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Press Release: COPT Reports Fourth Quarter and -2-

· 02/04/2021 16:16
Corporate Office Properties Trust Summary Financial Data (unaudited) (dollars and shares in thousands, except per share data) For the Three Months For the Years Ended Ended December 31, December 31, -------------------- ---------------------- 2020 2019 2020 2019 --------- --------- --------- ----------- Revenues Revenues from real estate operations $139,628 $131,968 $538,725 $527,463 Construction contract and other service revenues 24,400 25,817 70,640 113,763 -------- -------- -------- -------- Total revenues 164,028 157,785 609,365 641,226 Operating expenses Property operating expenses 52,085 51,098 203,840 198,143 Depreciation and amortization associated with real estate operations 36,653 32,779 138,193 137,069 Construction contract and other service expenses 23,563 24,832 67,615 109,962 Impairment losses -- 2 1,530 329 General and administrative expenses 7,897 7,043 25,269 27,517 Leasing expenses 1,993 2,293 7,732 7,885 Business development expenses and land carry costs 999 1,292 4,473 4,239 -------- -------- -------- -------- Total operating expenses 123,190 119,339 448,652 485,144 Interest expense (17,148) (16,777) (67,937) (71,052) Interest and other income 3,341 1,917 8,574 7,894 Credit loss recoveries 772 -- 933 -- Gain on sales of real estate 30,204 20,761 30,209 105,230 Gain on sale of investment in unconsolidated real estate joint venture 29,416 -- 29,416 -- Loss on early extinguishment of debt (4,069) -- (7,306) -- Loss on interest rate derivatives -- -- (53,196) -- -------- -------- -------- -------- Income before equity in income of unconsolidated entities and income taxes 83,354 44,347 101,406 198,154 Equity in income of unconsolidated entities 453 426 1,825 1,633 Income tax (expense) benefit (258) 104 (353) 217 -------- -------- -------- -------- Net income 83,549 44,877 102,878 200,004 Net income attributable to noncontrolling interests: Common units in the Operating Partnership ("OP") (995) (500) (1,180) (2,363) Preferred units in the OP (69) (77) (300) (564) Other consolidated entities (817) (1,515) (4,024) (5,385) -------- -------- -------- -------- Net income attributable to COPT common shareholders $ 81,668 $ 42,785 $ 97,374 $191,692 ======= ======= ======= ======= Earnings per share ("EPS") computation: Numerator for diluted EPS: Net income attributable to COPT common shareholders $ 81,668 $ 42,785 $ 97,374 $191,692 Amount allocable to share-based compensation awards (280) (154) (404) (623) Redeemable noncontrolling interests 44 33 -- 132 Distributions on dilutive convertible preferred units 69 -- -- -- -------- -------- -------- -------- Numerator for diluted EPS $ 81,501 $ 42,664 $ 96,970 $191,201 ======= ======= ======= ======= Denominator: Weighted average common shares - basic 111,817 111,670 111,788 111,196 Dilutive effect of share-based compensation awards 320 293 288 308 Dilutive effect of redeemable noncontrolling interests 117 108 -- 119 Dilutive convertible preferred units 155 -- -- -- -------- -------- -------- -------- Weighted average common shares - diluted 112,409 112,071 112,076 111,623 ======== ======== ======== ======== Diluted EPS $ 0.73 $ 0.38 $ 0.87 $ 1.71 ======= ======= ======= ======= Corporate Office Properties Trust Summary Financial Data (unaudited) (in thousands, except per share data) For the Three Months Ended For the Years Ended December 31, December 31, ------------------ ---------------------- 2020 2019 2020 2019 -------- -------- --------- ----------- Net income $83,549 $44,877 $102,878 $200,004 Real estate-related depreciation and amortization 36,653 32,779 138,193 137,069 Impairment losses on real estate -- 2 1,530 329 Gain on sales of real estate (30,204) (20,761) (30,209) (105,230) Gain on sale of investment in unconsolidated real estate joint venture (29,416) -- (29,416) -- Depreciation and amortization on unconsolidated real estate JVs 874 781 3,329 2,703 ------- ------- -------- -------- Funds from operations ("FFO") 61,456 57,678 186,305 234,875 Noncontrolling interests - preferred units in the OP (69) (77) (300) (564) FFO allocable to other noncontrolling interests (1,091) (1,436) (15,705) (5,024) Basic FFO allocable to share-based compensation awards (272) (243) (719) (905) ------- ------- -------- -------- Basic FFO available to common share and common unit holders ("Basic FFO") 60,024 55,922 169,581 228,382 Dilutive preferred units in the OP 69 77 -- -- Redeemable noncontrolling interests 44 33 147 132 ------- ------- -------- -------- Diluted FFO available to

COPT is a REIT that owns, manages, leases, develops and selectively acquires office and data center properties. The majority of its portfolio is in locations that support the United States Government and its contractors, most of whom are engaged in national security, defense and information technology ("IT") related activities servicing what it believes are growing, durable, priority missions ("Defense/IT Locations"). The Company also owns a portfolio of office properties located in select urban/urban-like submarkets in the Greater Washington, DC/Baltimore region with durable Class-A office fundamentals and characteristics ("Regional Office Properties"). As of December 31, 2020, the Company derived 87% of its core portfolio annualized rental revenue from Defense/IT Locations and 13% from its Regional Office Properties. As of the same date and including 17 properties owned through unconsolidated joint ventures, COPT's core portfolio of 179 office and data center shell properties encompassed 20.8 million square feet and was 95.0% leased; the Company also owned one wholesale data center with a critical load of 19.25 megawatts that was 86.7% leased.

Forward-Looking Information

This press release may contain "forward-looking" statements, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that are based on the Company's current expectations, estimates and projections about future events and financial trends affecting the Company. 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 the Company cannot predict with accuracy and some of which the Company might not even anticipate. Although the Company believes that the expectations, estimates and projections reflected in such forward-looking statements are based on reasonable assumptions at the time made, the Company 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 and the Company undertakes no obligation to update or supplement any forward-looking statements.

The areas of risk that may affect these expectations, estimates and projections include, but are not limited to, those risks described in Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2019 and subsequent Quarterly Reports on Form 10-Q.

Category: Quarterly Results

Source: Corporate Office Properties Trust

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February 04, 2021 16:16 ET (21:16 GMT)