134,477		$	133,686		$	397,965		$	384,591
Real estate property operating expenses	(49,952		)	(48,141		)	(51,875		)	(48,498		)	(48,897		)	(149,968		)	(145,990		)
COPT’s share of NOI in unconsolidated real estate JV (2)	1,008			—			—			—			—			1,008			—
NOI from real estate operations	82,010			85,783			81,212			85,979			84,789			249,005			238,601
General and administrative expenses	(7,242		)	(6,512		)	(10,130		)	(6,609		)	(5,783		)	(23,884		)	(17,917		)
Leasing expenses	(1,613		)	(1,514		)	(1,753		)	(1,888		)	(1,656		)	(4,880		)	(4,947		)
Business development expenses and land carry costs	(1,716		)	(2,363		)	(2,418		)	(2,521		)	(5,573		)	(6,497		)	(10,986		)
NOI from construction contracts and other service operations	808			525			526			1,075			926			1,859			2,631
Impairment losses on non-operating properties	(1,842		)	(14,568		)	(1,599		)	(19,413		)	—			(18,009		)	—
Equity in income of unconsolidated non-real estate entities	1			10			10			10			18			21			52
Interest and other income	1,391			1,330			1,156			1,300			692			3,877			3,217
Gain (loss) on early extinguishment of debt	(59		)	5			17			(402		)	85,745			(37		)	86,057
Gain on sales of non-operating properties	—			—			—			—			—			—			3,985
Interest expense	(18,301		)	(22,639		)	(23,559		)	(22,347		)	(24,121		)	(64,499		)	(66,727		)
COPT’s share of interest expense of unconsolidated real estate JV	(208		)	—			—			—			—			(208		)	—
Income tax expense	21			(1		)	8			(46		)	(48		)	28			(153		)
FFO - per NAREIT (1)	$	53,250		$	40,056		$	43,470		$	35,138		$	134,989		$	136,776		$	233,813

(1) Please refer to the section entitled “Definitions” for a definition of this measure.
(2) See page 34 for a schedule of the related components.

Corporate Office Properties Trust Supplementary Reconciliations of Non-GAAP Measures (continued) (dollars in thousands)

	Three Months Ended															Nine Months Ended
	9/30/16			6/30/16			3/31/16			12/31/15			9/30/15			9/30/16			9/30/15
Total interest expense	$	18,301		$	22,639		$	23,559		$	22,347		$	24,121		$	64,499		$	66,727
Less: Amortization of deferred financing costs	(1,126		)	(1,178		)	(1,176		)	(1,127		)	(1,203		)	(3,480		)	(3,339		)
Less: Amortization of net debt discounts and prem., net of amounts capitalized	(332		)	(325		)	(319		)	(317		)	(321		)	(976		)	(849		)
Less: Gain (loss) on interest rate derivatives	1,523			(319		)	(1,551		)	(386		)	—			(347		)	—
Less: Interest expense on debt in default extinguished via conveyance of properties	—			—			—			—			(2,781		)	—			(11,224		)
COPT’s share of interest expense of unconsolidated real estate JV, excluding deferred financing costs	204			—			—			—			—			204			—
Denominator for interest coverage	18,570			20,817			20,513			20,517			19,816			59,900			51,315
Scheduled principal amortization	922			1,732			1,800			1,717			1,692			4,454			5,011
Denominator for debt service coverage	19,492			22,549			22,313			22,234			21,508			64,354			56,326
Capitalized interest	1,242			1,309			1,753			1,510			1,559			4,304			5,641
Preferred share dividends - redeemable non-convertible	3,552			3,553			3,552			3,553			3,552			10,657			10,657
Preferred unit distributions	165			165			165			165			165			495			495
Denominator for fixed charge coverage	$	24,451		$	27,576		$	27,783		$	27,462		$	26,784		$	79,810		$	73,119

Preferred share dividends	$	3,552		$	3,553		$	3,552		$	3,553		$	3,552		$	10,657		$	10,657
Preferred unit distributions	165			165			165			165			165			495			495
Common share dividends	26,068			26,034			26,037			25,998			26,000			78,139			78,000
Common unit distributions	988			1,004			1,011			1,011			1,011			3,003			3,035
Total dividends/distributions	$	30,773		$	30,756		$	30,765		$	30,727		$	30,728		$	92,294		$	92,187

Common share dividends	$	26,068		$	26,034		$	26,037		$	25,998		$	26,000		$	78,139		$	78,000
Common unit distributions	988			1,004			1,011			1,011			1,011			3,003			3,035
Dividends and distributions on dilutive preferred securities	—			—			—			—			537			—			—
Dividends and distributions for diluted FFO payout ratio	27,056			27,038			27,048			27,009			27,548			81,142			81,035
Dividends and distributions on antidilutive preferred securities	—			—			—			—			(537		)	—			—
Dividends and distributions for other payout ratios	$	27,056		$	27,038		$	27,048		$	27,009		$	27,011		$	81,142		$	81,035

Corporate Office Properties Trust Supplementary Reconciliations of Non-GAAP Measures (continued) (dollars in thousands)

	Three Months Ended
	9/30/16			6/30/16			3/31/16			12/31/15			9/30/15
Total Assets	$	3,634,194		$	3,841,692		$	3,937,908		$	3,909,312		$	3,912,092
Accumulated depreciation	681,476			678,827			713,283			700,363			675,747
Accumulated depreciation included in assets held for sale	22,938			76,653			33,143			18,317			65,872
Accumulated amort. of real estate intangibles and deferred leasing costs	201,414			199,038			198,552			195,506			189,571
Accumulated amortization of real estate intangibles and deferred leasing costs included in assets held for sale	21,469			27,206			20,655			17,456			26,260
COPT’s share of liabilities of unconsolidated real estate JV	30,013			—			—			—			—
COPT’s share of accumulated depreciation and amortization of unconsolidated real estate JV	375			—			—			—			—
Less: Cash and cash equivalents	(47,574		)	(13,317		)	(62,489		)	(60,310		)	(3,840		)
COPT’s share of cash of unconsolidated real estate JV	(444		)	—			—			—			—
Adjusted book	$	4,543,861		$	4,810,099		$	4,841,052		$	4,780,644		$	4,865,702

Gross debt (page 30)	$	1,921,219		$	2,112,700		$	2,158,880		$	2,097,230		$	2,133,073
Less: Cash and cash equivalents	(47,574		)	(13,317		)	(62,489		)	(60,310		)	(3,840		)
COPT’s share of cash of unconsolidated real estate JV	(444		)	—			—			—			—
Net debt	$	1,873,201		$	2,099,383		$	2,096,391		$	2,036,920		$	2,129,233
Preferred equity	207,883			207,883			207,883			207,883			207,883
Net debt plus preferred equity	$	2,081,084		$	2,307,266		$	2,304,274		$	2,244,803		$	2,337,116

Corporate Office Properties Trust

Definitions

Non-GAAP Measures

We believe that the measures defined below that are not determined in accordance with generally accepted accounting principles (“GAAP”) are helpful to investors in measuring our performance and comparing it to that of other real estate investment trusts (“REITs”). Since these measures exclude certain items includable in their respective most comparable GAAP measures, reliance on the measures has limitations; management compensates for these limitations by using the measures simply as supplemental measures that are weighed in balance with other GAAP and non-GAAP measures. These measures should not be used as an alternative to the respective most comparable GAAP measures when evaluating our financial performance or to cash flow from operating, investing and financing activities when evaluating our liquidity or ability to make cash distributions or pay debt service.

Adjusted book

Defined as total assets presented on our consolidated balance sheet excluding the effect of cash and cash equivalents, accumulated depreciation on real estate properties, accumulated amortization of intangible assets on real estate acquisitions, accumulated amortization of deferred leasing costs, unconsolidated real estate joint venture cash and cash equivalents, liabilities and accumulated depreciation and amortization (of real estate intangibles and deferred leasing costs) allocable to our ownership interest in the joint venture and the effect of properties serving as collateral for debt in default that we extinguished (or intend to extinguish) via conveyance of such properties.

Adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”)

Adjusted EBITDA is net income (loss) adjusted for the effects of interest expense, depreciation and amortization, impairment losses, gain on sales of properties, gain or loss on early extinguishment of debt, net gain on unconsolidated entities, operating property acquisition costs, loss on interest rate derivatives, income taxes, business development expenses, demolition costs on redevelopment properties and executive transition costs, and excluding the effect of properties that served as collateral for debt in default that we extinguished via conveyance of such properties. Adjusted EBITDA also includes adjustments to net income for the effects of the items noted above pertaining to an unconsolidated real estate JV that was allocable to our ownership interest in the JV. While EBITDA (earnings before interest, taxes, depreciation and amortization) is a universally-defined supplemental measure, Adjusted EBITDA incorporates additional adjustments for gains and losses from investing and financing activities and certain other items that we believe are not closely correlated to (or associated with) our operating performance. We believe that adjusted EBITDA is a useful supplemental measure for assessing our un-levered performance. We believe that net income is the most directly comparable GAAP measure to adjusted EBITDA.

Amortization of acquisition intangibles included in NOI

Represents the amortization of intangible asset and liability categories that is included in net operating income, including amortization of above- or below-market leases and above- or below-market cost arrangements.

Basic FFO available to common share and common unit holders (“Basic FFO”)

This measure is FFO adjusted to subtract (1) preferred share dividends, (2) income attributable to noncontrolling interests through ownership of preferred units in Corporate Office Properties, L.P. (the “Operating Partnership”) or interests in other consolidated entities not owned by us, (3) depreciation and amortization allocable to noncontrolling interests in other consolidated entities, (4) Basic FFO allocable to restricted shares and (5) issuance costs associated with redeemed preferred shares. With these adjustments, Basic FFO represents FFO available to common shareholders and holders of common units in the Operating Partnership (“common units”). Common units are substantially similar to our common shares of beneficial interest (“common shares”) and are exchangeable into common shares, subject to certain conditions. We believe that Basic FFO is useful to investors due to the close correlation of common units to common shares. We believe that net income is the most directly comparable GAAP measure to Basic FFO.

Corporate Office Properties Trust

Definitions

Cash net operating income (“Cash NOI”)

Defined as NOI from real estate operations adjusted to eliminate the effects of: straight-line rental adjustments, amortization of tenant incentives, amortization of acquisition intangibles included in FFO and NOI (including above- and below-market leases and above- or below-market cost arrangements), lease termination fees from tenants to terminate their lease obligations prior to the end of the agreed upon lease terms and rental revenue recognized under GAAP resulting from landlord assets funded by tenants. Cash NOI also includes adjustments to NOI from real estate operations for the effects of the items noted above pertaining to an unconsolidated real estate JV that were allocable to our ownership interest in the JV. Under GAAP, rental revenue is recognized evenly over the term of tenant leases (through straight-line rental adjustments and amortization of tenant incentives), which, given the long term nature of our leases, does not align with the economics of when tenant payments are due to us under the arrangements. Also under GAAP, when a property is acquired, we allocate the acquisition to certain intangible components, which are then amortized into NOI over their estimated lives, even though the resulting revenue adjustments are not reflective of our lease economics. In addition, revenue from lease termination fees and tenant-funded landlord improvements, absent an adjustment from us, would result in large one-time lump sum amounts in Cash NOI that we do not believe are reflective of a property’s long-term value. We believe that Cash NOI is a useful supplemental measure of operating performance for a REIT’s operating real estate because it makes adjustments to NOI for the above stated items to be more reflective of the economics of when tenant payments are due to us under our leases and the value of our properties. As is the case with NOI, the measure is useful in our opinion in evaluating and comparing the performance of geographic segments, same-office property groupings and individual properties. We believe that operating income, as reported on our consolidated statements of operations, is the most directly comparable GAAP measure to Cash NOI.

COPT’s share of NOI from unconsolidated real estate joint venture (“JV”)

Represents the net of revenues and property operating expenses of real estate operations owned through an unconsolidated JV that is allocable to COPT’s ownership interest. This measure is included in the computation of NOI, our segment performance measure, as discussed below.

Diluted adjusted funds from operations available to common share and common unit holders (“Diluted AFFO”)

Defined as Diluted FFO, as adjusted for comparability, adjusted for the following: (1) the elimination of the effect of (a) noncash rental revenues and property operating expenses (comprised of straight-line rental adjustments, which includes the amortization of recurring tenant incentives, and amortization of acquisition intangibles included in FFO and NOI, both of which are described under “Cash NOI” above), (b) share-based compensation, net of amounts capitalized, (c) amortization of deferred financing costs, (d) amortization of debt discounts and premiums and (e) amortization of settlements of debt hedges; and (2) replacement capital expenditures (defined below). Diluted AFFO also includes adjustments to Diluted FFO, as adjusted for comparability for the effects of the items noted above pertaining to an unconsolidated real estate JV that were allocable to our ownership interest in the JV. We believe that Diluted AFFO is a useful supplemental measure of operating performance for a REIT because it incorporates adjustments for: certain revenue and expenses that are not associated with cash to or from us during the period; and certain capital expenditures for operating properties incurred during the period that do require cash outlays. We believe that net income is the most directly comparable GAAP measure to Diluted AFFO.

Diluted FFO available to common share and common unit holders (“Diluted FFO”)

Diluted FFO is Basic FFO adjusted to add back any changes in Basic FFO that would result from the assumed conversion of securities that are convertible or exchangeable into common shares. The computation of Diluted FFO assumes the conversion of common units in the Operating Partnership but does not assume the conversion of other securities that are convertible into common shares if the conversion of those securities would increase Diluted FFO per share in a given period. We believe that Diluted FFO is useful to investors because it is the numerator used to compute Diluted FFO per share, discussed below. We believe that net income is the most directly comparable GAAP measure to Diluted FFO.

Corporate Office Properties Trust

Definitions

Diluted FFO available to common share and common unit holders, as adjusted for comparability (“Diluted FFO, as adjusted for comparability”)

Defined as Diluted FFO or FFO adjusted to exclude: operating property acquisition costs: gains on sales of, and impairment losses on, properties other than previously depreciated operating properties; gain or loss on early extinguishment of debt; FFO associated with properties that secured non-recourse debt on which we defaulted and, subsequently, extinguished via conveyance of such properties (including property NOI, interest expense and gains on debt extinguishment); loss on interest rate derivatives; demolition costs on redevelopment properties; executive transition costs (including separation related compensation and replacement recruitment costs for Vice President level positions and above); and accounting charges for original issuance costs associated with redeemed preferred shares. Diluted FFO, as adjusted for comparability also includes adjustments to Diluted FFO for the effects of the items noted above pertaining to an unconsolidated real estate JV that were allocable to our ownership interest in the JV. We believe this to be a useful supplemental measure alongside Diluted FFO as it excludes gains and losses from certain investing and financing activities and certain other items that we believe are not closely correlated to (or associated with) our operating performance. The adjustment for FFO associated with properties securing non-recourse debt on which we defaulted pertains to the periods subsequent to our default on the loan’s payment terms, which was the result of our decision to not support payments on the loan since the estimated fair value of the properties was less than the loan balance. While we continued as the legal owner of the properties during this period, all cash flows produced by them went directly to the lender and we did not fund any debt service shortfalls, which included incremental additional interest under the default rate. We believe that net income is the most directly comparable GAAP measure to this non-GAAP measure.

Diluted FFO per share

Diluted FFO per share is (1) Diluted FFO divided by (2) the sum of the (a) weighted average common shares outstanding during a period, (b) weighted average common units outstanding during a period and (c) weighted average number of potential additional common shares that would have been outstanding during a period if other securities that are convertible or exchangeable into common shares were converted or exchanged. The computation of Diluted FFO per share assumes the conversion of common units in the Operating Partnership but does not assume the conversion of other securities that are convertible into common shares if the conversion of those securities would increase Diluted FFO per share in a given period. We believe that Diluted FFO per share is useful to investors because it provides investors with a further context for evaluating our FFO results in the same manner that investors use earnings per share (“EPS”) in evaluating net income available to common shareholders. We believe that diluted EPS is the most directly comparable GAAP measure to Diluted FFO per share.

Diluted FFO per share, as adjusted for comparability

Defined as (1) Diluted FFO available to common share and common unit holders, as adjusted for comparability divided by (2) the sum of the (a) weighted average common shares outstanding during a period, (b) weighted average common units outstanding during a period and (c) weighted average number of potential additional common shares that would have been outstanding during a period if other securities that are convertible or exchangeable into common shares were converted or exchanged. The computation of this measure assumes the conversion of common units in the Operating Partnership but does not assume the conversion of other securities that are convertible into common shares if the conversion of those securities would increase the per share measure in a given period. We believe this to be a useful supplemental measure alongside Diluted FFO per share as it excludes gains and losses from investing and financing activities and certain other items that we believe are not closely correlated to (or associated with) our operating performance. We believe that diluted EPS is the most directly comparable GAAP measure.

Dividend coverage-Diluted FFO, Diluted FFO, as adjusted for comparability, and Dividend coverage-Diluted AFFO

These measures divide either Diluted FFO, Diluted FFO, as adjusted for comparability, or Diluted AFFO by the sum of (1) dividends on common shares and (2) distributions to holders of interests in the Operating Partnership and dividends on convertible preferred shares when such distributions and dividends are included in Diluted FFO.

Funds from operations (“FFO” or “FFO per NAREIT”)

Defined as net income computed using GAAP, excluding gains on sales of, and impairment losses on, previously depreciated operating properties and real estate-related depreciation and amortization. When multiple properties consisting of both operating and non-operating properties exist on a single tax parcel, we classify all of the gains on sales of, and impairment losses on, the tax parcel as all being for previously depreciated operating properties when most of the value of the parcel is associated with

Corporate Office Properties Trust

Definitions

operating properties on the parcel. FFO also includes adjustments to net income for the effects of the items noted above pertaining to an unconsolidated real estate JV that were allocable to our ownership interest in the JV. We believe that we use the National Association of Real Estate Investment Trust’s (“NAREIT”) definition of FFO, although others may interpret the definition differently and, accordingly, our presentation of FFO may differ from those of other REITs. We believe that FFO is useful to management and investors as a supplemental measure of operating performance because, by excluding gains related to sales of, and impairment losses on, previously depreciated operating properties and excluding real estate-related depreciation and amortization, FFO can help one compare our operating performance between periods. We believe that net income is the most directly comparable GAAP measure to FFO.

Gross debt

Defined as total consolidated outstanding debt, which is debt reported per our balance sheet adjusted to exclude net discounts and premiums and deferred financing costs, as further adjusted to include outstanding debt of an unconsolidated real estate JV that were allocable to our ownership interest in the JV.

In-place adjusted EBITDA

Defined as Adjusted EBITDA, as further adjusted for: (1) the removal of NOI pertaining to properties in the quarterly periods in which such properties were sold; and (2) the addition of pro forma adjustments to NOI for properties acquired or placed into service subsequent to the commencement of a quarter made in order to reflect a full quarter of ownership/operations. The measure also includes adjustments to Adjusted EBITDA for the effects of the items noted above pertaining to an unconsolidated real estate JV that were allocable to our ownership interest in the JV. We believe that in-place adjusted EBITDA is a useful supplemental measure of performance for assessing our un-levered performance, as further adjusted for changes in operating properties subsequent to the commencement of a quarter. We believe that net income is the most directly comparable GAAP measure to in-place adjusted EBITDA.

Net debt

Defined as Gross debt (total outstanding debt debt reported per our balance sheet as adjusted to exclude net discounts and premiums and deferred financing costs), as adjusted to subtract cash and cash equivalents as of the end of the period and debt in default that was extinguished via conveyance of properties. The measure also includes adjustments to Gross debt for the effects of the items noted above pertaining to an unconsolidated real estate JV that were allocable to our ownership interest in the JV.

Net debt plus preferred equity

Defined as Net debt plus the total liquidation preference of our outstanding preferred equity.

Net debt to Adjusted book and Net debt plus preferred equity to Adjusted book

These measures divide either Net debt or Net debt plus preferred equity by Adjusted book.

Net debt to in-place adjusted EBITDA ratio

Defined as net debt (as defined above) divided by in-place adjusted EBITDA (defined above) for the three month period that is annualized by multiplying by four.

Net operating income from real estate operations (“NOI”)

NOI, which is our segment performance measure, includes: consolidated real estate revenues from continuing and discontinued operations; consolidated property operating expenses from continuing and discontinued real estate operations; and the net of revenues and property operating expenses of real estate operations owned through an unconsolidated real estate JV that is allocable to COPT’s ownership interest in the JV. We believe that NOI is an important supplemental measure of operating performance for a REIT’s operating real estate because it provides a measure of the core real estate operations that is unaffected by depreciation, amortization, financing and general, administrative and leasing expenses; we believe this measure is particularly useful in evaluating the performance of geographic segments, same-office property groupings and individual properties. We believe that operating income, as reported on our consolidated statements of operations, is the most directly comparable GAAP measure to NOI.

Corporate Office Properties Trust

Definitions

NOI debt service coverage ratio and Adjusted EBITDA debt service coverage ratio

These measures divide either NOI from real estate operations or Adjusted EBITDA by the sum of interest expense on continuing and discontinued operations (excluding amortization of deferred financing costs and amortization of debt discounts and premiums, net of amounts capitalized, gains or losses on interest rate derivatives and interest expense on debt in default to be extinguished via conveyance of properties) and scheduled principal amortization on mortgage loans for continuing and discontinued operations.

NOI fixed charge coverage ratio and Adjusted EBITDA fixed charge coverage ratio

These measures divide either NOI from real estate operations or Adjusted EBITDA by the sum of (1) interest expense on continuing and discontinued operations (excluding amortization of deferred financing costs and amortization of debt discounts and premiums, net of amounts capitalized, gains or losses on interest rate derivatives and interest expense on debt in default to be extinguished via conveyance of properties), (2) scheduled principal amortization on mortgage loans for continuing and discontinued operations, (3) capitalized interest, (4) dividends on preferred shares and (5) distributions on preferred units in the Operating Partnership not owned by us.

NOI interest coverage ratio and Adjusted EBITDA interest coverage ratio

These measures divide either NOI from real estate operations or Adjusted EBITDA by interest expense on continuing and discontinued operations (excluding amortization of deferred financing costs and amortization of debt discounts and premiums, net of amounts capitalized, gains on losses on interest rate derivatives and interest expense on debt in default to be extinguished via conveyance of properties).

Payout ratios based on: Diluted FFO; Diluted FFO, as adjusted for comparability; and Diluted AFFO

These payout ratios are defined as (1) the sum of (a) dividends on common shares and (b) distributions to holders of interests in the Operating Partnership and dividends on convertible preferred shares when such distributions and dividends are included in Diluted FFO divided by (2) the respective non-GAAP measures on which the payout ratios are based.

Replacement capital expenditures

Replacement capital expenditures are defined as tenant improvements and incentives, building improvements and leasing costs incurred during the period for operating properties that are not (1) items contemplated prior to the acquisition of a property, (2) improvements associated with the expansion of a building or its improvements, (3) renovations to a building which change the underlying classification of the building (for example, from industrial to office or Class C office to Class B office) or (4) capital improvements that represent the addition of something new to the property rather than the replacement of something (for example, the addition of a new heating and air conditioning unit that is not replacing one that was previously there). Replacement capital expenditures excludes expenditures of operating properties included in disposition plans during the period that were already sold or are held for future disposition. The measure also includes replacement capital expenditures of an unconsolidated real estate JV that were allocable to our ownership interest in the JV. For cash tenant incentives not due to the tenant for a period exceeding three months past the date on which such incentives were incurred, we recognize such incentives as replacement capital expenditures in the periods such incentives are due to the tenant. Replacement capital expenditures, which is included in the computation of Diluted AFFO, is intended to represent non-transformative capital expenditures of existing properties held for long-term investment. We believe that the excluded expenditures are more closely associated with our investing activities than the performance of our operating portfolio.

Same office property NOI and Same Office Cash NOI

Defined as NOI, or Cash NOI, from real estate operations of Same Office Properties. We believe that these are important supplemental measures of operating performance of Same Office Properties for the same reasons discussed above for NOI from real estate operations and Cash NOI.

Corporate Office Properties Trust

Definitions

Other Definitions

Acquisition Costs — Transaction costs expensed in connection with executed or anticipated acquisitions of operating properties.

Annualized Rental Revenue — The monthly contractual base rent as of the reporting date multiplied by 12, plus the estimated annualized expense reimbursements under existing leases for occupied space. With regard to properties owned through unconsolidated real estate joint ventures, we include the portion of Annualized Rental Revenue allocable to COPT’s ownership interest.

Construction Properties — Properties under, or contractually committed for, construction. Also includes newly-constructed properties that are complete but held for future lease to the United States Government.

Core Portfolio — Represents Defense/IT Locations and Regional Office properties excluding properties held for sale.

Defense/IT Locations — Represents properties in locations that support United States Government agencies and their contractors, most of whom are engaged in national security, defense and IT related activities servicing what we believe are growing, durable priority missions.

First Generation Space — Newly constructed or redeveloped space that has never been occupied.

Operational Space — The portion of a property in operations (excludes portion under construction or redevelopment).

Pre-Construction Properties — Properties on which work associated with one or more of the following tasks is underway on a regular basis: pursuing entitlements, planning, design and engineering, bidding, permitting and premarketing/preleasing. Typically, these projects, as categorized in this Supplemental Information package, are targeted to begin construction in 12 months or less.

Redevelopment Properties — Properties previously in operations on which activities to substantially renovate such properties were underway or approved.

Regional Office Properties — Includes traditional office properties located in select urban/urban-like submarkets within our regional footprint with durable Class-A office fundamentals and characteristics, as well as other properties supporting general commercial office tenants.

Same Office Properties — Operating office properties continually owned and 100% operational since at least January 1, 2015, excluding properties held for future disposition and properties under redevelopment.

Second Generation Space — Space leased that has been previously occupied.

Total Portfolio — Operating properties, including ones owned through an unconsolidated joint venture.



	6711 Columbia Gateway Drive, Suite 300
	Columbia, Maryland 21046
	Telephone 443-285-5400
	Facsimile 443-285-7650
	www.copt.com
	NYSE: OFC

	NEWS RELEASE

FOR IMMEDIATE RELEASE	IR Contacts:
	Stephanie Krewson-Kelly	Michelle Layne
	VP, Investor Relations	Investor Relations Specialist
	443-285-5453	443-285-5452
	stephanie.kelly@copt.com	michelle.layne@copt.com

COPT REPORTS THIRD QUARTER 2016 RESULTS

COLUMBIA, MD October 27, 2016 - Corporate Office Properties Trust (“COPT” or the “Company”) (NYSE: OFC) announced financial and operating results for the third quarter ended September 30, 2016.

Management Comments

“As the third quarter demonstrated, we are executing well on all aspects of our 2016 plan, and key performance metrics were in-line with our guidance and expectations,” stated Stephen E. Budorick, COPT’s President & Chief Executive Officer. “Same office cash NOI grew 1.1% in the quarter and 4.1% for the first nine months of the year, and we have completed over $300 million of asset sales to date.” He added, “Demand throughout our portfolio is steady and provides solid momentum for 2017.”

Financial Highlights

3^rd Quarter Financial Results:


•	Diluted earnings per share (“EPS”) was $0.25 for the quarter ended September 30, 2016 as compared to $0.91 for the third quarter of 2015.


•	Diluted funds from operations per share (“FFOPS”), as calculated in accordance with NAREIT’s definition, was $0.49 for the third quarter of 2016 as compared to $1.32 for the third quarter of 2015.


•	FFOPS, as adjusted for comparability, was $0.51 for the quarter ended September 30, 2016 and $0.52 for the third quarter of 2015.

Adjustments for comparability encompass items such as impairment losses and gains on non-operating properties, gains (losses) on early extinguishment of debt, derivative gains (losses), executive transition costs and write-offs of original issuance costs for redeemed preferred shares.

Operating Performance Highlights

Portfolio Summary:


•	At September 30, 2016, the Company’s core portfolio of 146 operating office properties were 93.0% occupied and 94.4% leased.


•	During the quarter, the Company placed 192,000 square feet of development in service that, at September 30, 2016, were 83% leased.


•	At September 30, 2016, the Company had approximately $161 million of assets held for sale composed of 19 operating properties that contain a total of 1.3 million square feet and 153 acres of non-strategic land.

Same Office Performance:


•	At September 30, 2016, COPT’s same office portfolio of 129 buildings was 91.4% occupied and 93.2% leased.


•	For the quarter ended September 30, 2016, the Company’s same office property cash NOI increased 1.1% as compared to the quarter ended September 30, 2015. For the nine months ended September 30, 2016, same office cash NOI grew 4.1% versus the comparable period in 2015.

Leasing:


•	Square Feet Leased - For the quarter ended September 30, 2016, the Company leased a total of 741,000 square feet, including 26,000 square feet in development projects. During the first nine months of the year, we executed on 2.3 million square feet of leasing, including 571,000 square feet in development projects.


•	Renewal Rates - During the three and nine months ended September 30, 2016, the Company renewed 83% and 79%, respectively, of expiring leases.

•

Rent Spreads on Renewing Leases - In the quarter, the Company successfully executed early renewals on three large, non-defense tenant leases, representing 275,000 square feet, to assure long-term, steady cash flows from all three assets. The impact of these renewals was a decline in cash renewal rates in the third quarter. For the quarter ended September 30, 2016 and as compared to expiring rents, rents on renewed space decreased 2.2% on a GAAP basis and decreased 11.9% on a cash basis. For the nine months of 2016, GAAP rents on renewing leases increased 4.5% and cash rents decreased 5.7%. Excluding these three early renewals, cash renewal rents declined only 1.9% for the nine months ended September 30, 2016.


•	Lease Terms - In the third quarter, lease terms averaged 7.6 years on the 597,000 square feet of renewing leases, and 7.0 years on the 144,000 square feet of development and other new leasing, for an average lease term of 7.5 years on all leasing completed in the quarter.

For the nine months ended September 30, 2016, lease terms averaged 6.0 years on the 1.4 million square feet of renewing leases, and 8.5 years on the 938,000 square feet of development and other new leasing, for an average lease term of 7.0 years on all leasing completed in the nine months of the year.

Investment Activity Highlights

Development & Redevelopment Projects:


•	The Company has five properties totaling 769,000 square feet under construction that, at September 30, 2016, were 89% pre-leased. The five projects have a total estimated cost of $149.7 million, of which $64.3 million has been incurred.

•

The Company also has two recently completed properties that total 352,000 square feet which are being held for the U.S. Government. In the third quarter ended September 30, 2016, the Company leased 15,000 square feet in The National Business Park to a U.S. Government tenant and expects further leasing progress in the coming quarters. The Company anticipates leasing the balance of the building during 2017.


•	Including these two U.S. Government projects, the Company’s construction pipeline totals 1.1 million square feet and is 63% leased.


•	COPT has 104,000 square feet in three properties under redevelopment, representing a total expected cost of $27.7 million, of which $20.3 million has been invested. The three projects were 19% leased at quarter end.

Dispositions: During the quarter, the Company closed on $285 million of sales detailed as follows:


•	$74 million from six data center properties contributed to a newly-formed, 50% unconsolidated joint venture with an institutional partner.


•	$143 million from four properties and land at the Arborcrest Campus in the Plymouth Meeting submarket of Philadelphia.


•	$17 million from six properties in the White Marsh submarket of Baltimore.


•	$51 million from five properties in the Airport Square / BWI South submarkets in the B/W Corridor.

Subsequent to the quarter, the Company sold another 151,000 square foot operating property in Northern Virginia and a parcel of non-strategic land for an aggregate of $14.1 million, bringing total assets to-date to $304 million, or 69% of the full year goal.

Balance Sheet and Capital Transaction Highlights


•	As of September 30, 2016, the Company’s net debt to adjusted book ratio was 41.2% and its net debt to in-place adjusted EBITDA ratio was 6.3x. For the quarter ended September 30, 2016, its adjusted EBITDA fixed charge coverage ratio was 3.1x.


•	The Company’s weighted average effective interest rate was 3.8% as of September 30, 2016; including the effect of interest rate swaps, 96% of the Company’s debt was subject to fixed interest rates and the debt portfolio had a weighted average maturity of 6.1 years.


•	Subsequent to the quarter, the Company used cash on hand and capacity on its line of credit to repay a $120 million term loan. As a result, the Company has no debt maturities until 2020.

2016 FFO Guidance Update

Management is narrowing its guidance range for full year FFOPS, as adjusted for comparability, of $2.00-$2.02. The Company also is maintaining its previously established guidance for the fourth quarter ending December 31, 2016, for FFOPS, as adjusted for comparability, of $0.50-$0.52. Reconciliations of projected diluted EPS to projected FFOPS are as follows:




	Three Months Ending						Year Ending
	December 31, 2016						December 31, 2016
	Low			High			Low			High
EPS	$	0.24		$	0.26		$	(0.02	)	$	—
Real estate depreciation and amortization	0.34			0.34			1.37			1.37
Impairment losses on operating properties	—			—			0.83			0.83
Gains on sales of operating properties	(0.01		)	(0.01		)	(0.36		)	(0.36		)
FFOPS, NAREIT definition	0.57			0.59			1.82			1.84
Executive transition costs	—			—			0.06			0.06
Impairment losses on non-operating properties	—			—			0.18			0.18
Gains on sales of non-operating properties	(0.08		)	(0.08		)	(0.08		)	(0.08		)
Loss on interest rate derivatives and other	0.01			0.01			0.02			0.02
FFOPS, as adjusted for comparability	$	0.50		$	0.52		$	2.00		$	2.02

Associated Supplemental Presentation

Prior to the call, the Company will post a slide presentation to accompany management’s prepared remarks for its third quarter 2016 conference call, the details of which are provided below. You may access the slide presentation on the ‘Investors’ section of the website (www.copt.com). Please have the slides available to review during management’s comments.

iii

Conference Call Information

Management will discuss third quarter 2016 earnings results on its conference call tomorrow at 12:00 p.m. Eastern Time, details of which are listed below:

Earnings Release Date: Thursday, October 27, 2016 after market closes

Conference Call Date: Friday, October 28, 2016

Time: 12:00 p.m. Eastern Time

Telephone Number: (within the U.S.) 888-713-4218

Telephone Number: (outside the U.S.) 617-213-4870

Passcode: 86051712#

Please use the following link to pre-register and view important information about this conference call. Pre-registering is not mandatory but is recommended as it will provide you immediate entry into the call and will facilitate the timely start of the conference. To pre-register, please click on the below link:



https://www.theconferencingservice.com/prereg/key.process?key=PAX84XXNT

You may also pre-register in the Investors section of the Company’s website at www.copt.com. Alternatively, you may be placed into the call by an operator by calling the number provided above at least 5 to 10 minutes before the start of the call.

Replay Information

A replay of this call will be available beginning at 3:00 p.m. Eastern Time on Friday, October 28, through midnight Eastern Time on Friday, November 11. To access the replay within the United States, please call 888-286-8010 and use passcode 93348081. To access the replay outside the United States, please call 617-801-6888 and use passcode 93348081.

The conference call will also be available via live webcast in the Investor Relations section of the Company’s website at www.copt.com. A replay of the conference calls will be immediately available via webcast in the Investor Relations section of the Company’s website.

Definitions

For definitions of certain terms used in this press release, please refer to the information furnished in our Supplemental Information Package filed as a Form 8-K which can be found on our website (www.copt.com). Reconciliations of non-GAAP measures to the most directly comparable GAAP measures are included in the attached tables.

COPT Defense Properties (CDP) 8-KResults of Operations and Financial Condition