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Press Release: COPT Reports Fourth Quarter and -3-

· 02/04/2021 16:16
common share and common unit holders ("Diluted FFO") 60,137 56,032 169,728 228,514 Loss on early extinguishment of debt 4,069 -- 7,306 -- Loss on interest rate derivatives -- -- 53,196 -- Demolition costs on redevelopment and nonrecurring improvements -- 104 63 148 Executive transition costs -- -- -- 4 Non-comparable professional and legal expenses -- 195 -- 681 Dilutive preferred units in the OP -- -- 300 -- FFO allocation to other noncontrolling interests resulting from capital event -- -- 11,090 -- Diluted FFO comparability adjustments allocable to share-based compensation awards (18) (1) (327) (3) ------- ------- -------- -------- Diluted FFO available to common share and common unit holders, as adjusted for comparability 64,188 56,330 241,356 229,344 Straight line rent adjustments and lease incentive amortization 3,438 1,386 4,100 255 Amortization of intangibles included in net operating income 24 (174) (162) (221) Share-based compensation, net of amounts capitalized 1,751 1,735 6,505 6,728 Amortization of deferred financing costs 664 541 2,539 2,136 Amortization of net debt discounts, net of amounts capitalized 504 382 1,733 1,503 Accum. other comprehensive loss on derivatives amortized to expense -- -- -- 79 Replacement capital expenditures (13,973) (19,862) (60,944) (63,789) Other diluted AFFO adjustments associated with real estate JVs 196 (68) 190 212 ------- ------- -------- -------- Diluted adjusted funds from operations available to common share and common unit holders ("Diluted AFFO") $56,792 $40,270 $195,317 $176,247 ====== ====== ======= ======= Diluted FFO per share $ 0.53 $ 0.49 $ 1.50 $ 2.02 Diluted FFO per share, as adjusted for comparability $ 0.56 $ 0.50 $ 2.12 $ 2.03 Dividends/distributions per common share/unit $ 0.275 $ 0.275 $ 1.100 $ 1.100 Corporate Office Properties Trust Summary Financial Data (unaudited) (Dollars and shares in thousands, except per share data) December 31, December 31, 2020 2019 -------------- -------------- Balance Sheet Data Properties, net of accumulated depreciation $3,562,549 $3,340,886 Total assets 4,077,023 3,854,453 Debt, per balance sheet 2,086,918 1,831,139 Total liabilities 2,357,881 2,105,777 Redeemable noncontrolling interests 25,430 29,431 Equity 1,693,712 1,719,245 Net debt to adjusted book 39.1% 36.8% Core Portfolio Data (as of period end) (1) Number of operating properties 179 168 Total operational square feet (in thousands) 20,802 19,016 % Occupied 94.3% 93.1% % Leased 95.0% 94.6% For the Three Months For the Years Ended Ended December 31, December 31, ------------------------- ------------------------ 2020 2019 2020 2019 ------------ ----------- ----------- ----------- Payout ratios Diluted FFO 51.8% 55.6% 73.3% 54.4% Diluted FFO, as adjusted for comparability 48.6% 55.3% 51.7% 54.2% Diluted AFFO 54.9% 77.3% 63.8% 70.5% Adjusted EBITDA fixed charge coverage ratio 4.1x 3.7x 3.9x 3.7x Net debt plus preferred equity to in-place adjusted EBITDA ratio (2) 6.2x 6.1x N/A N/A Reconciliation of denominators for per share measures Denominator for diluted EPS 112,409 112,071 112,076 111,623 Weighted average common units 1,239 1,228 1,236 1,299 Redeemable noncontrolling interests -- -- 123 -- Dilutive convertible preferred units -- 176 -- -- ------- --- ------- ------- ------- Denominator for diluted FFO per share 113,648 113,475 113,435 112,922 Dilutive convertible preferred units -- -- 171 -- ------- --- ------- ------- ------- Denominator for diluted FFO per share, as adjusted for comparability 113,648 113,475 113,606 112,922 ======= === ======= ======= ======= (1) Represents Defense/IT Locations and Regional Office properties. (2) Represents net debt plus the total liquidation preference of preferred equity as of period end divided by in-place adjusted EBITDA for the period, as annualized (i.e. three month periods are multiplied by four). Corporate Office Properties Trust Summary Financial Data (unaudited) (in thousands) For the Three Months Ended For the Years December 31, Ended December 31, ------------------ ---------------------- 2020 2019 2020 2019 -------- -------- --------- ----------- Reconciliation of common share dividends to dividends and distributions for payout ratios Common share dividends - unrestricted shares and deferred shares $30,764 $30,724 $123,042 $122,823 Common unit distributions - unrestricted units 341 337 1,362 1,405 Distributions on dilutive preferred units 69 77 -- -- ------- ------- -------- -------- Dividends and distributions for diluted FFO payout ratio 31,174 31,138 124,404 124,228 Distributions on dilutive preferred units -- -- 300 -- ------- ------- -------- -------- Dividends and distributions for other payout ratios $31,174 $31,138 $124,704 $124,228 ====== ====== ======= ======= Reconciliation of GAAP net income to earnings before interest, income taxes, depreciation and amortization for real estate ("EBITDAre"), adjusted EBITDA and in-place adjusted EBITDA Net income $83,549 $44,877 $102,878 $200,004 Interest expense 17,148 16,777 67,937 71,052 Income tax expense (benefit) 258 (104) 353 (217) Real estate-related depreciation and amortization 36,653 32,779 138,193 137,069 Other depreciation and amortization 513 438 1,837 1,834 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) -- Adjustments from unconsolidated real estate JVs 1,306 1,206 5,120 4,065 ------- ------- -------- -------- EBITDAre 79,807 75,214 258,223 308,906 Loss on early extinguishment of debt 4,069 -- 7,306 -- Loss on interest rate derivatives -- -- 53,196 -- Net gain on other investments (1,218) (1) (966) (401) Credit loss recoveries (772) -- (933) -- Business development expenses 412 512 2,042 1,939 Non-comparable professional and legal expenses -- 195 -- 681 Demolition costs on redevelopment and nonrecurring improvements -- 104 63 148 Executive transition costs -- -- -- 4 ------- ------- -------- -------- Adjusted EBITDA 82,298 76,024 $318,931 $311,277 ======= ======= Proforma net operating income adjustment for property changes within period 1,459 463 Change in collectability of deferred rental revenue 678 928 ------- ------- In-place adjusted EBITDA $84,435 $77,415 ====== ====== Reconciliation of interest expense to the denominators for fixed charge coverage-Adjusted EBITDA Interest expense $17,148 $16,777 $ 67,937 $ 71,052 Less: Amortization of deferred financing costs (664) (541) (2,539) (2,136)

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