04/25/2024 | Press release | Distributed by Public on 04/25/2024 14:25
Please refer to the section entitled "Definitions" for definitions of non-GAAP measures
and other terms we use herein that may not be customary or commonly known.
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MANAGEMENT | Stephen E. Budorick, President + CEO | INVESTOR RELATIONS | Venkat Kommineni, VP |
Britt A. Snider, EVP + COO |
443.285.5587 | [email protected]
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Anthony Mifsud, EVP + CFO | |||
Michelle Layne, Manager | |||
443.285.5452 | [email protected]
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Firm | Senior Analyst | Phone | ||||
Bank of America Securities | Camille Bonnel | 416.369.2140 | [email protected] | |||
BTIG | Tom Catherwood | 212.738.6410 | [email protected] | |||
Citigroup Global Markets | Michael Griffin | 212.816.5871 | [email protected] | |||
Evercore ISI | Steve Sakwa | 212.446.9462 | [email protected] | |||
Green Street | Dylan Burzinski | 949.640.8780 | [email protected] | |||
Jefferies & Co. | Peter Abramowitz | 212.336.7241 | [email protected] | |||
JP Morgan | Tony Paolone | 212.622.6682 | [email protected] | |||
Raymond James | Bill Crow | 727.567.2594 | [email protected] | |||
Truist Securities | Michael Lewis | 212.319.5659 | [email protected] | |||
Wedbush Securities | Richard Anderson | 212.938.9949 | [email protected] | |||
Wells Fargo Securities | Blaine Heck | 410.662.2556 | [email protected] |
Page | Three Months Ended | ||||||||||
SUMMARY OF RESULTS | Refer. | 3/31/24 | 12/31/23 | 9/30/23 | 6/30/23 | 3/31/23 | |||||
Net income (loss) | 7 | $ | 33,671 | $ | 34,820 | $ | (221,207) | $ | 31,642 | $ | 80,398 |
NOI from real estate operations | 13 | $ | 101,657 | $ | 98,656 | $ | 96,494 | $ | 95,024 | $ | 93,903 |
Same Property NOI | 17 | $ | 95,403 | $ | 94,854 | $ | 95,039 | $ | 94,223 | $ | 92,723 |
Same Property cash NOI | 18 | $ | 91,619 | $ | 89,493 | $ | 88,793 | $ | 87,989 | $ | 86,391 |
Adjusted EBITDA | 11 | $ | 95,841 | $ | 93,934 | $ | 90,260 | $ | 89,044 | $ | 87,443 |
FFO per NAREIT | 8 | $ | 72,799 | $ | 72,360 | $ | 70,016 | $ | 70,033 | $ | 68,816 |
Diluted AFFO avail. to common share and unit holders | 10 | $ | 59,269 | $ | 54,280 | $ | 64,122 | $ | 46,003 | $ | 38,616 |
Dividend per common share | N/A | $ | 0.295 | $ | 0.285 | $ | 0.285 | $ | 0.285 | $ | 0.285 |
Per share - diluted: | |||||||||||
EPS | 9 | $ | 0.29 | $ | 0.30 | $ | (1.94) | $ | 0.27 | $ | 0.70 |
FFO - Nareit | 9 | $ | 0.62 | $ | 0.62 | $ | 0.60 | $ | 0.60 | $ | 0.59 |
FFO - as adjusted for comparability | 9 | $ | 0.62 | $ | 0.62 | $ | 0.60 | $ | 0.60 | $ | 0.59 |
Numerators for diluted per share amounts: | |||||||||||
Diluted EPS | 7 | $ | 32,480 | $ | 33,552 | $ | (217,179) | $ | 30,138 | $ | 78,467 |
Diluted FFO available to common share and unit holders | 8 | $ | 71,892 | $ | 70,913 | $ | 68,512 | $ | 68,323 | $ | 67,651 |
Diluted FFO available to common share and unit holders, as adjusted for comparability | 8 | $ | 71,969 | $ | 71,100 | $ | 68,593 | $ | 68,569 | $ | 67,651 |
Page | As of or for Three Months Ended | ||||||||||
PAYOUT RATIOS AND CAPITALIZATION | Refer. | 3/31/24 | 12/31/23 | 9/30/23 | 6/30/23 | 3/31/23 | |||||
GAAP | |||||||||||
Payout ratio: | |||||||||||
Net income | N/A | 100.7% | 93.7% | N/A | 103.1% | 40.6% | |||||
Capitalization and debt ratios: | |||||||||||
Total assets | 6 | $ | 4,232,895 | $ | 4,246,966 | $ | 4,239,257 | $ | 4,246,346 | $ | 4,177,992 |
Total equity | 6 | $ | 1,526,046 | $ | 1,523,755 | $ | 1,525,873 | $ | 1,776,695 | $ | 1,768,814 |
Debt per balance sheet | 6 | $ | 2,416,873 | $ | 2,416,287 | $ | 2,415,783 | $ | 2,176,174 | $ | 2,123,012 |
Debt to assets | 31 | 57.1% | 56.9% | 57.0% | 51.2% | 50.8% | |||||
Net income to interest expense ratio | 31 | 1.6x | 1.7x | N/A | 1.9x | 4.9x | |||||
Debt to net income ratio | 31 | 17.9x | 17.3x | N/A | 17.2x | 6.6x | |||||
Non-GAAP | |||||||||||
Payout ratios: | |||||||||||
Diluted FFO | N/A | 46.8% | 45.7% | 47.3% | 47.5% | 47.9% | |||||
Diluted FFO - as adjusted for comparability | N/A | 46.7% | 45.6% | 47.3% | 47.3% | 47.9% | |||||
Diluted AFFO | N/A | 56.8% | 59.7% | 50.6% | 70.5% | 83.9% | |||||
Capitalization and debt ratios: | |||||||||||
Total Market Capitalization | 28 | $ | 5,218,681 | $ | 5,377,815 | $ | 5,172,058 | $ | 4,914,516 | $ | 4,856,761 |
Total Equity Market Capitalization | 28 | $ | 2,774,450 | $ | 2,932,815 | $ | 2,726,295 | $ | 2,717,000 | $ | 2,711,499 |
Net debt | 36 | $ | 2,372,747 | $ | 2,328,941 | $ | 2,293,005 | $ | 2,234,633 | $ | 2,181,408 |
Net debt to adjusted book | 31 | 40.9% | 40.6% | 40.5% | 38.4% | 38.1% | |||||
Adjusted EBITDA fixed charge coverage ratio | 31 | 4.5x | 4.4x | 4.6x | 4.9x | 5.0x | |||||
Net debt to in-place adj. EBITDA ratio | 31 | 6.1x | 6.1x | 6.2x | 6.3x | 6.2x | |||||
Net debt adjusted for fully-leased development to in-place adj. EBITDA ratio | 31 | 6.0x | 6.0x | 5.9x | 5.7x | 5.8x |
3/31/24 | 12/31/23 | 9/30/23 | 6/30/23 | 3/31/23 | ||||||
# of Properties | ||||||||||
Total Portfolio | 201 | 198 | 196 | 194 | 194 | |||||
Consolidated Portfolio | 177 | 174 | 172 | 170 | 170 | |||||
Defense/IT Portfolio | 193 | 190 | 188 | 186 | 186 | |||||
Same Property | 189 | 189 | 189 | 189 | 189 | |||||
% Occupied | ||||||||||
Total Portfolio | 93.6 | % | 94.2 | % | 94.1 | % | 93.4 | % | 92.8 | % |
Consolidated Portfolio | 92.2 | % | 92.9 | % | 92.7 | % | 91.9 | % | 91.2 | % |
Defense/IT Portfolio | 95.6 | % | 96.2 | % | 95.9 | % | 95.3 | % | 94.4 | % |
Same Property | 93.5 | % | 93.8 | % | 93.8 | % | 93.3 | % | 92.6 | % |
% Leased | ||||||||||
Total Portfolio | 94.9 | % | 95.3 | % | 95.1 | % | 94.9 | % | 95.0 | % |
Consolidated Portfolio | 93.8 | % | 94.3 | % | 94.0 | % | 93.7 | % | 93.9 | % |
Defense/IT Portfolio | 96.8 | % | 97.2 | % | 97.0 | % | 96.8 | % | 96.7 | % |
Same Property | 95.0 | % | 95.1 | % | 94.9 | % | 94.7 | % | 94.9 | % |
Square Feet (in thousands) | ||||||||||
Total Portfolio | 24,137 | 23,859 | 23,479 | 23,035 | 23,020 | |||||
Consolidated Portfolio | 19,841 | 19,563 | 19,184 | 18,740 | 18,725 | |||||
Defense/IT Portfolio | 21,993 | 21,719 | 21,339 | 20,895 | 20,878 | |||||
Same Property | 22,227 | 22,227 | 22,227 | 22,227 | 22,227 | |||||
3/31/24 | 12/31/23 | 9/30/23 | 6/30/23 | 3/31/23 | ||||||
Assets | ||||||||||
Properties, net: | ||||||||||
Operating properties, net | $ | 3,272,452 | $ | 3,246,806 | $ | 3,148,434 | $ | 3,272,670 | $ | 3,272,873 |
Development and redevelopment in progress, including land (1) | 76,931 | 82,972 | 141,854 | 206,130 | 151,910 | |||||
Land held (1) | 168,495 | 173,900 | 177,909 | 193,435 | 189,292 | |||||
Total properties, net | 3,517,878 | 3,503,678 | 3,468,197 | 3,672,235 | 3,614,075 | |||||
Property - operating right-of-use assets | 40,368 | 41,296 | 40,487 | 41,652 | 42,808 | |||||
Cash and cash equivalents | 123,144 | 167,820 | 204,238 | 14,273 | 15,199 | |||||
Investment in unconsolidated real estate joint ventures | 40,597 | 41,052 | 41,495 | 41,928 | 42,279 | |||||
Accounts receivable, net | 50,088 | 48,946 | 40,211 | 47,363 | 46,149 | |||||
Deferred rent receivable | 153,788 | 149,237 | 142,041 | 136,382 | 130,153 | |||||
Lease incentives, net | 61,150 | 61,331 | 60,506 | 59,541 | 49,679 | |||||
Deferred leasing costs, net | 70,902 | 70,057 | 68,033 | 69,218 | 68,930 | |||||
Investing receivables, net | 82,523 | 81,512 | 87,535 | 86,708 | 85,499 | |||||
Prepaid expenses and other assets, net | 92,457 | 82,037 | 86,514 | 77,046 | 83,221 | |||||
Total assets | $ | 4,232,895 | $ | 4,246,966 | $ | 4,239,257 | $ | 4,246,346 | $ | 4,177,992 |
Liabilities and equity | ||||||||||
Liabilities: | ||||||||||
Debt | $ | 2,416,873 | $ | 2,416,287 | $ | 2,415,783 | $ | 2,176,174 | $ | 2,123,012 |
Accounts payable and accrued expenses | 111,981 | 133,315 | 135,605 | 135,784 | 128,509 | |||||
Rents received in advance and security deposits | 37,557 | 35,409 | 32,063 | 32,021 | 34,653 | |||||
Dividends and distributions payable | 33,906 | 32,644 | 32,645 | 32,636 | 32,630 | |||||
Deferred revenue associated with operating leases | 34,019 | 29,049 | 24,590 | 9,199 | 9,022 | |||||
Property - operating lease liabilities | 33,141 | 33,931 | 32,940 | 33,923 | 34,896 | |||||
Other liabilities | 16,406 | 18,996 | 17,936 | 27,699 | 21,008 | |||||
Total liabilities | 2,683,883 | 2,699,631 | 2,691,562 | 2,447,436 | 2,383,730 | |||||
Redeemable noncontrolling interests | 22,966 | 23,580 | 21,822 | 22,215 | 25,448 | |||||
Equity: | ||||||||||
COPT Defense's shareholders' equity: | ||||||||||
Common shares | 1,126 | 1,126 | 1,125 | 1,125 | 1,125 | |||||
Additional paid-in capital | 2,487,468 | 2,489,989 | 2,489,717 | 2,486,996 | 2,484,501 | |||||
Cumulative distributions in excess of net income | (1,009,964) | (1,009,318) | (1,010,885) | (762,617) | (760,820) | |||||
Accumulated other comprehensive income | 3,849 | 2,115 | 6,094 | 5,224 | 1,353 | |||||
Total COPT Defense's shareholders' equity | 1,482,479 | 1,483,912 | 1,486,051 | 1,730,728 | 1,726,159 | |||||
Noncontrolling interests in subsidiaries: | ||||||||||
Common units in the Operating Partnership | 29,214 | 25,502 | 25,337 | 29,563 | 29,268 | |||||
Other consolidated entities | 14,353 | 14,341 | 14,485 | 16,404 | 13,387 | |||||
Total noncontrolling interests in subsidiaries | 43,567 | 39,843 | 39,822 | 45,967 | 42,655 | |||||
Total equity | 1,526,046 | 1,523,755 | 1,525,873 | 1,776,695 | 1,768,814 | |||||
Total liabilities, redeemable noncontrolling interests and equity | $ | 4,232,895 | $ | 4,246,966 | $ | 4,239,257 | $ | 4,246,346 | $ | 4,177,992 |
Three Months Ended | ||||||||||
3/31/24 | 12/31/23 | 9/30/23 | 6/30/23 | 3/31/23 | ||||||
Revenues | ||||||||||
Lease revenue | $ | 165,433 | $ | 160,337 | $ | 155,268 | $ | 153,682 | $ | 150,560 |
Other property revenue | 1,230 | 1,225 | 1,339 | 1,271 | 1,121 | |||||
Construction contract and other service revenues | 26,603 | 18,167 | 11,949 | 14,243 | 15,820 | |||||
Total revenues | 193,266 | 179,729 | 168,556 | 169,196 | 167,501 | |||||
Operating expenses | ||||||||||
Property operating expenses | 66,746 | 64,577 | 61,788 | 61,600 | 59,420 | |||||
Depreciation and amortization associated with real estate operations | 38,351 | 36,735 | 37,620 | 37,600 | 36,995 | |||||
Construction contract and other service expenses | 26,007 | 17,167 | 11,493 | 13,555 | 15,201 | |||||
Impairment losses | - | - | 252,797 | - | - | |||||
General and administrative expenses | 8,378 | 8,240 | 7,582 | 7,287 | 7,996 | |||||
Leasing expenses | 2,187 | 2,308 | 2,280 | 2,345 | 1,999 | |||||
Business development expenses and land carry costs | 1,182 | 797 | 714 | 726 | 495 | |||||
Total operating expenses | 142,851 | 129,824 | 374,274 | 123,113 | 122,106 | |||||
Interest expense | (20,767) | (20,383) | (17,798) | (16,519) | (16,442) | |||||
Interest and other income, net | 4,122 | 5,659 | 2,529 | 2,143 | 2,256 | |||||
Gain on sales of real estate | - | - | - | 14 | 49,378 | |||||
Income (loss) before equity in income (loss) of unconsolidated entities and income taxes | 33,770 | 35,181 | (220,987) | 31,721 | 80,587 | |||||
Equity in income (loss) of unconsolidated entities | 69 | (240) | (68) | 111 | (64) | |||||
Income tax expense | (168) | (121) | (152) | (190) | (125) | |||||
Net income (loss) | 33,671 | 34,820 | (221,207) | 31,642 | 80,398 | |||||
Net (income) loss attributable to noncontrolling interests: | ||||||||||
Common units in the Operating Partnership | (608) | (576) | 3,691 | (516) | (1,293) | |||||
Other consolidated entities | (454) | (592) | 1,329 | (839) | (326) | |||||
Net income (loss) attributable to common shareholders | $ | 32,609 | $ | 33,652 | $ | (216,187) | $ | 30,287 | $ | 78,779 |
Amount allocable to share-based compensation awards | (129) | (100) | (992) | (98) | (248) | |||||
Redeemable noncontrolling interests | - | - | - | (51) | (64) | |||||
Numerator for diluted EPS | $ | 32,480 | $ | 33,552 | $ | (217,179) | $ | 30,138 | $ | 78,467 |
Three Months Ended | ||||||||||
3/31/24 | 12/31/23 | 9/30/23 | 6/30/23 | 3/31/23 | ||||||
Net income (loss) | $ | 33,671 | $ | 34,820 | $ | (221,207) | $ | 31,642 | $ | 80,398 |
Real estate-related depreciation and amortization | 38,351 | 36,735 | 37,620 | 37,600 | 36,995 | |||||
Impairment losses on real estate | - | - | 252,797 | - | - | |||||
Gain on sales of real estate | - | - | - | (14) | (49,378) | |||||
Depreciation and amortization on unconsolidated real estate JVs (1) | 777 | 805 | 806 | 805 | 801 | |||||
FFO - per Nareit (2) | 72,799 | 72,360 | 70,016 | 70,033 | 68,816 | |||||
FFO allocable to other noncontrolling interests (3) | (836) | (972) | (1,059) | (1,239) | (708) | |||||
Basic FFO allocable to share-based compensation awards | (587) | (513) | (481) | (480) | (466) | |||||
Basic FFO available to common share and common unit holders (2) | 71,376 | 70,875 | 68,476 | 68,314 | 67,642 | |||||
Redeemable noncontrolling interests | 469 | - | - | (28) | (30) | |||||
Diluted FFO adjustments allocable to share-based compensation awards | 47 | 38 | 36 | 37 | 39 | |||||
Diluted FFO available to common share and common unit holders - per Nareit (2) | 71,892 | 70,913 | 68,512 | 68,323 | 67,651 | |||||
Executive transition costs | 77 | 188 | 82 | 248 | - | |||||
Diluted FFO comparability adjustments allocable to share-based compensation awards | - | (1) | (1) | (2) | - | |||||
Diluted FFO available to common share and common unit holders, as adjusted for comparability (2) | $ | 71,969 | $ | 71,100 | $ | 68,593 | $ | 68,569 | $ | 67,651 |
Three Months Ended | ||||||||||
3/31/24 | 12/31/23 | 9/30/23 | 6/30/23 | 3/31/23 | ||||||
EPS Denominator: | ||||||||||
Weighted average common shares - basic | 112,231 | 112,199 | 112,196 | 112,188 | 112,127 | |||||
Dilutive effect of share-based compensation awards | 509 | 432 | - | 426 | 410 | |||||
Dilutive effect of redeemable noncontrolling interests | - | - | - | 62 | 91 | |||||
Weighted average common shares - diluted | 112,740 | 112,631 | 112,196 | 112,676 | 112,628 | |||||
Diluted EPS | $ | 0.29 | $ | 0.30 | $ | (1.94) | $ | 0.27 | $ | 0.70 |
Weighted Average Shares for period ended: | ||||||||||
Common shares | 112,231 | 112,199 | 112,196 | 112,188 | 112,127 | |||||
Dilutive effect of share-based compensation awards | 509 | 432 | 429 | 426 | 410 | |||||
Common units | 1,625 | 1,514 | 1,520 | 1,514 | 1,489 | |||||
Redeemable noncontrolling interests | 947 | - | - | 62 | 91 | |||||
Denominator for diluted FFO per share and as adjusted for comparability | 115,312 | 114,145 | 114,145 | 114,190 | 114,117 | |||||
Weighted average common units | (1,625) | (1,514) | (1,520) | (1,514) | (1,489) | |||||
Redeemable noncontrolling interests | (947) | - | - | - | - | |||||
Dilutive effect of additional share-based compensation awards | - | - | (429) | - | - | |||||
Denominator for diluted EPS | 112,740 | 112,631 | 112,196 | 112,676 | 112,628 | |||||
Diluted FFO per share - Nareit (1) | $ | 0.62 | $ | 0.62 | $ | 0.60 | $ | 0.60 | $ | 0.59 |
Diluted FFO per share - as adjusted for comparability (1) | $ | 0.62 | $ | 0.62 | $ | 0.60 | $ | 0.60 | $ | 0.59 |
Three Months Ended | ||||||||||
3/31/24 | 12/31/23 | 9/30/23 | 6/30/23 | 3/31/23 | ||||||
Diluted FFO available to common share and common unit holders, as adjusted for comparability (1) | $ | 71,969 | $ | 71,100 | $ | 68,593 | $ | 68,569 | $ | 67,651 |
Straight line rent adjustments and lease incentive amortization | 3,473 | 313 | 12,882 | (3,161) | (3,516) | |||||
Amortization of intangibles and other assets included in NOI | 122 | 26 | 26 | 17 | (19) | |||||
Share-based compensation, net of amounts capitalized | 2,645 | 2,318 | 2,280 | 2,213 | 1,733 | |||||
Amortization of deferred financing costs | 685 | 681 | 639 | 628 | 632 | |||||
Amortization of net debt discounts, net of amounts capitalized | 1,014 | 1,004 | 750 | 622 | 618 | |||||
Replacement capital expenditures (1) | (20,776) | (21,498) | (21,122) | (22,664) | (28,210) | |||||
Other | 137 | 336 | 74 | (221) | (273) | |||||
Diluted AFFO available to common share and common unit holders ("diluted AFFO") (1) | $ | 59,269 | $ | 54,280 | $ | 64,122 | $ | 46,003 | $ | 38,616 |
Replacement capital expenditures (1) | ||||||||||
Tenant improvements and incentives | $ | 12,776 | $ | 7,850 | $ | 14,457 | $ | 32,619 | $ | 19,986 |
Building improvements | 4,953 | 14,762 | 6,307 | 2,766 | 2,141 | |||||
Leasing costs | 3,590 | 2,440 | 1,902 | 3,542 | 1,750 | |||||
Net additions to (exclusions from) tenant improvements and incentives | 316 | (189) | (813) | (16,007) | 4,839 | |||||
Excluded building improvements and leasing costs | (859) | (3,365) | (731) | (256) | (506) | |||||
Replacement capital expenditures | $ | 20,776 | $ | 21,498 | $ | 21,122 | $ | 22,664 | $ | 28,210 |
Three Months Ended | ||||||||||
3/31/24 | 12/31/23 | 9/30/23 | 6/30/23 | 3/31/23 | ||||||
Net income (loss) | $ | 33,671 | $ | 34,820 | $ | (221,207) | $ | 31,642 | $ | 80,398 |
Interest expense | 20,767 | 20,383 | 17,798 | 16,519 | 16,442 | |||||
Income tax expense | 168 | 121 | 152 | 190 | 125 | |||||
Real estate-related depreciation and amortization | 38,351 | 36,735 | 37,620 | 37,600 | 36,995 | |||||
Other depreciation and amortization | 608 | 619 | 615 | 609 | 602 | |||||
Impairment losses on real estate | - | - | 252,797 | - | - | |||||
Gain on sales of real estate | - | - | - | (14) | (49,378) | |||||
Adjustments from unconsolidated real estate JVs | 1,671 | 1,911 | 1,743 | 1,559 | 1,704 | |||||
EBITDAre (1) | 95,236 | 94,589 | 89,518 | 88,105 | 86,888 | |||||
Credit loss expense (recoveries) | 22 | (1,288) | 372 | 238 | 67 | |||||
Business development expenses | 630 | 445 | 313 | 394 | 241 | |||||
Executive transition costs | 430 | 188 | 82 | 307 | 247 | |||||
Net gain on other investments | (477) | - | (25) | - | - | |||||
Adjusted EBITDA (1) | 95,841 | 93,934 | 90,260 | 89,044 | 87,443 | |||||
Pro forma NOI adjustment for property changes within period | 813 | 1,341 | 1,647 | 56 | (318) | |||||
Change in collectability of deferred rental revenue | - | (198) | - | 28 | 899 | |||||
In-place adjusted EBITDA (1) | $ | 96,654 | $ | 95,077 | $ | 91,907 | $ | 89,128 | $ | 88,024 |
# of Properties |
Operational Square Feet |
% Occupied | % Leased | |
Defense/IT Portfolio: | ||||
Fort Meade/Baltimore Washington ("BW") Corridor: | ||||
National Business Park | 34 | 4,292 | 99.1% | 99.1% |
Howard County | 36 | 3,064 | 91.4% | 92.8% |
Other | 23 | 1,725 | 92.9% | 96.5% |
Total Fort Meade/BW Corridor | 93 | 9,081 | 95.3% | 96.5% |
Northern Virginia ("NoVA") Defense/IT | 16 | 2,500 | 88.2% | 92.6% |
Lackland AFB (San Antonio, Texas) | 8 | 1,062 | 100.0% | 100.0% |
Navy Support | 22 | 1,273 | 85.9% | 86.2% |
Redstone Arsenal (Huntsville, Alabama) | 24 | 2,374 | 97.4% | 98.6% |
Data Center Shells: | ||||
Consolidated Properties | 6 | 1,408 | 100.0% | 100.0% |
Unconsolidated JV Properties (1) | 24 | 4,295 | 100.0% | 100.0% |
Total Defense/IT Portfolio | 193 | 21,993 | 95.6% | 96.8% |
Other | 8 | 2,144 | 72.5% | 76.1% |
Total Portfolio | 201 | 24,137 | 93.6% | 94.9% |
Consolidated Portfolio | 177 | 19,841 | 92.2% | 93.8% |
Three Months Ended | ||||||||||
3/31/24 | 12/31/23 | 9/30/23 | 6/30/23 | 3/31/23 | ||||||
Consolidated real estate revenues | ||||||||||
Defense/IT Portfolio: | ||||||||||
Fort Meade/BW Corridor | $ | 78,068 | $ | 74,758 | $ | 73,350 | $ | 72,176 | $ | 69,777 |
NoVA Defense/IT | 21,426 | 20,410 | 20,333 | 19,841 | 19,829 | |||||
Lackland Air Force Base | 16,411 | 17,861 | 16,193 | 17,595 | 15,605 | |||||
Navy Support | 8,226 | 8,405 | 8,190 | 8,118 | 7,925 | |||||
Redstone Arsenal | 16,808 | 14,971 | 13,768 | 12,978 | 13,414 | |||||
Data Center Shells-Consolidated | 8,457 | 7,654 | 6,811 | 6,287 | 6,692 | |||||
Total Defense/IT Portfolio | 149,396 | 144,059 | 138,645 | 136,995 | 133,242 | |||||
Other | 17,267 | 17,503 | 17,962 | 17,958 | 18,439 | |||||
Consolidated real estate revenues (1) | $ | 166,663 | $ | 161,562 | $ | 156,607 | $ | 154,953 | $ | 151,681 |
NOI from real estate operations (2) | ||||||||||
Defense/IT Portfolio: | ||||||||||
Fort Meade/BW Corridor | $ | 50,178 | $ | 48,894 | $ | 48,134 | $ | 47,988 | $ | 45,257 |
NoVA Defense/IT | 12,164 | 11,972 | 12,433 | 12,158 | 12,257 | |||||
Lackland Air Force Base | 7,723 | 7,708 | 7,626 | 7,644 | 7,660 | |||||
Navy Support | 4,600 | 4,783 | 4,257 | 4,602 | 4,382 | |||||
Redstone Arsenal | 11,016 | 10,157 | 8,820 | 8,228 | 8,778 | |||||
Data Center Shells: | ||||||||||
Consolidated properties | 7,514 | 6,966 | 6,133 | 5,544 | 6,098 | |||||
COPT Defense's share of unconsolidated real estate JVs | 1,740 | 1,671 | 1,675 | 1,671 | 1,642 | |||||
Total Defense/IT Portfolio | 94,935 | 92,151 | 89,078 | 87,835 | 86,074 | |||||
Other | 6,722 | 6,505 | 7,416 | 7,189 | 7,829 | |||||
NOI from real estate operations (1) | $ | 101,657 | $ | 98,656 | $ | 96,494 | $ | 95,024 | $ | 93,903 |
Three Months Ended | ||||||||||
3/31/24 | 12/31/23 | 9/30/23 | 6/30/23 | 3/31/23 | ||||||
Cash NOI from real estate operations (1) | ||||||||||
Defense/IT Portfolio: | ||||||||||
Fort Meade/BW Corridor | $ | 47,117 | $ | 46,173 | $ | 45,513 | $ | 45,727 | $ | 43,662 |
NoVA Defense/IT | 12,933 | 12,881 | 12,765 | 12,642 | 11,423 | |||||
Lackland Air Force Base | 8,186 | 8,114 | 7,913 | 7,919 | 7,915 | |||||
Navy Support | 4,503 | 5,008 | 4,621 | 4,911 | 5,023 | |||||
Redstone Arsenal | 6,308 | 4,869 | 4,861 | 3,707 | 4,988 | |||||
Data Center Shells: | ||||||||||
Consolidated properties | 6,688 | 5,868 | 4,904 | 4,918 | 5,379 | |||||
COPT Defense's share of unconsolidated real estate JVs | 1,477 | 1,400 | 1,396 | 1,385 | 1,351 | |||||
Total Defense/IT Portfolio | 87,212 | 84,313 | 81,973 | 81,209 | 79,741 | |||||
Other | 6,723 | 6,536 | 7,400 | 7,350 | 7,583 | |||||
Cash NOI from real estate operations (2) | $ | 93,935 | $ | 90,849 | $ | 89,373 | $ | 88,559 | $ | 87,324 |
As of Period End | NOI from Real Estate Operations (3) | |||||||||
# of Properties |
Operational Square Feet | % Occupied (1) | % Leased (1) |
Annualized Rental Revenue (2) |
% of Total Annualized Rental Revenue (2) |
|||||
Property Grouping | Three Months Ended | |||||||||
Defense/IT Portfolio: | ||||||||||
Same Property: (2) | ||||||||||
Consolidated properties | 160 | 16,536 | 94.8% | 96.4% | $ | 553,073 | 84.4 | % | $ | 87,587 |
Unconsolidated real estate JV | 21 | 3,547 | 100.0% | 100.0% | 5,821 | 0.9 | % | 1,301 | ||
Total Same Property in Defense/IT Portfolio | 181 | 20,083 | 95.8% | 97.0% | 558,894 | 85.3 | % | 88,888 | ||
Properties Placed in Service (4) | 8 | 960 | 97.8% | 97.8% | 24,976 | 3.8 | % | 5,532 | ||
Other unconsolidated JV properties (5) | 3 | 748 | 100.0% | 100.0% | 1,360 | 0.2 | % | 444 | ||
Acquired property (6) | 1 | 202 | 55.6% | 55.6% | 4,070 | 0.6 | % | 71 | ||
Total Defense/IT Portfolio | 193 | 21,993 | 95.6% | 96.8% | 589,300 | 90.0 | % | 94,935 | ||
Other | 8 | 2,144 | 72.5% | 76.1% | 65,622 | 10.0 | % | 6,722 | ||
Total Portfolio | 201 | 24,137 | 93.6% | 94.9% | $ | 654,922 | 100.0 | % | $ | 101,657 |
Consolidated Portfolio | 177 | 19,841 | 92.2% | 93.8% | $ | 647,741 | 98.9 | % | $ | 99,917 |
# of Properties | Operational Square Feet | Three Months Ended | ||||||||||
3/31/24 | 12/31/23 | 9/30/23 | 6/30/23 | 3/31/23 | ||||||||
Defense/IT Portfolio: | ||||||||||||
Fort Meade/BW Corridor | 91 | 8,693 | 96.2 | % | 96.2 | % | 95.8 | % | 94.8 | % | 93.0 | % |
NoVA Defense/IT | 16 | 2,500 | 87.9 | % | 88.5 | % | 89.8 | % | 89.9 | % | 90.6 | % |
Lackland Air Force Base | 8 | 1,062 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Navy Support | 21 | 1,244 | 85.6 | % | 87.8 | % | 87.2 | % | 87.6 | % | 88.9 | % |
Redstone Arsenal | 20 | 2,049 | 97.7 | % | 97.4 | % | 93.5 | % | 90.6 | % | 89.7 | % |
Data Center Shells: | ||||||||||||
Consolidated properties | 4 | 988 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Unconsolidated JV properties | 21 | 3,547 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Total Defense/IT Portfolio | 181 | 20,083 | 95.7 | % | 95.9 | % | 95.5 | % | 94.8 | % | 94.1 | % |
Other | 8 | 2,144 | 72.0 | % | 73.9 | % | 75.2 | % | 75.0 | % | 78.6 | % |
Total Same Property | 189 | 22,227 | 93.4 | % | 93.8 | % | 93.5 | % | 92.9 | % | 92.6 | % |
Same Property (1) Period End Occupancy Rates by Segment
(square feet in thousands)
|
||||||||||||
# of Properties | Operational Square Feet | |||||||||||
3/31/24 | 12/31/23 | 9/30/23 | 6/30/23 | 3/31/23 | ||||||||
Defense/IT Portfolio: | ||||||||||||
Fort Meade/BW Corridor | 91 | 8,693 | 96.1 | % | 96.3 | % | 96.1 | % | 95.4 | % | 93.4 | % |
NoVA Defense/IT | 16 | 2,500 | 88.2 | % | 88.9 | % | 89.5 | % | 89.9 | % | 90.7 | % |
Lackland Air Force Base | 8 | 1,062 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Navy Support | 21 | 1,244 | 86.4 | % | 88.0 | % | 87.4 | % | 87.4 | % | 88.4 | % |
Redstone Arsenal | 20 | 2,049 | 97.5 | % | 97.7 | % | 95.7 | % | 92.3 | % | 89.7 | % |
Data Center Shells: | ||||||||||||
Consolidated properties | 4 | 988 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Unconsolidated JV properties | 21 | 3,547 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Total Defense/IT Portfolio | 181 | 20,083 | 95.8 | % | 96.0 | % | 95.8 | % | 95.2 | % | 94.2 | % |
Other | 8 | 2,144 | 72.5 | % | 73.2 | % | 75.4 | % | 74.9 | % | 77.6 | % |
Total Same Property | 189 | 22,227 | 93.5 | % | 93.8 | % | 93.8 | % | 93.3 | % | 92.6 | % |
Three Months Ended | ||||||||||
3/31/24 | 12/31/23 | 9/30/23 | 6/30/23 | 3/31/23 | ||||||
Same Property real estate revenues | ||||||||||
Defense/IT Portfolio: | ||||||||||
Fort Meade/BW Corridor | $ | 76,082 | $ | 74,008 | $ | 73,350 | $ | 72,177 | $ | 69,769 |
NoVA Defense/IT | 21,426 | 20,411 | 20,333 | 19,840 | 19,829 | |||||
Lackland Air Force Base | 16,411 | 17,860 | 16,193 | 17,596 | 15,605 | |||||
Navy Support | 8,073 | 8,251 | 8,035 | 7,964 | 7,771 | |||||
Redstone Arsenal | 14,311 | 13,861 | 13,520 | 12,820 | 13,292 | |||||
Data Center Shells-Consolidated | 6,427 | 6,186 | 6,205 | 6,285 | 6,293 | |||||
Total Defense/IT Portfolio | 142,730 | 140,577 | 137,636 | 136,682 | 132,559 | |||||
Other | 15,262 | 15,500 | 15,953 | 15,964 | 16,790 | |||||
Same Property real estate revenues | $ | 157,992 | $ | 156,077 | $ | 153,589 | $ | 152,646 | $ | 149,349 |
Same Property NOI from real estate operations ("NOI") | ||||||||||
Defense/IT Portfolio: | ||||||||||
Fort Meade/BW Corridor | $ | 48,330 | $ | 48,239 | $ | 48,134 | $ | 47,988 | $ | 45,257 |
NoVA Defense/IT | 12,164 | 11,972 | 12,433 | 12,158 | 12,257 | |||||
Lackland Air Force Base | 7,723 | 7,708 | 7,625 | 7,645 | 7,660 | |||||
Navy Support | 4,522 | 4,702 | 4,177 | 4,510 | 4,293 | |||||
Redstone Arsenal | 9,321 | 9,148 | 8,665 | 8,134 | 8,682 | |||||
Data Center Shells: | ||||||||||
Consolidated properties | 5,527 | 5,538 | 5,539 | 5,544 | 5,753 | |||||
COPT Defense's share of unconsolidated real estate JVs | 1,301 | 1,233 | 1,236 | 1,232 | 1,245 | |||||
Total Defense/IT Portfolio | 88,888 | 88,540 | 87,809 | 87,211 | 85,147 | |||||
Other | 6,515 | 6,314 | 7,230 | 7,012 | 7,576 | |||||
Same Property NOI (1) | $ | 95,403 | $ | 94,854 | $ | 95,039 | $ | 94,223 | $ | 92,723 |
Three Months Ended | ||||||||||
3/31/24 | 12/31/23 | 9/30/23 | 6/30/23 | 3/31/23 | ||||||
Same Property cash NOI from real estate operations ("cash NOI") | ||||||||||
Defense/IT Portfolio: | ||||||||||
Fort Meade/BW Corridor | $ | 47,052 | $ | 46,267 | $ | 45,513 | $ | 45,727 | $ | 43,662 |
NoVA Defense/IT | 12,933 | 12,882 | 12,764 | 12,642 | 11,423 | |||||
Lackland Air Force Base | 8,186 | 8,114 | 7,913 | 7,919 | 7,915 | |||||
Navy Support | 4,429 | 4,932 | 4,545 | 4,825 | 4,940 | |||||
Redstone Arsenal | 6,412 | 4,966 | 4,953 | 3,771 | 5,015 | |||||
Data Center Shells: | ||||||||||
Consolidated properties | 4,984 | 4,960 | 4,865 | 4,918 | 5,101 | |||||
COPT Defense's share of unconsolidated real estate JVs | 1,183 | 1,108 | 1,106 | 1,095 | 1,092 | |||||
Total Defense/IT Portfolio | 85,179 | 83,229 | 81,659 | 80,897 | 79,148 | |||||
Other | 6,440 | 6,264 | 7,134 | 7,092 | 7,243 | |||||
Same Property cash NOI (1) | $ | 91,619 | $ | 89,493 | $ | 88,793 | $ | 87,989 | $ | 86,391 |
Percentage change in total Same Property cash NOI (1)(2) | 6.1% | |||||||||
Percentage change in Defense/IT Portfolio Same Property cash NOI (2) | 7.6% |
Defense/IT Portfolio | ||||||||||||||
Ft Meade/BW Corridor | NoVA Defense/IT | Navy Support | Redstone Arsenal | Total Defense/IT Portfolio | Other | Total | ||||||||
Renewed Space | ||||||||||||||
Leased Square Feet | 227 | 116 | 80 | 85 | 509 | 42 | 551 | |||||||
Expiring Square Feet | 272 | 127 | 125 | 89 | 613 | 93 | 706 | |||||||
Vacating Square Feet | 45 | 11 | 45 | 4 | 105 | 51 | 155 | |||||||
Retention Rate (% based upon square feet) | 83.5 | % | 91.5 | % | 64.1 | % | 95.3 | % | 82.9 | % | 45.6 | % | 78.0 | % |
Statistics for Completed Leasing: | ||||||||||||||
Per Annum Average Committed Cost per Square Foot | $ | 2.89 | $ | 5.77 | $ | 0.63 | $ | 0.19 | $ | 2.75 | $ | 3.10 | $ | 2.77 |
Weighted Average Lease Term in Years | 4.2 | 4.8 | 3.1 | 2.0 | 3.8 | 7.9 | 4.1 | |||||||
Straight-line Rent Per Square Foot | ||||||||||||||
Renewal Straight-line Rent | $ | 32.58 | $ | 34.91 | $ | 28.89 | $ | 26.03 | $ | 31.44 | $ | 32.07 | $ | 31.49 |
Expiring Straight-line Rent | $ | 30.44 | $ | 37.87 | $ | 24.78 | $ | 25.11 | $ | 30.36 | $ | 30.35 | $ | 30.36 |
Change in Straight-line Rent | 7.0 | % | (7.8 | %) | 16.6 | % | 3.6 | % | 3.6 | % | 5.7 | % | 3.7 | % |
Cash Rent Per Square Foot | ||||||||||||||
Renewal Cash Rent | $ | 32.20 | $ | 37.16 | $ | 28.71 | $ | 25.82 | $ | 31.72 | $ | 30.83 | $ | 31.65 |
Expiring Cash Rent | $ | 32.62 | $ | 39.79 | $ | 27.97 | $ | 25.45 | $ | 32.34 | $ | 33.93 | $ | 32.46 |
Change in Cash Rent | (1.3 | %) | (6.6 | %) | 2.6 | % | 1.4 | % | (1.9 | %) | (9.2 | %) | (2.5 | %) |
Compound Annual Growth Rate | 2.4 | % | 1.4 | % | 2.5 | % | 1.7 | % | 2.1 | % | 2.2 | % | 2.1 | % |
Average Escalations Per Year | 2.7 | % | 2.5 | % | 2.6 | % | 2.5 | % | 2.6 | % | 1.1 | % | 2.4 | % |
New Leases | ||||||||||||||
Development and Redevelopment Space | ||||||||||||||
Leased Square Feet | - | - | - | 10 | 10 | - | 10 | |||||||
Statistics for Completed Leasing: | ||||||||||||||
Per Annum Average Committed Cost per Square Foot | $ | - | $ | - | $ | - | $ | 3.14 | $ | 3.14 | $ | - | $ | 3.14 |
Weighted Average Lease Term in Years | - | - | - | 5.3 | 5.3 | - | 5.3 | |||||||
Straight-line Rent Per Square Foot | $ | - | $ | - | $ | - | $ | 23.81 | $ | 23.81 | $ | - | $ | 23.81 |
Cash Rent Per Square Foot | $ | - | $ | - | $ | - | $ | 23.50 | $ | 23.50 | $ | - | $ | 23.50 |
Vacant Space | ||||||||||||||
Leased Square Feet | 80 | 20 | 13 | - | 113 | 47 | 160 | |||||||
Statistics for Completed Leasing: | ||||||||||||||
Per Annum Average Committed Cost per Square Foot | $ | 9.23 | $ | 9.12 | $ | 4.64 | $ | - | $ | 8.68 | $ | 6.14 | $ | 7.93 |
Weighted Average Lease Term in Years | 8.8 | 9.5 | 5.1 | - | 8.5 | 7.4 | 8.2 | |||||||
Straight-line Rent Per Square Foot | $ | 32.09 | $ | 33.17 | $ | 25.29 | $ | - | $ | 31.50 | $ | 28.03 | $ | 30.48 |
Cash Rent Per Square Foot | $ | 30.77 | $ | 34.40 | $ | 25.96 | $ | - | $ | 30.85 | $ | 28.15 | $ | 30.05 |
Total Square Feet Leased | 307 | 136 | 93 | 95 | 632 | 89 | 721 | |||||||
Average Escalations Per Year | 2.6 | % | 2.6 | % | 2.6 | % | 2.6 | % | 2.6 | % | 1.9 | % | 2.5 | % |
Average Escalations Excl. Data Center Shells | 2.5 | % |
Segment of Lease and Year of Expiration (2) | Square Footage of Leases Expiring |
Annualized Rental Revenue of Expiring Leases (3) |
% of Defense/IT Annualized Rental Revenue Expiring (3) |
Annualized Rental Revenue of Expiring Leases per Occupied Sq. Foot (3) |
|||
Defense/IT Portfolio | |||||||
Ft Meade/BW Corridor | 1,145 | $ | 47,852 | 8.1 | % | $ | 41.75 |
NoVA Defense/IT | 130 | 3,987 | 0.7 | % | 30.71 | ||
Navy Support | 234 | 6,275 | 1.1 | % | 26.79 | ||
Redstone Arsenal | 49 | 1,019 | 0.2 | % | 20.81 | ||
Data Center Shells-Unconsolidated JV Properties | 310 | 444 | 0.1 | % | 14.31 | ||
2024 | 1,868 | 59,577 | 10.1 | % | 37.47 | ||
Ft Meade/BW Corridor | 1,870 | 71,284 | 12.1 | % | 38.06 | ||
NoVA Defense/IT | 281 | 11,849 | 2.0 | % | 42.21 | ||
Lackland Air Force Base | 703 | 39,803 | 6.8 | % | 56.64 | ||
Navy Support | 212 | 4,968 | 0.8 | % | 23.41 | ||
Redstone Arsenal | 288 | 6,860 | 1.2 | % | 23.82 | ||
Data Center Shells-Unconsolidated JV Properties | 121 | 175 | - | % | 14.48 | ||
2025 | 3,475 | 134,939 | 22.9 | % | 40.06 | ||
Ft Meade/BW Corridor | 938 | 37,545 | 6.4 | % | 40.02 | ||
NoVA Defense/IT | 66 | 2,250 | 0.4 | % | 33.84 | ||
Lackland Air Force Base | 250 | 12,793 | 2.2 | % | 51.17 | ||
Navy Support | 193 | 6,722 | 1.1 | % | 34.77 | ||
Redstone Arsenal | 105 | 3,021 | 0.5 | % | 28.71 | ||
Data Center Shells-Unconsolidated JV Properties | 446 | 814 | 0.1 | % | 18.26 | ||
2026 | 1,998 | 63,146 | 10.7 | % | 39.52 | ||
Ft Meade/BW Corridor | 793 | 29,477 | 5.0 | % | 37.18 | ||
NoVA Defense/IT | 190 | 6,443 | 1.1 | % | 33.86 | ||
Navy Support | 212 | 8,231 | 1.4 | % | 38.80 | ||
Redstone Arsenal | 163 | 4,394 | 0.7 | % | 26.94 | ||
Data Center Shells-Unconsolidated JV Properties | 364 | 518 | 0.1 | % | 14.23 | ||
2027 | 1,722 | 49,063 | 8.3 | % | 35.18 | ||
Ft Meade/BW Corridor | 1,421 | 48,015 | 8.1 | % | 33.76 | ||
NoVA Defense/IT | 211 | 7,170 | 1.2 | % | 33.93 | ||
Navy Support | 54 | 1,462 | 0.2 | % | 27.31 | ||
Data Center Shells-Unconsolidated JV Properties | 515 | 867 | 0.1 | % | 16.82 | ||
2028 | 2,201 | 57,515 | 9.8 | % | 33.08 | ||
Thereafter | |||||||
Consolidated Properties | 7,227 | 220,697 | 37.5 | % | 29.81 | ||
Unconsolidated JV Properties | 2,539 | 4,363 | 0.7 | % | 17.18 | ||
Total Defense/IT Portfolio | 21,030 | $ | 589,300 | 100.0 | % | $ | 34.01 |
Segment of Lease and Year of Expiration (2) | Square Footage of Leases Expiring |
Annualized Rental Revenue of Expiring Leases (3) |
% of Total Annualized Rental Revenue Expiring (3) |
Annualized Rental Revenue of Expiring Leases per Occupied Sq. Foot (3) |
|||
Total Defense/IT Portfolio | 21,030 | $ | 589,300 | 90.0 | % | $ | 34.01 |
Other | |||||||
2024 | 44 | 1,547 | 0.2 | % | 34.05 | ||
2025 | 173 | 11,027 | 1.7 | % | 29.40 | ||
2026 | 164 | 5,995 | 0.9 | % | 36.47 | ||
2027 | 124 | 4,622 | 0.7 | % | 36.93 | ||
2028 | 243 | 8,951 | 1.4 | % | 36.73 | ||
Thereafter | 806 | 33,480 | 5.1 | % | 41.33 | ||
Total Other | 1,554 | 65,622 | 10.0 | % | 38.21 | ||
Total Portfolio | 22,584 | $ | 654,922 | 100.0 | % | $ | 34.36 |
Consolidated Portfolio | 18,289 | $ | 647,741 | ||||
Unconsolidated JV Properties | 4,295 | $ | 7,181 |
Segment of Lease and Quarter of Expiration (2) | Square Footage of Leases Expiring |
Annualized Rental Revenue of Expiring Leases (3) |
% of Defense/IT Annualized Rental Revenue Expiring (3) |
Annualized Rental Revenue of Expiring Leases per Occupied Sq. Foot (3) | |||
Defense IT Portfolio | |||||||
Ft Meade/BW Corridor | 663 | $ | 27,421 | 4.7 | % | $ | 41.38 |
NoVA Defense/IT | 89 | 3,006 | 0.5 | % | 33.77 | ||
Navy Support | 21 | 630 | 0.1 | % | 29.64 | ||
Redstone Arsenal | 31 | 550 | 0.1 | % | 17.72 | ||
Q2 2024 | 804 | 31,607 | 5.4 | % | 39.32 | ||
Ft Meade/BW Corridor | 240 | 8,605 | 1.5 | % | 35.73 | ||
NoVA Defense/IT | 30 | 630 | 0.1 | % | 20.72 | ||
Navy Support | 97 | 2,233 | 0.4 | % | 23.07 | ||
Data Center Shells-Unconsolidated JV Properties | 310 | 444 | 0.1 | % | 14.31 | ||
Q3 2024 | 677 | 11,912 | 2.1 | % | 29.84 | ||
Ft Meade/BW Corridor | 243 | 11,826 | 2.0 | % | 48.73 | ||
NoVA Defense/IT | 10 | 351 | 0.1 | % | 33.78 | ||
Navy Support | 116 | 3,412 | 0.6 | % | 29.37 | ||
Redstone Arsenal | 18 | 469 | 0.1 | % | 26.15 | ||
Q4 2024 | 387 | 16,058 | 2.8 | % | 41.47 | ||
1,868 | $ | 59,577 | 10.1 | % | $ | 37.47 |
Tenant |
Total Annualized Rental Revenue (2) |
% of Total Annualized Rental Revenue (2) |
Occupied Square Feet | Weighted Average Remaining Lease Term (3) | |||
United States Government | (4) | $ | 232,891 | 35.6 | % | 5,529 | 3.5 |
Fortune 100 Company | 57,542 | 8.8 | % | 6,182 | 7.9 | ||
General Dynamics Corporation | 32,844 | 5.0 | % | 703 | 3.6 | ||
Northrop Grumman Corporation | 15,048 | 2.3 | % | 519 | 5.5 | ||
The Boeing Company | 14,701 | 2.2 | % | 443 | 2.7 | ||
CACI International Inc | 13,166 | 2.0 | % | 327 | 4.2 | ||
Peraton Corp. | 12,858 | 2.0 | % | 330 | 4.5 | ||
Booz Allen Hamilton, Inc. | 12,103 | 1.8 | % | 297 | 1.9 | ||
Fortune 100 Company | 11,752 | 1.8 | % | 183 | 10.5 | ||
Morrison & Foerster, LLP | 9,631 | 1.5 | % | 102 | 13.0 | ||
CareFirst, Inc. | 9,067 | 1.4 | % | 264 | 10.4 | ||
KBR, Inc. | 7,843 | 1.2 | % | 309 | 9.1 | ||
Yulista Holding, LLC | 7,088 | 1.1 | % | 368 | 5.7 | ||
AT&T Corporation | 6,774 | 1.0 | % | 321 | 5.5 | ||
Mantech International Corp. | 6,584 | 1.0 | % | 200 | 1.5 | ||
Jacobs Solutions Inc. | 6,474 | 1.0 | % | 185 | 5.2 | ||
Wells Fargo & Company | 6,270 | 1.0 | % | 145 | 4.4 | ||
The University System of Maryland | 6,054 | 0.9 | % | 172 | 5.8 | ||
Lockheed Martin Corporation | 5,712 | 0.9 | % | 194 | 6.0 | ||
The Mitre Corporation | 5,406 | 0.8 | % | 152 | 2.2 | ||
Subtotal Top 20 Tenants | 479,808 | 73.3 | % | 16,925 | 5.6 | ||
All remaining tenants | 175,114 | 26.7 | % | 5,659 | 4.1 | ||
Total / Weighted Average | $ | 654,922 | 100.0 | % | 22,584 | 5.2 |
Property | Property Segment/Sub-Segment | Location | # of Properties | Operational Square Feet |
Transaction Date |
% Occupied on Transaction Date |
Transaction Value (in millions) |
|
6841 Benjamin Franklin Drive | Fort Meade/BW Corridor | Columbia, Maryland | 1 | 202 | 3/15/24 | 55.6% | $ | 15 |
Total Rentable Square Feet |
% Leased as of 3/31/24
|
as of 3/31/24 (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 Segment/Sub-Segment | Location | ||||||||||
Defense/IT Portfolio: | |||||||||||
Fort Meade/BW Corridor: | |||||||||||
400 National Business Parkway | Annapolis Junction, Maryland | 138 | 0% | $ | 65,100 | $ | 12,776 | $ | - | 1Q 25 | 1Q 26 |
Redstone Arsenal: | |||||||||||
8100 Rideout Road (4) | Huntsville, Alabama | 128 | 42% | 45,991 | 33,085 | 11,723 | 3Q 23 | 3Q 24 | |||
9700 Advanced Gateway | Huntsville, Alabama | 50 | 20% | 11,000 | 161 | - | 1Q 25 | 1Q 26 | |||
Subtotal / Average | 178 | 35% | 56,991 | 33,246 | 11,723 | ||||||
Data Center Shells: | |||||||||||
Southpoint Phase 2 Bldg A | Northern Virginia | 225 | 100% | 82,500 | 27,222 | - | 3Q 24 | 3Q 24 | |||
Southpoint Phase 2 Bldg B | Northern Virginia | 193 | 100% | 65,000 | 5,410 | - | 3Q 25 | 3Q 25 | |||
MP 3 | Northern Virginia | 225 | 100% | 111,800 | 10,402 | - | 4Q 25 | 4Q 25 | |||
Data Center Shells Subtotal / Average | 643 | 100% | 259,300 | 43,034 | - | ||||||
Total Defense/IT Portfolio Under Development | 959 | 74% | $ | 381,391 | $ | 89,056 | $ | 11,723 |
Square Feet Placed in Service |
Total Space Placed in Service % Leased as of 3/31/24
|
||||
Total Property | |||||
Property Segment/Sub-Segment |
% Leased as of 3/31/24
|
Rentable Square Feet | 2024 | ||
Property and Location | 1st Quarter | ||||
5300 Redstone Gateway
Huntsville, Alabama
|
Redstone Arsenal | 100% | 46 | 46 | 100% |
8100 Rideout Road
Huntsville, Alabama
|
Redstone Arsenal | 42% | 128 | 27 | 100% |
Total Development Placed in Service | 57% | 174 | 73 | 100% | |
% Leased as of 3/31/24
|
100% |
Location | Acres | Estimated Developable Square Feet | Carrying Amount | |
Defense/IT Portfolio land owned/controlled for future development: | ||||
Fort Meade/BW Corridor: | ||||
National Business Park | 144 | 1,483 | ||
Howard County | 19 | 290 | ||
Other | 126 | 1,338 | ||
Total Fort Meade/BW Corridor | 289 | 3,111 | ||
NoVA Defense/IT | 29 | 1,171 | ||
Navy Support | 38 | 64 | ||
Redstone Arsenal (2) | 295 | 3,350 | ||
Total Defense/IT Portfolio land owned/controlled for future development | 651 | 7,696 | $ | 158,839 |
Other land owned/controlled | 53 | 1,538 | 9,656 | |
Land held, net | 704 | 9,234 | $ | 168,495 |
Wtd. Avg. Maturity (Years) (1) | Stated Rate |
Effective Rate (2)(3) |
Amount Outstanding at 3/31/24
|
||||
Debt | |||||||
Secured debt | 1.4 | 5.04 | % | 3.54 | % | $ | 98,820 |
Unsecured debt | 5.6 | 3.26 | % | 3.34 | % | 2,345,411 | |
Total Consolidated Debt | 5.4 | 3.33 | % | 3.34 | % | $ | 2,444,231 |
Fixed-rate debt (3) | 5.6 | 2.98 | % | 3.34 | % | $ | 2,444,231 |
Variable-rate debt (3) | 3.4 | 6.67 | % | N/A | - | ||
Total Consolidated Debt | $ | 2,444,231 | |||||
Common Equity | |||||||
Common Shares | 112,641 | ||||||
Common Units (4) | 2,148 | ||||||
Total Common Shares and Units | 114,789 | ||||||
Closing Common Share Price on 3/28/24
|
$ | 24.17 | |||||
Equity Market Capitalization (5) | $ | 2,774,450 | |||||
Total Market Capitalization (5) | $ | 5,218,681 |
Investment Grade Ratings & Outlook | Latest Report | ||
Fitch | BBB- | Stable | 11/22/23 |
Moody's | Baa3 | Stable | 1/22/24 |
S&P | BBB- | Stable | 9/7/23 |
Unsecured Debt | Stated Rate | Amount Outstanding | Maturity Date | Secured Debt | Stated Rate | Amount Outstanding | Balloon Payment Due Upon Maturity | Maturity Date | ||
Revolving Credit Facility |
SOFR+ 0.10%+1.05% |
$ | 75,000 | Oct-26 | (1)(2) | LW Redstone: | ||||
1000, 1200 & 1100 Redstone Gateway (3) | 4.47% | (4) | $ | 27,865 | $ | 27,649 | Jun-24 | |||
Senior Unsecured Notes | ||||||||||
2.25% due 2026 | 2.25% | 400,000 | Mar-26 | 4000 & 4100 Market Street and 8800 Redstone Gateway (2)(3) |
SOFR +0.10%+1.55% |
22,400 | $ | 22,100 | Mar-25 | (6) |
5.25% due 2028 | 5.25% | 345,000 | Sep-28 | (5) | ||||||
2.00% due 2029 | 2.00% | 400,000 | Jan-29 | M Square: | ||||||
2.75% due 2031 | 2.75% | 600,000 | Apr-31 | 5825 & 5850 University Research Court (3) | 3.82% | 37,975 | $ | 35,603 | Jun-26 | |
2.90% due 2033 | 2.90% | 400,000 | Dec-33 | |||||||
Subtotal - Senior Unsecured Notes | 2.95% | $ | 2,145,000 | 5801 University Research Court (2)(3) |
SOFR +0.10%+1.45% |
10,580 | $ | 10,020 | Aug-26 | |
Unsecured Bank Term Loans | Total Secured Debt | 5.04% | $ | 98,820 | ||||||
2026 Maturity |
SOFR+ 0.10%+1.30% |
$ | 125,000 | Jan-26 | (2)(7) | |||||
Other Unsecured Debt | 0.00% | 411 | May-26 | |||||||
Total Unsecured Debt | 3.26% | $ | 2,345,411 | |||||||
Debt Summary | ||||||||||
Total Unsecured Debt | 3.26% | $ | 2,345,411 | |||||||
Total Secured Debt | 5.04% | 98,820 | ||||||||
Consolidated Debt | 3.33% | $ | 2,444,231 | |||||||
Debt per balance sheet | $ | 2,416,873 | ||||||||
Net discounts and deferred financing costs | 27,358 | |||||||||
Consolidated Debt | 2,444,231 | |||||||||
COPT Defense's share of unconsolidated JV gross debt (8) | 52,819 | |||||||||
Gross debt | $ | 2,497,050 |
As of and for Three Months Ended 3/31/24 |
As of and for Three Months Ended
3/31/24
|
|||||
Senior Note Covenants (1) | Required | Line of Credit & Term Loan Covenants (1)(2) | Required | |||
Total Debt / Total Assets | < 60% | 42.5% | Total Debt / Total Assets | < 60% | 38.3% | |
Secured Debt / Total Assets | < 40% | 1.7% | Secured Debt / Total Assets | < 40% | 2.0% | |
Debt Service Coverage | > 1.5x | 4.3x | Adjusted EBITDA / Fixed Charges | > 1.5x | 4.6x | |
Unencumbered Assets / Unsecured Debt | > 150% | 234.3% | Unsecured Debt / Unencumbered Assets | < 60% | 38.0% | |
Unencumbered Adjusted NOI / Unsecured Interest Expense | > 1.75x | 4.6x | ||||
Debt Ratios | Page Refer. | Unencumbered Portfolio Analysis | ||||
GAAP | # of unencumbered properties | 173 | ||||
Debt per balance sheet | 6 | $ | 2,416,873 | % of total portfolio | 86 | % |
Total assets | 6 | $ | 4,232,895 | Unencumbered square feet in-service | 20,124 | |
Debt to assets | 57.1 | % | % of total portfolio | 83 | % | |
Net income | 7 | $ | 33,671 | NOI from unencumbered real estate operations | $ | 97,073 |
Debt to net income ratio (2) | 17.9 | x | % of total NOI from real estate operations | 95 | % | |
Interest expense | 7 | $ | 20,767 | Adjusted EBITDA from unencumbered real estate operations | $ | 91,257 |
Net income to interest expense ratio (2) | 1.6 | x | % of total adjusted EBITDA from real estate operations | 95 | % | |
Unencumbered adjusted book | $ | 5,528,468 | ||||
Non-GAAP | % of total adjusted book | 95 | % | |||
Net debt | 36 | $ | 2,372,747 | |||
Adjusted book | 36 | $ | 5,806,374 | |||
Net debt to adjusted book | 40.9 | % | ||||
Net debt adj. for fully-leased development | 36 | $ | 2,329,713 | |||
In-place adjusted EBITDA | 11 | $ | 96,654 | |||
Net debt to in-place adjusted EBITDA ratio | 6.1 | x | ||||
Net debt adj. for fully-leased devel. to in-place adj. EBITDA ratio | 6.0 | x | ||||
Denominator for debt service coverage | 35 | $ | 20,641 | |||
Denominator for fixed charge coverage | 35 | $ | 21,230 | |||
Adjusted EBITDA | 11 | $ | 95,841 | |||
Adjusted EBITDA debt service coverage ratio | 4.6 | x | ||||
Adjusted EBITDA fixed charge coverage ratio | 4.5 | x |
NOI from Real Estate Operations (1) | Venture Level Debt Outstanding (3) |
COPT Defense Nominal Ownership % |
||||||||
Operating Properties |
Operational Square Feet |
% Occupied | % Leased | Three Months Ended | Total Assets (2) | |||||
Suburban Maryland: | ||||||||||
M Square Associates, LLC (4 properties)
|
414 | 88.8% | 95.5% | $ | 1,565 | $ | 92,514 | $ | 48,555 | 50% |
Huntsville, Alabama: | ||||||||||
LW Redstone Company, LLC (23 properties)
|
2,237 | 98.0% | 99.2% | 10,660 | 593,434 | 50,265 | 85% | (4) | ||
Washington, D.C.: | ||||||||||
Stevens Place (1 property)
|
188 | 60.6% | 83.5% | 1,255 | 130,123 | - | 95% | |||
Total / Average | 2,839 | 94.2% | 97.7% | $ | 13,480 | $ | 816,071 | $ | 98,820 |
Non-Operating Properties | Estimated Developable Square Feet | Total Assets (2) | Venture Level Debt Outstanding | COPT Defense Nominal Ownership % | ||
Suburban Maryland: | ||||||
M Square Research Park | 348 | $ | 5,942 | $ | - | 50% |
Huntsville, Alabama: | ||||||
Redstone Gateway (5) | 3,501 | 130,075 | - | 85% | (3) | |
Total | 3,849 | $ | 136,017 | $ | - |
Joint venture information | ||||
COPT Defense ownership %
|
10 | % | ||
COPT Defense's investment
|
$ | 37,615 | (2) | |
# of Properties | 24 | |||
Square Feet | 4,295 | |||
% Occupied | 100 | % | ||
COPT Defense's share of ARR | $ | 7,181 | ||
Balance sheet information | Total | COPT Defense's Share (4) | ||
Operating properties, net | $ | 953,549 | $ | 95,355 |
Total assets | $ | 1,052,588 | $ | 105,259 |
Debt (3) | $ | 524,949 | $ | 52,495 |
Total liabilities | $ | 609,039 | $ | 60,904 |
Three Months Ended | ||||
Operating information | Total | COPT Defense's Share (4) | ||
Revenue | $ | 20,891 | $ | 2,089 |
Operating expenses | (3,492) | (349) | ||
NOI from real estate operations and EBITDAre (5) | 17,399 | 1,740 | ||
Interest expense | (8,933) | (893) | ||
Depreciation and amortization | (8,238) | (778) | ||
Net income | $ | 228 | $ | 69 |
NOI from real estate operations (per above) (5) | $ | 17,399 | $ | 1,740 |
Straight line rent adjustments | (637) | (64) | ||
Amortization of acquired above- and below-market rents | (1,988) | (199) | ||
Cash NOI from real estate operations (5) | $ | 14,774 | $ | 1,477 |
Three Months Ended | ||||||||||
3/31/24 | 12/31/23 | 9/30/23 | 6/30/23 | 3/31/23 | ||||||
Net income (loss) | $ | 33,671 | $ | 34,820 | $ | (221,207) | $ | 31,642 | $ | 80,398 |
Construction contract and other service revenues | (26,603) | (18,167) | (11,949) | (14,243) | (15,820) | |||||
Depreciation and other amortization associated with real estate operations | 38,351 | 36,735 | 37,620 | 37,600 | 36,995 | |||||
Construction contract and other service expenses | 26,007 | 17,167 | 11,493 | 13,555 | 15,201 | |||||
Impairment losses | - | - | 252,797 | - | - | |||||
General and administrative expenses | 8,378 | 8,240 | 7,582 | 7,287 | 7,996 | |||||
Leasing expenses | 2,187 | 2,308 | 2,280 | 2,345 | 1,999 | |||||
Business development expenses and land carry costs | 1,182 | 797 | 714 | 726 | 495 | |||||
Interest expense | 20,767 | 20,383 | 17,798 | 16,519 | 16,442 | |||||
Interest and other income, net | (4,122) | (5,659) | (2,529) | (2,143) | (2,256) | |||||
Gain on sales of real estate | - | - | - | (14) | (49,378) | |||||
Equity in (income) loss of unconsolidated entities | (69) | 240 | 68 | (111) | 64 | |||||
Unconsolidated real estate JVs NOI allocable to COPT Defense included in equity in income (loss) of unconsolidated entities (1) | 1,740 | 1,671 | 1,675 | 1,671 | 1,642 | |||||
Income tax expense | 168 | 121 | 152 | 190 | 125 | |||||
NOI from real estate operations | 101,657 | 98,656 | 96,494 | 95,024 | 93,903 | |||||
Straight line rent adjustments and lease incentive amortization | 3,632 | 703 | 13,262 | (2,916) | (3,818) | |||||
Amortization of acquired above- and below-market rents | (24) | (121) | (120) | (129) | (166) | |||||
Amortization of intangibles and other assets to property operating expenses | 147 | 146 | 147 | 146 | 147 | |||||
Lease termination fees, net | (775) | (716) | (748) | (1,059) | (1,221) | |||||
Tenant funded landlord assets and lease incentives | (10,439) | (7,548) | (19,383) | (2,221) | (1,230) | |||||
Cash NOI adjustments in unconsolidated real estate JVs | (263) | (271) | (279) | (286) | (291) | |||||
Cash NOI from real estate operations | $ | 93,935 | $ | 90,849 | $ | 89,373 | $ | 88,559 | $ | 87,324 |
NOI from real estate operations (from above) | $ | 101,657 | $ | 98,656 | $ | 96,494 | $ | 95,024 | $ | 93,903 |
Non-Same Property NOI from real estate operations | (6,254) | (3,802) | (1,455) | (801) | (1,180) | |||||
Same Property NOI from real estate operations | 95,403 | 94,854 | 95,039 | 94,223 | 92,723 | |||||
Straight line rent adjustments and lease incentive amortization | 5,367 | 3,142 | 10,154 | (2,696) | (3,570) | |||||
Amortization of acquired above- and below-market rents | (69) | (121) | (120) | (129) | (166) | |||||
Lease termination fees, net | (775) | (717) | (748) | (1,059) | (1,221) | |||||
Tenant funded landlord assets and lease incentives | (8,190) | (7,541) | (15,402) | (2,213) | (1,222) | |||||
Cash NOI adjustments in unconsolidated real estate JVs | (117) | (124) | (130) | (137) | (153) | |||||
Same Property Cash NOI from real estate operations | $ | 91,619 | $ | 89,493 | $ | 88,793 | $ | 87,989 | $ | 86,391 |
Three Months Ended | ||||||||||
3/31/24 | 12/31/23 | 9/30/23 | 6/30/23 | 3/31/23 | ||||||
Real estate revenues | ||||||||||
Lease revenue | ||||||||||
Fixed contractual payments | $ | 126,198 | $ | 123,677 | $ | 120,408 | $ | 118,461 | $ | 116,039 |
Variable lease payments (1) | 39,235 | 36,660 | 34,860 | 35,221 | 34,521 | |||||
Lease revenue | 165,433 | 160,337 | 155,268 | 153,682 | 150,560 | |||||
Other property revenue | 1,230 | 1,225 | 1,339 | 1,271 | 1,121 | |||||
Real estate revenues | $ | 166,663 | $ | 161,562 | $ | 156,607 | $ | 154,953 | $ | 151,681 |
Provision for credit (recoveries) losses on billed lease revenue | $ | (109) | $ | 498 | $ | 13 | $ | (196) | $ | 269 |
Total revenues | $ | 193,266 | $ | 179,729 | $ | 168,556 | $ | 169,196 | $ | 167,501 |
Construction contract and other service revenues | (26,603) | (18,167) | (11,949) | (14,243) | (15,820) | |||||
Real estate revenues | $ | 166,663 | $ | 161,562 | $ | 156,607 | $ | 154,953 | $ | 151,681 |
Total interest expense | $ | 20,767 | $ | 20,383 | $ | 17,798 | $ | 16,519 | $ | 16,442 |
Less: Amortization of deferred financing costs | (685) | (681) | (639) | (628) | (632) | |||||
Less: Amortization of net debt discounts, net of amounts capitalized | (1,014) | (1,004) | (750) | (622) | (618) | |||||
COPT Defense's share of interest expense of unconsolidated real estate JVs, excluding amortization of deferred financing costs and net debt premium and gain or loss on interest rate derivatives | 804 | 819 | 805 | 791 | 773 | |||||
Denominator for interest coverage | 19,872 | 19,517 | 17,214 | 16,060 | 15,965 | |||||
Scheduled principal amortization | 769 | 763 | 753 | 746 | 790 | |||||
Denominator for debt service coverage | 20,641 | 20,280 | 17,967 | 16,806 | 16,755 | |||||
Capitalized interest | 589 | 1,028 | 1,487 | 1,194 | 770 | |||||
Denominator for fixed charge coverage | $ | 21,230 | $ | 21,308 | $ | 19,454 | $ | 18,000 | $ | 17,525 |
Dividends on unrestricted common and deferred shares | $ | 33,143 | $ | 31,998 | $ | 31,996 | $ | 31,995 | $ | 31,989 |
Distributions on unrestricted common units | 500 | 430 | 432 | 433 | 430 | |||||
Dividends and distributions on restricted shares and units | 267 | 209 | 200 | 204 | 215 | |||||
Total dividends and distributions for GAAP payout ratio | 33,910 | 32,637 | 32,628 | 32,632 | 32,634 | |||||
Dividends and distributions on antidilutive shares and units | (266) | (212) | (202) | (205) | (216) | |||||
Dividends and distributions for non-GAAP payout ratios | $ | 33,644 | $ | 32,425 | $ | 32,426 | $ | 32,427 | $ | 32,418 |
3/31/24 | 12/31/23 | 9/30/23 | 6/30/23 | 3/31/23 | ||||||
Total assets | $ | 4,232,895 | $ | 4,246,966 | $ | 4,239,257 | $ | 4,246,346 | $ | 4,177,992 |
Accumulated depreciation | 1,434,621 | 1,400,162 | 1,367,473 | 1,334,066 | 1,300,430 | |||||
Accumulated amortization of intangibles on property acquisitions and deferred leasing costs | 225,443 | 228,484 | 228,334 | 226,555 | 224,791 | |||||
COPT Defense's share of liabilities of unconsolidated real estate JVs | 60,904 | 60,583 | 60,762 | 60,724 | 60,734 | |||||
COPT Defense's share of accumulated depreciation and amortization of unconsolidated real estate JVs | 10,364 | 9,528 | 8,664 | 7,800 | 6,936 | |||||
Less: Property - operating lease liabilities | (33,141) | (33,931) | (32,940) | (33,923) | (34,896) | |||||
Less: Property - finance lease liabilities | (409) | (415) | (420) | (426) | (431) | |||||
Less: Cash and cash equivalents | (123,144) | (167,820) | (204,238) | (14,273) | (15,199) | |||||
Less: COPT Defense's share of cash of unconsolidated real estate JVs | (1,159) | (852) | (1,031) | (974) | (881) | |||||
Adjusted book | $ | 5,806,374 | $ | 5,742,705 | $ | 5,665,861 | $ | 5,825,895 | $ | 5,719,476 |
Gross debt (page 29)
|
$ | 2,497,050 | $ | 2,497,613 | $ | 2,498,274 | $ | 2,249,880 | $ | 2,197,488 |
Less: Cash and cash equivalents | (123,144) | (167,820) | (204,238) | (14,273) | (15,199) | |||||
Less: COPT Defense's share of cash of unconsolidated real estate JVs | (1,159) | (852) | (1,031) | (974) | (881) | |||||
Net debt | 2,372,747 | 2,328,941 | 2,293,005 | 2,234,633 | 2,181,408 | |||||
Costs incurred on fully-leased development properties | (43,034) | (53,914) | (124,038) | (189,407) | (137,309) | |||||
Net debt adjusted for fully-leased development | $ | 2,329,713 | $ | 2,275,027 | $ | 2,168,967 | $ | 2,045,226 | $ | 2,044,099 |
NEWS RELEASE | |
IR Contacts: | |
Venkat Kommineni, CFA | Michelle Layne |
443.285.5587 | 443.285.5452 |
[email protected] | [email protected] |
Reconciliation of Diluted EPS to FFOPS, per Nareit,
and As Adjusted for Comparability
|
Quarter Ending June 30, 2024
|
Year Ending December 31, 2024
|
||||||
Low | High | Low | High | |||||
Diluted EPS | $ | 0.29 | $ | 0.31 | $ | 1.19 | $ | 1.25 |
Real estate-related depreciation and amortization | 0.33 | 0.33 | 1.32 | 1.32 | ||||
Diluted FFOPS, Nareit definition and as adjusted for comparability | $ | 0.62 | $ | 0.64 | $ | 2.51 | $ | 2.57 |
For the Three Months Ended March 31, | ||||
2024 | 2023 | |||
Revenues | ||||
Lease revenue | $ | 165,433 | $ | 150,560 |
Other property revenue | 1,230 | 1,121 | ||
Construction contract and other service revenues | 26,603 | 15,820 | ||
Total revenues | 193,266 | 167,501 | ||
Operating expenses | ||||
Property operating expenses | 66,746 | 59,420 | ||
Depreciation and amortization associated with real estate operations | 38,351 | 36,995 | ||
Construction contract and other service expenses | 26,007 | 15,201 | ||
General and administrative expenses | 8,378 | 7,996 | ||
Leasing expenses | 2,187 | 1,999 | ||
Business development expenses and land carry costs | 1,182 | 495 | ||
Total operating expenses | 142,851 | 122,106 | ||
Interest expense | (20,767) | (16,442) | ||
Interest and other income, net | 4,122 | 2,256 | ||
Gain on sales of real estate | - | 49,378 | ||
Income before equity in income (loss) of unconsolidated entities and income taxes | 33,770 | 80,587 | ||
Equity in income (loss) of unconsolidated entities | 69 | (64) | ||
Income tax expense | (168) | (125) | ||
Net income | 33,671 | 80,398 | ||
Net income attributable to noncontrolling interests: | ||||
Common units in the Operating Partnership ("OP") | (608) | (1,293) | ||
Other consolidated entities | (454) | (326) | ||
Net income attributable to common shareholders | $ | 32,609 | $ | 78,779 |
Earnings per share ("EPS") computation: | ||||
Numerator for diluted EPS: | ||||
Net income attributable to common shareholders | $ | 32,609 | $ | 78,779 |
Amount allocable to share-based compensation awards | (129) | (248) | ||
Redeemable noncontrolling interests | - | (64) | ||
Numerator for diluted EPS | $ | 32,480 | $ | 78,467 |
Denominator: | ||||
Weighted average common shares - basic | 112,231 | 112,127 | ||
Dilutive effect of share-based compensation awards | 509 | 410 | ||
Dilutive effect of redeemable noncontrolling interests | - | 91 | ||
Weighted average common shares - diluted | 112,740 | 112,628 | ||
Diluted EPS | $ | 0.29 | $ | 0.70 |
For the Three Months Ended March 31, | ||||
2024 | 2023 | |||
Net income | $ | 33,671 | $ | 80,398 |
Real estate-related depreciation and amortization | 38,351 | 36,995 | ||
Gain on sales of real estate | - | (49,378) | ||
Depreciation and amortization on unconsolidated real estate JVs | 777 | 801 | ||
Funds from operations ("FFO") | 72,799 | 68,816 | ||
FFO allocable to other noncontrolling interests | (836) | (708) | ||
Basic FFO allocable to share-based compensation awards | (587) | (466) | ||
Basic FFO available to common share and common unit holders ("Basic FFO") | 71,376 | 67,642 | ||
Redeemable noncontrolling interests | 469 | (30) | ||
Diluted FFO adjustments allocable to share-based compensation awards | 47 | 39 | ||
Diluted FFO available to common share and common unit holders ("Diluted FFO") | 71,892 | 67,651 | ||
Executive transition costs | 77 | - | ||
Diluted FFO available to common share and common unit holders, as adjusted for comparability | 71,969 | 67,651 | ||
Straight line rent adjustments and lease incentive amortization | 3,473 | (3,516) | ||
Amortization of intangibles and other assets included in net operating income ("NOI") | 122 | (19) | ||
Share-based compensation, net of amounts capitalized | 2,645 | 1,733 | ||
Amortization of deferred financing costs | 685 | 632 | ||
Amortization of net debt discounts, net of amounts capitalized | 1,014 | 618 | ||
Replacement capital expenditures | (20,776) | (28,210) | ||
Other | 137 | (273) | ||
Diluted adjusted funds from operations available to common share and common unit holders ("Diluted AFFO") | $ | 59,269 | $ | 38,616 |
Diluted FFO per share | $ | 0.62 | $ | 0.59 |
Diluted FFO per share, as adjusted for comparability | $ | 0.62 | $ | 0.59 |
Dividends/distributions per common share/unit | $ | 0.295 | $ | 0.285 |
March 31, 2024 |
December 31, 2023 |
|||
Balance Sheet Data | ||||
Properties, net of accumulated depreciation | $ | 3,517,878 | $ | 3,503,678 |
Total assets | $ | 4,232,895 | $ | 4,246,966 |
Debt per balance sheet | $ | 2,416,873 | $ | 2,416,287 |
Total liabilities | $ | 2,683,883 | $ | 2,699,631 |
Redeemable noncontrolling interests | $ | 22,966 | $ | 23,580 |
Total equity | $ | 1,526,046 | $ | 1,523,755 |
Debt to assets | 57.1 | % | 56.9 | % |
Net debt to adjusted book | 40.9 | % | 40.6 | % |
Defense/IT Portfolio Data (as of period end) | ||||
Number of operating properties | 193 | 190 | ||
Total operational square feet (in thousands) | 21,993 | 21,719 | ||
% Occupied | 95.6 | % | 96.2 | % |
% Leased | 96.8 | % | 97.2 | % |
For the Three Months Ended March 31, | ||||
2024 | 2023 | |||
GAAP | ||||
Payout ratio: | ||||
Net income | 100.7 | % | 40.6 | % |
Debt ratios: | ||||
Net income to interest expense ratio | 1.6 | x | 4.9 | x |
Debt to net income ratio | 17.9 | x | 6.6 | x |
Non-GAAP | ||||
Payout ratios: | ||||
Diluted FFO | 46.8 | % | 47.9 | % |
Diluted FFO, as adjusted for comparability | 46.7 | % | 47.9 | % |
Diluted AFFO | 56.8 | % | 83.9 | % |
Debt ratios: | ||||
Adjusted EBITDA fixed charge coverage ratio | 4.5 | x | 5.0 | x |
Net debt to in-place adjusted EBITDA ratio | 6.1 | x | 6.2 | x |
Net debt adj. for fully-leased development to in-place adj. EBITDA ratio | 6.0 | x | 5.8 | x |
Reconciliation of denominators for per share measures | ||||
Denominator for diluted EPS | 112,740 | 112,628 | ||
Weighted average common units | 1,625 | 1,489 | ||
Redeemable noncontrolling interests | 947 | - | ||
Denominator for diluted FFO per share and as adjusted for comparability | 115,312 | 114,117 |
For the Three Months Ended March 31, | ||||
2024 | 2023 | |||
Numerators for Payout Ratios | ||||
Dividends on unrestricted common and deferred shares | $ | 33,143 | $ | 31,989 |
Distributions on unrestricted common units | 500 | 430 | ||
Dividends and distributions on restricted shares and units | 267 | 215 | ||
Total dividends and distributions for GAAP payout ratio | 33,910 | 32,634 | ||
Dividends and distributions on antidilutive shares and units | (266) | (216) | ||
Dividends and distributions for non-GAAP payout ratios | $ | 33,644 | $ | 32,418 |
Reconciliation of net income to earnings before interest, income taxes, depreciation and amortization for real estate ("EBITDAre"), adjusted EBITDA and in-place adjusted EBITDA | ||||
Net income | $ | 33,671 | $ | 80,398 |
Interest expense | 20,767 | 16,442 | ||
Income tax expense | 168 | 125 | ||
Real estate-related depreciation and amortization | 38,351 | 36,995 | ||
Other depreciation and amortization | 608 | 602 | ||
Gain on sales of real estate | - | (49,378) | ||
Adjustments from unconsolidated real estate JVs | 1,671 | 1,704 | ||
EBITDAre | 95,236 | 86,888 | ||
Credit loss expense | 22 | 67 | ||
Business development expenses | 630 | 241 | ||
Executive transition costs | 430 | 247 | ||
Net gain on other investments | (477) | - | ||
Adjusted EBITDA | 95,841 | 87,443 | ||
Pro forma NOI adjustment for property changes within period | 813 | (318) | ||
Change in collectability of deferred rental revenue | - | 899 | ||
In-place adjusted EBITDA | $ | 96,654 | $ | 88,024 |
Reconciliations of tenant improvements and incentives, building improvements and leasing costs for operating properties to replacement capital expenditures | ||||
Tenant improvements and incentives | $ | 12,776 | $ | 19,986 |
Building improvements | 4,953 | 2,141 | ||
Leasing costs | 3,590 | 1,750 | ||
Net additions to tenant improvements and incentives | 316 | 4,839 | ||
Excluded building improvements and leasing costs | (859) | (506) | ||
Replacement capital expenditures | $ | 20,776 | $ | 28,210 |
For the Three Months Ended March 31, | ||||
2024 | 2023 | |||
Reconciliation of interest expense to the denominator for fixed charge coverage-Adjusted EBITDA | ||||
Interest expense | $ | 20,767 | $ | 16,442 |
Less: Amortization of deferred financing costs | (685) | (632) | ||
Less: Amortization of net debt discounts, net of amounts capitalized | (1,014) | (618) | ||
COPT Defense's share of interest expense of unconsolidated real estate JVs, excluding amortization of deferred financing costs and net debt premium and gain or loss on interest rate derivatives | 804 | 773 | ||
Scheduled principal amortization | 769 | 790 | ||
Capitalized interest | 589 | 770 | ||
Denominator for fixed charge coverage-Adjusted EBITDA | $ | 21,230 | $ | 17,525 |
Reconciliation of net income to NOI from real estate operations, same property NOI from real estate operations and same property cash NOI from real estate operations | ||||
Net income | $ | 33,671 | $ | 80,398 |
Construction contract and other service revenues | (26,603) | (15,820) | ||
Depreciation and other amortization associated with real estate operations | 38,351 | 36,995 | ||
Construction contract and other service expenses | 26,007 | 15,201 | ||
General and administrative expenses | 8,378 | 7,996 | ||
Leasing expenses | 2,187 | 1,999 | ||
Business development expenses and land carry costs | 1,182 | 495 | ||
Interest expense | 20,767 | 16,442 | ||
Interest and other income, net | (4,122) | (2,256) | ||
Gain on sales of real estate | - | (49,378) | ||
Equity in (income) loss of unconsolidated entities | (69) | 64 | ||
Unconsolidated real estate JVs NOI allocable to COPT Defense included in equity in income (loss) of unconsolidated entities | 1,740 | 1,642 | ||
Income tax expense | 168 | 125 | ||
NOI from real estate operations | 101,657 | 93,903 | ||
Non-Same Property NOI from real estate operations | (6,254) | (1,180) | ||
Same Property NOI from real estate operations | 95,403 | 92,723 | ||
Straight line rent adjustments and lease incentive amortization | 5,367 | (3,570) | ||
Amortization of acquired above- and below-market rents | (69) | (166) | ||
Lease termination fees, net | (775) | (1,221) | ||
Tenant funded landlord assets and lease incentives | (8,190) | (1,222) | ||
Cash NOI adjustments in unconsolidated real estate JVs | (117) | (153) | ||
Same Property Cash NOI from real estate operations | $ | 91,619 | $ | 86,391 |
March 31, 2024 |
December 31, 2023 |
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Reconciliation of total assets to adjusted book | ||||
Total assets | $ | 4,232,895 | $ | 4,246,966 |
Accumulated depreciation | 1,434,621 | 1,400,162 | ||
Accumulated amortization of intangibles on property acquisitions and deferred leasing costs | 225,443 | 228,484 | ||
COPT Defense's share of liabilities of unconsolidated real estate JVs | 60,904 | 60,583 | ||
COPT Defense's share of accumulated depreciation and amortization of unconsolidated real estate JVs | 10,364 | 9,528 | ||
Less: Property - operating lease liabilities | (33,141) | (33,931) | ||
Less: Property - finance lease liabilities | (409) | (415) | ||
Less: Cash and cash equivalents | (123,144) | (167,820) | ||
Less: COPT Defense's share of cash of unconsolidated real estate JVs | (1,159) | (852) | ||
Adjusted book | $ | 5,806,374 | $ | 5,742,705 |
March 31, 2024 |
December 31, 2023 |
March 31, 2023 |
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Reconciliation of debt to net debt and net debt adjusted for fully-leased development | ||||||
Debt per balance sheet | $ | 2,416,873 | $ | 2,416,287 | $ | 2,123,012 |
Net discounts and deferred financing costs | 27,358 | 28,713 | 22,250 | |||
COPT Defense's share of unconsolidated JV gross debt | 52,819 | 52,613 | 52,226 | |||
Gross debt | 2,497,050 | 2,497,613 | 2,197,488 | |||
Less: Cash and cash equivalents | (123,144) | (167,820) | (15,199) | |||
Less: COPT Defense's share of cash of unconsolidated real estate JVs | (1,159) | (852) | (881) | |||
Net debt | 2,372,747 | 2,328,941 | 2,181,408 | |||
Costs incurred on fully-leased development properties | (43,034) | (53,914) | (137,309) | |||
Net debt adjusted for fully-leased development | $ | 2,329,713 | $ | 2,275,027 | $ | 2,044,099 |