(13) | The carrying value of these notes reflects an unamortized discount totaling $534,000 as of December 31, 2019 and $943,000 as of December 31, 2018. The effective interest rate under the notes, including amortization of the issuance costs, was 3.85%. | | (11) | Refer to the paragraphs below for further disclosure. |
| | (12) (14) | The carrying value of these notes reflects an unamortized discount totaling $2.1 million as of December 31, 2019 and $2.4 million as of December 31, 2018. The effective interest rate under the notes, including amortization of the issuance costs, was 5.15% |
| | (15) | This note carries an interest rate that, upon assumption, was below market rates and it therefore was recorded at its fair value based on applicable effective interest rates. The carrying value of this note reflects an unamortized discount totaling $373,000$223,000 as of December 31, 20172019 and $460,000$294,000 as of December 31, 2016.2018. |
All debt is owed by the Operating Partnership.COPLP. While COPT is not directly obligated by any debt, it has guaranteed the Operating Partnership’sCOPLP’s Revolving Credit Facility, Term Loan Facilities and Unsecured Senior Notes.
Certain of our debt instruments require that we comply with a number of restrictive financial covenants, including maximum leverage ratio, unencumbered leverage ratio, minimum net worth, minimum fixed charge coverage, minimum unencumbered interest coverage ratio, minimum debt service and maximum secured indebtedness ratio. In addition, the terms of some of COPLP’s
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries Notes to Consolidated Financial Statements (Continued)
of some of COPLP’s debt may limit its ability to make certain types of payments and other distributions to COPT in the event of default or when such payments or distributions may prompt failure of debt covenants. As of December 31, 20172019, we were within the compliance requirements ofcompliant with these financial covenants.
Our debt matures on the following schedule (in thousands): | | | | | | Year Ending December 31, | December 31, 2019 | | 2020 | $ | 16,156 |
| | 2021 | 303,955 |
| | 2022 | 301,341 |
| | 2023 | 593,830 |
| | 2024 | 279,683 |
| | Thereafter | 347,842 |
| | Total | $ | 1,842,807 |
| (1) |
| | | | | | 2018 | $ | 4,241 |
| | 2019 | 130,387 |
| | 2020 | 116,156 |
| | 2021 | 303,875 |
| | 2022 | 254,033 |
| | Thereafter | 1,033,475 |
| | Total | $ | 1,842,167 |
| (1) |
| | (1) | Represents scheduled principal amortization and maturities only and therefore excludes net discounts and deferred financing costs of $13.8$11.7 million. |
We capitalized interest costs of $10.8 million in 2019, $5.9 million in 2018 and $5.2 million in 2017, $5.7 million in 2016 and $7.2 million in 2015.2017.
The following table sets forth information pertaining to the fair value of our debt (in thousands): | | | | | | | | | | | | | | | | | | December 31, 2019 | | December 31, 2018 | | Carrying Amount | | Estimated Fair Value | | Carrying Amount | | Estimated Fair Value | Fixed-rate debt | |
| | |
| | |
| | |
| Unsecured Senior Notes | $ | 1,192,910 |
| | $ | 1,227,441 |
| | $ | 1,191,046 |
| | $ | 1,219,603 |
| Other fixed-rate debt | 144,468 |
| | 149,907 |
| | 148,308 |
| | 147,106 |
| Variable-rate debt | 493,761 |
| | 495,962 |
| | 484,555 |
| | 486,497 |
| | $ | 1,831,139 |
| | $ | 1,873,310 |
| | $ | 1,823,909 |
| | $ | 1,853,206 |
|
| | | | | | | | | | | | | | | | | | December 31, 2017 | | December 31, 2016 | | Carrying | | Estimated | | Carrying | | Estimated | | Amount | | Fair Value | | Amount | | Fair Value | Fixed-rate debt | |
| | |
| | |
| | |
| Unsecured Senior Notes | $ | 1,189,249 |
| | $ | 1,229,398 |
| | $ | 1,187,515 |
| | $ | 1,220,282 |
| Other fixed-rate debt | 152,010 |
| | 152,485 |
| | 155,544 |
| | 156,887 |
| Variable-rate debt | 487,074 |
| | 485,694 |
| | 560,942 |
| | 558,437 |
| | $ | 1,828,333 |
| | $ | 1,867,577 |
| | $ | 1,904,001 |
| | $ | 1,935,606 |
|
Revolving Credit Facility
On May 6, 2015,October 10, 2018, we entered into a credit agreement with a group of lenders for which KeyBanc Capital Markets and J.P. Morgan Securities LLC acted as joint lead arrangers and joint book runners, KeyBank National Association acted as administrative agent and JPMorgan Chase Bank, N.A. acted as syndication agent (the “Consolidated Credit Agreement”) to amend, restate and consolidate the terms ofreplace our existing unsecured revolving credit facility with a new facility (the prior facility and new facility are referred to collectively herein as our “Revolving Credit Facility”) and one of our term loan facilities discussed below.. The lenders’ aggregate commitment under the Revolving Credit Facilitynew facility is $800.0 million, with the ability for us to increase the lenders’ aggregate commitment to $1.3$1.25 billion,, provided that there is no default under the facility and subject to the approval of the lenders. The new facility matures on May 6, 2019,March 10, 2023, with the ability for us to further extend such maturity by two2 six-month periods at our option, provided that there is no default under the facility and we pay an extension fee of 0.075% of the total availability under the facility for each extension period. The interest rate on the new facility is based on LIBOR (customarily the 30-day rate) plus 0.875%0.775% to 1.600%1.450%, as determined by the credit ratings assigned to COPLP by Standard & Poor’s RatingRatings Services, Moody’s Investors Services,Service, Inc. or Fitch Ratings Ltd. (collectively, the “Ratings Agencies”). The new facility also carries a quarterly fee that is based on the lenders’ aggregate commitment under the facility multiplied by a per annum rate of 0.125% to 0.300%, as determined by the credit ratings assigned to COPLP by the Ratings Agencies. As of December 31, 2017,2019, the maximum borrowing capacity under this facility totaled $800.0 million, of which $674.0$623.0 million was available.
Weighted average borrowings under our Revolving Credit Facility totaled $97.8$255.6 million in 20172019 and $90.3188.1 million in 2016.2018. The weighted average interest rate on our Revolving Credit Facility was 2.44%3.32% in 20172019 and 1.64%3.08% in 2016.2018.
Term Loan Facilities
Effective February 14, 2012, we entered into anOur unsecured term loan agreement under which we borrowed $250.0 million. In connection with our entry into the Consolidated Credit Agreement on May 6, 2015 discussed above, we increased the loan amount to $300.0 million, with a right for us to borrow up to an additional $200.0 million during the term, subject to certain
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
conditions. We repaid this term loan by $200.0 millionfacility originated in May 2017. The term loan matures on May 6, 2020, and carries a variable interest rate based on the LIBOR rate (customarily the 30-day rate) plus 0.90% to 1.85%, as determined by the credit ratings assigned to COPLP by the Ratings Agencies.
Effective December 17, 2015, we entered into an unsecured term loan agreement with an initial commitment of $250.0 million; we borrowed $100.0 million under this loan on December 17, 2015 and $150.0 million on December 28, 2016.was subsequently amended. We also have the ability to borrow an additional $150.0 million above the initial commitment,under this facility provided that there is no default under the loan and subject to the approval of the lenders. The term loan matures on December 17, 2022, and carries a variable interest rate based on the LIBOR rate (customarily the 30-day rate) plus 0.90%0.85% to 1.75%1.65%, as determined by the credit ratings assigned to COPLP by the Ratings Agencies.
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries Notes to Consolidated Financial Statements (Continued)
In addition to the term loansloan discussed above, we also had the following term loans that were repaid prior to December 31, 2017:
for a term loan originating in 2012 on which we repaid $200.0 million in May 2017 and the remaining balance of $120.0$100.0 million in 2016;November 2018.
In connection with our new Revolving Credit Facility discussed above, we have the ability to borrow up to $500.0 million under new term loans from the facility’s lender group provided that there is no default under the facility and subject to the approval of the lenders. for a term loan originating in 2011, we repaid the remaining balance of $150.0 million in 2015.
Unsecured Senior Notes
On June 29, 2015, we issued $300.0 million of 5.000% Senior Notes at an initial offering price of 99.510% of their face value, resulting in proceeds, after deducting underwriting discounts, but before other offering expenses of $296.6 million. The carrying value of these notes reflects an unamortized discount totaling $2.7 million at December 31, 2017 and $3.0 million as of December 31, 2016. The effective interest rate under the notes, including amortization of the issuance costs, was 5.15%.
We may redeem our unsecured senior notes, in whole at any time or in part from time to time, at our option, at a redemption price equal to the greater of (1) the aggregate principal amount of the notes being redeemed or (2) the sum of the present values of the remaining scheduled payments of principal and interest thereon (not including any portion of such payments of interest accrued as of the date of redemption) discounted to its present value, on a semi-annual basis at an adjusted treasury rate plus a spread (30 basis points for the 3.600%3.60% Senior Notes, 40 basis points for the 5.250%5.25% Senior Notes, 25 basis points for the 3.700%3.70% Senior Notes and 45 basis points for the 5.000%5.00% Senior Notes), plus, in each case, accrued and unpaid interest thereon to the date of redemption. However, in each case, if this redemption occurs on or after three months prior to the maturity date, the redemption price will be equal to 100% of the principal amount of the notes being redeemed, plus accrued and unpaid interest thereon to, but not including, the applicable redemption date. These notes are unconditionally guaranteed by COPT.
(Losses) Gains on Early Extinguishment of Debt
Our (losses) gains on early extinguishment of debt included a gain of $84.8 million on August 28, 2015 pertaining to the removal of a $150.0 million nonrecourse mortgage loan from our balance sheet as discussed further in Note 5.
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
11. Interest Rate Derivatives The following table sets forth the key terms and fair values of our interest rate swap derivatives, each of which was designated as a cash flow hedge of interest rate risk (dollars in thousands): | | | | | | Fair Value at | | Notional | | | | Effective | | Expiration | | December 31, | | Amount | | Fixed Rate | | Floating Rate Index | | Date | | Date | | 2017 | | 2016 | | Notional Amount | | Notional Amount | | | | Effective Date | | Expiration Date | | Fair Value at December 31, | | | Fixed Rate | | Floating Rate Index | | 2019 | | 2018 | $ | 100,000 |
| | 1.7300 | % | | One-Month LIBOR | | 9/1/2015 | | 8/1/2019 | | $ | 252 |
| | $ | (848 | ) | 12,438 |
| (1) | 1.390 | % | | One-Month LIBOR | | 10/13/2015 | | 10/1/2020 | | $ | 23 |
| | $ | 239 |
| 13,217 |
| (1) | 1.3900 | % | | One-Month LIBOR | | 10/13/2015 | | 10/1/2020 | | 213 |
| | 100 |
| | 100,000 | 100,000 |
| | 1.9013 | % | | One-Month LIBOR | | 9/1/2016 | | 12/1/2022 | | 1,046 |
| | (23 | ) | 100,000 |
| | 1.901 | % | | One-Month LIBOR | | 9/1/2016 | | 12/1/2022 | | (1,028 | ) | | 1,968 |
| 100,000 | 100,000 |
| | 1.9050 | % | | One-Month LIBOR | | 9/1/2016 | | 12/1/2022 | | 1,051 |
| | 48 |
| 100,000 |
| | 1.905 | % | | One-Month LIBOR | | 9/1/2016 | | 12/1/2022 | | (1,037 | ) | | 1,967 |
| 50,000 | 50,000 |
| | 1.9079 | % | | One-Month LIBOR | | 9/1/2016 | | 12/1/2022 | | 511 |
| | 10 |
| 50,000 |
| | 1.908 | % | | One-Month LIBOR | | 9/1/2016 | | 12/1/2022 | | (524 | ) | | 971 |
| 11,200 | | 11,200 |
| (2) | 1.678 | % | | One-Month LIBOR | | 8/1/2019 | | 8/1/2026 | | (20 | ) | | — |
| 75,000 | | 75,000 |
| | 3.176 | % | | Three-Month LIBOR | | 6/30/2020 | | 6/30/2030 | | (8,640 | ) | | (2,676 | ) | 75,000 | | 75,000 |
| | 3.192 | % | | Three-Month LIBOR | | 6/30/2020 | | 6/30/2030 | | (8,749 | ) | | (2,783 | ) | 75,000 | | 75,000 |
| | 2.744 | % | | Three-Month LIBOR | | 6/30/2020 | | 6/30/2030 | | (5,684 | ) | | — |
| 100,000 | 100,000 |
| (2) | 1.6730 | % | | One-Month LIBOR | | 9/1/2015 | | 8/1/2019 | | — |
| | (701 | ) | 100,000 |
| | 1.730 | % | | One-Month LIBOR | | 9/1/2015 | | 8/1/2019 | | — |
| | 472 |
| | |
| | |
| | | | | | | | $ | 3,073 |
| | $ | (1,414 | ) | |
| | |
| | | | | | | | $ | (25,659 | ) | | $ | 158 |
|
(1) The notional amount of this instrument is scheduled to amortize to $12.1 million. (2) We cash settledThe notional amount of this derivative and interest accrued thereon for $460,000 on May 1, 2017. Since the hedged transactions associated with this derivative were still probableinstrument is scheduled to occur as of the settlement date, amounts in accumulated other comprehensive loss (“AOCL”) associated with this derivative will be reclassifiedamortize to interest expense through August 2019.$10.0 million.
The table below sets forth the fair value of our interest rate derivatives as well as their classification on our consolidated balance sheets (in thousands): | | | | Fair Value at | | | | | | | | | | December 31, | | Fair Value at December 31, | Derivatives | | Balance Sheet Location | | 2017 | | 2016 | | Balance Sheet Location | | 2019 | | 2018 | Interest rate swaps designated as cash flow hedges | | Prepaid expenses and other assets | | $ | 3,073 |
| | $ | 158 |
| | Prepaid expenses and other assets, net | | $ | 23 |
| | $ | 5,617 |
| Interest rate swaps designated as cash flow hedges | | Other liabilities | | — |
| | (1,572 | ) | | Interest rate derivatives (liabilities) | | $ | (25,682 | ) | | $ | (5,459 | ) |
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries Notes to Consolidated Financial Statements (Continued)
The table below presents the effect of our interest rate derivatives on our consolidated statements of operations and comprehensive income (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | Amount of (Loss) Gain Recognized in AOCI on Derivatives | | Amount of Gain (Loss) Reclassified from AOCI into Interest Expense on Statement of Operations | | | For the Years Ended December 31, | | For the Years Ended December 31, | Derivatives in Hedging Relationships | | 2019 | | 2018 | | 2017 | | 2019 | | 2018 | | 2017 | Interest rate derivatives | | $ | (24,321 | ) | | $ | (2,373 | ) | | $ | 684 |
| | $ | 1,415 |
| | $ | 407 |
| | $ | (3,304 | ) |
| | | | | | | | | | | | | | For the Years Ended December 31, | | 2017 | | 2016 | | 2015 | Unrealized gain (loss) recognized in AOCL (effective portion) | $ | 684 |
| | $ | (2,915 | ) | | $ | (4,739 | ) | Loss reclassified from AOCL into interest expense (effective portion) | (3,216 | ) | | (4,230 | ) | | (3,599 | ) | Gain (loss) on derivatives recognized in interest expense (ineffective portion) | 323 |
| | 378 |
| | (386 | ) | Loss reclassified from AOCL into interest expense (ineffective portion) (1) | (88 | ) | | — |
| | — |
|
(1) Represents a loss recognized on certain interest rate swaps from the accelerated reclassification of amounts in AOCL on May 1, 2017, when we concluded that hedged forecasted transactions were probable not to occur.
Over the next 12 months, we estimate that approximately $460,000$2.6 million of losses will be reclassified from AOCLaccumulated other comprehensive loss (“AOCL”) as an increase to interest expense.
We have agreements with each of our interest rate derivative counterparties that contain provisions under which, if we default or are capable of being declared in default on defined levels of our indebtedness, we could also be declared in default on our derivative obligations. Failure to comply with the loan covenant provisions could result in our being declared in default on any derivative instrument obligations covered by the agreements. We areAs of December 31, 2019, we were not in default with any of these provisions. As of December 31, 20172019, we did not have anythe fair value of interest rate derivatives in a liability positions.position related to these agreements was $25.7 million, excluding the effects of accrued interest and credit valuation adjustments. As of December 31, 2017,2019, we had not posted any collateral related to these agreements. If we breach any of these provisions, we could be required to settle our obligations under the agreements at their termination value, which was $25.8 million as of December 31, 2019.
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
12. Redeemable Noncontrolling Interests
As discussed further in Note 6, our partners in two2 real estate joint ventures, LW Redstone Company, LLC and Stevens Investors, LLC, have the right to require us to acquire their respective interests at fair value; accordingly, we classify the fair value of our partners’ interests as redeemable noncontrolling interests in the mezzanine section of our consolidated balance sheets. The table below sets forth the activity infor these redeemable noncontrolling interests (in thousands): | | | | | | | | | | | | | | | | For the Years Ended December 31, | | | 2019 | | 2018 | | 2017 | Beginning balance | | $ | 26,260 |
| | $ | 23,125 |
| | $ | 22,979 |
| Contributions from noncontrolling interests | | — |
| | 186 |
| | — |
| Distributions to noncontrolling interests | | (2,413 | ) | | (1,411 | ) | | (1,566 | ) | Net income attributable to noncontrolling interests | | 3,835 |
| | 2,523 |
| | 2,338 |
| Adjustment to arrive at fair value of interests | | 1,749 |
| | 1,837 |
| | (626 | ) | Ending balance | | $ | 29,431 |
| | $ | 26,260 |
| | $ | 23,125 |
|
| | | | | | | | | | | | | | | | For the Years Ended December 31, | | | 2017 | | 2016 | | 2015 | Beginning balance | | $ | 22,979 |
| | $ | 19,218 |
| | $ | 18,417 |
| Contributions from noncontrolling interests | | — |
| | 22,779 |
| | 1,654 |
| Distributions to noncontrolling interests | | (1,566 | ) | | (21,881 | ) | | (2,964 | ) | Net income attributable to noncontrolling interests | | 2,338 |
| | 2,242 |
| | 2,227 |
| Adjustment to arrive at fair value of interests | | (626 | ) | | 621 |
| | (116 | ) | Ending balance | | $ | 23,125 |
| | $ | 22,979 |
| | $ | 19,218 |
|
We determine the fair value of thesethe interests based on unobservable inputs after considering the assumptions that market participants would make in pricing the interest. We apply a discount rate to the estimated future cash flows allocable to our partners from the properties underlying the respective joint ventures. Estimated cash flows used in such analyses are based on our plans for the properties and our views of market and economic conditions, and consider items such as current and future rental rates, occupancies for the properties and comparable propertiesoccupancy projections and estimated operating and capitaldevelopment expenditures.
13. Equity - COPT and Subsidiaries
Preferred Shares
As of December 31, 20172019, COPT had 25.0 million preferred shares authorized and unissued at $0.01 par value per share. In 2017, COPT redeemed all of its outstanding preferred shares, including:
the 5.600% Series K Cumulative Redeemable Preferred Shares (the “Series K Preferred Shares”) redeemed effective January 21, 2017 at a price of $50.00 per share, or $26.6 million in the aggregate, plus accrued and unpaid dividends thereon through the date of redemption. Concurrently with this redemption, COPLP redeemed its Series K Preferred Units on the same terms. Since we made an irrevocable notificationterms; and
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries Notes to holders of the Series K Preferred Shares in December 2016 of our intention to redeem such shares, we presented the liquidation preference of the shares as a liability on COPT’s consolidated balance sheet as of December 31, 2016; we also recognized a $17,000 decrease to net income available to common shareholders in 2016 pertaining to the original issuance costs incurred on the shares. The liability associated with these shares as of December 31, 2016 is classified in Level 2 of the fair value hierarchy; andConsolidated Financial Statements (Continued)
the 7.375% Series L Cumulative Preferred Shares (the “Series L Preferred Shares”) redeemed effective June 27, 2017 at a price of $25.00 per share, or $172.5 million in the aggregate, plus accrued and unpaid dividends thereon up to but not including the date of redemption. Concurrently with this redemption, COPLP redeemed its Series L Preferred Units on the same terms. We also recognized a $6.8 million decrease to net income available to common shareholders in 2017 pertaining to the original issuance costs incurred on the shares.
Common Shares
In October 2012,September 2016, COPT established an at-the-market (“ATM”) stock offering program under which it could, from time to time, offer and sell common shares in “at the market” stock offerings having an aggregate gross sales price of up to $150.0 million. COPT issued 890,241 common shares under this program in 2015 at a weighted average price of $30.29 per share. Net proceeds from the shares issued totaled $26.6 million, after payment of $0.4 million in commissions to sales agents; COPT contributed the net proceeds from these issuances to COPLP in exchange for an equal number of units in COPLP. As discussed below, this program was replaced by a new ATM program established in 2016.
In September 2016, COPT established a new ATM stock offering program under which it may, from time to time, offer and sell common shares in “at the market” stock offerings having an aggregate gross sales price of up to $200.0 million. This
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
program replaced themillion (the “2016 ATM stock offering program that we previously had in place.Program”). COPT issued the following common shares under this ATM program:program in 2018 and 2017:
3.72 million common992,000 shares in the three months ended December 31, 20162018 at a weighted average price of $29.56$30.46 per share. Net proceeds from the shares issued totaled $109.1$29.8 million, after payment of $0.9$0.5 million in commissions to sales agents; and
591,000 common shares in 2017 at a weighted average price of $33.84 per share. Net proceeds from the shares issued totaled $19.7 million, after payment of $0.3 million in commissions to sales agents.
COPT contributed the net proceeds from these issuances to COPLP in exchange for an equal number of units in COPLP. COPT’s remaining capacity
In November 2018, COPT replaced its 2016 ATM Program with a new program under this ATM program as of December 31, 2017 waswhich it may offer and sell common shares in at-the-market stock offerings having an aggregate gross sales price of $70.0up to $300 million in(the “2018 ATM Program”). Under the 2018 ATM Program, COPT may also, at its discretion, sell common share sales.shares under forward equity sales agreements. As of December 31, 2019, COPT has not issued any shares under the 2018 ATM Program.
On November 2, 2017, COPT entered into forward equity sale agreements to issue 9.2 million common shares at an initial gross offering price of $285.2 million, or $31.00 per share, before underwriting discounts, commissions and offering expenses. The forward sale price that we expect to receivereceived upon physical settlement of the agreements will bewas subject to adjustment on a daily basis based on a floating interest rate factor equal to the overnight bank funding rate less a spread, and will bewas decreased on each of certain dates specified in the agreements during the term of the agreements. On December 27, 2017, COPT issued 1.7 millionthe following common shares under the agreements for net proceeds of $50.0 million. these forward equity sale agreements:
| | • | 1.6 million shares in 2019 for net proceeds of $46.5 million; |
| | • | 5.9 million shares in 2018 for net proceeds of $172.5 million; and |
| | • | 1.7 million shares in 2017 for net proceeds of $50.0 million. |
COPT contributed the net proceeds from these issuances to COPLP in exchange for an equal number of units in COPLP. COPT used its remaining capacity under these agreements in 2019.
HoldersCertain holders of COPLP common units converted their units into COPT common shares on the basis of one1 common share for each common unit in the amount of 339,513105,039 in 2017, 87,0002019, 1.9 million in 20162018 and 160,160339,513 in 2015.2017.
COPT declared dividends per common share of $1.10 in 2017, 20162019, 2018 and 2015.2017.
COPT pays dividends at the discretion of its Board of Trustees. COPT’s ability to pay cash dividends will be dependent upon: (1) the cash flow generated from our operations; (2) cash generated or used by our financing and investing activities; and (3) the annual distribution requirements under the REIT provisions of the Code described in Note 2 and such other factors as the Board of Trustees deems relevant. COPT’s ability to make cash dividends will also be limited by the terms of COPLP’s Partnership Agreement, as well as by limitations imposed by state law. In addition, COPT is prohibited from paying cash dividends in excess of the amount necessary for it to qualify for taxation as a REIT if a default or event of default exists pursuant to the terms of our Revolving Credit Facility; this restriction does not currently limit COPT’s ability to pay dividends, and COPT does not believe that this restriction is reasonably likely to limit its ability to pay future dividends because it expects to comply with the terms of our Revolving Credit Facility.
See Note 15 for disclosure of common share activity pertaining to our share-based compensation plans.
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries Notes to Consolidated Financial Statements (Continued)
14. Equity - COPLP and Subsidiaries
General Partner Preferred Units
In 2017, COPLP redeemed all of the outstanding units of the following series of preferred units held by COPT:
the 5.600% Series K Preferred SharesUnits effective on January 21, 2017. Since notification of this redemption occurred in December 2016, we present the liquidation preference of the related units as a liability on COPLP’s consolidated balance sheet as of December 31, 2016; we also recognized at a price of $50.00 per unit, or $26.6 million in the aggregate, plus accrued and unpaid distributions thereon through the date of redemption, and recognized a $17,000 decrease to net income available to common unitholders pertaining to the units’ original issuance costs at the time of redemption;2017; and the 7.375% Series L Cumulative Preferred Units on June 27, 2017 at a price of $25.00 per unit, or $172.5 million in the aggregate, plus accrued and unpaid distributions thereon through the date of redemption, and recognized a $6.8 million decrease to net income available to common unitholders pertaining to the units’ original issuance costs at the time of redemption.
WithFollowing the completion of these redemptions in 2017, COPT held no preferred units in COPLP are held by COPT.COPLP.
Limited Partner Preferred Units
COPLP has 352,000 Series I Preferred Units issued to an unrelated party that have an aggregate liquidation preference of $8.8 million ($25.00 per unit), plus any accrued and unpaid distributions of return thereon (as described below), and may be redeemed for cash by COPLP at COPLP’s option any time after September 22, 2019.thereon. The owner of these units is entitled to a priority annual cumulative return equal to 7.5%3.5% of their liquidation preference through September 22, 2019; the annual cumulative preferred return increases for each subsequent five-year period, subject to certain maximum limits.preference. These units are convertible into common units on the basis of 0.5 common units for each Series I Preferred Unit; the resulting common units would then be exchangeable for COPT common shares in accordance with the terms of COPLP’s agreement of limited partnership. These units may be redeemed for cash by COPLP at COPLP’s option on or after January 1, 2020, provided that COPLP provides notice to the unit holder six months prior to the effective date of the redemption. The units’ terms also require COPLP to provide notice to the unit holder for defined periods of time in advance of the sale of certain property or repayment or refinancing of certain debt, after which, in certain instances, the unit holder would have the ability to require COPLP to redeem the units at their liquidation preference. The terms of these units were amended on July 31, 2019 to:
reduce, effective September 23, 2019, the priority annual cumulative return on these units from 7.5% of the units’ liquidation preference to 3.5%, and eliminate provisions for future increases previously in place;
Corporate Office Properties Trustextend the earliest date that COPLP could redeem the units to January 1, 2020; and Subsidiaries
establish the notice provisions in advance of property sales and Corporate Office Properties, L.P.debt repayments or refinancing and Subsidiariesrelated redemption requirements described above. Notes to Consolidated Financial Statements (Continued)
Common Units
COPT owned 96.9%98.7% of COPLP’s common units as of December 31, 20172019 and 96.5%98.8% as of December 31, 2016.2018.
From 2015 throughIn 2018 and 2017, COPT acquired additional common units through the following common share issuances under its 2016 ATM programs:Program:
591,042 common992,000 shares in 2018 at a weighted average price of $30.46 per share. Net proceeds from the shares issued totaled $29.8 million, after payment of $0.5 million in commissions to sales agents; and
591,000 shares in 2017 at a weighted average price of $33.84 per share. Net proceeds from the shares issued totaled $19.7 million, after payment of $0.3 million in commissions to sales agents; 3.72 million common shares issued in 2016 at a weighted average price of $29.56 per share. Net proceeds from the shares issued totaled $109.1 million, after payment of $0.9 million in commissions to sales agents; and
890,241 common shares issued in 2015 at a weighted average price of $30.29 per share. Net proceeds from the shares issued totaled $26.6 million, after payment of $0.4 million in commissions to sales agents.
In DecemberFrom 2017 through 2019, COPT also acquired additional common units from COPT’s issuance of 1.7 millionthrough the following common sharesshare issuances under its forward equity sale agreementsagreements:
1.6 million shares in 2019 for net proceeds of $46.5 million; 5.9 million shares in 2018 for net proceeds of $172.5 million; and 1.7 million shares in 2017 for net proceeds of $50.0 million.
Limited partners in COPLP holding common units have the right to require COPLP to redeem all or a portion of their common units. COPLP (or COPT as the general partner) has the right, in its sole discretion, to deliver to such redeeming limited partners for each partnership unit either one COPT common share (subject to anti-dilution adjustment) or a cash payment equal to the then fair market value of such share (so adjusted) (based on the formula for determining such value set
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries Notes to Consolidated Financial Statements (Continued)
forth in the partnership agreement). LimitedCertain limited partners holding common units redeemed their units into common shares on the basis of one1 common share for each common unit in the amount of 339,513105,039 in 2017, 87,0002019, 1.9 million in 20162018 and 160,160339,513 in 2015.2017. In addition, we redeemed 924 common units in 2019 for $25,000 and 13,377 in 2018 for $339,000.
WeCOPLP declared distributions per common unit of $1.10 in 2017, 20162019, 2018 and 2015.2017.
15. Share-Based Compensation and Other Compensation Matters Share-Based Compensation Plans In May 2017, COPT adopted the 2017 Omnibus Equity and Incentive Plan (the “2017 Plan”) following the approval of such plan by our common shareholders. COPT may issue equity-based awards under this plan to officers, employees, non-employee trustees and any other key persons of us and our subsidiaries, as defined in the plan. The plan provides for a maximum of 3.4 million common shares in COPT to be issued in the form of options, share appreciation rights, restricted share unit awards, restricted share awards, unrestricted share awards, dividend equivalent rights and other equity-based awards and for the granting of cash-based awards. In November 2018, we amended the 2017 Plan to provide for the future grant of awards in the form of PIUs; PIUs are a special class of common unit structured to qualify as “profit interests” for tax purposes which are similar to restricted shares and PSUs, except that upon vesting recipients will receive common units in COPLP. This plan expires on May 11, 2027.
In May 2010, COPT adopted the Amended and Restated 2008 Omnibus Equity and Incentive Plan following the approval of such plan by our common shareholders. This plan, which was replaced by the 2017 Plan, in May 2017, provided for the award of options, share appreciation rights, deferred share awards, restricted share awards, unrestricted share awards, performance shares, dividend equivalent rights and other equity-based awards and for the granting of cash-based awards.
In March 1998, COPT adopted a long-term incentive plan for our Trustees and employees following the approval of such plan by our common shareholders. This plan, which expired in March 2008, provided for the award of options, restricted shares and dividend equivalents.
Awards under these plans to nonemployee Trustees generally vest on the first anniversary of the grant date provided that the Trustee remains in his or her position. Awards granted to employees vest based on increments and over periods of time set forth under the terms of the respective awards provided that the employees remain employed by us. Options expire ten years after the date of grant. Shares for each of the share-based compensation plans are issued under registration statements on Form S-8 that became effective upon filing with the Securities and Exchange Commission. In connection with awards of common shares granted by COPT under such share-based compensation plans, COPLP issues to COPT an equal number of equity instruments with identical terms.
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
The table below sets forth our reporting for share based compensation cost (in thousands): | | | | | | | | | | | | | | | | For the Years Ended December 31, | | | 2019 | | 2018 | | 2017 | General, administrative and leasing expenses | | $ | 5,748 |
| | $ | 5,415 |
| | $ | 4,649 |
| Property operating expenses | | 966 |
| | 961 |
| | 966 |
| Capitalized to development activities | | 742 |
| | 587 |
| | 480 |
| Share-based compensation cost | | $ | 7,456 |
| | $ | 6,963 |
| | $ | 6,095 |
|
| | | | | | | | | | | | | | | | For the Years Ended December 31, | | | 2017 | | 2016 | | 2015 | General, administrative and leasing expenses | | $ | 4,649 |
| | $ | 5,816 |
| | $ | 5,574 |
| Property operating expenses | | 966 |
| | 1,027 |
| | 1,000 |
| Capitalized to development activities | | 480 |
| | 610 |
| | 824 |
| Share-based compensation cost | | $ | 6,095 |
| | $ | 7,453 |
| | $ | 7,398 |
|
The amounts included in our consolidated statements of operations for share-based compensation reflected an estimate of pre-vesting forfeitures of 0% for PSUs, PIUs and deferred share awards and 0% to 5%7% for restricted shares.
As of December 31, 2017,2019, unrecognized compensation costs related to unvested awards included:
$8.16.5 million on restricted shares expected to be recognized over a weighted average period of approximately threetwo years; $1.31.6 million on performance-based PIUs (“PB-PIUs”) expected to be recognized over a weighted average performance period of approximately two years; $1.1 million on time-based PIUs (“TB-PIUs”) expected to be recognized over a weighted average performance period of approximately two years; $630,000 on PSUs expected to be recognized over a weighted average performance period of approximately two yearsone year; and $120,00033,000 on deferred share awards expected to be recognized through May 2018.2020.
Our TRS is subject to Federal and state income taxes. We realized a windfall tax loss of $13,000 in 2017, $331,000 in 2016 and $513,000 in 2015 on options exercised and vesting restricted shares in connection with employees of that subsidiary.
Restricted Shares
The following table summarizes restricted shares under the share-based compensation plans for 2015, 2016 and 2017:
| | | | | | | | | | | Shares | | Weighted Average Grant Date Fair Value | Unvested as of December 31, 2014 | | 390,507 |
| | $ | 26.19 |
| Granted | | 201,024 |
| | 28.69 |
| Forfeited | | (10,550 | ) | | 26.05 |
| Vested | | (202,781 | ) | | 26.07 |
| Unvested as of December 31, 2015 | | 378,200 |
| | 27.58 |
| Granted | | 231,937 |
| | 24.77 |
| Forfeited | | (22,907 | ) | | 25.31 |
| Vested | | (215,983 | ) | | 27.19 |
| Unvested as of December 31, 2016 | | 371,247 |
| | 26.20 |
| Granted | | 239,479 |
| | 33.84 |
| Forfeited | | (27,056 | ) | | 27.80 |
| Vested | | (158,044 | ) | | 26.27 |
| Unvested as of December 31, 2017 | | 425,626 |
| | $ | 30.37 |
| Unvested shares as of December 31, 2017 that are expected to vest | | 402,870 |
| | $ | 30.31 |
|
The aggregate intrinsic value of restricted shares that vested was $5.3 million in 2017, $5.4 million in 2016 and $4.9 million in 2015.
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries Notes to Consolidated Financial Statements (Continued)
Our TRS is subject to Federal and state income taxes. We realized a windfall tax loss of $13,000 in 2017 on options exercised and vesting restricted shares in connection with employees of that subsidiary.
Restricted Shares
The following table summarizes restricted shares under the share-based compensation plans for 2017, 2018 and 2019: | | | | | | | | | | | Shares | | Weighted Average Grant Date Fair Value | Unvested as of December 31, 2016 | | 371,247 |
| | $ | 26.20 |
| Granted | | 239,479 |
| | 33.84 |
| Forfeited | | (27,056 | ) | | 27.80 |
| Vested | | (158,044 | ) | | 26.27 |
| Unvested as of December 31, 2017 | | 425,626 |
| | 30.37 |
| Granted | | 219,716 |
| | 25.62 |
| Forfeited | | (25,419 | ) | | 30.02 |
| Vested | | (181,238 | ) | | 29.49 |
| Unvested as of December 31, 2018 | | 438,685 |
| | 28.38 |
| Granted | | 195,520 |
| | 26.56 |
| Forfeited | | (56,341 | ) | | 29.44 |
| Vested | | (185,001 | ) | | 28.01 |
| Unvested as of December 31, 2019 | | 392,863 |
| | $ | 27.49 |
| Unvested shares as of December 31, 2019 that are expected to vest | | 363,773 |
| | $ | 27.50 |
|
The aggregate intrinsic value of restricted shares that vested was $4.9 million in 2019, $4.6 million in 2018 and $5.3 million in 2017.
PIUs
Commencing in 2019, we offered our executives and Trustees the opportunity to select PIUs as a form of long-term compensation in lieu of, or in combination with, other forms of share-based compensation awards (restricted shares, deferred share awards and PSUs). Our executives and certain of our Trustees selected PIUs as their form of share-based compensation for their 2019 grants. We granted 2 forms of PIUs: TB-PIUs; and PB-PIUs. TB-PIUs are subject to forfeiture restrictions until the end of the requisite service period, at which time the TB-PIUs automatically convert into vested PIUs. PB-PIUs are subject to a market condition in that the number of earned awards are determined at the end of the performance period (as described further below) and then settled in vested PIUs. Vested PIUs carry substantially the same rights to redemption and distributions as non-PIU common units.
TB-PIUs
In 2019, our executives and certain non-employee Trustees were granted a total of 61,820 TB-PIUs with an aggregate grant date fair value of $1.6 million (weighted average of $26.01 per TB-PIU). TB-PIUs granted to executives vest in equal one-third increments over a three-year period beginning on the date of grant. TB-PIUs granted to non-employee Trustees vest on the first anniversary of the grant date, provided that the Trustee remains in his or her position. Prior to vesting, TB-PIUs carry substantially the same rights to distributions as non-PIU common units but carry no redemption rights.
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries Notes to Consolidated Financial Statements (Continued)
PB-PIUs
On January 1, 2019, we granted our executives 193,682 PB-PIUs with a three-year performance period concluding on the earlier of December 31, 2021 or the date of: (1) termination by us without cause, death or disability of the executive or constructive discharge of the executive (collectively, “qualified termination”); or (2) a sale event. The number of earned awards at the end of the performance period will be determined based on the percentile rank of COPT’s total shareholder return relative to a peer group of companies, as set forth in the following schedule: | | | | Percentile Rank | | Earned Awards Payout % | 75th or greater | | 100% of PB-PIUs granted | 50th (target) | | 50% of PB-PIUs granted | 25th | | 25% of PB-PIUs granted | Below 25th | | 0% of PB-PIUs granted |
If the percentile rank exceeds the 25th percentile and is between 2 of the percentile ranks set forth in the table above, then the percentage of the earned awards will be interpolated between the ranges set forth in the table above to reflect any performance between the listed percentiles. During the performance period, PB-PIUs carry rights to distributions equal to 10% of the distribution rights of non-PIU common units but carry no redemption rights.
At the end of the performance period, we will settle the award by issuing vested PIUs equal to the number of earned awards in settlement of the award plan and paying cash equal to the excess, if any, of: the aggregate distributions that would have been paid with respect to vested PIUs issued in settlement of the earned awards through the date of settlement had such vested PIUs been issued on the grant date; over the aggregate distributions made on the PB-PIUs during the performance period. If a performance period ends due to a sale event or qualified termination, the number of earned awards is prorated based on the portion of the three-year performance period that has elapsed. If employment is terminated by the employee or by us for cause, all PB-PIUs are forfeited.
These PB-PIUs had an aggregate grant date fair value of $2.4 million ($12.47 per PB-PIU) which is being recognized over the performance period. The grant date fair value was computed using a Monte Carlo model that included the following assumptions: baseline common share value of $21.03; expected volatility for common shares of 21.0%; and a risk-free interest rate of 2.51%.
PSUs
We made the following grants of PSUs to executives from 20132015 through 20172018 (dollars in thousands): | | | | | | | | | | | | | | | | Grant Date | | Number of PSUs Granted | | Performance Period Commencement Date | | Performance Period End Date | | Grant Date Fair Value | | Number of PSUs Outstanding as of December 31, 2019 | 3/5/2015 | | 45,656 |
| | 1/1/2015 | | 12/31/2017 | | $ | 1,678 |
| | — |
| 3/1/2016 | | 26,299 |
| | 1/1/2016 | | 12/31/2018 | | $ | 1,005 |
| | — |
| 1/1/2017 | | 39,351 |
| | 1/1/2017 | | 12/31/2019 | | $ | 1,415 |
| | 39,351 |
| 1/1/2018 | | 59,110 |
| | 1/1/2018 | | 12/31/2020 | | $ | 1,890 |
| | 59,110 |
|
| | | | | | | | | | | | | | | | Grant Date | | Number of PSUs Granted | | Performance Period Commencement Date | | Performance Period End Date | | Grant Date Fair Value | | Number of PSUs Outstanding as of December 31, 2017 | 3/1/2013 | | 69,579 |
| | 1/1/2013 | | 12/31/2015 | | $ | 1,867 |
| | — |
| 3/6/2014 | | 49,103 |
| | 1/1/2014 | | 12/31/2016 | | $ | 1,723 |
| | — |
| 3/5/2015 | | 45,656 |
| | 1/1/2015 | | 12/31/2017 | | $ | 1,678 |
| | 15,767 |
| 3/1/2016 | | 26,299 |
| | 1/1/2016 | | 12/31/2018 | | $ | 1,000 |
| | 24,850 |
| 1/1/2017 | | 39,351 |
| | 1/1/2017 | | 12/31/2019 | | $ | 1,400 |
| | 39,351 |
|
In 2017, we also modified certain provisions of the PSUs granted in 2015, 2016 and 2017, resulting in incremental compensation cost totaling $236,000 based on the difference between the pre-modification and post-modification award fair values on the date of modification.
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries Notes to Consolidated Financial Statements (Continued)
The PSUs each have three yearthree-year performance periods concluding on the earlier of the respective performance period end dates set forth above or the date of: (1) termination by us without cause, death or disability of the executive or constructive discharge of the executive (collectively, “qualified termination”); or (2) a sale event. The number of PSUs earned (“earned PSUs”) at the end of the performance period will be determined based on the percentile rank of COPT’s total shareholder return relative to a peer group of companies, as set forth in the following schedule: | | | | Percentile Rank | | Earned PSUs Payout % | 75th or greater | | 200% of PSUs granted | 50th or greater(target) | | 100% of PSUs granted | 25th | | 50% of PSUs granted | Below 25th | | 0% of PSUs granted |
If the percentile rank exceeds the 25th percentile and is between two2 of the percentile ranks set forth in the table above, then the percentage of the earned PSUs will be interpolated between the ranges set forth in the table above to reflect any performance between the listed percentiles. At the end of the performance period, we in settlement ofwill settle the award will issue a number ofby issuing fully-vested COPT common shares equal to the sum of:
the number of earned PSUs in settlement of the award plan; plusplan and either:
for awards granted January 1, 2017 and prior thereto, issuing fully-vested COPT shares equal to the aggregate dividends that would have been paid with respect to the common shares issued in settlement of the earned PSUs through the date of settlement had such shares been issued on the grant date, divided by the share price on such settlement date, as defined under the terms of the agreement.agreement; or for awards issued subsequent to January 1, 2017, paying cash equal to the aggregate dividends that would have been paid with respect to the common shares issued in settlement of the earned PSUs through the date of settlement had such shares been issued on the grant date. If a performance period ends due to a sale event or qualified termination, the number of earned PSUs is prorated based on the portion of the three-yearthree-year performance period that has elapsed. If employment is terminated by the employee or by us for cause, all PSUs are forfeited. PSUs do not carry voting rights. Based on COPT’s total shareholder return relative to its peer group of companies:
for 2013 and 2014the 2015 PSUs issued to Stephen E. Riffee, our former Chief Financial Officer who departed on February 3, 2015, we issued 15,289 common shares on March 5, 2015 in settlement of such PSUs; for the 2013 PSUsexecutives that vested on December 31, 2015, there was no payout value in connection with the vesting;
for the 2014 and 2015 PSUs issued to Wayne H. Lingafelter, our former Executive Vice President, Development & Construction Services, who departed on March 31, 2016,2017, we issued 10,326 common shares on May 30, 2016 in settlement of such PSUs;
for the 2014 and 2015 PSUs issued to Roger A. Waesche, Jr., our former Chief Executive Officer, who departed on May 12, 2016, we issued 20,569 common shares on July 12, 2016 in settlement of such PSUs;
for the 2014, 2015 and 2016 PSUs issued to Karen M. Singer, our former General Counsel and Secretary, who departed on August 31, 2016, we issued 2,248 common shares on October 30, 2016 in settlement of such PSUs; and
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
for the 2014 PSUs issued to Steven E. Budorick, our Chief Executive Officer, that vested on December 31, 2016, we issued 9,76313,328 common shares in settlement of the PSUs on February 7, 2017.22, 2018; and
for the 2016 PSUs issued to executives that vested on December 31, 2018, we issued 44,757 common shares in settlement of the PSUs on January 18, 2019.
We computed grant date fair values for PSUs using Monte Carlo models and are recognizing these values over the performance periods. The grant date fair value and certain of the assumptions used in the Monte Carlo models for the PSUs granted in 2015, 20162017 and 20172018 are set forth below: | | | | | | | | | | | | | | | | Grant Date | | Grant Date Fair Value Per Share | | Baseline Common Share Value | | Expected Volatility of Common Shares | | Risk-free Interest Rate | 1/1/2017 | | $ | 38.43 |
| | $ | 31.22 |
| | 19.0 | % | | 1.47 | % | 1/1/2018 | | $ | 31.97 |
| | $ | 29.20 |
| | 17.0 | % | | 2.04 | % |
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries Notes to Consolidated Financial Statements (Continued) | | | | | | | | | | | | | | | | Grant Date | | Grant Date Fair Value | | Baseline Common Share Value | | Expected Volatility of Common Shares | | Risk-free Interest Rate | 3/5/2015 | | $ | 36.76 |
| | $ | 29.28 |
| | 19.9 | % | | 0.99 | % | 3/1/2016 | | $ | 38.21 |
| | $ | 23.90 |
| | 20.4 | % | | 0.96 | % | 1/1/2017 | | $ | 38.43 |
| | $ | 31.22 |
| | 19.0 | % | | 1.47 | % |
Deferred Share Awards
We made the following grants of deferred share awards to nonemployee members of our Board of Trustees in 2015, 20162017, 2018 and 20172019 (dollars in thousands, except per share amounts)data): | | | | | | | | | | | | | Year of Grant | | Number of Deferred Share Awards Granted | | Aggregate Grant Date Fair Value | | Grant Date Fair Value Per Share | 2017 | | 10,032 |
| | $ | 326 |
| | $ | 32.47 |
| 2018 | | 13,832 |
| | $ | 388 |
| | $ | 28.08 |
| 2019 | | 3,432 |
| | $ | 95 |
| | $ | 27.60 |
|
| | | | | | | | | | | | | Year of Grant | | Number of Deferred Share Awards Granted | | Aggregate Grant Date Fair Value | | Grant Date Fair Value Per Share | 2015 | | 24,056 |
| | $ | 642 |
| | $ | 26.70 |
| 2016 | | 24,944 |
| | $ | 671 |
| | $ | 26.89 |
| 2017 | | 10,032 |
| | $ | 326 |
| | $ | 32.47 |
|
Deferred share awards vest on the first anniversary of the grant date, provided that the Trustee remains in his or her position. We settle deferred share awards by issuing an equivalent number of common shares upon vesting of the awards or a later date elected by the Trustee (generally upon cessation of being a Trustee). We issued the following common shares in settlement of deferred shares in 2015, 20162017, 2018 and 20172019 (dollars in thousands, except per share amounts)data): | | | | | | | | | | | | | | | | For the Years Ended December 31, | | | 2019 | | 2018 | | 2017 | Number of common shares issued | | 3,097 |
| | 5,515 |
| | 15,590 |
| Grant date fair value per share | | $ | 26.77 |
| | $ | 29.32 |
| | $ | 26.89 |
| Aggregate intrinsic value | | $ | 86 |
| | $ | 154 |
| | $ | 508 |
|
| | | | | | | | | | | | | | | | For the Years Ended December 31, | | | 2017 | | 2016 | | 2015 | Number of common shares issued | | 15,590 |
| | 12,028 |
| | 15,485 |
| Grant date fair value | | $ | 26.89 |
| | $ | 26.70 |
| | $ | 26.77 |
| Aggregate intrinsic value | | $ | 508 |
| | $ | 322 |
| | $ | 413 |
|
Options
We have not issued options since 2009, and all of our options were vested and fully expensed prior to 2017.2018. The table below sets forth information regarding our outstanding options as of the following dates (dollars in thousands, except per share data): | | | | | | | | | | | | | | | | | Options Outstanding and Exercisable | | Weighted Average Exercise Price Per Share | | Weighted Average Remaining Contractual Term (in Years) | | Aggregate Intrinsic Value | December 31, 2016 | | 201,100 |
| | $ | 43.35 |
| | 1 | | $ | 31 |
| December 31, 2017 | | 60,000 |
| | $ | 35.17 |
| | 1 | | $ | — |
| December 31, 2018 | | 30,000 |
| | $ | 32.52 |
| | 0.4 | | $ | — |
| December 31, 2019 | | — |
| | N/A | | N/A | | N/A |
|
| | | | | | | | | | | | | | | Options Outstanding and Exercisable | | Weighted Average Exercise Price Per Share | | Weighted Average Remaining Contractual Term (in Years) | | Aggregate Intrinsic Value | December 31, 2014 | | 559,736 |
| | $39.60 | | 2 | | $ | 167 |
| December 31, 2015 | | 425,347 |
| | $42.75 | | 1 | | $ | — |
| December 31, 2016 | | 201,100 |
| | $43.35 | | 1 | | $ | 31 |
| December 31, 2017 | | 60,000 |
| | $35.17 | | 1 | | $ | — |
|
The aggregate intrinsic value of options exercised was $18,000 in 2017 and $300,000 in 2015.2017. No options were exercised in 2016.2019 or 2018.
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
Executive Transition Costs
Our Board of Trustees appointed Stephen E. Budorick, our Executive Vice President and Chief Operating Officer since September 2011, to become our President and Chief Executive Officer effective May 12, 2016, the date of the Company’s 2016 Annual Meeting of Shareholders. On that date, Roger A. Waesche, Jr., our President and Chief Executive Officer, left the Company to pursue other interests, and he was not nominated for reelection as a Trustee. The Board appointed Mr. Budorick to our Board of Trustees after the 2016 Annual Meeting of Shareholders. In addition, our Executive Vice President, Development & Construction Services, Wayne H. Lingafelter, and our Senior Vice President, General Counsel and Secretary, Karen M. Singer, departed the Company to pursue other interests effective March 31, 2016 and August 31, 2016, respectively. We recognized executive transition costs of approximately $6.5 million in 2016 primarily for termination benefits in connection with the departures of Mr. Waesche, Mr. Lingafelter and Ms. Singer.
16. Operating Leases
We lease our properties to tenants under operating leases with various expiration dates extending to the year 2033. Gross minimum future rentals on noncancelable leases in our properties as of December 31, 2017 were as follows (in thousands): | | | | | | Year Ending December 31, | | | 2018 | | $ | 372,420 |
| 2019 | | 329,760 |
| 2020 | | 260,238 |
| 2021 | | 207,727 |
| 2022 | | 175,123 |
| Thereafter | | 484,444 |
| | | $ | 1,829,712 |
|
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
17. Information by Business Segment
We have the following reportable segments: Defense/IT Locations; Regional Office; Wholesale Data Center; and Other. We also report on Defense/IT Locations sub-segments, which include the following: Fort George G. Meade and the Baltimore/Washington Corridor (referred to herein as “Fort Meade/BW Corridor”); Northern Virginia Defense/IT Locations; Lackland Air Force Base (in San Antonio); locations serving the U.S. Navy (“Navy Support Locations”), which included properties proximate to the Washington Navy Yard, the Naval Air Station Patuxent River in Maryland and the Naval Surface Warfare Center Dahlgren Division in Virginia; Redstone Arsenal (in Huntsville); and data center shells (properties leased to tenants to be operated as data centers in which the tenants generally fund the costs for the power, fiber connectivity and data center infrastructure). As of December 31, 2019, 2018 and 2017, our Regional Office segment included properties located in select urban/urban-like submarkets in the Greater Washington, DC/Baltimore region with durable Class-A office fundamentals and characteristics; in prior reporting periods,during 2017, this segment also included suburban properties that did not meetmeeting these characteristics (thatthat were since disposed).disposed.
We measure the performance of our segments through the measure we define as net operating income from real estate operations (“NOI from real estate operations”), which includes: real estate revenues and property operating expenses from continuing and discontinued operations;expenses; and the net of revenues and property operating expenses of real estate operations owned through unconsolidated real estate joint ventures (“UJVs”) that is allocable to COPT’s ownership interest (“UJV NOI allocable to COPT”). Amounts reported for segment assets represent long-lived
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries Notes to Consolidated Financial Statements (Continued)
assets associated with consolidated operating properties (including the carrying value of properties, right-of-use assets, net of related lease liabilities, intangible assets, deferred leasing costs, deferred rents receivable and lease incentives) and the carrying value of investments in UJVs owning operating properties. Amounts reported as additions to long-lived assets represent additions to existing consolidated operating properties, excluding transfers from non-operating properties, which we report separately.
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries Notes to Consolidated Financial Statements (Continued)
The table below reports segment financial information for our reportable segments (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Operating Property Segments | | | | | | | | Defense/Information Technology Locations | | | | | | | | | | Fort Meade/BW Corridor | | Northern Virginia Defense/IT | | Lackland Air Force Base | | Navy Support Locations | | Redstone Arsenal | | Data Center Shells | | Total Defense/IT Locations | | Regional Office | | Operating Wholesale Data Center | | Other | | Total | Year Ended December 31, 2019 | |
| | |
| | |
| | | | |
| | |
| | | | |
| | |
| | |
| | |
| Revenues from real estate operations | $ | 252,781 |
| | $ | 55,742 |
| | $ | 51,140 |
| | $ | 32,659 |
| | $ | 16,593 |
| | $ | 26,571 |
| | $ | 435,486 |
| | $ | 59,611 |
| | $ | 29,405 |
| | $ | 2,961 |
| | $ | 527,463 |
| Property operating expenses | (82,815 | ) | | (19,779 | ) | | (29,042 | ) | | (13,579 | ) | | (6,626 | ) | | (1,962 | ) | | (153,803 | ) | | (29,682 | ) | | (13,213 | ) | | (1,445 | ) | | (198,143 | ) | UJV NOI allocable to COPT | — |
| | — |
| | — |
| | — |
| | — |
| | 5,705 |
| | 5,705 |
| | — |
| | — |
| | — |
| | 5,705 |
| NOI from real estate operations | $ | 169,966 |
| | $ | 35,963 |
| | $ | 22,098 |
| | $ | 19,080 |
| | $ | 9,967 |
| | $ | 30,314 |
| | $ | 287,388 |
| | $ | 29,929 |
| | $ | 16,192 |
| | $ | 1,516 |
| | $ | 335,025 |
| Additions to long-lived assets | $ | 34,618 |
| | $ | 9,326 |
| | $ | — |
| | $ | 8,912 |
| | $ | 1,548 |
| | $ | — |
| | $ | 54,404 |
| | $ | 20,925 |
| | $ | 893 |
| | $ | 128 |
| | $ | 76,350 |
| Transfers from non-operating properties | $ | 18,606 |
| | $ | 4,548 |
| | $ | 10,781 |
| | $ | — |
| | $ | 33,606 |
| | $ | 159,472 |
| | $ | 227,013 |
| | $ | — |
| | $ | (1,012 | ) | | $ | — |
| | $ | 226,001 |
| Segment assets at December 31, 2019 | $ | 1,280,656 |
| | $ | 396,914 |
| | $ | 146,592 |
| | $ | 184,257 |
| | $ | 138,501 |
| | $ | 279,099 |
| | $ | 2,426,019 |
| | $ | 392,319 |
| | $ | 202,935 |
| | $ | 3,685 |
| | $ | 3,024,958 |
| | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2018 | |
| | |
| | |
| | |
| | |
| | |
| | | | |
| | |
| | |
| | |
| Revenues from real estate operations | $ | 248,927 |
| | $ | 53,518 |
| | $ | 46,286 |
| | $ | 31,927 |
| | $ | 14,745 |
| | $ | 25,650 |
| | $ | 421,053 |
| | $ | 61,181 |
| | $ | 31,892 |
| | $ | 3,127 |
| | $ | 517,253 |
| Property operating expenses | (82,975 | ) | | (20,330 | ) | | (26,888 | ) | | (13,536 | ) | | (6,050 | ) | | (3,225 | ) | | (153,004 | ) | | (30,253 | ) | | (16,342 | ) | | (1,436 | ) | | (201,035 | ) | UJV NOI allocable to COPT | — |
| | — |
| | — |
| | — |
| | — |
| | 4,818 |
| | 4,818 |
| | — |
| | — |
| | — |
| | 4,818 |
| NOI from real estate operations | $ | 165,952 |
| | $ | 33,188 |
| | $ | 19,398 |
| | $ | 18,391 |
| | $ | 8,695 |
| | $ | 27,243 |
| | $ | 272,867 |
| | $ | 30,928 |
| | $ | 15,550 |
| | $ | 1,691 |
| | $ | 321,036 |
| Additions to long-lived assets | $ | 38,612 |
| | $ | 7,956 |
| | $ | — |
| | $ | 6,535 |
| | $ | 573 |
| | $ | — |
| | $ | 53,676 |
| | $ | 19,730 |
| | $ | 856 |
| | $ | 480 |
| | $ | 74,742 |
| Transfers from non-operating properties | $ | 35,648 |
| | $ | 10,231 |
| | $ | 14,718 |
| | $ | (116 | ) | | $ | 4,167 |
| | $ | 99,191 |
| | $ | 163,839 |
| | $ | — |
| | $ | 2,304 |
| | $ | — |
| | $ | 166,143 |
| Segment assets at December 31, 2018 | $ | 1,279,571 |
| | $ | 399,339 |
| | $ | 139,731 |
| | $ | 188,911 |
| | $ | 108,010 |
| | $ | 353,165 |
| | $ | 2,468,727 |
| | $ | 395,380 |
| | $ | 216,640 |
| | $ | 4,115 |
| | $ | 3,084,862 |
| | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2017 | |
| | |
| | |
| | |
| | |
| | |
| | | | |
| | |
| | |
| | |
| Revenues from real estate operations | $ | 245,613 |
| | $ | 47,118 |
| | $ | 47,209 |
| | $ | 29,540 |
| | $ | 14,322 |
| | $ | 24,320 |
| | $ | 408,122 |
| | $ | 68,262 |
| | $ | 28,875 |
| | $ | 4,721 |
| | $ | 509,980 |
| Property operating expenses | (80,697 | ) | | (16,938 | ) | | (27,812 | ) | | (12,619 | ) | | (5,783 | ) | | (2,709 | ) | | (146,558 | ) | | (28,982 | ) | | (13,551 | ) | | (1,873 | ) | | (190,964 | ) | UJV NOI allocable to COPT | — |
| | — |
| | — |
| | — |
| | — |
| | 4,805 |
| | 4,805 |
| | — |
| | — |
| | — |
| | 4,805 |
| NOI from real estate operations | $ | 164,916 |
| | $ | 30,180 |
| | $ | 19,397 |
| | $ | 16,921 |
| | $ | 8,539 |
| | $ | 26,416 |
| | $ | 266,369 |
| | $ | 39,280 |
| | $ | 15,324 |
| | $ | 2,848 |
| | $ | 323,821 |
| Additions to long-lived assets | $ | 26,659 |
| | $ | 8,115 |
| | $ | 71 |
| | $ | 8,451 |
| | $ | 1,056 |
| | $ | — |
| | $ | 44,352 |
| | $ | 25,299 |
| | $ | 3,580 |
| | $ | 110 |
| | $ | 73,341 |
| Transfers from non-operating properties | $ | 43,370 |
| | $ | 48,328 |
| | $ | — |
| | $ | 474 |
| | $ | 2,159 |
| | $ | 107,854 |
| | $ | 202,185 |
| | $ | — |
| | $ | 8 |
| | $ | 18 |
| | $ | 202,211 |
| Segment assets at December 31, 2017 | $ | 1,263,567 |
| | $ | 402,076 |
| | $ | 128,755 |
| | $ | 194,476 |
| | $ | 108,119 |
| | $ | 301,996 |
| | $ | 2,398,989 |
| | $ | 400,512 |
| | $ | 224,422 |
| | $ | 4,082 |
| | $ | 3,028,005 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Operating Property Segments | | | | | | | | Defense/Information Technology Locations | | | | | | | | | | Fort Meade/BW Corridor | | Northern Virginia Defense/IT | | Lackland Air Force Base | | Navy Support Locations | | Redstone Arsenal | | Data Center Shells | | Total Defense/IT Locations | | Regional Office | | Operating Wholesale Data Center | | Other | | Total | Year Ended December 31, 2017 | |
| | |
| | |
| | | | |
| | |
| | | | |
| | |
| | |
| | |
| Revenues from real estate operations | $ | 245,613 |
| | $ | 47,118 |
| | $ | 47,209 |
| | $ | 29,540 |
| | $ | 14,322 |
| | $ | 24,320 |
| | $ | 408,122 |
| | $ | 68,262 |
| | $ | 28,875 |
| | $ | 4,721 |
| | $ | 509,980 |
| Property operating expenses | (80,697 | ) | | (16,938 | ) | | (27,812 | ) | | (12,619 | ) | | (5,783 | ) | | (2,709 | ) | | (146,558 | ) | | (28,982 | ) | | (13,551 | ) | | (1,873 | ) | | (190,964 | ) | UJV NOI allocable to COPT | — |
| | — |
| | — |
| | — |
| | — |
| | 5,188 |
| | 5,188 |
| | — |
| | — |
| | — |
| | 5,188 |
| NOI from real estate operations | $ | 164,916 |
| | $ | 30,180 |
| | $ | 19,397 |
| | $ | 16,921 |
| | $ | 8,539 |
| | $ | 26,799 |
| | $ | 266,752 |
| | $ | 39,280 |
| | $ | 15,324 |
| | $ | 2,848 |
| | $ | 324,204 |
| Additions to long-lived assets | $ | 26,659 |
| | $ | 8,115 |
| | $ | 71 |
| | $ | 8,451 |
| | $ | 1,056 |
| | $ | — |
| | $ | 44,352 |
| | $ | 25,299 |
| | $ | 3,580 |
| | $ | 110 |
| | $ | 73,341 |
| Transfers from non-operating properties | $ | 43,370 |
| | $ | 48,328 |
| | $ | — |
| | $ | 474 |
| | $ | 2,159 |
| | $ | 107,854 |
| | $ | 202,185 |
| | $ | — |
| | $ | 8 |
| | $ | 18 |
| | $ | 202,211 |
| Segment assets at December 31, 2017 | $ | 1,263,567 |
| | $ | 402,076 |
| | $ | 128,755 |
| | $ | 194,476 |
| | $ | 108,119 |
| | $ | 285,275 |
| | $ | 2,382,268 |
| | $ | 400,512 |
| | $ | 224,422 |
| | $ | 4,082 |
| | $ | 3,011,284 |
| | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2016 | |
| | |
| | |
| | |
| | |
| | |
| | | | |
| | |
| | |
| | |
| Revenues from real estate operations | $ | 245,354 |
| | $ | 48,964 |
| | $ | 46,803 |
| | $ | 28,197 |
| | $ | 13,056 |
| | $ | 23,836 |
| | $ | 406,210 |
| | $ | 85,805 |
| | $ | 26,869 |
| | $ | 7,080 |
| | $ | 525,964 |
| Property operating expenses | (83,684 | ) | | (17,824 | ) | | (27,357 | ) | | (12,690 | ) | | (4,476 | ) | | (2,674 | ) | | (148,705 | ) | | (34,095 | ) | | (11,512 | ) | | (3,218 | ) | | (197,530 | ) | UJV NOI allocable to COPT | — |
| | — |
| | — |
| | — |
| | — |
| | 2,305 |
| | 2,305 |
| | — |
| | — |
| | — |
| | 2,305 |
| NOI from real estate operations | $ | 161,670 |
| | $ | 31,140 |
| | $ | 19,446 |
| | $ | 15,507 |
| | $ | 8,580 |
| | $ | 23,467 |
| | $ | 259,810 |
| | $ | 51,710 |
| | $ | 15,357 |
| | $ | 3,862 |
| | $ | 330,739 |
| Additions to long-lived assets | $ | 26,267 |
| | $ | 17,344 |
| | $ | — |
| | $ | 9,168 |
| | $ | 4,352 |
| | $ | — |
| | $ | 57,131 |
| | $ | 12,559 |
| | $ | 299 |
| | $ | 335 |
| | $ | 70,324 |
| Transfers from non-operating properties | $ | 49,937 |
| | $ | 28,230 |
| | $ | 240 |
| | $ | — |
| | $ | 3,169 |
| | $ | 103,367 |
| | $ | 184,943 |
| | $ | 82 |
| | $ | (377 | ) | | $ | (8 | ) | | $ | 184,640 |
| Segment assets at December 31, 2016 | $ | 1,255,230 |
| | $ | 404,438 |
| | $ | 131,957 |
| | $ | 196,486 |
| | $ | 110,395 |
| | $ | 209,683 |
| | $ | 2,308,189 |
| | $ | 442,811 |
| | $ | 231,954 |
| | $ | 21,293 |
| | $ | 3,004,247 |
| | | | | | | | | | | | | | | | | | | | | | | Year Ended December 31, 2015 | |
| | |
| | |
| | |
| | |
| | |
| | | | |
| | |
| | |
| | |
| Revenues from real estate operations | $ | 244,274 |
| | $ | 49,199 |
| | $ | 39,659 |
| | $ | 28,177 |
| | $ | 11,228 |
| | $ | 21,746 |
| | $ | 394,283 |
| | $ | 98,165 |
| | $ | 19,032 |
| | $ | 7,588 |
| | $ | 519,068 |
| Property operating expenses | (83,309 | ) | | (20,107 | ) | | (22,004 | ) | | (13,229 | ) | | (3,497 | ) | | (2,298 | ) | | (144,444 | ) | | (36,165 | ) | | (10,402 | ) | | (3,477 | ) | | (194,488 | ) | NOI from real estate operations | $ | 160,965 |
| | $ | 29,092 |
| | $ | 17,655 |
| | $ | 14,948 |
| | $ | 7,731 |
| | $ | 19,448 |
| | $ | 249,839 |
| | $ | 62,000 |
| | $ | 8,630 |
| | $ | 4,111 |
| | $ | 324,580 |
| Additions to long-lived assets | $ | 31,883 |
| | $ | 90,248 |
| | $ | — |
| | $ | 7,656 |
| | $ | 883 |
| | $ | — |
| | $ | 130,670 |
| | $ | 204,139 |
| | $ | 132 |
| | $ | 328 |
| | $ | 335,269 |
| Transfers from non-operating properties | $ | 45,560 |
| | $ | 50,690 |
| | $ | 32,307 |
| | $ | 1,408 |
| | $ | 13,190 |
| | $ | 51,492 |
| | $ | 194,647 |
| | $ | 22,313 |
| | $ | 89,745 |
| | $ | 415 |
| | $ | 307,120 |
| Segment assets at December 31, 2015 | $ | 1,290,028 |
| | $ | 411,196 |
| | $ | 134,381 |
| | $ | 196,090 |
| | $ | 108,038 |
| | $ | 203,013 |
| | $ | 2,342,746 |
| | $ | 608,471 |
| | $ | 243,338 |
| | $ | 70,914 |
| | $ | 3,265,469 |
|
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries Notes to Consolidated Financial Statements (Continued)
The following table reconciles our segment revenues to total revenues as reported on our consolidated statements of operations (in thousands): | | | | | | | | | | | | | | | | For the Years Ended December 31, | | | 2019 | | 2018 | | 2017 | Segment revenues from real estate operations | | $ | 527,463 |
| | $ | 517,253 |
| | $ | 509,980 |
| Construction contract and other service revenues | | 113,763 |
| | 60,859 |
| | 102,840 |
| Total revenues | | $ | 641,226 |
| | $ | 578,112 |
| | $ | 612,820 |
|
| | | | | | | | | | | | | | | | For the Years Ended December 31, | | | 2017 | | 2016 | | 2015 | Segment revenues from real estate operations | | $ | 509,980 |
| | $ | 525,964 |
| | $ | 519,068 |
| Construction contract and other service revenues | | 102,840 |
| | 48,364 |
| | 106,402 |
| Less: Revenues from discontinued operations | | — |
| | — |
| | (4 | ) | Total revenues | | $ | 612,820 |
| | $ | 574,328 |
| | $ | 625,466 |
|
The following table reconciles our segment property operating expenses to property operating expenses as reported on our consolidated statements of operations (in thousands):
| | | | | | | | | | | | | | | | For the Years Ended December 31, | | | 2017 | | 2016 | | 2015 | Segment property operating expenses | | $ | 190,964 |
| | $ | 197,530 |
| | $ | 194,488 |
| Less: Property operating expenses from discontinued operations | | — |
| | — |
| | 6 |
| Total property operating expenses | | $ | 190,964 |
| | $ | 197,530 |
| | $ | 194,494 |
|
The following table reconciles UJV NOI allocable to COPT to equity in income of unconsolidated entities as reported on our consolidated statements of operations (in thousands): | | | | | | | | | | | | | | | | For the Years Ended December 31, | | | 2019 | | 2018 | | 2017 | UJV NOI allocable to COPT | | $ | 5,705 |
| | $ | 4,818 |
| | $ | 4,805 |
| Less: Income from UJV allocable to COPT attributable to depreciation and amortization expense and interest expense | | (4,065 | ) | | (3,314 | ) | | (3,310 | ) | Add: Equity in (loss) income of unconsolidated non-real estate entities | | (7 | ) | | 1,193 |
| | (5 | ) | Equity in income of unconsolidated entities | | $ | 1,633 |
| | $ | 2,697 |
| | $ | 1,490 |
|
| | | | | | | | | | | | | | | | For the Years Ended December 31, | | | 2017 | | 2016 | | 2015 | UJV NOI allocable to COPT | | $ | 5,188 |
| | $ | 2,305 |
| | $ | — |
| Less: Income from UJV allocable to COPT attributable to depreciation and amortization expense and interest expense | | (2,301 | ) | | (993 | ) | | — |
| Add: Equity in (loss) income of unconsolidated non-real estate entities | | (5 | ) | | 20 |
| | 62 |
| Equity in income of unconsolidated entities | | $ | 2,882 |
| | $ | 1,332 |
| | $ | 62 |
|
As previously discussed, we provide real estate services such as property management, development and construction and development services primarily for our properties but also for third parties. The primary manner in which we evaluate the operating performance of our service activities is through a measure we define as net operating income from service operations (“NOI from service operations”), which is based on the net of revenues and expenses from these activities. Construction contract and other service revenues and expenses consist primarily of subcontracted costs that are reimbursed to us by the customer along with a management fee. The operating margins from these activities are small relative to the revenue. We believe NOI from service operations is a useful measure in assessing both our level of activity and our profitability in conducting such operations. The table below sets forth the computation of our NOI from service operations (in thousands): | | | | | | | | | | | | | | | | For the Years Ended December 31, | | | 2019 | | 2018 | | 2017 | Construction contract and other service revenues | | $ | 113,763 |
| | $ | 60,859 |
| | $ | 102,840 |
| Construction contract and other service expenses | | (109,962 | ) | | (58,326 | ) | | (99,618 | ) | NOI from service operations | | $ | 3,801 |
| | $ | 2,533 |
| | $ | 3,222 |
|
| | | | | | | | | | | | | | | | For the Years Ended December 31, | | | 2017 | | 2016 | | 2015 | Construction contract and other service revenues | | $ | 102,840 |
| | $ | 48,364 |
| | $ | 106,402 |
| Construction contract and other service expenses | | (99,618 | ) | | (45,481 | ) | | (102,696 | ) | NOI from service operations | | $ | 3,222 |
| | $ | 2,883 |
| | $ | 3,706 |
|
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries Notes to Consolidated Financial Statements (Continued)
The following table reconciles our NOI from real estate operations for reportable segments and NOI from service operations to net income from continuing operations as reported on our consolidated statements of operations (in thousands): | | | | | | | | | | | | | | | | For the Years Ended December 31, | | | 2019 | | 2018 | | 2017 | NOI from real estate operations | | $ | 335,025 |
| | $ | 321,036 |
| | $ | 323,821 |
| NOI from service operations | | 3,801 |
| | 2,533 |
| | 3,222 |
| Interest and other income | | 7,894 |
| | 4,358 |
| | 6,318 |
| Gain on sales of real estate | | 105,230 |
| | 2,340 |
| | 9,890 |
| Equity in income of unconsolidated entities | | 1,633 |
| | 2,697 |
| | 1,490 |
| Income tax benefit (expense) | | 217 |
| | 363 |
| | (1,098 | ) | Depreciation and other amortization associated with real estate operations | | (137,069 | ) | | (137,116 | ) | | (134,228 | ) | Impairment losses | | (329 | ) | | (2,367 | ) | | (15,123 | ) | General, administrative and leasing expenses | | (35,402 | ) | | (28,900 | ) | | (30,837 | ) | Business development expenses and land carry costs | | (4,239 | ) | | (5,840 | ) | | (6,213 | ) | Interest expense | | (71,052 | ) | | (75,385 | ) | | (76,983 | ) | Less: UJV NOI allocable to COPT included in equity in income of unconsolidated entities | | (5,705 | ) | | (4,818 | ) | | (4,805 | ) | Loss on early extinguishment of debt | | — |
| | (258 | ) | | (513 | ) | Net income | | $ | 200,004 |
| | $ | 78,643 |
| | $ | 74,941 |
|
| | | | | | | | | | | | | | | | For the Years Ended December 31, | | | 2017 | | 2016 | | 2015 | NOI from real estate operations | | $ | 324,204 |
| | $ | 330,739 |
| | $ | 324,580 |
| NOI from service operations | | 3,222 |
| | 2,883 |
| | 3,706 |
| Interest and other income | | 6,318 |
| | 5,444 |
| | 4,517 |
| Equity in income of unconsolidated entities | | 2,882 |
| | 1,332 |
| | 62 |
| Income tax expense | | (1,098 | ) | | (244 | ) | | (199 | ) | Depreciation and other amortization associated with real estate operations | | (134,228 | ) | | (132,719 | ) | | (140,025 | ) | Impairment losses | | (15,123 | ) | | (101,391 | ) | | (23,289 | ) | General, administrative and leasing expenses | | (30,837 | ) | | (36,553 | ) | | (31,361 | ) | Business development expenses and land carry costs | | (6,213 | ) | | (8,244 | ) | | (13,507 | ) | Interest expense | | (76,983 | ) | | (83,163 | ) | | (89,074 | ) | NOI from discontinued operations | | — |
| | — |
| | (10 | ) | Less: UJV NOI allocable to COPT included in equity in income of unconsolidated entities | | (5,188 | ) | | (2,305 | ) | | — |
| (Loss) gain on early extinguishment of debt | | (513 | ) | | (1,110 | ) | | 85,275 |
| COPT consolidated income (loss) from continuing operations | | $ | 66,443 |
| | $ | (25,331 | ) | | $ | 120,675 |
|
The following table reconciles our segment assets to the consolidated total assets of COPT and subsidiaries (in thousands): | | | | | | | | | | As of December 31, | | 2019 | | 2018 | Segment assets | $ | 3,024,958 |
| | $ | 3,084,862 |
| Operating properties lease liabilities included in segment assets | 17,317 |
| | — |
| Non-operating property assets | 621,630 |
| | 410,671 |
| Other assets | 190,548 |
| | 160,472 |
| Total COPT consolidated assets | $ | 3,854,453 |
| | $ | 3,656,005 |
|
| | | | | | | | | | As of December 31, | | 2017 | | 2016 | Segment assets | $ | 3,011,284 |
| | $ | 3,004,247 |
| Non-operating property assets | 411,041 |
| | 418,171 |
| Other assets | 156,159 |
| | 358,467 |
| Total COPT consolidated assets | $ | 3,578,484 |
| | $ | 3,780,885 |
|
The accounting policies of the segments are the same as those used to prepare our consolidated financial statements, except that discontinued operations and UJV NOI allocable to COPT are not presented separately for segment purposes.statements. In the segment reporting presented above, we did not allocate interest expense, depreciation and amortization, impairment losses, (loss) gain on early extinguishment of debt, gain on sales of real estate, loss on early extinguishment of debt and equity in income of unconsolidated entities not included in NOI to our real estate segments since they are not included in the measure of segment profit reviewed by management. We also did not allocate general, administrative and leasing expenses, business development expenses and land carry costs, interest and other income, income taxes and noncontrolling interests because these items represent general corporate or non-operating property items not attributable to segments.
17.Construction Contract and Other Service Revenues
We disaggregate our construction contract and other service revenues by compensation arrangement and by service type as we believe it best depicts the nature, timing and uncertainty of our revenue. The table below reports construction contract and other service revenues by compensation arrangement (in thousands): | | | | | | | | | | | | | | For the Years Ended December 31, | | 2019 | | 2018 | | 2017 | Construction contract revenue: | | | | | | GMP | $ | 67,708 |
| | $ | 34,050 |
| | $ | 78,401 |
| FFP | 10,688 |
| | 20,327 |
| | 22,607 |
| Cost-plus fee | 34,386 |
| | 5,540 |
| | 801 |
| Other | 981 |
| | 942 |
| | 1,031 |
| | $ | 113,763 |
| | $ | 60,859 |
| | $ | 102,840 |
|
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries Notes to Consolidated Financial Statements (Continued)
The table below reports construction contract and other service revenues by service type (in thousands): | | | | | | | | | | | | | | For the Years Ended December 31, | | 2019 | | 2018 | | 2017 | Construction contract revenue: | | | | | | Construction | $ | 112,170 |
| | $ | 57,986 |
| | $ | 94,471 |
| Design | 612 |
| | 1,931 |
| | 7,338 |
| Other | 981 |
| | 942 |
| | 1,031 |
| | $ | 113,763 |
| | $ | 60,859 |
| | $ | 102,840 |
|
We derived 74% of our construction contract revenue from the USG in 2019, 95% in 2018 and 98% in 2017.
We recognized revenue of $53,000, $349,000 and $586,000 in 2019, 2018 and 2017, respectively, from performance obligations satisfied (or partially satisfied) in previous periods.
Accounts receivable related to our construction contract services is included in accounts receivable, net on our consolidated balance sheets. The beginning and ending balances of accounts receivable related to our construction contracts were as follows (in thousands): | | | | | | | | | | For the Years Ended December 31, | | 2019 | | 2018 | Beginning balance | $ | 6,701 |
| | $ | 4,577 |
| Ending balance | $ | 12,378 |
| | $ | 6,701 |
|
Contract assets, which we refer to herein as construction contract costs in excess of billings, are included in prepaid expenses and other assets, net reported on our consolidated balance sheets. The beginning and ending balances of our contract assets were as follows (in thousands): | | | | | | | | | | For the Years Ended December 31, | | 2019 | | 2018 | Beginning balance | $ | 3,189 |
| | $ | 4,884 |
| Ending balance | $ | 17,223 |
| | $ | 3,189 |
|
Contract liabilities are included in other liabilities reported on our consolidated balance sheets. Changes in contract liabilities were as follows (in thousands): | | | | | | | | | | For the Years Ended December 31, | | 2019 | | 2018 | Beginning balance | $ | 568 |
| | $ | 27,402 |
| Ending balance | $ | 1,184 |
| | $ | 568 |
| Portion of beginning balance recognized in revenue during the year | $ | 446 |
| | $ | 27,296 |
|
The change in the contract liabilities balance reported above for 2018 was due primarily to our satisfaction of performance obligations during the period on a contract on which we previously received advance payments from a customer.
Revenue allocated to the remaining performance obligations under existing contracts as of December 31, 2019 that will be recognized as revenue in future periods was $79.0 million, approximately $29 million of which we expect to recognize in 2020.
We have no deferred incremental costs incurred to obtain or fulfill our construction contracts or other service revenues, and had no impairment losses on construction contracts receivable or unbilled construction revenue in 2019, 2018 and 2017.
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries Notes to Consolidated Financial Statements (Continued)
18. Earnings Per Share (“EPS”) and Earnings Per Unit (“EPU”)
COPT and Subsidiaries EPS
We present both basic and diluted EPS. We compute basic EPS by dividing net income available to common shareholders allocable to unrestricted common shares under the two-class method by the weighted average number of unrestricted common shares outstanding during the period. Our computation of diluted EPS is similar except that: the denominator is increased to include: (1) the weighted average number of potential additional common shares that would have been outstanding if securities that are convertible into COPT common shares were converted; and (2) the effect of dilutive potential common shares outstanding during the period attributable to ourCOPT’s forward equity sale agreements, redeemable noncontrolling interests and our share-based compensation using the treasury stock or if-converted methods; and the numerator is adjusted to add back any changes in income or loss that would result from the assumed conversion into common shares that we addedadd to the denominator.
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
Summaries of the numerator and denominator for purposes of basic and diluted EPS calculations are set forth below (in thousands, except per share data): | | | | | | | | | | | | | | | | For the Years Ended December 31, | | | 2019 | | 2018 | | 2017 | Numerator: | | | | | | | Net income attributable to COPT | | $ | 191,692 |
| | $ | 72,301 |
| | $ | 68,745 |
| Preferred share dividends | | — |
| | — |
| | (6,219 | ) | Issuance costs associated with redeemed preferred shares | | — |
| | — |
| | (6,847 | ) | Income attributable to share-based compensation awards | | (656 | ) | | (462 | ) | | (449 | ) | Numerator for basic EPS on net income attributable to COPT common shareholders | | $ | 191,036 |
| | $ | 71,839 |
| | $ | 55,230 |
| Redeemable noncontrolling interests | | 132 |
| | — |
| | — |
| Income attributable to share-based compensation awards | | 33 |
| | — |
| | — |
| Numerator for diluted EPS on net income attributable to COPT common shareholders | | $ | 191,201 |
| | $ | 71,839 |
| | $ | 55,230 |
| Denominator (all weighted averages): | | | | | | | Denominator for basic EPS (common shares) | | 111,196 |
| | 103,946 |
| | 98,969 |
| Dilutive effect of redeemable noncontrolling interests | | 119 |
| | — |
| | — |
| Dilutive effect of share-based compensation awards | | 308 |
| | 134 |
| | 132 |
| Dilutive effect of forward equity sale agreements | | — |
| | 45 |
| | 54 |
| Denominator for diluted EPS (common shares) | | 111,623 |
| | 104,125 |
| | 99,155 |
| Basic EPS | | $ | 1.72 |
| | $ | 0.69 |
| | $ | 0.56 |
| Diluted EPS | | $ | 1.71 |
| | $ | 0.69 |
| | $ | 0.56 |
|
| | | | | | | | | | | | | | | | For the Years Ended December 31, | | | 2017 | | 2016 | | 2015 | Numerator: | | | | | | | Income (loss) from continuing operations | | $ | 66,443 |
| | $ | (25,331 | ) | | $ | 120,675 |
| Gain on sales of real estate | | 9,890 |
| | 40,986 |
| | 68,047 |
| Preferred share dividends | | (6,219 | ) | | (14,297 | ) | | (14,210 | ) | Issuance costs associated with redeemed preferred shares | | (6,847 | ) | | (17 | ) | | — |
| Income from continuing operations attributable to noncontrolling interests | | (6,242 | ) | | (4,216 | ) | | (10,575 | ) | Income from continuing operations attributable to share-based compensation awards | | (449 | ) | | (419 | ) | | (706 | ) | Numerator for basic EPS from continuing operations attributable to COPT common shareholders | | $ | 56,576 |
| | $ | (3,294 | ) | | $ | 163,231 |
| Dilutive effect of common units in COPLP on diluted EPS from continuing operations | | — |
| | — |
| | 6,397 |
| Numerator for diluted EPS from continuing operations attributable to COPT common shareholders | | $ | 56,576 |
| | $ | (3,294 | ) | | $ | 169,628 |
| Numerator for basic EPS from continuing operations attributable to COPT common shareholders | | $ | 56,576 |
| | $ | (3,294 | ) | | $ | 163,231 |
| Discontinued operations | | — |
| | — |
| | 156 |
| Discontinued operations attributable to noncontrolling interests | | — |
| | — |
| | (3 | ) | Numerator for basic EPS on net income (loss) attributable to COPT common shareholders | | $ | 56,576 |
| | $ | (3,294 | ) | | $ | 163,384 |
| Dilutive effect of common units in COPLP | | — |
| | — |
| | 6,403 |
| Numerator for diluted EPS on net income (loss) attributable to COPT common shareholders | | $ | 56,576 |
| | $ | (3,294 | ) | | $ | 169,787 |
| Denominator (all weighted averages): | | | | | | | Denominator for basic EPS (common shares) | | 98,969 |
| | 94,502 |
| | 93,914 |
| Dilutive effect of forward equity sale agreements and share-based compensation awards | | 186 |
| | — |
| | 61 |
| Dilutive effect of common units | | — |
| | — |
| | 3,692 |
| Denominator for diluted EPS (common shares) | | 99,155 |
| | 94,502 |
| | 97,667 |
| Basic EPS: | | | | | | | Income (loss) from continuing operations attributable to COPT common shareholders | | $ | 0.57 |
| | $ | (0.03 | ) | | $ | 1.74 |
| Net income (loss) attributable to COPT common shareholders | | $ | 0.57 |
| | $ | (0.03 | ) | | $ | 1.74 |
| Diluted EPS: | | | | | | | Income (loss) from continuing operations attributable to COPT common shareholders | | $ | 0.57 |
| | $ | (0.03 | ) | | $ | 1.74 |
| Net income (loss) attributable to COPT common shareholders | | $ | 0.57 |
| | $ | (0.03 | ) | | $ | 1.74 |
|
Our diluted EPS computations do not include the effects of the following securities since the conversions of such securities would increase diluted EPS for the respective periods (in thousands): | | | | | | | | | | | | | Weighted Average Shares Excluded from Denominator for the Years Ended December 31, | | | 2019 | | 2018 | | 2017 | Conversion of common units | | 1,299 |
| | 2,468 |
| | 3,362 |
| Conversion of redeemable noncontrolling interests | | 896 |
| | 936 |
| | 689 |
| Conversion of Series I preferred units | | 176 |
| | 176 |
| | 176 |
|
| | | | | | | | | | | | | Weighted Average Shares Excluded from Denominator for the Years Ended December 31, | | | 2017 | | 2016 | | 2015 | Conversion of common units | | 3,362 |
| | 3,633 |
| | — |
| Conversion of Series I preferred units | | 176 |
| | 176 |
| | 176 |
| Conversion of Series K preferred shares | | — |
| | 434 |
| | 434 |
|
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries Notes to Consolidated Financial Statements (Continued)
The following share-based compensation securities were also excluded from the computation of diluted EPS because their effect was antidilutive: weighted average restricted shares and deferred share awardsrelated to COPT’s forward equity sale agreements of 433,000376,000 for 2017, 385,000 for 2016 and 410,000 for 2015; and2019; | | • | weighted average restricted shares and deferred share awards of 441,000 for 2019, 452,000 for 2018 and 433,000 for 2017; |
| | • | weighted average options of 12,000 for 2019, 42,000 for 2018 and 70,000 for 2017; and |
weighted average optionsunvested PIUs of 70,00051,000 for 2017, 285,000 for 2016 and 469,000 for 2015. 2019. We had outstanding senior notes, which we redeemed in April 2015, with an exchange settlement feature, but such notes did not affect our diluted EPS reported above since the weighted average closing price of COPT’s common shares during each of the periods was less than the exchange prices per common share applicable for such periods.
COPLP and Subsidiaries EPU
We present both basic and diluted EPU. We compute basic EPU by dividing net income available to common unitholders allocable to unrestricted common units under the two-class method by the weighted average number of unrestricted common units outstanding during the period. Our computation of diluted EPU is similar except that: the denominator is increased to include: (1) the weighted average number of potential additional common units that would have been outstanding if securities that are convertible into our common units were converted; and (2) the effect of dilutive potential common units outstanding during the period attributable to ourCOPT’s forward equity sale agreements, redeemable noncontrolling interests and our share-based compensation using the treasury stock or if-converted methods; and the numerator is adjusted to add back any changes in income or loss that would result from the assumed conversion into common units that we addedadd to the denominator.
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
Summaries of the numerator and denominator for purposes of basic and diluted EPU calculations are set forth below (in thousands, except per unit data): | | | | | | | | | | | | | | | | For the Years Ended December 31, | | | 2019 | | 2018 | | 2017 | Numerator: | | | | | | | Net income attributable to COPLP | | $ | 194,619 |
| | $ | 74,703 |
| | $ | 71,295 |
| Preferred unit distributions | | (564 | ) | | (660 | ) | | (6,879 | ) | Issuance costs associated with redeemed preferred units | | — |
| | — |
| | (6,847 | ) | Income attributable to share-based compensation awards | | (785 | ) | | (462 | ) | | (449 | ) | Numerator for basic EPU on net income attributable to COPLP common unitholders | | 193,270 |
| | 73,581 |
| | 57,120 |
| Redeemable noncontrolling interests | | 132 |
| | — |
| | — |
| Income attributable to share-based compensation awards | | 33 |
| | — |
| | — |
| Numerator for diluted EPU on net income attributable to COPLP common unitholders | | $ | 193,435 |
| | $ | 73,581 |
| | $ | 57,120 |
| Denominator (all weighted averages): | | | | | | | Denominator for basic EPU (common units) | | 112,495 |
| | 106,414 |
| | 102,331 |
| Dilutive effect of redeemable noncontrolling interests | | 119 |
| | — |
| | — |
| Dilutive effect of share-based compensation awards | | 308 |
| | 134 |
| | 132 |
| Dilutive effect of forward equity sale agreements | | — |
| | 45 |
| | 54 |
| Denominator for diluted EPU (common units) | | 112,922 |
| | 106,593 |
| | 102,517 |
| Basic EPU | | $ | 1.72 |
| | $ | 0.69 |
| | $ | 0.56 |
| Diluted EPU | | $ | 1.71 |
| | $ | 0.69 |
| | $ | 0.56 |
|
| | | | | | | | | | | | | | | | For the Years Ended December 31, | | | 2017 | | 2016 | | 2015 | Numerator: | | | | | | | Income (loss) from continuing operations | | $ | 66,443 |
| | $ | (25,331 | ) | | $ | 120,675 |
| Gain on sales of real estate, net | | 9,890 |
| | 40,986 |
| | 68,047 |
| Preferred unit distributions | | (6,879 | ) | | (14,957 | ) | | (14,870 | ) | Issuance costs associated with redeemed preferred units | | (6,847 | ) | | (17 | ) | | — |
| Income from continuing operations attributable to noncontrolling interests | | (3,646 | ) | | (3,715 | ) | | (3,523 | ) | Income from continuing operations attributable to share-based compensation awards | | (449 | ) | | (419 | ) | | (706 | ) | Numerator for basic and diluted EPU from continuing operations attributable to COPLP common unitholders | | $ | 58,512 |
| | $ | (3,453 | ) | | $ | 169,623 |
| Discontinued operations | | — |
| | — |
| | 156 |
| Discontinued operations attributable to noncontrolling interests | | — |
| | — |
| | 3 |
| Numerator for basic and diluted EPU on net income (loss) attributable to COPLP common unitholders | | $ | 58,512 |
| | $ | (3,453 | ) | | $ | 169,782 |
| Denominator (all weighted averages): | | | | | | | Denominator for basic EPU (common units) | | 102,331 |
| | 98,135 |
| | 97,606 |
| Dilutive effect of forward equity sale agreements and share-based compensation awards | | 186 |
| | — |
| | 61 |
| Denominator for diluted EPU (common units) | | 102,517 |
| | 98,135 |
| | 97,667 |
| Basic EPU: | | | | | | | Income (loss) from continuing operations attributable to COPLP common unitholders | | $ | 0.57 |
| | $ | (0.04 | ) | | $ | 1.74 |
| Net income (loss) attributable to COPLP common unitholders | | $ | 0.57 |
| | $ | (0.04 | ) | | $ | 1.74 |
| Diluted EPU: | | | | | | | Income (loss) from continuing operations attributable to COPLP common unitholders | | $ | 0.57 |
| | $ | (0.04 | ) | | $ | 1.74 |
| Net income (loss) attributable to COPLP common unitholders | | $ | 0.57 |
| | $ | (0.04 | ) | | $ | 1.74 |
|
Our diluted EPU computations do not include the effects of the following securities since the conversions of such securities would increase diluted EPU for the respective periods (in thousands): | | | | | | | | | | | | | Weighted Average Units Excluded from Denominator for the Years Ended December 31, | | | 2019 | | 2018 | | 2017 | Conversion of redeemable noncontrolling interests | | 896 |
| | 936 |
| | 689 |
| Conversion of Series I preferred units | | 176 |
| | 176 |
| | 176 |
|
| | | | | | | | | | | | | Weighted Average Units Excluded from Denominator for the Years Ended December 31, | | | 2017 | | 2016 | | 2015 | Conversion of Series I preferred units | | 176 |
| | 176 |
| | 176 |
| Conversion of Series K preferred units | | — |
| | 434 |
| | 434 |
|
The following share-based compensation securities were excluded from the computation of diluted EPU because their effect was antidilutive:
F-59 weighted average restricted units and deferred share awards of 433,000 for 2017, 385,000 for 2016 and 410,000 for 2015; and
weighted average options of 70,000 for 2017, 285,000 for 2016 and 469,000 for 2015.
We had outstanding senior notes, which we redeemed in April 2015, with an exchange settlement feature, but such notes did not affect our diluted EPU reported above since the weighted average closing price of COPT’s common shares during each of the periods was less than the exchange prices per common share applicable for such periods.
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries Notes to Consolidated Financial Statements (Continued)
The following securities were also excluded from the computation of diluted EPU because their effect was antidilutive:
weighted average shares related to COPT’s forward equity sale agreements of 376,000 for 2019; weighted average restricted units and deferred share awards of 441,000 for 2019, 452,000 for 2018 and 433,000 for 2017; weighted average options of 12,000 for 2019, 42,000 for 2018 and 70,000 for 2017; and weighted average unvested PIUs of 51,000 for 2019.
19. Commitments and Contingencies Litigation and Claims In the normal course of business, we are involved insubject to legal actions arising from our ownership and administration of properties.other claims. We establish reservesrecord losses for specific legal proceedings and claims when we determine that the likelihood of an unfavorable outcomea loss is probable and the amount of loss can be reasonably estimated. Management doesAs of December 31, 2019, management believes that it is reasonably possible that we could recognize a loss of up to $3 million for certain municipal tax claims. While we do not anticipate that any liabilities that may result from such proceedings will have abelieve this loss would materially adverse effect onaffect our financial position operations or liquidity.liquidity, it could be material to our results of operations. Management believes that it is also reasonably possible that we could incur losses pursuant to other such claims but do not believe such losses would materially affect our financial position, liquidity or results of operations. Our assessment of the potential outcomes of these matters involves significant judgment and is subject to change based on future developments. Environmental We are subject to various Federal, state and local environmental regulations related to our property ownership and operation. We have performed environmental assessments of our properties, the results of which have not revealed any environmental liability that we believe would have a materially adverse effect on our financial position, operations or liquidity.
In connection with a lease and subsequent sale in 2008 and 2010 of 3 properties in Dayton, New Jersey, we agreed to provide certain environmental indemnifications limited to $19 million in the aggregate. We have insurance coverage in place to mitigate much of any potential future losses that may result from these indemnification agreements.
Tax Incremental Financing Obligation In August 2010, Anne Arundel County, Maryland issued$30 million in tax incremental financing bonds to third-party investors in order to finance public improvements needed in connection with our project known as the National Business Park North.Park. These bonds had a remaining principal balance of approximately $34 million as of December 31, 2019. The real estate taxes on increases in assessed valuevalues post-bond issuance of aproperties in development districtdistricts encompassing the National Business Park North are to be transferred to a special fund pledged to the repayment of the bonds. We recognized a $981,000 liability through December 31, 2017 representing our estimated obligationWhile we are obligated to fund, through a special tax, any future shortfalls between debt service onof the bonds and real estate taxes available to repay the bonds.
Operating Leases
We are obligated as lessee under operating leases (mostly ground leases) with various expiration dates extending to the year 2100. Future minimum rental payments due under the terms of these operating leasesbonds, as of December 31, 2017 follow (in thousands)2019, we do not expect any such future fundings will be required.
Contractual Obligations
We had amounts remaining to be incurred under various contractual obligations as of December 31, 2019 that included the following (excluding amounts incurred and therefore reflected as liabilities reported on our consolidated balance sheets):
development and redevelopment obligations of $200.7 million; tenant and other building improvements of $58.8 million; third party construction obligations of $16.5 million; and other obligations of $1.5 million.
| | | | | | Year Ending December 31, | | | 2018 | | $ | 1,283 |
| 2019 | | 1,267 |
| 2020 | | 1,259 |
| 2021 | | 1,263 |
| 2022 | | 1,149 |
| Thereafter | | 84,611 |
| | | $ | 90,832 |
|
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries Notes to Consolidated Financial Statements (Continued)
Capital Lease
On May 25, 2017, we entered into a ground lease on land under development in Washington, DC for our Stevens Investors, LLC joint venture. The lease has a 99-year term, and we possess an option to purchase the property for one dollar (estimated to occur between 2019 and 2020). Upon inception of the lease, we recorded a $16.1 million capital lease liability on our consolidated balance sheets based on the present value of the future minimum rental payments. Future minimum rental payments due under the term of this lease as of December 31, 2017 follow (in thousands):
| | | | | | Year Ending December 31, | | | 2018 | | $ | 15,829 |
| 2020 | | 135 |
| 2022 | | 75 |
| Total minimum rental payments | | 16,039 |
| Less: Amount representing interest | | (186 | ) | Capital lease obligation | | $ | 15,853 |
|
Contractual Obligations
We had amounts remaining to be incurred under various contractual obligations as of December 31, 2017 that included the following (excluding amounts incurred and therefore reflected as liabilities reported on our consolidated balance sheets):
new development and redevelopment obligations of $22.8 million;
capital expenditures for operating properties of $44.2 million;
third party construction and development of $35.8 million; and
other obligations of $0.9 million.
Environmental Indemnity Agreement
In connection with a lease and subsequent sale in 2008 and 2010 of three properties in Dayton, New Jersey, we agreed to provide certain environmental indemnifications limited to $19 million in the aggregate. We have insurance coverage in place to mitigate much of any potential future losses that may result from these indemnification agreements.
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
20.Quarterly Data (Unaudited) The tables below set forth selected quarterly information for the years ended December 31, 20172019 and 20162018 (in thousands, except per share/unit data). | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Year Ended December 31, 2019 | | For the Year Ended December 31, 2018 | | First Quarter | | Second Quarter | | Third Quarter | | Fourth Quarter | | First Quarter | | Second Quarter | | Third Quarter | | Fourth Quarter | COPT and Subsidiaries | | | | | | | | | | | | | | | | Revenues | $ | 148,940 |
| | $ | 175,070 |
| | $ | 159,431 |
| | $ | 157,785 |
| | $ | 155,476 |
| | $ | 146,743 |
| | $ | 137,411 |
| | $ | 138,482 |
| Net income | $ | 22,318 |
| | $ | 109,563 |
| | $ | 23,246 |
| | $ | 44,877 |
| | $ | 18,780 |
| | $ | 21,085 |
| | $ | 20,322 |
| | $ | 18,456 |
| Net income attributable to noncontrolling interests | (1,459 | ) | | (2,772 | ) | | (1,989 | ) | | (2,092 | ) | | (1,630 | ) | | (1,651 | ) | | (1,625 | ) | | (1,436 | ) | Net income attributable to COPT common shareholders | $ | 20,859 |
| | $ | 106,791 |
| | $ | 21,257 |
| | $ | 42,785 |
| | $ | 17,150 |
| | $ | 19,434 |
| | $ | 18,697 |
| | $ | 17,020 |
| | | | | | | | | | | | | | | | | Basic EPS | $ | 0.19 |
| | $ | 0.95 |
| | $ | 0.19 |
| | $ | 0.38 |
| | $ | 0.17 |
| | $ | 0.19 |
| | $ | 0.18 |
| | $ | 0.16 |
| Diluted EPS | $ | 0.19 |
| | $ | 0.95 |
| | $ | 0.19 |
| | $ | 0.38 |
| | $ | 0.17 |
| | $ | 0.19 |
| | $ | 0.18 |
| | $ | 0.16 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | COPLP and Subsidiaries | | | | | | | | | | | | | | | | Revenues | $ | 148,940 |
| | $ | 175,070 |
| | $ | 159,431 |
| | $ | 157,785 |
| | $ | 155,476 |
| | $ | 146,743 |
| | $ | 137,411 |
| | $ | 138,482 |
| Net income | $ | 22,318 |
| | $ | 109,563 |
| | $ | 23,246 |
| | $ | 44,877 |
| | $ | 18,780 |
| | $ | 21,085 |
| | $ | 20,322 |
| | $ | 18,456 |
| Net income attributable to noncontrolling interests | (1,037 | ) | | (1,268 | ) | | (1,565 | ) | | (1,515 | ) | | (921 | ) | | (878 | ) | | (1,080 | ) | | (1,061 | ) | Net income attributable to COPLP | 21,281 |
| | 108,295 |
| | 21,681 |
| | 43,362 |
| | 17,859 |
| | 20,207 |
| | 19,242 |
| | 17,395 |
| Preferred unit distributions | (165 | ) | | (165 | ) | | (157 | ) | | (77 | ) | | (165 | ) | | (165 | ) | | (165 | ) | | (165 | ) | Net income attributable to COPLP common unitholders | $ | 21,116 |
| | $ | 108,130 |
| | $ | 21,524 |
| | $ | 43,285 |
| | $ | 17,694 |
| | $ | 20,042 |
| | $ | 19,077 |
| | $ | 17,230 |
| | | | | | | | | | | | | | | | | Basic EPU | $ | 0.19 |
| | $ | 0.95 |
| | $ | 0.19 |
| | $ | 0.38 |
| | $ | 0.17 |
| | $ | 0.19 |
| | $ | 0.18 |
| | $ | 0.16 |
| Diluted EPU | $ | 0.19 |
| | $ | 0.95 |
| | $ | 0.19 |
| | $ | 0.38 |
| | $ | 0.17 |
| | $ | 0.19 |
| | $ | 0.18 |
| | $ | 0.16 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | For the Year Ended December 31, 2017 | | For the Year Ended December 31, 2016 | | First Quarter | | Second Quarter | | Third Quarter | | Fourth Quarter | | First Quarter | | Second Quarter | | Third Quarter | | Fourth Quarter | COPT and Subsidiaries | | | | | | | | | | | | | | | | Revenues | $ | 139,801 |
| | $ | 151,435 |
| | $ | 157,017 |
| | $ | 164,567 |
| | $ | 144,307 |
| | $ | 145,927 |
| | $ | 142,103 |
| | $ | 141,991 |
| Operating income | $ | 35,433 |
| | $ | 36,618 |
| | $ | 38,939 |
| | $ | 24,847 |
| | $ | 30,464 |
| | $ | (27,021 | ) | | $ | 11,525 |
| | $ | 37,442 |
| Income (loss) from continuing operations | $ | 18,850 |
| | $ | 19,195 |
| | $ | 21,494 |
| | $ | 6,904 |
| | $ | 8,096 |
| | $ | (48,316 | ) | | $ | (4,829 | ) | | $ | 19,718 |
| Net income (loss) | $ | 23,088 |
| | $ | 19,207 |
| | $ | 22,682 |
| | $ | 11,356 |
| | $ | 8,096 |
| | $ | (48,316 | ) | | $ | 29,272 |
| | $ | 26,603 |
| Net (income) loss attributable to noncontrolling interests | (1,733 | ) | | (1,345 | ) | | (1,766 | ) | | (1,398 | ) | | (1,270 | ) | | 897 |
| | (1,973 | ) | | (1,870 | ) | Net income (loss) attributable to COPT | 21,355 |
| | 17,862 |
| | 20,916 |
| | 9,958 |
| | 6,826 |
| | (47,419 | ) | | 27,299 |
| | 24,733 |
| Preferred share dividends | (3,180 | ) | | (3,039 | ) | | — |
| | — |
| | (3,552 | ) | | (3,553 | ) | | (3,552 | ) | | (3,640 | ) | Issuance costs associated with redeemed preferred shares | — |
| | (6,847 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | (17 | ) | Net income (loss) attributable to COPT common shareholders | $ | 18,175 |
| | $ | 7,976 |
| | $ | 20,916 |
| | $ | 9,958 |
| | $ | 3,274 |
| | $ | (50,972 | ) | | $ | 23,747 |
| | $ | 21,076 |
| | | | | | | | | | | | | | | | | Basic EPS | $ | 0.18 |
| | $ | 0.08 |
| | $ | 0.21 |
| | $ | 0.10 |
| | $ | 0.03 |
| | $ | (0.54 | ) | | $ | 0.25 |
| | $ | 0.22 |
| Diluted EPS | $ | 0.18 |
| | $ | 0.08 |
| | $ | 0.21 |
| | $ | 0.10 |
| | $ | 0.03 |
| | $ | (0.54 | ) | | $ | 0.25 |
| | $ | 0.22 |
|
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | COPLP and Subsidiaries | | | | | | | | | | | | | | | | Revenues | $ | 139,801 |
| | $ | 151,435 |
| | $ | 157,017 |
| | $ | 164,567 |
| | $ | 144,307 |
| | $ | 145,927 |
| | $ | 142,103 |
| | $ | 141,991 |
| Operating income | $ | 35,433 |
| | $ | 36,618 |
| | $ | 38,939 |
| | $ | 24,847 |
| | $ | 30,464 |
| | $ | (27,021 | ) | | $ | 11,525 |
| | $ | 37,442 |
| Income (loss) from continuing operations | $ | 18,850 |
| | $ | 19,195 |
| | $ | 21,494 |
| | $ | 6,904 |
| | $ | 8,096 |
| | $ | (48,316 | ) | | $ | (4,829 | ) | | $ | 19,718 |
| Net income (loss) | $ | 23,088 |
| | $ | 19,207 |
| | $ | 22,682 |
| | $ | 11,356 |
| | $ | 8,096 |
| | $ | (48,316 | ) | | $ | 29,272 |
| | $ | 26,603 |
| Net income attributable to noncontrolling interests | (934 | ) | | (907 | ) | | (897 | ) | | (908 | ) | | (979 | ) | | (911 | ) | | (913 | ) | | (912 | ) | Net income (loss) attributable to COPLP | 22,154 |
| | 18,300 |
| | 21,785 |
| | 10,448 |
| | 7,117 |
| | (49,227 | ) | | 28,359 |
| | 25,691 |
| Preferred unit distributions | (3,345 | ) | | (3,204 | ) | | (165 | ) | | (165 | ) | | (3,717 | ) | | (3,718 | ) | | (3,717 | ) | | (3,805 | ) | Issuance costs associated with redeemed preferred units | — |
| | (6,847 | ) | | — |
| | — |
| | — |
| | — |
| | — |
| | (17 | ) | Net income (loss) attributable to COPLP common unitholders | $ | 18,809 |
| | $ | 8,249 |
| | $ | 21,620 |
| | $ | 10,283 |
| | $ | 3,400 |
| | $ | (52,945 | ) | | $ | 24,642 |
| | $ | 21,869 |
| | | | | | | | | | | | | | | | | Basic EPU | $ | 0.18 |
| | $ | 0.08 |
| | $ | 0.21 |
| | $ | 0.10 |
| | $ | 0.03 |
| | $ | (0.54 | ) | | $ | 0.25 |
| | $ | 0.22 |
| Diluted EPU | $ | 0.18 |
| | $ | 0.08 |
| | $ | 0.21 |
| | $ | 0.10 |
| | $ | 0.03 |
| | $ | (0.54 | ) | | $ | 0.25 |
| | $ | 0.22 |
|
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries
Schedule II—Valuation and Qualifying Accounts
Years Ended December 31, 2017, 2016 and 2015
| | | | | | | | | | | | | | | | | | | | | | | | Balance at Beginning of Year | | Charged to Costs and Expenses (1) | | Charged to Other Accounts (2) | | Deductions (3) | | Balance at End of Year | Accounts Receivables-Allowance for doubtful accounts | | | | | | | | | | | Year ended December 31, 2017 | | $ | 603 |
| | $ | 368 |
| | $ | (36 | ) | | $ | (328 | ) | | $ | 607 |
| Year ended December 31, 2016 | | $ | 1,525 |
| | $ | (17 | ) | | $ | 235 |
| | $ | (1,140 | ) | | $ | 603 |
| Year ended December 31, 2015 | | $ | 717 |
| | $ | 1,125 |
| | $ | 98 |
| | $ | (415 | ) | | $ | 1,525 |
| Allowance for Deferred Rent Receivable | | | | | |
|
| | | | | Year ended December 31, 2017 | | $ | 373 |
| | $ | (9 | ) | | $ | — |
| | $ | — |
| | $ | 364 |
| Year ended December 31, 2016 | | $ | 1,962 |
| | $ | (1,589 | ) | | $ | — |
| | $ | — |
| | $ | 373 |
| Year ended December 31, 2015 | | $ | 1,418 |
| | $ | — |
| | $ | 544 |
| | $ | — |
| | $ | 1,962 |
| Allowance for Deferred Tax Asset | | | | | |
|
| | | | | Year ended December 31, 2017 | | $ | 2,062 |
| | $ | (646 | ) | | $ | — |
| | $ | — |
| | $ | 1,416 |
| Year ended December 31, 2016 | | $ | 2,062 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 2,062 |
| Year ended December 31, 2015 | | $ | 2,062 |
| | $ | — |
| | $ | — |
| | $ | — |
| | $ | 2,062 |
|
(1) Amounts charged to costs and expenses are net of recoveries. Reduction in allowance for deferred tax asset was the result of a decrease in the corporate tax rate.
(2) Allowances for certain accounts receivables were charged to service company revenue. Deferred rent receivable allowances were charged to rental revenue.
(3) Deductions reflect adjustments to reserves due to actual write-offs of accounts.
Corporate Office Properties Trust and Subsidiaries and Corporate Office Properties, L.P. and Subsidiaries Schedule III—Real Estate and Accumulated Depreciation December 31, 20172019 | | | | | Initial Cost | | Gross Amounts Carried At Close of Period | | | | | Initial Cost | | Gross Amounts Carried At Close of Period | | | Property (Type) (1) | Location | Encumbrances (2) | Land | Building and Land Improvements | Costs Capitalized Subsequent to Acquisition | Land | Building and Land Improvements | Total (3)(4) | Accumulated Depreciation (5) | Year Built or Renovated | Date Acquired (6) | Location | Encumbrances (2) | Land | Building and Land Improvements | Costs Capitalized Subsequent to Acquisition | Land | Building and Land Improvements | Total (3) | Accumulated Depreciation (4) | Year Built or Renovated | Date Acquired (5) | 100 Light Street (O) | Baltimore, MD | $ | 49,378 |
| $ | 26,715 |
| $ | 58,343 |
| $ | 5,286 |
| $ | 26,715 |
| $ | 63,629 |
| $ | 90,344 |
| $ | (9,467 | ) | 1973 | 8/7/2015 | Baltimore, MD | $ | 47,529 |
| $ | 26,715 |
| $ | 59,177 |
| $ | 12,989 |
| $ | 26,715 |
| $ | 72,166 |
| $ | 98,881 |
| $ | (16,790 | ) | 1973/2011 | 8/7/2015 | 100 Secured Gateway (O) | | Huntsville, AL | — |
| — |
| 25,763 |
| — |
| — |
| 25,763 |
| 25,763 |
| — |
| (7) | 3/23/2010 | 1000 Redstone Gateway (O) | Huntsville, AL | 10,730 |
| — |
| 20,533 |
| 5 |
| — |
| 20,538 |
| 20,538 |
| (2,465 | ) | 2013 | 3/23/2010 | Huntsville, AL | 10,035 |
| — |
| 20,533 |
| 5 |
| — |
| 20,538 |
| 20,538 |
| (3,492 | ) | 2013 | 3/23/2010 | 1100 Redstone Gateway (O) | Huntsville, AL | 11,222 |
| — |
| 19,593 |
| — |
| — |
| 19,593 |
| 19,593 |
| (1,945 | ) | 2014 | 3/23/2010 | Huntsville, AL | 10,598 |
| — |
| 19,593 |
| 6 |
| — |
| 19,599 |
| 19,599 |
| (2,926 | ) | 2014 | 3/23/2010 | 114 National Business Parkway (O) | Annapolis Junction, MD | — |
| 364 |
| 3,109 |
| 118 |
| 364 |
| 3,227 |
| 3,591 |
| (1,309 | ) | 2002 | 6/30/2000 | Annapolis Junction, MD | — |
| 364 |
| 3,109 |
| 223 |
| 364 |
| 3,332 |
| 3,696 |
| (1,491 | ) | 2002 | 6/30/2000 | 11751 Meadowville Lane (O) (9) | Richmond, VA | — |
| 1,305 |
| 52,098 |
| 112 |
| 1,305 |
| 52,210 |
| 53,515 |
| (14,845 | ) | 2007 | 9/15/2006 | | 1200 Redstone Gateway (O) | Huntsville, AL | 12,973 |
| — |
| 22,389 |
| — |
| — |
| 22,389 |
| 22,389 |
| (2,264 | ) | 2013 | 3/23/2010 | Huntsville, AL | 12,242 |
| — |
| 22,389 |
| — |
| — |
| 22,389 |
| 22,389 |
| (3,384 | ) | 2013 | 3/23/2010 | 1201 M Street (O) | Washington, DC | — |
| — |
| 49,785 |
| 8,590 |
| — |
| 58,375 |
| 58,375 |
| (12,800 | ) | 2001 | 9/28/2010 | Washington, DC | — |
| — |
| 49,785 |
| 8,879 |
| — |
| 58,664 |
| 58,664 |
| (16,924 | ) | 2001 | 9/28/2010 | 1201 Winterson Road (O) | Linthicum, MD | — |
| 1,288 |
| 16,433 |
| 460 |
| 1,288 |
| 16,893 |
| 18,181 |
| (4,279 | ) | 1985/2017 | 4/30/1998 | Linthicum, MD | — |
| 2,130 |
| 17,007 |
| 669 |
| 2,130 |
| 17,676 |
| 19,806 |
| (5,073 | ) | 1985/2017 | 4/30/1998 | 1220 12th Street, SE (O) | Washington, DC | — |
| — |
| 42,464 |
| 5,820 |
| — |
| 48,284 |
| 48,284 |
| (11,719 | ) | 2003 | 9/28/2010 | Washington, DC | — |
| — |
| 42,464 |
| 8,093 |
| — |
| 50,557 |
| 50,557 |
| (15,746 | ) | 2003 | 9/28/2010 | 1243 Winterson Road (L) | Linthicum, MD | — |
| 630 |
| — |
| — |
| 630 |
| — |
| 630 |
| — |
| (7) | 12/19/2001 | Linthicum, MD | — |
| 630 |
| — |
| — |
| 630 |
| — |
| 630 |
| — |
| (6) | 12/19/2001 | 131 National Business Parkway (O) | Annapolis Junction, MD | — |
| 1,906 |
| 7,623 |
| 3,868 |
| 1,906 |
| 11,491 |
| 13,397 |
| (6,286 | ) | 1990 | 9/28/1998 | Annapolis Junction, MD | — |
| 1,906 |
| 7,623 |
| 4,120 |
| 1,906 |
| 11,743 |
| 13,649 |
| (7,074 | ) | 1990 | 9/28/1998 | 132 National Business Parkway (O) | Annapolis Junction, MD | — |
| 2,917 |
| 12,259 |
| 4,124 |
| 2,917 |
| 16,383 |
| 19,300 |
| (8,715 | ) | 2000 | 5/28/1999 | Annapolis Junction, MD | — |
| 2,917 |
| 12,259 |
| 4,669 |
| 2,917 |
| 16,928 |
| 19,845 |
| (9,958 | ) | 2000 | 5/28/1999 | 133 National Business Parkway (O) | Annapolis Junction, MD | — |
| 2,517 |
| 10,068 |
| 5,544 |
| 2,517 |
| 15,612 |
| 18,129 |
| (9,234 | ) | 1997 | 9/28/1998 | Annapolis Junction, MD | — |
| 2,517 |
| 10,068 |
| 5,607 |
| 2,517 |
| 15,675 |
| 18,192 |
| (10,005 | ) | 1997 | 9/28/1998 | 134 National Business Parkway (O) | Annapolis Junction, MD | — |
| 3,684 |
| 7,517 |
| 3,691 |
| 3,684 |
| 11,208 |
| 14,892 |
| (5,419 | ) | 1999 | 11/13/1998 | Annapolis Junction, MD | — |
| 3,684 |
| 7,517 |
| 4,952 |
| 3,684 |
| 12,469 |
| 16,153 |
| (6,727 | ) | 1999 | 11/13/1998 | 1340 Ashton Road (O) | Hanover, MD | — |
| 905 |
| 3,620 |
| 1,470 |
| 905 |
| 5,090 |
| 5,995 |
| (2,854 | ) | 1989 | 4/28/1999 | Hanover, MD | — |
| 905 |
| 3,620 |
| 1,821 |
| 905 |
| 5,441 |
| 6,346 |
| (3,100 | ) | 1989 | 4/28/1999 | 13450 Sunrise Valley Road (O) | Herndon, VA | — |
| 1,386 |
| 5,576 |
| 4,553 |
| 1,386 |
| 10,129 |
| 11,515 |
| (4,808 | ) | 1998 | 7/25/2003 | Herndon, VA | — |
| 1,386 |
| 5,576 |
| 4,591 |
| 1,386 |
| 10,167 |
| 11,553 |
| (5,741 | ) | 1998 | 7/25/2003 | 13454 Sunrise Valley Road (O) | Herndon, VA | — |
| 2,899 |
| 11,986 |
| 7,071 |
| 2,899 |
| 19,057 |
| 21,956 |
| (9,262 | ) | 1998 | 7/25/2003 | Herndon, VA | — |
| 2,847 |
| 11,986 |
| 8,670 |
| 2,847 |
| 20,656 |
| 23,503 |
| (11,121 | ) | 1998 | 7/25/2003 | 135 National Business Parkway (O) | Annapolis Junction, MD | — |
| 2,484 |
| 9,750 |
| 6,075 |
| 2,484 |
| 15,825 |
| 18,309 |
| (7,970 | ) | 1998 | 12/30/1998 | Annapolis Junction, MD | — |
| 2,484 |
| 9,750 |
| 6,196 |
| 2,484 |
| 15,946 |
| 18,430 |
| (9,584 | ) | 1998 | 12/30/1998 | 1362 Mellon Road (O) | Hanover, MD | — |
| 950 |
| 3,864 |
| 206 |
| 950 |
| 4,070 |
| 5,020 |
| (192 | ) | 2006 | 2/10/2006 | Hanover, MD | — |
| 950 |
| 3,864 |
| 271 |
| 950 |
| 4,135 |
| 5,085 |
| (578 | ) | 2006 | 2/10/2006 | 13857 McLearen Road (O) | Herndon, VA | — |
| 3,507 |
| 30,177 |
| 1,768 |
| 3,507 |
| 31,945 |
| 35,452 |
| (10,100 | ) | 2007 | 7/11/2012 | Herndon, VA | — |
| 3,507 |
| 30,177 |
| 4,142 |
| 3,507 |
| 34,319 |
| 37,826 |
| (11,745 | ) | 2007 | 7/11/2012 | 140 National Business Parkway (O) | Annapolis Junction, MD | — |
| 3,407 |
| 24,167 |
| 1,487 |
| 3,407 |
| 25,654 |
| 29,061 |
| (8,907 | ) | 2003 | 12/31/2003 | Annapolis Junction, MD | — |
| 3,407 |
| 24,167 |
| 1,734 |
| 3,407 |
| 25,901 |
| 29,308 |
| (10,247 | ) | 2003 | 12/31/2003 | 141 National Business Parkway (O) | Annapolis Junction, MD | — |
| 2,398 |
| 9,538 |
| 4,815 |
| 2,398 |
| 14,353 |
| 16,751 |
| (7,409 | ) | 1990 | 9/28/1998 | Annapolis Junction, MD | — |
| 2,398 |
| 9,538 |
| 4,828 |
| 2,398 |
| 14,366 |
| 16,764 |
| (8,605 | ) | 1990 | 9/28/1998 | 14280 Park Meadow Drive (O) | Chantilly, VA | — |
| 3,731 |
| 15,953 |
| 2,628 |
| 3,731 |
| 18,581 |
| 22,312 |
| (7,326 | ) | 1999 | 9/29/2004 | Chantilly, VA | — |
| 3,731 |
| 15,953 |
| 4,809 |
| 3,731 |
| 20,762 |
| 24,493 |
| (8,630 | ) | 1999 | 9/29/2004 | 1460 Dorsey Road (L) | Hanover, MD | — |
| 1,577 |
| 33 |
| — |
| 1,577 |
| 33 |
| 1,610 |
| — |
| (7) | 2/28/2006 | Hanover, MD | — |
| 1,577 |
| 75 |
| — |
| 1,577 |
| 75 |
| 1,652 |
| — |
| (6) | 2/28/2006 | 14840 Conference Center Drive (O) | Chantilly, VA | — |
| 1,572 |
| 8,175 |
| 3,092 |
| 1,572 |
| 11,267 |
| 12,839 |
| (5,410 | ) | 2000 | 7/25/2003 | Chantilly, VA | — |
| 1,572 |
| 8,175 |
| 5,060 |
| 1,572 |
| 13,235 |
| 14,807 |
| (6,626 | ) | 2000 | 7/25/2003 | 14850 Conference Center Drive (O) | Chantilly, VA | — |
| 1,615 |
| 8,358 |
| 3,072 |
| 1,615 |
| 11,430 |
| 13,045 |
| (5,857 | ) | 2000 | 7/25/2003 | Chantilly, VA | — |
| 1,615 |
| 8,358 |
| 3,781 |
| 1,615 |
| 12,139 |
| 13,754 |
| (6,788 | ) | 2000 | 7/25/2003 | 14900 Conference Center Drive (O) | Chantilly, VA | — |
| 3,436 |
| 14,402 |
| 6,239 |
| 3,436 |
| 20,641 |
| 24,077 |
| (10,027 | ) | 1999 | 7/25/2003 | Chantilly, VA | — |
| 3,436 |
| 14,402 |
| 7,880 |
| 3,436 |
| 22,282 |
| 25,718 |
| (12,059 | ) | 1999 | 7/25/2003 | 1501 South Clinton Street (O) | Baltimore, MD | — |
| 27,964 |
| 51,990 |
| 13,670 |
| 27,964 |
| 65,660 |
| 93,624 |
| (19,942 | ) | 2006 | 10/27/2009 | Baltimore, MD | — |
| 27,964 |
| 51,990 |
| 18,470 |
| 27,964 |
| 70,460 |
| 98,424 |
| (25,079 | ) | 2006 | 10/27/2009 | 15049 Conference Center Drive (O) | Chantilly, VA | — |
| 4,415 |
| 20,365 |
| 14,994 |
| 4,415 |
| 35,359 |
| 39,774 |
| (12,097 | ) | 1997 | 8/14/2002 | Chantilly, VA | — |
| 4,415 |
| 20,365 |
| 16,525 |
| 4,415 |
| 36,890 |
| 41,305 |
| (15,930 | ) | 1997 | 8/14/2002 | 15059 Conference Center Drive (O) | Chantilly, VA | — |
| 5,753 |
| 13,615 |
| 3,645 |
| 5,753 |
| 17,260 |
| 23,013 |
| (7,907 | ) | 2000 | 8/14/2002 | Chantilly, VA | — |
| 5,753 |
| 13,615 |
| 4,190 |
| 5,753 |
| 17,805 |
| 23,558 |
| (9,374 | ) | 2000 | 8/14/2002 | 1550 West Nursery Road (O) | Linthicum, MD | — |
| 14,071 |
| 16,930 |
| — |
| 14,071 |
| 16,930 |
| 31,001 |
| (4,802 | ) | 2009 | 10/28/2009 | Linthicum, MD | — |
| 14,071 |
| 16,930 |
| — |
| 14,071 |
| 16,930 |
| 31,001 |
| (5,942 | ) | 2009 | 10/28/2009 | 1560 West Nursery Road (O) | Linthicum, MD | — |
| 1,441 |
| 113 |
| — |
| 1,441 |
| 113 |
| 1,554 |
| (10 | ) | 2014 | 10/28/2009 | Linthicum, MD | — |
| 1,441 |
| 113 |
| — |
| 1,441 |
| 113 |
| 1,554 |
| (16 | ) | 2014 | 10/28/2009 | 1610 West Nursery Road (O) | Linthicum, MD | — |
| 259 |
| 246 |
| — |
| 259 |
| 246 |
| 505 |
| (5 | ) | 2016 | 4/30/1998 | Linthicum, MD | — |
| 259 |
| 246 |
| — |
| 259 |
| 246 |
| 505 |
| (17 | ) | 2016 | 4/30/1998 | 1616 West Nursery Road (O) | Linthicum, MD | — |
| 393 |
| 2,919 |
| — |
| 393 |
| 2,919 |
| 3,312 |
| (13 | ) | 2017 | 4/30/1998 | | 1622 West Nursery Road (O) | Linthicum, MD | — |
| 393 |
| 2,477 |
| — |
| 393 |
| 2,477 |
| 2,870 |
| (53 | ) | 2016 | 4/30/1998 | |
| | | | | Initial Cost | | Gross Amounts Carried At Close of Period | | | | | Initial Cost | | Gross Amounts Carried At Close of Period | | | Property (Type) (1) | Location | Encumbrances (2) | Land | Building and Land Improvements | Costs Capitalized Subsequent to Acquisition | Land | Building and Land Improvements | Total (3)(4) | Accumulated Depreciation (5) | Year Built or Renovated | Date Acquired (6) | Location | Encumbrances (2) | Land | Building and Land Improvements | Costs Capitalized Subsequent to Acquisition | Land | Building and Land Improvements | Total (3) | Accumulated Depreciation (4) | Year Built or Renovated | Date Acquired (5) | 1616 West Nursery Road (O) | | Linthicum, MD | — |
| 393 |
| 3,323 |
| — |
| 393 |
| 3,323 |
| 3,716 |
| (183 | ) | 2017 | 4/30/1998 | 1622 West Nursery Road (O) | | Linthicum, MD | — |
| 393 |
| 2,542 |
| — |
| 393 |
| 2,542 |
| 2,935 |
| (180 | ) | 2016 | 4/30/1998 | 16442 Commerce Drive (O) | Dahlgren, VA | — |
| 613 |
| 2,582 |
| 891 |
| 613 |
| 3,473 |
| 4,086 |
| (1,538 | ) | 2002 | 12/21/2004 | Dahlgren, VA | — |
| 613 |
| 2,582 |
| 960 |
| 613 |
| 3,542 |
| 4,155 |
| (1,735 | ) | 2002 | 12/21/2004 | 16480 Commerce Drive (O) | Dahlgren, VA | — |
| 1,856 |
| 7,425 |
| 2,068 |
| 1,856 |
| 9,493 |
| 11,349 |
| (3,279 | ) | 2000 | 12/28/2004 | Dahlgren, VA | — |
| 1,856 |
| 7,425 |
| 1,894 |
| 1,856 |
| 9,319 |
| 11,175 |
| (3,928 | ) | 2000 | 12/28/2004 | 16501 Commerce Drive (O) | Dahlgren, VA | — |
| 522 |
| 2,090 |
| 727 |
| 522 |
| 2,817 |
| 3,339 |
| (975 | ) | 2002 | 12/21/2004 | Dahlgren, VA | — |
| 522 |
| 2,090 |
| 1,033 |
| 522 |
| 3,123 |
| 3,645 |
| (1,255 | ) | 2002 | 12/21/2004 | 16539 Commerce Drive (O) | Dahlgren, VA | — |
| 688 |
| 2,860 |
| 1,892 |
| 688 |
| 4,752 |
| 5,440 |
| (2,325 | ) | 1990 | 12/21/2004 | Dahlgren, VA | — |
| 688 |
| 2,860 |
| 2,188 |
| 688 |
| 5,048 |
| 5,736 |
| (2,692 | ) | 1990 | 12/21/2004 | 16541 Commerce Drive (O) | Dahlgren, VA | — |
| 773 |
| 3,094 |
| 1,757 |
| 773 |
| 4,851 |
| 5,624 |
| (2,026 | ) | 1996 | 12/21/2004 | Dahlgren, VA | — |
| 773 |
| 3,094 |
| 2,367 |
| 773 |
| 5,461 |
| 6,234 |
| (2,408 | ) | 1996 | 12/21/2004 | 16543 Commerce Drive (O) | Dahlgren, VA | — |
| 436 |
| 1,742 |
| 716 |
| 436 |
| 2,458 |
| 2,894 |
| (839 | ) | 2002 | 12/21/2004 | Dahlgren, VA | — |
| 436 |
| 1,742 |
| 802 |
| 436 |
| 2,544 |
| 2,980 |
| (1,131 | ) | 2002 | 12/21/2004 | 1751 Pinnacle Drive (O) | McLean, VA | — |
| 10,486 |
| 42,339 |
| 27,048 |
| 10,486 |
| 69,387 |
| 79,873 |
| (29,582 | ) | 1989/1995 | 9/23/2004 | McLean, VA | — |
| 10,486 |
| 42,339 |
| 33,115 |
| 10,486 |
| 75,454 |
| 85,940 |
| (35,552 | ) | 1989/1995 | 9/23/2004 | 1753 Pinnacle Drive (O) | McLean, VA | — |
| 8,275 |
| 34,353 |
| 16,648 |
| 8,275 |
| 51,001 |
| 59,276 |
| (18,757 | ) | 1976/2004 | 9/23/2004 | McLean, VA | — |
| 8,275 |
| 34,353 |
| 22,407 |
| 8,275 |
| 56,760 |
| 65,035 |
| (22,899 | ) | 1976/2004 | 9/23/2004 | 206 Research Boulevard (O) | Aberdeen, MD | — |
| — |
| 132 |
| — |
| — |
| 132 |
| 132 |
| (132 | ) | 2012 | 9/14/2007 | Aberdeen, MD | — |
| — |
| — |
| — |
| — |
| — |
| — |
| — |
| 2012 | 9/14/2007 | 209 Research Boulevard (O) | Aberdeen, MD | — |
| 134 |
| 1,711 |
| 175 |
| 134 |
| 1,886 |
| 2,020 |
| (283 | ) | 2010 | 9/14/2007 | Aberdeen, MD | — |
| 134 |
| 1,711 |
| 276 |
| 134 |
| 1,987 |
| 2,121 |
| (487 | ) | 2010 | 9/14/2007 | 210 Research Boulevard (O) | Aberdeen, MD | — |
| 113 |
| 1,402 |
| 86 |
| 113 |
| 1,488 |
| 1,601 |
| (174 | ) | 2010 | 9/14/2007 | Aberdeen, MD | — |
| 113 |
| 1,402 |
| 204 |
| 113 |
| 1,606 |
| 1,719 |
| (400 | ) | 2010 | 9/14/2007 | 2100 L Street (L) | Washington, DC | — |
| 55,615 |
| 9,073 |
| — |
| 55,615 |
| 9,073 |
| 64,688 |
| — |
| (7) | 8/11/2015 | | 2100 L Street (O) | | Washington, DC | 47,068 |
| 19,024 |
| 60,822 |
| — |
| 19,024 |
| 60,822 |
| 79,846 |
| — |
| (7) | 8/11/2015 | 2100 Rideout Road (O) | Huntsville, AL | — |
| — |
| 5,003 |
| 2,881 |
| — |
| 7,884 |
| 7,884 |
| (438 | ) | 2016 | 3/23/2010 | Huntsville, AL | — |
| — |
| 6,951 |
| 2,881 |
| — |
| 9,832 |
| 9,832 |
| (1,304 | ) | 2016 | 3/23/2010 | 22289 Exploration Drive (O) | Lexington Park, MD | — |
| 1,422 |
| 5,719 |
| 1,829 |
| 1,422 |
| 7,548 |
| 8,970 |
| (3,415 | ) | 2000 | 3/24/2004 | Lexington Park, MD | — |
| 1,422 |
| 5,719 |
| 1,924 |
| 1,422 |
| 7,643 |
| 9,065 |
| (3,869 | ) | 2000 | 3/24/2004 | 22299 Exploration Drive (O) | Lexington Park, MD | — |
| 1,362 |
| 5,791 |
| 2,308 |
| 1,362 |
| 8,099 |
| 9,461 |
| (3,768 | ) | 1998 | 3/24/2004 | Lexington Park, MD | — |
| 1,362 |
| 5,791 |
| 2,911 |
| 1,362 |
| 8,702 |
| 10,064 |
| (4,357 | ) | 1998 | 3/24/2004 | 22300 Exploration Drive (O) | Lexington Park, MD | — |
| 1,094 |
| 5,038 |
| 1,489 |
| 1,094 |
| 6,527 |
| 7,621 |
| (2,432 | ) | 1997 | 11/9/2004 | Lexington Park, MD | — |
| 1,094 |
| 5,038 |
| 2,729 |
| 1,094 |
| 7,767 |
| 8,861 |
| (3,115 | ) | 1997 | 11/9/2004 | 22309 Exploration Drive (O) | Lexington Park, MD | — |
| 2,243 |
| 10,419 |
| 7,967 |
| 2,243 |
| 18,386 |
| 20,629 |
| (6,087 | ) | 1984/1997 | 3/24/2004 | Lexington Park, MD | — |
| 2,243 |
| 10,419 |
| 7,986 |
| 2,243 |
| 18,405 |
| 20,648 |
| (7,511 | ) | 1984/1997 | 3/24/2004 | 23535 Cottonwood Parkway (O) | California, MD | — |
| 692 |
| 3,051 |
| 537 |
| 692 |
| 3,588 |
| 4,280 |
| (1,527 | ) | 1984 | 3/24/2004 | California, MD | — |
| 692 |
| 3,051 |
| 648 |
| 692 |
| 3,699 |
| 4,391 |
| (1,861 | ) | 1984 | 3/24/2004 | 250 W Pratt St (O) | Baltimore, MD | — |
| 8,057 |
| 34,588 |
| 6,942 |
| 8,057 |
| 41,530 |
| 49,587 |
| (6,972 | ) | 1985 | 3/19/2015 | Baltimore, MD | — |
| 8,057 |
| 34,588 |
| 14,833 |
| 8,057 |
| 49,421 |
| 57,478 |
| (12,629 | ) | 1985 | 3/19/2015 | 2500 Riva Road (O) | Annapolis, MD | — |
| 2,791 |
| 12,145 |
| 1 |
| 2,791 |
| 12,146 |
| 14,937 |
| (5,105 | ) | 2000 | 3/4/2003 | Annapolis, MD | — |
| 2,791 |
| 12,146 |
| 1 |
| 2,791 |
| 12,147 |
| 14,938 |
| (12,146 | ) | 2000 | 3/4/2003 | 2600 Park Tower Drive (O) | Vienna, VA | — |
| 20,304 |
| 34,443 |
| 517 |
| 20,304 |
| 34,960 |
| 55,264 |
| (3,708 | ) | 1999 | 4/15/2015 | Vienna, VA | — |
| 20,293 |
| 34,443 |
| 1,859 |
| 20,293 |
| 36,302 |
| 56,595 |
| (5,932 | ) | 1999 | 4/15/2015 | 2691 Technology Drive (O) | Annapolis Junction, MD | — |
| 2,098 |
| 17,334 |
| 5,563 |
| 2,098 |
| 22,897 |
| 24,995 |
| (9,630 | ) | 2005 | 5/26/2000 | Annapolis Junction, MD | — |
| 2,098 |
| 17,334 |
| 5,565 |
| 2,098 |
| 22,899 |
| 24,997 |
| (11,271 | ) | 2005 | 5/26/2000 | 2701 Technology Drive (O) | Annapolis Junction, MD | — |
| 1,737 |
| 15,266 |
| 4,398 |
| 1,737 |
| 19,664 |
| 21,401 |
| (9,676 | ) | 2001 | 5/26/2000 | Annapolis Junction, MD | — |
| 1,737 |
| 15,266 |
| 5,530 |
| 1,737 |
| 20,796 |
| 22,533 |
| (11,505 | ) | 2001 | 5/26/2000 | 2711 Technology Drive (O) | Annapolis Junction, MD | — |
| 2,251 |
| 21,611 |
| 1,899 |
| 2,251 |
| 23,510 |
| 25,761 |
| (11,727 | ) | 2002 | 11/13/2000 | Annapolis Junction, MD | — |
| 2,251 |
| 21,611 |
| 2,847 |
| 2,251 |
| 24,458 |
| 26,709 |
| (12,920 | ) | 2002 | 11/13/2000 | 2720 Technology Drive (O) | Annapolis Junction, MD | — |
| 3,863 |
| 29,272 |
| 1,218 |
| 3,863 |
| 30,490 |
| 34,353 |
| (10,261 | ) | 2004 | 1/31/2002 | Annapolis Junction, MD | — |
| 3,863 |
| 29,272 |
| 2,167 |
| 3,863 |
| 31,439 |
| 35,302 |
| (12,354 | ) | 2004 | 1/31/2002 | 2721 Technology Drive (O) | Annapolis Junction, MD | — |
| 4,611 |
| 14,597 |
| 1,270 |
| 4,611 |
| 15,867 |
| 20,478 |
| (7,484 | ) | 2000 | 10/21/1999 | Annapolis Junction, MD | — |
| 4,611 |
| 14,597 |
| 3,205 |
| 4,611 |
| 17,802 |
| 22,413 |
| (9,741 | ) | 2000 | 10/21/1999 | 2730 Hercules Road (O) | Annapolis Junction, MD | — |
| 8,737 |
| 31,612 |
| 8,697 |
| 8,737 |
| 40,309 |
| 49,046 |
| (18,673 | ) | 1990 | 9/28/1998 | Annapolis Junction, MD | — |
| 8,737 |
| 31,612 |
| 8,709 |
| 8,737 |
| 40,321 |
| 49,058 |
| (21,502 | ) | 1990 | 9/28/1998 | 30 Light Street (O) | Baltimore, MD | 4,153 |
| — |
| 12,101 |
| 629 |
| — |
| 12,730 |
| 12,730 |
| (753 | ) | 2009 | 8/7/2015 | Baltimore, MD | 3,998 |
| — |
| 12,101 |
| 867 |
| — |
| 12,968 |
| 12,968 |
| (1,503 | ) | 2009 | 8/7/2015 | 300 Sentinel Drive (O) | Annapolis Junction, MD | — |
| 1,517 |
| 59,165 |
| 925 |
| 1,517 |
| 60,090 |
| 61,607 |
| (11,562 | ) | 2009 | 11/14/2003 | Annapolis Junction, MD | — |
| 1,517 |
| 59,165 |
| 1,756 |
| 1,517 |
| 60,921 |
| 62,438 |
| (14,803 | ) | 2009 | 11/14/2003 | 302 Sentinel Drive (O) | Annapolis Junction, MD | — |
| 2,648 |
| 29,687 |
| 468 |
| 2,648 |
| 30,155 |
| 32,803 |
| (7,579 | ) | 2007 | 11/14/2003 | Annapolis Junction, MD | — |
| 2,648 |
| 29,687 |
| 901 |
| 2,648 |
| 30,588 |
| 33,236 |
| (9,224 | ) | 2007 | 11/14/2003 | 304 Sentinel Drive (O) | Annapolis Junction, MD | — |
| 3,411 |
| 24,917 |
| 202 |
| 3,411 |
| 25,119 |
| 28,530 |
| (7,610 | ) | 2005 | 11/14/2003 | Annapolis Junction, MD | — |
| 3,411 |
| 24,917 |
| 1,966 |
| 3,411 |
| 26,883 |
| 30,294 |
| (9,807 | ) | 2005 | 11/14/2003 | 306 Sentinel Drive (O) | Annapolis Junction, MD | — |
| 3,260 |
| 22,592 |
| 961 |
| 3,260 |
| 23,553 |
| 26,813 |
| (6,631 | ) | 2006 | 11/14/2003 | Annapolis Junction, MD | — |
| 3,260 |
| 22,592 |
| 2,487 |
| 3,260 |
| 25,079 |
| 28,339 |
| (8,174 | ) | 2006 | 11/14/2003 | 308 Sentinel Drive (O) | Annapolis Junction, MD | — |
| 1,422 |
| 26,208 |
| 2,396 |
| 1,422 |
| 28,604 |
| 30,026 |
| (4,370 | ) | 2010 | 11/14/2003 | Annapolis Junction, MD | — |
| 1,422 |
| 26,208 |
| 2,354 |
| 1,422 |
| 28,562 |
| 29,984 |
| (6,123 | ) | 2010 | 11/14/2003 | 310 Sentinel Way (O) | Annapolis Junction, MD | — |
| 2,372 |
| 38,865 |
| — |
| 2,372 |
| 38,865 |
| 41,237 |
| (1,977 | ) | 2016 (8) | 11/14/2003 | Annapolis Junction, MD | — |
| 2,372 |
| 41,160 |
| — |
| 2,372 |
| 41,160 |
| 43,532 |
| (3,968 | ) | 2016 | 11/14/2003 | 310 The Bridge Street (O) | Huntsville, AL | — |
| 261 |
| 26,531 |
| 3,762 |
| 261 |
| 30,293 |
| 30,554 |
| (7,430 | ) | 2009 | 8/9/2011 | Huntsville, AL | — |
| 261 |
| 26,531 |
| 4,916 |
| 261 |
| 31,447 |
| 31,708 |
| (9,962 | ) | 2009 | 8/9/2011 | 312 Sentinel Way (O) | Annapolis Junction, MD | — |
| 3,138 |
| 27,797 |
| — |
| 3,138 |
| 27,797 |
| 30,935 |
| (2,304 | ) | 2014 | 11/14/2003 | Annapolis Junction, MD | — |
| 3,138 |
| 27,797 |
| — |
| 3,138 |
| 27,797 |
| 30,935 |
| (3,694 | ) | 2014 | 11/14/2003 | 314 Sentinel Way (O) | Annapolis Junction, MD | — |
| 1,254 |
| 7,741 |
| — |
| 1,254 |
| 7,741 |
| 8,995 |
| (548 | ) | 2008 | 11/14/2003 | | 316 Sentinel Way (O) | Annapolis Junction, MD | — |
| 2,748 |
| 38,156 |
| 145 |
| 2,748 |
| 38,301 |
| 41,049 |
| (5,507 | ) | 2011 | 11/14/2003 | | 318 Sentinel Way (O) | Annapolis Junction, MD | — |
| 2,185 |
| 28,426 |
| 560 |
| 2,185 |
| 28,986 |
| 31,171 |
| (8,416 | ) | 2005 | 11/14/2003 | |
| | | | | Initial Cost | | Gross Amounts Carried At Close of Period | | | | | Initial Cost | | Gross Amounts Carried At Close of Period | | | Property (Type) (1) | Location | Encumbrances (2) | Land | Building and Land Improvements | Costs Capitalized Subsequent to Acquisition | Land | Building and Land Improvements | Total (3)(4) | Accumulated Depreciation (5) | Year Built or Renovated | Date Acquired (6) | Location | Encumbrances (2) | Land | Building and Land Improvements | Costs Capitalized Subsequent to Acquisition | Land | Building and Land Improvements | Total (3) | Accumulated Depreciation (4) | Year Built or Renovated | Date Acquired (5) | 314 Sentinel Way (O) | | Annapolis Junction, MD | — |
| 1,254 |
| 7,741 |
| — |
| 1,254 |
| 7,741 |
| 8,995 |
| (1,014 | ) | 2008 | 11/14/2003 | 316 Sentinel Way (O) | | Annapolis Junction, MD | — |
| 2,748 |
| 38,156 |
| 157 |
| 2,748 |
| 38,313 |
| 41,061 |
| (7,446 | ) | 2011 | 11/14/2003 | 318 Sentinel Way (O) | | Annapolis Junction, MD | — |
| 2,185 |
| 28,426 |
| 560 |
| 2,185 |
| 28,986 |
| 31,171 |
| (9,949 | ) | 2005 | 11/14/2003 | 320 Sentinel Way (O) | Annapolis Junction, MD | — |
| 2,067 |
| 21,623 |
| — |
| 2,067 |
| 21,623 |
| 23,690 |
| (5,391 | ) | 2007 | 11/14/2003 | Annapolis Junction, MD | — |
| 2,067 |
| 21,623 |
| 65 |
| 2,067 |
| 21,688 |
| 23,755 |
| (6,482 | ) | 2007 | 11/14/2003 | 322 Sentinel Way (O) | Annapolis Junction, MD | — |
| 2,605 |
| 22,827 |
| 1,900 |
| 2,605 |
| 24,727 |
| 27,332 |
| (6,286 | ) | 2006 | 11/14/2003 | Annapolis Junction, MD | — |
| 2,605 |
| 22,827 |
| 1,900 |
| 2,605 |
| 24,727 |
| 27,332 |
| (7,808 | ) | 2006 | 11/14/2003 | 324 Sentinel Way (O) | Annapolis Junction, MD | — |
| 1,656 |
| 23,018 |
| — |
| 1,656 |
| 23,018 |
| 24,674 |
| (4,229 | ) | 2010 | 6/29/2006 | Annapolis Junction, MD | — |
| 1,656 |
| 23,018 |
| — |
| 1,656 |
| 23,018 |
| 24,674 |
| (5,380 | ) | 2010 | 6/29/2006 | 4000 Market Street (O) | Huntsville, AL | — |
| — |
| 466 |
| — |
| — |
| 466 |
| 466 |
| — |
| (8) | 3/23/2010 | Huntsville, AL | — |
| — |
| 9,187 |
| — |
| — |
| 9,187 |
| 9,187 |
| (162 | ) | 2018 | 3/23/2010 | 410 National Business Parkway (O) | | Annapolis Junction, MD | — |
| 1,831 |
| 23,257 |
| 1,705 |
| 1,831 |
| 24,962 |
| 26,793 |
| (4,101 | ) | 2012 | 6/29/2006 | 4100 Market Street (O) | Huntsville, AL | — |
| — |
| 1,013 |
| — |
| — |
| 1,013 |
| 1,013 |
| — |
| (8) | 3/23/2010 | Huntsville, AL | — |
| — |
| 7,998 |
| — |
| — |
| 7,998 |
| 7,998 |
| (102 | ) | 2019 | 3/23/2010 | 410 National Business Parkway (O) | Annapolis Junction, MD | — |
| 1,831 |
| 23,257 |
| 119 |
| 1,831 |
| 23,376 |
| 25,207 |
| (2,904 | ) | 2012 | 6/29/2006 | | 420 National Business Parkway (O) | Annapolis Junction, MD | — |
| 2,370 |
| 27,750 |
| 108 |
| 2,370 |
| 27,858 |
| 30,228 |
| (2,635 | ) | 2013 | 6/29/2006 | Annapolis Junction, MD | — |
| 2,370 |
| 27,751 |
| 132 |
| 2,370 |
| 27,883 |
| 30,253 |
| (4,046 | ) | 2013 | 6/29/2006 | 430 National Business Parkway (O) | Annapolis Junction, MD | — |
| 1,852 |
| 21,563 |
| 126 |
| 1,852 |
| 21,689 |
| 23,541 |
| (3,127 | ) | 2011 | 6/29/2006 | Annapolis Junction, MD | — |
| 1,852 |
| 21,563 |
| 396 |
| 1,852 |
| 21,959 |
| 23,811 |
| (4,265 | ) | 2011 | 6/29/2006 | 44408 Pecan Court (O) | California, MD | — |
| 817 |
| 1,583 |
| 1,490 |
| 817 |
| 3,073 |
| 3,890 |
| (838 | ) | 1986 | 3/24/2004 | California, MD | — |
| 817 |
| 1,583 |
| 1,706 |
| 817 |
| 3,289 |
| 4,106 |
| (1,374 | ) | 1986 | 3/24/2004 | 44414 Pecan Court (O) | California, MD | — |
| 405 |
| 1,619 |
| 1,033 |
| 405 |
| 2,652 |
| 3,057 |
| (954 | ) | 1986 | 3/24/2004 | California, MD | — |
| 405 |
| 1,619 |
| 1,071 |
| 405 |
| 2,690 |
| 3,095 |
| (1,328 | ) | 1986 | 3/24/2004 | 44417 Pecan Court (O) | California, MD | — |
| 434 |
| 3,822 |
| 148 |
| 434 |
| 3,970 |
| 4,404 |
| (1,448 | ) | 1989/2015 | 3/24/2004 | California, MD | — |
| 434 |
| 3,822 |
| 180 |
| 434 |
| 4,002 |
| 4,436 |
| (1,815 | ) | 1989/2015 | 3/24/2004 | 44420 Pecan Court (O) | California, MD | — |
| 344 |
| 890 |
| 168 |
| 344 |
| 1,058 |
| 1,402 |
| (368 | ) | 1989 | 11/9/2004 | California, MD | — |
| 344 |
| 890 |
| 291 |
| 344 |
| 1,181 |
| 1,525 |
| (486 | ) | 1989 | 11/9/2004 | 44425 Pecan Court (O) | California, MD | — |
| 1,309 |
| 3,506 |
| 1,881 |
| 1,309 |
| 5,387 |
| 6,696 |
| (2,419 | ) | 1997 | 5/5/2004 | California, MD | — |
| 1,309 |
| 3,506 |
| 2,217 |
| 1,309 |
| 5,723 |
| 7,032 |
| (3,068 | ) | 1997 | 5/5/2004 | 45310 Abell House Lane (O) | California, MD | — |
| 2,272 |
| 13,808 |
| 147 |
| 2,272 |
| 13,955 |
| 16,227 |
| (2,094 | ) | 2011 | 8/30/2010 | California, MD | — |
| 2,272 |
| 13,808 |
| 533 |
| 2,272 |
| 14,341 |
| 16,613 |
| (2,848 | ) | 2011 | 8/30/2010 | 4600 River Road (O) | | College Park, MD | — |
| 30 |
| 8,345 |
| — |
| 30 |
| 8,345 |
| 8,375 |
| — |
| (7) | 1/29/2008 | 46579 Expedition Drive (O) | Lexington Park, MD | — |
| 1,406 |
| 5,796 |
| 1,680 |
| 1,406 |
| 7,476 |
| 8,882 |
| (3,421 | ) | 2002 | 3/24/2004 | Lexington Park, MD | — |
| 1,406 |
| 5,796 |
| 2,145 |
| 1,406 |
| 7,941 |
| 9,347 |
| (3,931 | ) | 2002 | 3/24/2004 | 46591 Expedition Drive (O) | Lexington Park, MD | — |
| 1,200 |
| 7,199 |
| 1,226 |
| 1,200 |
| 8,425 |
| 9,625 |
| (2,652 | ) | 2005 | 3/24/2004 | Lexington Park, MD | — |
| 1,200 |
| 7,199 |
| 2,112 |
| 1,200 |
| 9,311 |
| 10,511 |
| (3,443 | ) | 2005 | 3/24/2004 | 4851 Stonecroft Boulevard (O) | Chantilly, VA | — |
| 1,878 |
| 11,558 |
| 21 |
| 1,878 |
| 11,579 |
| 13,457 |
| (3,827 | ) | 2004 | 8/14/2002 | Chantilly, VA | — |
| 1,878 |
| 11,558 |
| 38 |
| 1,878 |
| 11,596 |
| 13,474 |
| (4,407 | ) | 2004 | 8/14/2002 | 540 National Business Parkway (O) | Annapolis Junction, MD | — |
| 2,035 |
| 29,490 |
| — |
| 2,035 |
| 29,490 |
| 31,525 |
| (260 | ) | 2017 (8) | 6/29/2006 | Annapolis Junction, MD | — |
| 2,035 |
| 31,249 |
| — |
| 2,035 |
| 31,249 |
| 33,284 |
| (1,723 | ) | 2017 | 6/29/2006 | 5520 Research Park Drive (O) | Catonsville, MD | — |
| — |
| 20,072 |
| 1,018 |
| — |
| 21,090 |
| 21,090 |
| (4,260 | ) | 2009 | 4/4/2006 | Catonsville, MD | — |
| — |
| 20,072 |
| 1,530 |
| — |
| 21,602 |
| 21,602 |
| (5,549 | ) | 2009 | 4/4/2006 | 5522 Research Park Drive (O) | Catonsville, MD | — |
| — |
| 4,550 |
| 210 |
| — |
| 4,760 |
| 4,760 |
| (1,185 | ) | 2007 | 3/8/2006 | Catonsville, MD | — |
| — |
| 4,550 |
| 836 |
| — |
| 5,386 |
| 5,386 |
| (1,456 | ) | 2007 | 3/8/2006 | 5801 University Research Court (O) | College Park, MD | — |
| — |
| 9,423 |
| — |
| — |
| 9,423 |
| 9,423 |
| (36 | ) | (8) | 11/9/2016 | College Park, MD | 11,200 |
| — |
| 17,429 |
| — |
| — |
| 17,429 |
| 17,429 |
| (706 | ) | 2018 | 1/29/2008 | 5825 University Research Court (O) | College Park, MD | 21,284 |
| — |
| 22,771 |
| 666 |
| — |
| 23,437 |
| 23,437 |
| (5,020 | ) | 2008 | 1/29/2008 | College Park, MD | 20,450 |
| — |
| 22,771 |
| 1,329 |
| — |
| 24,100 |
| 24,100 |
| (6,399 | ) | 2008 | 1/29/2008 | 5850 University Research Court (O) | College Park, MD | 22,517 |
| — |
| 31,906 |
| 405 |
| — |
| 32,311 |
| 32,311 |
| (6,306 | ) | 2008 | 1/29/2008 | College Park, MD | 21,636 |
| — |
| 31,906 |
| 405 |
| — |
| 32,311 |
| 32,311 |
| (8,025 | ) | 2008 | 1/29/2008 | 6000 Redstone Gateway (O) | | Huntsville, AL | — |
| — |
| 508 |
| — |
| — |
| 508 |
| 508 |
| — |
| (7) | 3/23/2010 | 6700 Alexander Bell Drive (O) | Columbia, MD | — |
| 1,755 |
| 7,019 |
| 6,866 |
| 1,755 |
| 13,885 |
| 15,640 |
| (6,916 | ) | 1988 | 5/14/2001 | Columbia, MD | — |
| 1,755 |
| 7,019 |
| 8,186 |
| 1,755 |
| 15,205 |
| 16,960 |
| (8,193 | ) | 1988 | 5/14/2001 | 6708 Alexander Bell Drive (O) | Columbia, MD | — |
| 897 |
| 11,984 |
| 1,605 |
| 897 |
| 13,589 |
| 14,486 |
| (3,839 | ) | 1988/2016 | 5/14/2001 | Columbia, MD | — |
| 897 |
| 12,644 |
| 1,618 |
| 897 |
| 14,262 |
| 15,159 |
| (4,393 | ) | 1988/2016 | 5/14/2001 | 6711 Columbia Gateway Drive (O) | Columbia, MD | — |
| 2,683 |
| 23,239 |
| 1,278 |
| 2,683 |
| 24,517 |
| 27,200 |
| (6,817 | ) | 2006-2007 | 9/28/2000 | Columbia, MD | — |
| 2,683 |
| 23,239 |
| 1,557 |
| 2,683 |
| 24,796 |
| 27,479 |
| (8,399 | ) | 2006-2007 | 9/28/2000 | 6716 Alexander Bell Drive (O) | Columbia, MD | — |
| 1,242 |
| 4,969 |
| 3,754 |
| 1,242 |
| 8,723 |
| 9,965 |
| (5,129 | ) | 1990 | 12/31/1998 | Columbia, MD | — |
| 1,242 |
| 4,969 |
| 4,544 |
| 1,242 |
| 9,513 |
| 10,755 |
| (5,829 | ) | 1990 | 12/31/1998 | 6721 Columbia Gateway Drive (O) | Columbia, MD | — |
| 1,753 |
| 34,090 |
| 102 |
| 1,753 |
| 34,192 |
| 35,945 |
| (7,514 | ) | 2009 | 9/28/2000 | Columbia, MD | — |
| 1,753 |
| 34,090 |
| 131 |
| 1,753 |
| 34,221 |
| 35,974 |
| (9,234 | ) | 2009 | 9/28/2000 | 6724 Alexander Bell Drive (O) | Columbia, MD | — |
| 449 |
| 5,039 |
| 1,374 |
| 449 |
| 6,413 |
| 6,862 |
| (2,670 | ) | 2001 | 5/14/2001 | Columbia, MD | — |
| 449 |
| 5,039 |
| 2,165 |
| 449 |
| 7,204 |
| 7,653 |
| (3,200 | ) | 2001 | 5/14/2001 | 6731 Columbia Gateway Drive (O) | Columbia, MD | — |
| 2,807 |
| 19,098 |
| 4,872 |
| 2,807 |
| 23,970 |
| 26,777 |
| (10,176 | ) | 2002 | 3/29/2000 | Columbia, MD | — |
| 2,807 |
| 19,098 |
| 5,340 |
| 2,807 |
| 24,438 |
| 27,245 |
| (12,123 | ) | 2002 | 3/29/2000 | 6740 Alexander Bell Drive (O) | Columbia, MD | — |
| 1,424 |
| 5,696 |
| 3,321 |
| 1,424 |
| 9,017 |
| 10,441 |
| (5,698 | ) | 1992 | 12/31/1998 | Columbia, MD | — |
| 1,424 |
| 5,696 |
| 3,441 |
| 1,424 |
| 9,137 |
| 10,561 |
| (6,055 | ) | 1992 | 12/31/1998 | 6741 Columbia Gateway Drive (O) | Columbia, MD | — |
| 675 |
| 1,711 |
| 124 |
| 675 |
| 1,835 |
| 2,510 |
| (466 | ) | 2008 | 9/28/2000 | Columbia, MD | — |
| 675 |
| 1,711 |
| 169 |
| 675 |
| 1,880 |
| 2,555 |
| (580 | ) | 2008 | 9/28/2000 | 6750 Alexander Bell Drive (O) | Columbia, MD | — |
| 1,263 |
| 12,461 |
| 3,959 |
| 1,263 |
| 16,420 |
| 17,683 |
| (8,761 | ) | 2001 | 12/31/1998 | Columbia, MD | — |
| 1,263 |
| 12,461 |
| 4,976 |
| 1,263 |
| 17,437 |
| 18,700 |
| (10,076 | ) | 2001 | 12/31/1998 | 6760 Alexander Bell Drive (O) | Columbia, MD | — |
| 890 |
| 3,561 |
| 3,358 |
| 890 |
| 6,919 |
| 7,809 |
| (3,932 | ) | 1991 | 12/31/1998 | | 6940 Columbia Gateway Drive (O) | Columbia, MD | — |
| 3,545 |
| 9,916 |
| 7,095 |
| 3,545 |
| 17,011 |
| 20,556 |
| (8,164 | ) | 1999 | 11/13/1998 | | 6950 Columbia Gateway Drive (O) | Columbia, MD | — |
| 3,596 |
| 14,269 |
| 3,238 |
| 3,596 |
| 17,507 |
| 21,103 |
| (8,787 | ) | 1998 | 10/22/1998 | | 7000 Columbia Gateway Drive (O) | Columbia, MD | — |
| 3,131 |
| 12,103 |
| 5,085 |
| 3,131 |
| 17,188 |
| 20,319 |
| (6,178 | ) | 1999 | 5/31/2002 | | 7005 Columbia Gateway Drive (O) | Columbia, MD | — |
| 3,036 |
| 753 |
| — |
| 3,036 |
| 753 |
| 3,789 |
| — |
| (7) | 6/26/2014 | | 7015 Albert Einstein Drive (O) | Columbia, MD | 829 |
| 2,058 |
| 6,093 |
| 2,178 |
| 2,058 |
| 8,271 |
| 10,329 |
| (3,343 | ) | 1999 | 12/1/2005 | |
| | | | | Initial Cost | | Gross Amounts Carried At Close of Period | | | | | Initial Cost | | Gross Amounts Carried At Close of Period | | | Property (Type) (1) | Location | Encumbrances (2) | Land | Building and Land Improvements | Costs Capitalized Subsequent to Acquisition | Land | Building and Land Improvements | Total (3)(4) | Accumulated Depreciation (5) | Year Built or Renovated | Date Acquired (6) | Location | Encumbrances (2) | Land | Building and Land Improvements | Costs Capitalized Subsequent to Acquisition | Land | Building and Land Improvements | Total (3) | Accumulated Depreciation (4) | Year Built or Renovated | Date Acquired (5) | 6760 Alexander Bell Drive (O) | | Columbia, MD | — |
| 890 |
| 3,561 |
| 3,901 |
| 890 |
| 7,462 |
| 8,352 |
| (4,585 | ) | 1991 | 12/31/1998 | 6940 Columbia Gateway Drive (O) | | Columbia, MD | — |
| 3,545 |
| 9,916 |
| 7,974 |
| 3,545 |
| 17,890 |
| 21,435 |
| (9,882 | ) | 1999 | 11/13/1998 | 6950 Columbia Gateway Drive (O) | | Columbia, MD | — |
| 3,596 |
| 26,846 |
| 3,220 |
| 3,596 |
| 30,066 |
| 33,662 |
| (11,307 | ) | 1998/2019 (7) | 10/22/1998 | 7000 Columbia Gateway Drive (O) | | Columbia, MD | — |
| 3,131 |
| 12,103 |
| 7,443 |
| 3,131 |
| 19,546 |
| 22,677 |
| (8,231 | ) | 1999 | 5/31/2002 | 7005 Columbia Gateway Drive (L) | | Columbia, MD | — |
| 3,036 |
| 747 |
| — |
| 3,036 |
| 747 |
| 3,783 |
| — |
| (6) | 6/26/2014 | 7015 Albert Einstein Drive (O) | | Columbia, MD | — |
| 2,058 |
| 6,093 |
| 3,319 |
| 2,058 |
| 9,412 |
| 11,470 |
| (4,165 | ) | 1999 | 12/1/2005 | 7061 Columbia Gateway Drive (O) | Columbia, MD | — |
| 729 |
| 3,094 |
| 2,018 |
| 729 |
| 5,112 |
| 5,841 |
| (2,191 | ) | 2000 | 8/30/2001 | Columbia, MD | — |
| 729 |
| 3,094 |
| 2,379 |
| 729 |
| 5,473 |
| 6,202 |
| (3,215 | ) | 2000 | 8/30/2001 | 7063 Columbia Gateway Drive (O) | Columbia, MD | — |
| 902 |
| 3,684 |
| 3,151 |
| 902 |
| 6,835 |
| 7,737 |
| (3,113 | ) | 2000 | 8/30/2001 | Columbia, MD | — |
| 902 |
| 3,684 |
| 3,416 |
| 902 |
| 7,100 |
| 8,002 |
| (4,004 | ) | 2000 | 8/30/2001 | 7065 Columbia Gateway Drive (O) | Columbia, MD | — |
| 919 |
| 3,763 |
| 3,095 |
| 919 |
| 6,858 |
| 7,777 |
| (3,637 | ) | 2000 | 8/30/2001 | Columbia, MD | — |
| 919 |
| 3,763 |
| 3,095 |
| 919 |
| 6,858 |
| 7,777 |
| (4,428 | ) | 2000 | 8/30/2001 | 7067 Columbia Gateway Drive (O) | Columbia, MD | — |
| 1,829 |
| 11,823 |
| 3,051 |
| 1,829 |
| 14,874 |
| 16,703 |
| (7,037 | ) | 2001 | 8/30/2001 | Columbia, MD | — |
| 1,829 |
| 11,823 |
| 5,116 |
| 1,829 |
| 16,939 |
| 18,768 |
| (8,069 | ) | 2001 | 8/30/2001 | 7125 Columbia Gateway Drive (L) | Columbia, MD | — |
| 3,361 |
| 2,354 |
| 279 |
| 3,361 |
| 2,633 |
| 5,994 |
| — |
| 1973/1999 (7) | 6/29/2006 | | 7125 Columbia Gateway Drive (O) | Columbia, MD | — |
| 17,126 |
| 46,994 |
| 15,786 |
| 17,126 |
| 62,780 |
| 79,906 |
| (20,876 | ) | 1973/1999 | 6/29/2006 | Columbia, MD | — |
| 20,487 |
| 46,994 |
| 21,053 |
| 20,487 |
| 68,047 |
| 88,534 |
| (25,351 | ) | 1973/1999 | 6/29/2006 | 7130 Columbia Gateway Drive (O) | Columbia, MD | — |
| 1,350 |
| 4,359 |
| 2,534 |
| 1,350 |
| 6,893 |
| 8,243 |
| (3,192 | ) | 1989 | 9/19/2005 | Columbia, MD | — |
| 1,350 |
| 4,359 |
| 2,859 |
| 1,350 |
| 7,218 |
| 8,568 |
| (3,621 | ) | 1989 | 9/19/2005 | 7134 Columbia Gateway Drive (O) | Columbia, MD | — |
| 704 |
| 4,707 |
| 353 |
| 704 |
| 5,060 |
| 5,764 |
| (1,422 | ) | 1990/2016 | 9/19/2005 | Columbia, MD | — |
| 704 |
| 4,700 |
| 436 |
| 704 |
| 5,136 |
| 5,840 |
| (1,666 | ) | 1990/2016 | 9/19/2005 | 7138 Columbia Gateway Drive (O) | Columbia, MD | — |
| 1,104 |
| 3,518 |
| 2,729 |
| 1,104 |
| 6,247 |
| 7,351 |
| (3,459 | ) | 1990 | 9/19/2005 | Columbia, MD | — |
| 1,104 |
| 3,518 |
| 2,843 |
| 1,104 |
| 6,361 |
| 7,465 |
| (3,864 | ) | 1990 | 9/19/2005 | 7142 Columbia Gateway Drive (O) | Columbia, MD | — |
| 1,342 |
| 4,657 |
| 2,608 |
| 1,342 |
| 7,265 |
| 8,607 |
| (2,796 | ) | 1994 (8) | 9/19/2005 | Columbia, MD | — |
| 1,342 |
| 7,148 |
| 2,608 |
| 1,342 |
| 9,756 |
| 11,098 |
| (3,516 | ) | 1994/2018 | 9/19/2005 | 7150 Columbia Gateway Drive (O) | Columbia, MD | — |
| 1,032 |
| 3,429 |
| 813 |
| 1,032 |
| 4,242 |
| 5,274 |
| (1,439 | ) | 1991 | 9/19/2005 | Columbia, MD | — |
| 1,032 |
| 3,429 |
| 813 |
| 1,032 |
| 4,242 |
| 5,274 |
| (1,673 | ) | 1991 | 9/19/2005 | 7150 Riverwood Drive (O) | Columbia, MD | — |
| 1,821 |
| 4,388 |
| 1,774 |
| 1,821 |
| 6,162 |
| 7,983 |
| (2,343 | ) | 2000 | 1/10/2007 | Columbia, MD | — |
| 1,821 |
| 4,388 |
| 1,854 |
| 1,821 |
| 6,242 |
| 8,063 |
| (2,799 | ) | 2000 | 1/10/2007 | 7160 Riverwood Drive (O) | Columbia, MD | — |
| 2,732 |
| 7,006 |
| 2,455 |
| 2,732 |
| 9,461 |
| 12,193 |
| (3,778 | ) | 2000 | 1/10/2007 | Columbia, MD | — |
| 2,732 |
| 7,006 |
| 3,124 |
| 2,732 |
| 10,130 |
| 12,862 |
| (4,336 | ) | 2000 | 1/10/2007 | 7170 Riverwood Drive (O) | Columbia, MD | — |
| 1,283 |
| 3,096 |
| 1,465 |
| 1,283 |
| 4,561 |
| 5,844 |
| (1,798 | ) | 2000 | 1/10/2007 | Columbia, MD | — |
| 1,283 |
| 3,096 |
| 2,243 |
| 1,283 |
| 5,339 |
| 6,622 |
| (2,295 | ) | 2000 | 1/10/2007 | 7175 Riverwood Drive (O) | Columbia, MD | — |
| 1,788 |
| 7,269 |
| — |
| 1,788 |
| 7,269 |
| 9,057 |
| (752 | ) | 1996/2013 | 7/27/2005 | Columbia, MD | — |
| 1,788 |
| 7,269 |
| — |
| 1,788 |
| 7,269 |
| 9,057 |
| (1,116 | ) | 1996/2013 | 7/27/2005 | 7200 Redstone Gateway (O) | Huntsville, AL | 6,303 |
| — |
| 8,348 |
| 5 |
| — |
| 8,353 |
| 8,353 |
| (752 | ) | 2013 | 3/23/2010 | Huntsville, AL | 5,932 |
| — |
| 8,348 |
| 88 |
| — |
| 8,436 |
| 8,436 |
| (1,175 | ) | 2013 | 3/23/2010 | 7200 Riverwood Road (O) | Columbia, MD | — |
| 4,089 |
| 22,630 |
| 4,532 |
| 4,089 |
| 27,162 |
| 31,251 |
| (10,180 | ) | 1986 | 10/13/1998 | | 7200 Riverwood Drive (O) | | Columbia, MD | — |
| 4,089 |
| 22,630 |
| 4,538 |
| 4,089 |
| 27,168 |
| 31,257 |
| (11,823 | ) | 1986 | 10/13/1998 | 7205 Riverwood Drive (O) | Columbia, MD | — |
| 1,367 |
| 21,419 |
| — |
| 1,367 |
| 21,419 |
| 22,786 |
| (2,381 | ) | 2013 | 7/27/2005 | Columbia, MD | — |
| 1,367 |
| 21,419 |
| — |
| 1,367 |
| 21,419 |
| 22,786 |
| (3,452 | ) | 2013 | 7/27/2005 | 7272 Park Circle Drive (O) | Hanover, MD | — |
| 1,479 |
| 6,300 |
| 4,578 |
| 1,479 |
| 10,878 |
| 12,357 |
| (3,898 | ) | 1991/1996 | 1/10/2007 | Hanover, MD | — |
| 1,479 |
| 6,300 |
| 4,578 |
| 1,479 |
| 10,878 |
| 12,357 |
| (4,955 | ) | 1991/1996 | 1/10/2007 | 7318 Parkway Drive (O) | Hanover, MD | — |
| 972 |
| 3,888 |
| 1,239 |
| 972 |
| 5,127 |
| 6,099 |
| (2,398 | ) | 1984 | 4/16/1999 | Hanover, MD | — |
| 972 |
| 3,888 |
| 1,319 |
| 972 |
| 5,207 |
| 6,179 |
| (2,740 | ) | 1984 | 4/16/1999 | 7400 Redstone Gateway (O) | Huntsville, AL | 6,914 |
| — |
| 9,223 |
| — |
| — |
| 9,223 |
| 9,223 |
| (582 | ) | 2015 | 3/23/2010 | Huntsville, AL | 6,506 |
| — |
| 9,223 |
| 82 |
| — |
| 9,305 |
| 9,305 |
| (1,044 | ) | 2015 | 3/23/2010 | 7467 Ridge Road (O) | Hanover, MD | — |
| 1,565 |
| 3,116 |
| 4,264 |
| 1,565 |
| 7,380 |
| 8,945 |
| (1,930 | ) | 1990 | 4/28/1999 | Hanover, MD | — |
| 1,565 |
| 3,116 |
| 4,954 |
| 1,565 |
| 8,070 |
| 9,635 |
| (3,456 | ) | 1990 | 4/28/1999 | 7500 Advanced Gateway (O) | | Huntsville, AL | — |
| — |
| 7,195 |
| — |
| — |
| 7,195 |
| 7,195 |
| — |
| (7) | 3/23/2010 | 7600 Advanced Gateway (O) | | Huntsville, AL | — |
| — |
| 2,543 |
| — |
| — |
| 2,543 |
| 2,543 |
| — |
| (7) | 3/23/2010 | 7740 Milestone Parkway (O) | Hanover, MD | 18,203 |
| 3,825 |
| 34,176 |
| 567 |
| 3,825 |
| 34,743 |
| 38,568 |
| (6,482 | ) | 2009 | 7/2/2007 | Hanover, MD | 17,352 |
| 3,825 |
| 34,176 |
| 1,009 |
| 3,825 |
| 35,185 |
| 39,010 |
| (8,311 | ) | 2009 | 7/2/2007 | 7770 Backlick Road (O) | Springfield, VA | — |
| 6,387 |
| 76,315 |
| 142 |
| 6,387 |
| 76,457 |
| 82,844 |
| (9,075 | ) | 2012 | 3/10/2010 | Springfield, VA | — |
| 6,387 |
| 76,663 |
| 283 |
| 6,387 |
| 76,946 |
| 83,333 |
| (12,966 | ) | 2012 | 3/10/2010 | 7880 Milestone Parkway (O) | Hanover, MD | — |
| 4,857 |
| 24,677 |
| 62 |
| 4,857 |
| 24,739 |
| 29,596 |
| (1,382 | ) | 2015 | 9/17/2013 | Hanover, MD | — |
| 4,857 |
| 25,913 |
| 247 |
| 4,857 |
| 26,160 |
| 31,017 |
| (2,695 | ) | 2015 | 9/17/2013 | 8000 Rideout Road (O) | | Huntsville, AL | — |
| — |
| 2,564 |
| — |
| — |
| 2,564 |
| 2,564 |
| — |
| (7) | 3/23/2010 | 8600 Advanced Gateway (O) | | Huntsville, AL | — |
| — |
| 4,931 |
| — |
| — |
| 4,931 |
| 4,931 |
| — |
| (7) | 3/23/2010 | 8621 Robert Fulton Drive (O) | Columbia, MD | — |
| 2,317 |
| 12,642 |
| 537 |
| 2,317 |
| 13,179 |
| 15,496 |
| (4,097 | ) | 2005-2006 | 6/10/2005 | Columbia, MD | — |
| 2,317 |
| 12,642 |
| 6,428 |
| 2,317 |
| 19,070 |
| 21,387 |
| (5,755 | ) | 2005-2006 | 6/10/2005 | 8661 Robert Fulton Drive (O) | Columbia, MD | — |
| 1,510 |
| 3,764 |
| 2,453 |
| 1,510 |
| 6,217 |
| 7,727 |
| (2,655 | ) | 2002 | 12/30/2003 | Columbia, MD | — |
| 1,510 |
| 3,764 |
| 2,956 |
| 1,510 |
| 6,720 |
| 8,230 |
| (3,240 | ) | 2002 | 12/30/2003 | 8671 Robert Fulton Drive (O) | Columbia, MD | — |
| 1,718 |
| 4,280 |
| 4,052 |
| 1,718 |
| 8,332 |
| 10,050 |
| (3,688 | ) | 2002 | 12/30/2003 | Columbia, MD | — |
| 1,718 |
| 4,280 |
| 4,306 |
| 1,718 |
| 8,586 |
| 10,304 |
| (4,366 | ) | 2002 | 12/30/2003 | 870 Elkridge Landing Road (O) | Linthicum, MD | — |
| 2,003 |
| 9,442 |
| 8,735 |
| 2,003 |
| 18,177 |
| 20,180 |
| (9,370 | ) | 1981 | 8/3/2001 | Linthicum, MD | — |
| 2,003 |
| 9,442 |
| 9,333 |
| 2,003 |
| 18,775 |
| 20,778 |
| (10,533 | ) | 1981 | 8/3/2001 | 891 Elkridge Landing Road (O) | Linthicum, MD | — |
| 1,165 |
| 4,772 |
| 3,466 |
| 1,165 |
| 8,238 |
| 9,403 |
| (4,186 | ) | 1984 | 7/2/2001 | | 901 Elkridge Landing Road (O) | Linthicum, MD | — |
| 1,156 |
| 4,437 |
| 2,704 |
| 1,156 |
| 7,141 |
| 8,297 |
| (3,608 | ) | 1984 | 7/2/2001 | | 911 Elkridge Landing Road (O) | Linthicum, MD | — |
| 1,215 |
| 4,861 |
| 2,191 |
| 1,215 |
| 7,052 |
| 8,267 |
| (3,899 | ) | 1985 | 4/30/1998 | | 938 Elkridge Landing Road (O) | Linthicum, MD | — |
| 922 |
| 4,748 |
| 1,446 |
| 922 |
| 6,194 |
| 7,116 |
| (2,621 | ) | 1984 | 7/2/2001 | | 939 Elkridge Landing Road (O) | Linthicum, MD | — |
| 939 |
| 3,756 |
| 4,438 |
| 939 |
| 8,194 |
| 9,133 |
| (4,254 | ) | 1983 | 4/30/1998 | | 940 Elkridge Landing Road (L) | Linthicum, MD | — |
| 842 |
| 4 |
| — |
| 842 |
| 4 |
| 846 |
| — |
| (7) | 7/2/2001 | | 9651 Hornbaker Road (D) | Manassas, VA | — |
| 6,050 |
| 249,142 |
| 3,868 |
| 6,050 |
| 253,010 |
| 259,060 |
| (39,294 | ) | 2010 | 9/14/2010 | | Arundel Preserve (L) | Hanover, MD | — |
| 13,401 |
| 9,578 |
| — |
| 13,401 |
| 9,578 |
| 22,979 |
| — |
| (7) | 7/2/2007 | | Bethlehem Tech. Park - DC 18 (O) | Manassas, VA | — |
| 3,599 |
| 25,992 |
| — |
| 3,599 |
| 25,992 |
| 29,591 |
| (306 | ) | 2017 | 6/17/2016 | | Bethlehem Tech. Park - DC 19 (O) | Manassas, VA | — |
| 3,708 |
| 16,362 |
| — |
| 3,708 |
| 16,362 |
| 20,070 |
| (455 | ) | 2016 | 6/9/2016 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Initial Cost | | Gross Amounts Carried At Close of Period | | | | Property (Type) (1) | Location | Encumbrances (2) | Land | Building and Land Improvements | Costs Capitalized Subsequent to Acquisition | Land | Building and Land Improvements | Total (3)(4) | Accumulated Depreciation (5) | Year Built or Renovated | Date Acquired (6) | Bethlehem Tech. Park - DC 20 (O) | Manassas, VA | — |
| 3,599 |
| 23,625 |
| — |
| 3,599 |
| 23,625 |
| 27,224 |
| (370 | ) | 2017 | 6/9/2016 | Bethlehem Tech. Park - DC 23 (O) | Manassas, VA | — |
| — |
| 479 |
| — |
| — |
| 479 |
| 479 |
| — |
| (8) | 6/9/2016 | BLC 1 (O) | Northern Virginia | — |
| 12,035 |
| 368 |
| — |
| 12,035 |
| 368 |
| 12,403 |
| — |
| (8) | 12/28/2017 | BLC 2 (O) | Northern Virginia | — |
| 12,035 |
| 292 |
| — |
| 12,035 |
| 292 |
| 12,327 |
| — |
| (8) | 12/28/2017 | Canton Crossing Land (L) | Baltimore, MD | — |
| 16,085 |
| 2,698 |
| — |
| 16,085 |
| 2,698 |
| 18,783 |
| — |
| (7) | 10/27/2009 | Canton Crossing Util Distr Ctr (O) | Baltimore, MD | — |
| 7,300 |
| 15,556 |
| 986 |
| 7,300 |
| 16,542 |
| 23,842 |
| (4,475 | ) | 2006 | 10/27/2009 | Columbia Gateway - Southridge (L) | Columbia, MD | — |
| 6,387 |
| 3,719 |
| — |
| 6,387 |
| 3,719 |
| 10,106 |
| — |
| (7) | 9/20/2004 | Dahlgren Technology Center (L) | Dahlgren, VA | — |
| 978 |
| 178 |
| — |
| 978 |
| 178 |
| 1,156 |
| — |
| (7) | 3/16/2005 | Expedition VII (L) | Lexington Park, MD | — |
| 705 |
| 729 |
| — |
| 705 |
| 729 |
| 1,434 |
| — |
| (7) | 3/24/2004 | Innovation Park (L) | Manassas, VA | — |
| 4,443 |
| 120 |
| — |
| 4,443 |
| 120 |
| 4,563 |
| — |
| (7) | 9/1/2016 | M Square Research Park (L) | College Park, MD | — |
| — |
| 3,571 |
| — |
| — |
| 3,571 |
| 3,571 |
| — |
| (7) | 1/29/2008 | MR Land (L) | Northern Virginia | — |
| 18,827 |
| 293 |
| — |
| 18,827 |
| 293 |
| 19,120 |
| — |
| (7) | 11/20/2017 | National Business Park North (L) | Annapolis Junction, MD | — |
| 28,066 |
| 47,802 |
| — |
| 28,066 |
| 47,802 |
| 75,868 |
| — |
| (7) | 6/29/2006 | North Gate Business Park (L) | Aberdeen, MD | — |
| 1,755 |
| — |
| — |
| 1,755 |
| — |
| 1,755 |
| — |
| (7) | 9/14/2007 | Northwest Crossroads (L) | San Antonio, TX | — |
| 7,430 |
| 847 |
| — |
| 7,430 |
| 847 |
| 8,277 |
| — |
| (7) | 1/20/2006 | NOVA Office A (O) (10) | Chantilly, VA | — |
| 2,096 |
| 46,835 |
| — |
| 2,096 |
| 46,835 |
| 48,931 |
| (3,403 | ) | 2015 | 7/31/2002 | NOVA Office B (O) (10) | Chantilly, VA | — |
| 739 |
| 27,128 |
| — |
| 739 |
| 27,128 |
| 27,867 |
| (1,128 | ) | 2016 (8) | 7/31/2002 | NOVA Office D (O) | Chantilly, VA | — |
| 6,587 |
| 38,758 |
| — |
| 6,587 |
| 38,758 |
| 45,345 |
| (437 | ) | 2017 | 7/31/2002 | Old Annapolis Road (O) | Columbia, MD | — |
| 1,637 |
| 5,500 |
| 5,241 |
| 1,637 |
| 10,741 |
| 12,378 |
| (3,509 | ) | 1974/1985 | 12/14/2000 | Paragon Park - DC 21 (O) | Sterling, VA | — |
| 7,828 |
| 17,992 |
| — |
| 7,828 |
| 17,992 |
| 25,820 |
| (100 | ) | 2017 | 5/8/2017 | Paragon Park - DC 22 (O) | Sterling, VA | — |
| 7,828 |
| 17,445 |
| — |
| 7,828 |
| 17,445 |
| 25,273 |
| (68 | ) | 2017 | 5/8/2017 | Patriot Point - DC 15 (O) | Ashburn, VA | — |
| 12,156 |
| 17,069 |
| — |
| 12,156 |
| 17,069 |
| 29,225 |
| (752 | ) | 2016 | 10/15/2015 | Patriot Point - DC 16 (O) | Ashburn, VA | — |
| 12,156 |
| 16,973 |
| — |
| 12,156 |
| 16,973 |
| 29,129 |
| (709 | ) | 2016 | 10/15/2015 | Patriot Point - DC 17 (O) | Ashburn, VA | — |
| 6,078 |
| 16,347 |
| — |
| 6,078 |
| 16,347 |
| 22,425 |
| (520 | ) | 2016 | 10/15/2015 | Patriot Ridge (L) | Springfield, VA | — |
| 18,517 |
| 14,467 |
| — |
| 18,517 |
| 14,467 |
| 32,984 |
| — |
| (7) | 3/10/2010 | Redstone Gateway (L) | Huntsville, AL | — |
| — |
| 19,152 |
| — |
| — |
| 19,152 |
| 19,152 |
| — |
| (7) | 3/23/2010 | Route 15/Biggs Ford Road (L) | Frederick, MD | — |
| 1,129 |
| — |
| — |
| 1,129 |
| — |
| 1,129 |
| — |
| (7) | 8/28/2008 | Sentry Gateway (L) | San Antonio, TX | — |
| 8,275 |
| 3,704 |
| — |
| 8,275 |
| 3,704 |
| 11,979 |
| — |
| (7) | 3/30/2005 | Sentry Gateway - T (O) | San Antonio, TX | — |
| 14,020 |
| 38,804 |
| 13 |
| 14,020 |
| 38,817 |
| 52,837 |
| (10,561 | ) | 1982/1985 | 3/30/2005 | Sentry Gateway - V (O) | San Antonio, TX | — |
| — |
| 1,066 |
| — |
| — |
| 1,066 |
| 1,066 |
| (241 | ) | 2007 | 3/30/2005 | Sentry Gateway - W (O) | San Antonio, TX | — |
| — |
| 1,884 |
| 71 |
| — |
| 1,955 |
| 1,955 |
| (392 | ) | 2009 | 3/30/2005 | Sentry Gateway - X (O) | San Antonio, TX | — |
| 1,964 |
| 21,178 |
| — |
| 1,964 |
| 21,178 |
| 23,142 |
| (3,787 | ) | 2010 | 1/20/2006 | Sentry Gateway - Y (O) | San Antonio, TX | — |
| 1,964 |
| 21,298 |
| — |
| 1,964 |
| 21,298 |
| 23,262 |
| (3,810 | ) | 2010 | 1/20/2006 | Sentry Gateway - Z (O) | San Antonio, TX | — |
| 1,964 |
| 30,573 |
| — |
| 1,964 |
| 30,573 |
| 32,537 |
| (2,144 | ) | 2015 | 6/14/2005 | Westfields - Park Center (L) | Chantilly, VA | — |
| 16,418 |
| 11,264 |
| — |
| 16,418 |
| 11,264 |
| 27,682 |
| — |
| (7) | 7/18/2002 | Westfields Corporate Center (L) | Chantilly, VA | — |
| 7,141 |
| 1,649 |
| — |
| 7,141 |
| 1,649 |
| 8,790 |
| — |
| (7) | 7/31/2002 | Other Developments, including intercompany eliminations (V) | Various | — |
| 4 |
| 283 |
| 256 |
| 4 |
| 539 |
| 543 |
| (58 | ) | Various | Various | | | $ | 164,506 |
| $ | 697,810 |
| $ | 2,902,516 |
| $ | 380,487 |
| $ | 697,810 |
| $ | 3,283,003 |
| $ | 3,980,813 |
| $ | (801,038 | ) | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Initial Cost | | Gross Amounts Carried At Close of Period | | | | Property (Type) (1) | Location | Encumbrances (2) | Land | Building and Land Improvements | Costs Capitalized Subsequent to Acquisition | Land | Building and Land Improvements | Total (3) | Accumulated Depreciation (4) | Year Built or Renovated | Date Acquired (5) | 8800 Redstone Gateway (O) | Huntsville, AL | — |
| — |
| 17,730 |
| — |
| — |
| 17,730 |
| 17,730 |
| (58 | ) | 2019 | 3/23/2010 | 891 Elkridge Landing Road (O) | Linthicum, MD | — |
| 1,165 |
| 4,772 |
| 3,483 |
| 1,165 |
| 8,255 |
| 9,420 |
| (4,921 | ) | 1984 | 7/2/2001 | 901 Elkridge Landing Road (O) | Linthicum, MD | — |
| 1,156 |
| 4,437 |
| 3,864 |
| 1,156 |
| 8,301 |
| 9,457 |
| (4,321 | ) | 1984 | 7/2/2001 | 911 Elkridge Landing Road (O) | Linthicum, MD | — |
| 1,215 |
| 4,861 |
| 2,970 |
| 1,215 |
| 7,831 |
| 9,046 |
| (4,481 | ) | 1985 | 4/30/1998 | 938 Elkridge Landing Road (O) | Linthicum, MD | — |
| 922 |
| 4,748 |
| 1,516 |
| 922 |
| 6,264 |
| 7,186 |
| (3,022 | ) | 1984 | 7/2/2001 | 939 Elkridge Landing Road (O) | Linthicum, MD | — |
| 939 |
| 3,756 |
| 4,438 |
| 939 |
| 8,194 |
| 9,133 |
| (5,028 | ) | 1983 | 4/30/1998 | 9651 Hornbaker Road (D) | Manassas, VA | — |
| 6,050 |
| 250,355 |
| 5,582 |
| 6,050 |
| 255,937 |
| 261,987 |
| (61,123 | ) | 2010 | 9/14/2010 | Arundel Preserve (L) | Hanover, MD | — |
| 13,352 |
| 9,683 |
| — |
| 13,352 |
| 9,683 |
| 23,035 |
| — |
| (6) | 7/2/2007 | BLC 1 (O) | Northern Virginia | — |
| 12,026 |
| 18,175 |
| — |
| 12,026 |
| 18,175 |
| 30,201 |
| (696 | ) | 2018 | 12/28/2017 | BLC 2 (O) | Northern Virginia | — |
| 12,026 |
| 17,929 |
| — |
| 12,026 |
| 17,929 |
| 29,955 |
| (655 | ) | 2018 | 12/28/2017 | Canton Crossing Land (L) | Baltimore, MD | — |
| 17,285 |
| 8,322 |
| — |
| 17,285 |
| 8,322 |
| 25,607 |
| — |
| (6) | 10/27/2009 | Canton Crossing Util Distr Ctr (O) | Baltimore, MD | — |
| 6,100 |
| 10,450 |
| 1,727 |
| 6,100 |
| 12,177 |
| 18,277 |
| (5,651 | ) | 2006 | 10/27/2009 | Columbia Gateway - Southridge (L) | Columbia, MD | — |
| 6,387 |
| 3,722 |
| — |
| 6,387 |
| 3,722 |
| 10,109 |
| — |
| (6) | 9/20/2004 | Dahlgren Technology Center (L) | Dahlgren, VA | — |
| 978 |
| 178 |
| — |
| 978 |
| 178 |
| 1,156 |
| — |
| (6) | 3/16/2005 | Expedition VII (L) | Lexington Park, MD | — |
| 705 |
| 730 |
| — |
| 705 |
| 730 |
| 1,435 |
| — |
| (6) | 3/24/2004 | IN 1 (O) | Northern Virginia | — |
| 1,815 |
| 15,955 |
| — |
| 1,815 |
| 15,955 |
| 17,770 |
| (336 | ) | 2019 | 8/31/2016 | IN 2 (O) | Northern Virginia | — |
| 2,627 |
| 28,527 |
| — |
| 2,627 |
| 28,527 |
| 31,154 |
| (364 | ) | 2019 | 8/31/2016 | M Square Research Park (L) | College Park, MD | — |
| — |
| 1,632 |
| — |
| — |
| 1,632 |
| 1,632 |
| — |
| (6) | 1/29/2008 | MP 1 (O) | Northern Virginia | — |
| 9,426 |
| 29,508 |
| — |
| 9,426 |
| 29,508 |
| 38,934 |
| (490 | ) | 2019 | 11/20/2017 | MP 2 (O) | Northern Virginia | — |
| 9,426 |
| 28,843 |
| — |
| 9,426 |
| 28,843 |
| 38,269 |
| (685 | ) | 2018 | 11/20/2017 | MR Land (L) | Northern Virginia | — |
| 9,038 |
| 407 |
| — |
| 9,038 |
| 407 |
| 9,445 |
| — |
| (6) | 11/8/2018 | National Business Park North (L) | Annapolis Junction, MD | — |
| 28,843 |
| 46,879 |
| — |
| 28,843 |
| 46,879 |
| 75,722 |
| — |
| (6) | 6/29/2006 | North Gate Business Park (L) | Aberdeen, MD | — |
| 1,755 |
| 5 |
| — |
| 1,755 |
| 5 |
| 1,760 |
| — |
| (6) | 9/14/2007 | Northwest Crossroads (L) | San Antonio, TX | — |
| 7,430 |
| 847 |
| — |
| 7,430 |
| 847 |
| 8,277 |
| — |
| (6) | 1/20/2006 | NOVA Office A (O) (8) | Chantilly, VA | — |
| 2,096 |
| 46,849 |
| — |
| 2,096 |
| 46,849 |
| 48,945 |
| (5,751 | ) | 2015 | 7/18/2002 | NOVA Office B (O) (8) | Chantilly, VA | — |
| 739 |
| 38,376 |
| — |
| 739 |
| 38,376 |
| 39,115 |
| (2,754 | ) | 2016 | 7/18/2002 | NOVA Office C (O) (8) | Chantilly, VA | — |
| 5,604 |
| 9,191 |
| — |
| 5,604 |
| 9,191 |
| 14,795 |
| — |
| (7) | 7/18/2002 | NOVA Office D (O) (8) | Chantilly, VA | — |
| 6,587 |
| 40,518 |
| — |
| 6,587 |
| 40,518 |
| 47,105 |
| (2,433 | ) | 2017 | 7/2/2013 | Oak Grove A (O) | Northern Virginia | — |
| 12,866 |
| 16,554 |
| — |
| 12,866 |
| 16,554 |
| 29,420 |
| — |
| (7) | 11/1/2018 | Oak Grove B (O) | Northern Virginia | — |
| 12,866 |
| 26,518 |
| — |
| 12,866 |
| 26,518 |
| 39,384 |
| — |
| 2019 | 11/1/2018 | Oak Grove Phase II (L) | Northern Virginia | — |
| 23,483 |
| 8,942 |
| — |
| 23,483 |
| 8,942 |
| 32,425 |
| — |
| (6) | 11/1/2018 | Old Annapolis Road (O) | Columbia, MD | — |
| 1,637 |
| 5,500 |
| 6,710 |
| 1,637 |
| 12,210 |
| 13,847 |
| (4,380 | ) | 1974/1985 | 12/14/2000 | P2 A (O) | Northern Virginia | — |
| 19,514 |
| 27,096 |
| — |
| 19,514 |
| 27,096 |
| 46,610 |
| — |
| (7) | 5/2/2019 | P2 B (O) | Northern Virginia | — |
| 25,621 |
| 6,494 |
| — |
| 25,621 |
| 6,494 |
| 32,115 |
| — |
| (7) | 5/2/2019 | P2 C (O) | Northern Virginia | — |
| 17,137 |
| 1,591 |
| — |
| 17,137 |
| 1,591 |
| 18,728 |
| — |
| (7) | 5/2/2019 | Paragon Park (L) | Northern Virginia | — |
| — |
| 78 |
| — |
| — |
| 78 |
| 78 |
| — |
| (6) | 5/8/2017 | Patriot Ridge (L) | Springfield, VA | — |
| 18,517 |
| 14,530 |
| — |
| 18,517 |
| 14,530 |
| 33,047 |
| — |
| (6) | 3/10/2010 | Project EX (O) (9) | Confidential-USA | — |
| 8,959 |
| 16,525 |
| — |
| 8,959 |
| 16,525 |
| 25,484 |
| (279 | ) | 2018 | 7/16/2008 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Initial Cost | | Gross Amounts Carried At Close of Period | | | | Property (Type) (1) | Location | Encumbrances (2) | Land | Building and Land Improvements | Costs Capitalized Subsequent to Acquisition | Land | Building and Land Improvements | Total (3) | Accumulated Depreciation (4) | Year Built or Renovated | Date Acquired (5) | Redstone Gateway (L) | Huntsville, AL | — |
| — |
| 21,472 |
| — |
| — |
| 21,472 |
| 21,472 |
| — |
| (6) | 3/23/2010 | Sentry Gateway (L) | San Antonio, TX | — |
| 4,052 |
| 1,833 |
| — |
| 4,052 |
| 1,833 |
| 5,885 |
| — |
| (6) | 3/30/2005 | Sentry Gateway - T (O) | San Antonio, TX | — |
| 14,020 |
| 38,804 |
| 13 |
| 14,020 |
| 38,817 |
| 52,837 |
| (12,502 | ) | 1982/2008 | 3/30/2005 | Sentry Gateway - V (O) | San Antonio, TX | — |
| — |
| 1,066 |
| — |
| — |
| 1,066 |
| 1,066 |
| (295 | ) | 2007 | 3/30/2005 | Sentry Gateway - W (O) | San Antonio, TX | — |
| — |
| 1,884 |
| 71 |
| — |
| 1,955 |
| 1,955 |
| (496 | ) | 2009 | 3/30/2005 | Sentry Gateway - X (O) | San Antonio, TX | — |
| 1,964 |
| 21,178 |
| — |
| 1,964 |
| 21,178 |
| 23,142 |
| (4,846 | ) | 2010 | 1/20/2006 | Sentry Gateway - Y (O) | San Antonio, TX | — |
| 1,964 |
| 21,298 |
| — |
| 1,964 |
| 21,298 |
| 23,262 |
| (4,875 | ) | 2010 | 1/20/2006 | Sentry Gateway - Z (O) | San Antonio, TX | — |
| 1,964 |
| 30,573 |
| — |
| 1,964 |
| 30,573 |
| 32,537 |
| (3,673 | ) | 2015 | 6/14/2005 | SP Manassas (L) | Manassas, VA | — |
| 8,156 |
| 94 |
| — |
| 8,156 |
| 94 |
| 8,250 |
| — |
| (6) | 2/6/2015 | Westfields - Park Center (L) | Chantilly, VA | — |
| 10,815 |
| 6,019 |
| — |
| 10,815 |
| 6,019 |
| 16,834 |
| — |
| (6) | 7/2/2013 | Westfields Corporate Center (L) | Chantilly, VA | — |
| 7,141 |
| 1,576 |
| — |
| 7,141 |
| 1,576 |
| 8,717 |
| — |
| (6) | 1/27/2005 | Other Developments, including intercompany eliminations (V) | Various | — |
| — |
| 530 |
| 258 |
| — |
| 788 |
| 788 |
| (79 | ) | Various | Various | | | $ | 214,546 |
| $ | 735,948 |
| $ | 3,124,706 |
| $ | 487,352 |
| $ | 735,948 |
| $ | 3,612,058 |
| $ | 4,348,006 |
| $ | (1,007,120 | ) | | |
| | (1) | A legend for the Property Type follows: (O) = Office or Data Center Shell Property; (L) = Land held or pre-construction;pre-development; (D) = Wholesale Data Center; and (V) = Various. |
| | (2) | Excludes our Revolving Credit Facility of $177.0 million, term loan facilities of $348.0$248.7 million, unsecured senior notes of $1.2 billion, unsecured notes payable of $1.3$1.0 million, and deferred financing costs, net of premiums, on the remaining loans of $668,000.$3.1 million. |
| | (3) | The aggregate cost of these assets for Federal income tax purposes was approximately $3.5$3.4 billion at as of December 31, 2017. 2019. |
| | (4) | As discussed in Note 3 to our Consolidated Financial Statements, we recognized impairment losses of $15.1 millionprimarily in connection with certain of our land and operating properties, including $13.7 million related to land and operating properties still owned as of December 31, 2017.
|
| | (5) | The estimated lives over which depreciation is recognized follow: Building and land improvements: 10-4010-40 years; and tenant improvements: related lease terms. |
| | (6)(5) | The acquisition date of multi-parcel properties reflects the date of the earliest parcel acquisition. The acquisition date of properties owned through real estate joint ventures reflects the date of the formation of the joint venture. |
| | (6) | Held as of December 31, 2019. |
| | (7) | HeldUnder development or under pre-construction atredevelopment as of December 31, 2017.2019. |
| | (8) | Under construction or redevelopment at December 31, 2017. |
| | (9) | Classified as held for sale as of December 31, 2017. |
| | (10) | The carrying amounts of these properties under construction exclude allocated costs of the garage being constructed to support the properties. |
| | (9) | This property represents land under a long-term contract. |
| | | | | | | | | | | | | | | | | | The following table summarizes our changes in cost of properties for the years ended December 31, 2017, 2016 and 2015 (in thousands): | | | | | | | 2017 | | 2016 | | 2015 | | Beginning balance | | | $ | 3,874,715 |
| | $ | 4,158,616 |
| | $ | 4,014,336 |
| | Acquisitions of operating properties | | | — |
| | — |
| | 194,616 |
| | Improvements and other additions | | | 259,548 |
| | 251,960 |
| | 273,761 |
| | Sales | | | (138,216 | ) | | (268,038 | ) | | (172,628 | ) | | Impairments | | | (15,116 | ) | | (143,502 | ) | | (29,548 | ) | | Other dispositions | | | (118 | ) | | (124,321 | ) | | (121,921 | ) | | Ending balance | | | $ | 3,980,813 |
| | $ | 3,874,715 |
| | $ | 4,158,616 |
| | | | | | | | | | | | The following table summarizes our changes in accumulated depreciation for the same time periods (in thousands): | | | | | | | 2017 | | 2016 | | 2015 | | Beginning balance | | | $ | 715,951 |
| | $ | 718,680 |
| | $ | 703,083 |
| | Depreciation expense | | | 107,772 |
| | 105,763 |
| | 112,695 |
| | Sales | | | (22,567 | ) | | (56,607 | ) | | (49,614 | ) | | Impairments | | | — |
| | (42,161 | ) | | (6,092 | ) | | Other dispositions | | | (118 | ) | | (9,724 | ) | | (41,392 | ) | | Ending balance | | | $ | 801,038 |
| | $ | 715,951 |
| | $ | 718,680 |
| | | | | | | | | | | |
The following table summarizes our changes in cost of properties for the years ended December 31, 2019, 2018 and 2017 (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | 2019 | | 2018 | | 2017 | | Beginning balance | | | $ | 4,148,529 |
| | $ | 3,980,813 |
| | $ | 3,874,715 |
| | Improvements and other additions | | | 480,418 |
| | 224,524 |
| | 259,548 |
| | Sales (1) | | | (242,497 | ) | | (53,547 | ) | | (138,216 | ) | | Impairments | | | (329 | ) | | (2,493 | ) | | (15,116 | ) | | Other dispositions | | | (340 | ) | | (768 | ) | | (118 | ) | | Reclassification to right-of use asset | | | (37,775 | ) | | — |
| | — |
| | Ending balance | | | $ | 4,348,006 |
| | $ | 4,148,529 |
| | $ | 3,980,813 |
| | | | | | | | | | | | The following table summarizes our changes in accumulated depreciation for the same time periods (in thousands): | | | | | | | 2019 | | 2018 | | 2017 | | Beginning balance | | | $ | 897,903 |
| | $ | 801,038 |
| | $ | 715,951 |
| | Depreciation expense | | | 117,973 |
| | 112,610 |
| | 107,772 |
| | Sales (1) | | | (8,416 | ) | | (14,845 | ) | | (22,567 | ) | | Impairments | | | — |
| | (132 | ) | | — |
| | Other dispositions | | | (340 | ) | | (768 | ) | | (118 | ) | | Ending balance | | | $ | 1,007,120 |
| | $ | 897,903 |
| | $ | 801,038 |
| | | | | | | | | | | |
| | (1) | Includes our sale, through a series of transactions, of ownership interests in data center shells through a newly-formed unconsolidated real estate joint venture in 2019, as described in Note 4 to our consolidated financial statements. |
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