EX-99.1 2 copt12312015ex991.htm EXHIBIT 99.1
EXHIBIT 99.1

Corporate Office Properties Trust
Summary Description

The Company: Corporate Office Properties Trust (the “Company” or “COPT”) is a self-managed office real estate investment trust (“REIT”). COPT is listed on the New York Stock Exchange under the symbol “OFC” and is a S&P MidCap 400 Company. We own, manage, lease, develop and selectively acquire office and data center properties. The majority of our portfolio is in locations that support United States Government agencies and their contractors, most of whom are engaged in national security, defense and information technology (“IT”) related activities servicing what we believe are growing, durable priority missions; we refer to these properties as Defense/IT Locations. We also own a complementary portfolio of traditional office properties located in select urban/urban-like submarkets within our regional footprint with durable Class-A office fundamentals and characteristics; these properties are included in a segment referred to as Regional Office Properties. As of December 31, 2015, we derived 84% of our core portfolio annualized revenue from Defense/IT Locations and 16% from our Regional Office Properties. As of December 31, 2015, our core portfolio of 157 office properties encompassed 17.0 million square feet and was 93.9% leased. As of the same date, we also owned one wholesale data center with a critical load of 19.25 megawatts in operations, of which 17.8 were leased to tenants with further expansion rights of up to a combined 18.9 megawatts.

Management: | Investor Relations:
Roger A. Waesche, Jr., President & CEO | Stephanie M. Krewson-Kelly, VP of IR
Stephen E. Budorick, EVP & COO | 443-285-5453, stephanie.kelly@copt.com
Wayne H. Lingafelter, EVP, Development & Construction | Michelle Layne, Manager of IR
Anthony Mifsud, EVP & CFO | 443-285-5452, michelle.layne@copt.com

Corporate Credit Rating: BBB- (Fitch), Baa3 (Moody’s), and BBB- (S&P); All Stable Outlook
Disclosure Statement: This supplemental package contains forward-looking statements within the meaning of the Federal securities laws. Forward-looking statements can be identified by the use of words such as “may,” “will,” “should,” “could,” “believe,” “anticipate,” “expect,” “estimate,” “plan” or other comparable terminology. Forward-looking statements are inherently subject to risks and uncertainties, many of which we cannot predict with accuracy and some of which we might not even anticipate. Although we believe that the expectations, estimates and projections reflected in such forward-looking statements are based on reasonable assumptions at the time made, we can give no assurance that these expectations, estimates and projections will be achieved. Future events and actual results may differ materially from those discussed in the forward-looking statements. Important factors that may affect these expectations, estimates and projections include, but are not limited to: general economic and business conditions, which will, among other things, affect office property and data center demand and rents, tenant creditworthiness, interest rates, financing availability and property values; adverse changes in the real estate markets, including, among other things, increased competition with other companies; governmental actions and initiatives, including risks associated with the impact of a prolonged government shutdown or budgetary reductions or impasses, such as a reduction in rental revenues, non-renewal of leases and/or a curtailment of demand for additional space by our strategic customers; our ability to borrow on favorable terms; risks of real estate acquisition and development activities, including, among other things, risks that development projects may not be completed on schedule, that tenants may not take occupancy or pay rent or that development or operating costs may be greater than anticipated; risks of investing through joint venture structures, including risks that our joint venture partners may not fulfill their financial obligations as investors or may take actions that are inconsistent with our objectives; changes in our plans for properties or views of market economic conditions or failure to obtain development rights, either of which could result in recognition of impairment losses; our ability to satisfy and operate effectively under Federal income tax rules relating to real estate investment trusts and partnerships; the dilutive effects of issuing additional common shares; our ability to achieve projected results; and environmental requirements. We undertake no obligation to update or supplement any forward-looking statements. For further information, please refer to our filings with the Securities and Exchange Commission, particularly the section entitled “Risk Factors” in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2014.
1

Corporate Office Properties Trust
Equity Research Coverage

Firm |  | Senior Analyst |  | Phone |  | Email
Bank of America Merrill Lynch |  | Jamie Feldman |  | 646-855-5808 |  | james.feldman@baml.com
Capital One Securities |  | Chris Lucas |  | 571-633-8151 |  | christopher.lucas@capitalone.com
Citigroup Global Markets |  | Manny Korchman |  | 212-816-1382 |  | emmanuel.korchman@citi.com
Cowen and Company |  | Tom Catherwood |  | 646-562-1382 |  | tom.catherwood@cowen.com
Credit Suisse |  | Derek van Dijkum |  | 212-325-9752 |  | derek.vandijkum@credit-suisse.com
Evercore ISI |  | Steve Sakwa |  | 212-446-9462 |  | steve.sakwa@evercoreisi.com
Green Street Advisors |  | John Bejjani |  | 949-640-8780 |  | jbejjani@greenstreetadvisors.com
Jefferies & Co. |  | Jonathan Petersen |  | 212-284-1705 |  | jpetersen@jefferies.com
JP Morgan |  | Tony Paolone |  | 212-622-6682 |  | anthony.paolone@jpmorgan.com
KeyBanc Capital Markets |  | Craig Mailman |  | 917-368-2316 |  | cmailman@key.com
Mizuho Securities USA Inc. |  | Richard Anderson |  | 212-205-8445 |  | richard.anderson@us.mizuho-sc.com
Raymond James |  | Bill Crow |  | 727-567-2594 |  | bill.crow@raymondjames.com
RBC Capital Markets |  | Michael Carroll |  | 440-715-2649 |  | michael.carroll@rbccm.com
Robert W. Baird & Co., Inc. |  | Dave Rodgers |  | 216-737-7341 |  | drodgers@rwbaird.com
Stifel, Nicolaus & Company, Inc. |  | John Guinee |  | 443-224-1307 |  | jwguinee@stifel.com
SunTrust Robinson Humphrey, Inc. |  | Michael Lewis |  | 212-319-5659 |  | michael.lewis@suntrust.com
Wells Fargo Securities |  | Brendan Maiorana |  | 443-263-6516 |  | brendan.maiorana@wachovia.com

With the exception of Green Street Advisors, the above-listed firms are those whose analysts publish research material on the Company and whose estimates of our FFO per share can be tracked through Thomson’s First Call Corporation. Any opinions, estimates, or forecasts the above analysts make regarding COPT’s future performance are their own and do not represent the views, estimates, or forecasts of COPT’s management.
2

Corporate Office Properties Trust
Selected Financial Summary Data
(in thousands, except per share data)

|  | Three Months Ended |  | Years Ended
SUMMARY OF RESULTS |  | 12/31/15 |  | 9/30/15 |  | 6/30/15 |  | 3/31/15 |  | 12/31/14 |  | 12/31/15 |  | 12/31/14
Same Office Property NOI |  | $ | 65,052 |  |  | $ | 65,656 |  |  | $ | 64,328 |  |  | $ | 61,565 |  |  | $ | 65,903 |  |  | $ | 256,601 |  |  | $ | 257,743 |
Same Office Property Cash NOI |  | $ | 64,651 |  |  | $ | 64,375 |  |  | $ | 62,434 |  |  | $ | 59,802 |  |  | $ | 63,089 |  |  | $ | 251,262 |  |  | $ | 249,405 |
NOI from real estate operations |  | $ | 85,979 |  |  | $ | 84,789 |  |  | $ | 81,788 |  |  | $ | 72,024 |  |  | $ | 77,301 |  |  | $ | 324,580 |  |  | $ | 299,912 |
Adjusted EBITDA |  | $ | 79,718 |  |  | $ | 78,932 |  |  | $ | 75,001 |  |  | $ | 66,216 |  |  | $ | 71,083 |  |  | $ | 299,867 |  |  | $ | 278,727 |
Net income attributable to COPT common shareholders |  | $ | 55,811 |  |  | $ | 86,248 |  |  | $ | 12,228 |  |  | $ | 9,803 |  |  | $ | 1,352 |  |  | $ | 164,090 |  |  | $ | 22,547 |
FFO - per NAREIT |  | $ | 35,138 |  |  | $ | 134,989 |  |  | $ | 52,257 |  |  | $ | 46,567 |  |  | $ | 37,345 |  |  | $ | 268,951 |  |  | $ | 177,545 |
FFO - as adjusted for comparability |  | $ | 55,596 |  |  | $ | 55,635 |  |  | $ | 55,789 |  |  | $ | 48,076 |  |  | $ | 50,957 |  |  | $ | 215,096 |  |  | $ | 195,437 |
Diluted FFO available to common share and common unit holders |  | $ | 30,488 |  |  | $ | 130,241 |  |  | $ | 47,265 |  |  | $ | 41,997 |  |  | $ | 32,638 |  |  | $ | 249,454 |  |  | $ | 155,296 |
Diluted FFO available to common share and common unit holders, as adjusted for comparability |  | $ | 50,858 |  |  | $ | 50,684 |  |  | $ | 50,783 |  |  | $ | 43,499 |  |  | $ | 46,191 |  |  | $ | 195,824 |  |  | $ | 173,110 |
Diluted AFFO avail. to common share and common unit holders |  | $ | 31,592 |  |  | $ | 36,570 |  |  | $ | 40,812 |  |  | $ | 37,724 |  |  | $ | 40,136 |  |  | $ | 146,698 |  |  | $ | 133,181 |
Per share - diluted: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
EPS |  | $ | 0.59 |  |  | $ | 0.91 |  |  | $ | 0.13 |  |  | $ | 0.10 |  |  | $ | 0.01 |  |  | $ | 1.74 |  |  | $ | 0.25 |
FFO - NAREIT |  | $ | 0.31 |  |  | $ | 1.32 |  |  | $ | 0.48 |  |  | $ | 0.43 |  |  | $ | 0.34 |  |  | $ | 2.55 |  |  | $ | 1.69 |
FFO - as adjusted for comparability |  | $ | 0.52 |  |  | $ | 0.52 |  |  | $ | 0.52 |  |  | $ | 0.45 |  |  | $ | 0.49 |  |  | $ | 2.01 |  |  | $ | 1.88 |
Dividend per common share |  | $ | 0.275 |  |  | $ | 0.275 |  |  | $ | 0.275 |  |  | $ | 0.275 |  |  | $ | 0.275 |  |  | $ | 1.100 |  |  | $ | 1.100 |
Payout ratios: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Diluted FFO |  | 88.6 | % |  | 21.2 | % |  | 57.2 | % |  | 64.3 | % |  | 81.8 | % |  | 43.3 | % |  | 65.8 | %
Diluted FFO - as adjusted for comparability |  | 53.1 | % |  | 53.3 | % |  | 53.2 | % |  | 62.1 | % |  | 57.8 | % |  | 55.2 | % |  | 59.0 | %
Diluted AFFO |  | 85.5 | % |  | 73.9 | % |  | 66.2 | % |  | 71.6 | % |  | 66.5 | % |  | 73.7 | % |  | 76.7 | %
Rental revenue operating margin |  | 80.0 | % |  | 77.7 | % |  | 77.5 | % |  | 73.3 | % |  | 79.0 | % |  | 77.2 | % |  | 77.6 | %
CAPITALIZATION |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Market Capitalization |  | $ | 4,429,537 |  |  | $ | 4,394,500 |  |  | $ | 4,649,916 |  |  | $ | 5,093,091 |  |  | $ | 4,882,468 |  |  |  |  |
Total Equity Market Capitalization |  | $ | 2,351,785 |  |  | $ | 2,273,260 |  |  | $ | 2,519,746 |  |  | $ | 3,093,469 |  |  | $ | 2,962,411 |  |  |  |  |
Debt, net |  | $ | 2,077,752 |  |  | $ | 2,114,859 |  |  | $ | 2,123,308 |  |  | $ | 1,994,118 |  |  | $ | 1,914,036 |  |  |  |  |
Debt to Adjusted book |  | 42.9 | % |  | 43.4 | % |  | 41.6 | % |  | 40.2 | % |  | 39.6 | % |  |  |  |
Adjusted EBITDA interest coverage ratio |  | 3.9 | x |  | 4.0 | x |  | 4.7 | x |  | 4.3 | x |  | 4.0 | x |  | 4.2 | x |  | 3.8 | x
Adjusted EBITDA debt service coverage ratio |  | 3.6 | x |  | 3.7 | x |  | 4.2 | x |  | 3.9 | x |  | 3.7 | x |  | 3.8 | x |  | 3.5 | x
Adjusted EBITDA fixed charge coverage ratio |  | 2.9 | x |  | 2.9 | x |  | 3.2 | x |  | 2.9 | x |  | 2.9 | x |  | 3.0 | x |  | 2.7 | x
Adjusted debt to in-place adjusted EBITDA ratio |  | 6.5 | x |  | 6.6 | x |  | 6.4 | x |  | 6.8 | x |  | 6.2 | x |  | N/A |  |  | N/A |
OTHER |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue from early termination of leases |  | $ | 400 |  |  | $ | 159 |  |  | $ | 661 |  |  | $ | 603 |  |  | $ | 611 |  |  | $ | 1,823 |  |  | $ | 2,034 |
Capitalized interest costs |  | $ | 1,510 |  |  | $ | 1,559 |  |  | $ | 1,950 |  |  | $ | 2,132 |  |  | $ | 1,740 |  |  | $ | 7,151 |  |  | $ | 6,065 |

3

Corporate Office Properties Trust
Selected Consolidated Portfolio Data

| 12/31/15 |  | 9/30/15 |  | 6/30/15 |  | 3/31/15 |  | 12/31/14
|  |  |  |  | (1) |  | (1) |  | (1)
# of Operating Office Properties |  |  |  |  |  |  |  |  |
Total Portfolio | 177 |  |  | 183 |  |  | 179 |  | 178 |  |  | 173 |
Core Portfolio | 157 |  |  | 164 |  |  | 172 |  | 178 |  |  | 173 |
Same Office Properties | 145 |  |  | 145 |  |  | 145 |  | 145 |  |  | 145 |
% Occupied |  |  |  |  |  |  |  |  |
Total Portfolio | 91.6 | % |  | 91.6 | % |  | 92.0 | % |  | 91.3 | % |  | 90.9 | %
Core Portfolio | 92.7 | % |  | 91.3 | % |  | 91.9 | % |  | 91.3 | % |  | 90.9 | %
Same Office Properties | 90.9 | % |  | 90.4 | % |  | 91.1 | % |  | 90.5 | % |  | 90.6 | %
% Leased |  |  |  |  |  |  |  |  |
Total Portfolio | 92.7 | % |  | 92.3 | % |  | 92.9 | % |  | 92.4 | % |  | 92.4 | %
Core Portfolio | 93.9 | % |  | 92.1 | % |  | 92.8 | % |  | 92.4 | % |  | 92.4 | %
Same Office Properties | 92.3 | % |  | 91.3 | % |  | 92 | % |  | 91.8 | % |  | 92.2 | %
Square Feet of Office Properties (in thousands) |  |  |  |  |  |  |  |  |
Total Portfolio | 18,053 |  |  | 18,825 |  |  | 17,987 |  |  | 17,706 |  |  | 16,790 |
Core Portfolio | 17,038 |  |  | 17,515 |  |  | 17,403 |  |  | 17,706 |  |  | 16,790 |
Same Office Properties | 14,490 |  |  | 14,490 |  |  | 14,490 |  |  | 14,490 |  |  | 14,490 |
Wholesale Data Center (in megawatts (“MWs”)) |  |  |  |  |  |  |  |  |
Initial Stabilization Critical Load | 19.25 |  |  | 19.25 |  |  | 19.25 |  |  | 19.25 |  |  | 18.00 |
MWs Leased (2) | 17.81 |  |  | 17.81 |  |  | 17.81 |  |  | 17.81 |  |  | 6.56 |
MWs Operational | 19.25 |  |  | 19.25 |  |  | 12.50 |  |  | 9 |  |  | 9 |

(1) | Amounts reported exclude the effect of properties serving as collateral for debt which was in default that we extinguished via conveyance of such properties on August 28, 2015. Effective April 1, 2014, all cash flows from such properties belong to the lender.

(2) | Leased megawatts as of December 31, 2015 included 17.81 in operations, which were leased to tenants with further expansion rights of up to a combined 18.88 megawatts.

4

Corporate Office Properties Trust
Quarterly Consolidated Balance Sheets
(dollars in thousands)

| 12/31/15 |  | 9/30/15 |  | 6/30/15 |  | 3/31/15 |  | 12/31/14
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Properties, net |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating properties, net | $ | 2,920,529 |  |  | $ | 2,932,843 |  |  | $ | 2,896,809 |  |  | $ | 2,888,534 |  |  | $ | 2,751,488 |
Construction and redevelopment in progress, including land (1) | 137,043 |  |  | 77,268 |  |  | 192,815 |  |  | 161,637 |  |  | 222,146 |
Land held (1) | 292,176 |  |  | 337,489 |  |  | 329,176 |  |  | 327,981 |  |  | 323,280 |
Total properties, net | 3,349,748 |  |  | 3,347,600 |  |  | 3,418,800 |  |  | 3,378,152 |  |  | 3,296,914 |
Assets held for sale | 96,782 |  |  | 150,572 |  |  | 77,013 |  |  | — |  |  | 14,339 |
Cash and cash equivalents | 60,310 |  |  | 3,840 |  |  | 37,074 |  |  | 4,429 |  |  | 6,077 |
Restricted cash and marketable securities | 7,716 |  |  | 9,286 |  |  | 10,121 |  |  | 11,445 |  |  | 9,069 |
Accounts receivable, net | 29,167 |  |  | 23,706 |  |  | 20,118 |  |  | 37,382 |  |  | 30,698 |
Deferred rent receivable, net | 105,484 |  |  | 103,064 |  |  | 101,488 |  |  | 98,340 |  |  | 95,910 |
Intangible assets on real estate acquisitions, net | 98,338 |  |  | 106,174 |  |  | 81,728 |  |  | 61,477 |  |  | 43,854 |
Deferred leasing costs, net (2) | 53,868 |  |  | 51,509 |  |  | 53,611 |  |  | 55,365 |  |  | 53,927 |
Investing receivables | 47,875 |  |  | 46,821 |  |  | 45,766 |  |  | 52,814 |  |  | 52,147 |
Prepaid expenses and other assets, net (2) | 60,024 |  |  | 69,520 |  |  | 58,340 |  |  | 72,247 |  |  | 61,301 |
Total assets | $ | 3,909,312 |  |  | $ | 3,912,092 |  |  | $ | 3,904,059 |  |  | $ | 3,771,651 |  |  | $ | 3,664,236 |
Liabilities and equity |  |  |  |  |  |  |  |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt, net (2) | $ | 2,077,752 |  |  | $ | 2,114,859 |  |  | $ | 2,123,308 |  |  | $ | 1,994,118 |  |  | $ | 1,914,036 |
Accounts payable and accrued expenses | 91,755 |  |  | 98,551 |  |  | 155,989 |  |  | 138,214 |  |  | 123,035 |
Rents received in advance and security deposits | 37,148 |  |  | 34,504 |  |  | 27,371 |  |  | 31,551 |  |  | 31,011 |
Dividends and distributions payable | 30,178 |  |  | 30,182 |  |  | 30,178 |  |  | 30,174 |  |  | 29,862 |
Deferred revenue associated with operating leases | 19,758 |  |  | 20,113 |  |  | 15,179 |  |  | 14,697 |  |  | 13,031 |
Interest rate derivatives | 3,160 |  |  | 5,844 |  |  | 3,121 |  |  | 4,282 |  |  | 1,855 |
Other liabilities | 13,779 |  |  | 8,524 |  |  | 11,866 |  |  | 9,990 |  |  | 12,105 |
Total liabilities | 2,273,530 |  |  | 2,312,577 |  |  | 2,367,012 |  |  | 2,223,026 |  |  | 2,124,935 |
Redeemable noncontrolling interests | 19,218 |  |  | 19,608 |  |  | 19,414 |  |  | 18,895 |  |  | 18,417 |
Equity: |  |  |  |  |  |  |  |  |  |  |  |
COPT’s shareholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |
Preferred shares at liquidation preference | 199,083 |  |  | 199,083 |  |  | 199,083 |  |  | 199,083 |  |  | 199,083 |
Common shares | 945 |  |  | 945 |  |  | 946 |  |  | 945 |  |  | 933 |
Additional paid-in capital | 2,004,507 |  |  | 2,002,730 |  |  | 2,000,775 |  |  | 1,999,708 |  |  | 1,969,968 |
Cumulative distributions in excess of net income | (657,172 | ) |  | (686,986 | ) |  | (747,234 | ) |  | (733,459 | ) |  | (717,264 | )
Accumulated other comprehensive loss | (2,838 | ) |  | (5,823 | ) |  | (3,141 | ) |  | (3,947 | ) |  | (1,297 | )
Total COPT’s shareholders’ equity | 1,544,525 |  |  | 1,509,949 |  |  | 1,450,429 |  |  | 1,462,330 |  |  | 1,451,423 |
Noncontrolling interests in subsidiaries |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common units in the Operating Partnership | 52,359 |  |  | 50,992 |  |  | 48,707 |  |  | 49,168 |  |  | 51,534 |
Preferred units in the Operating Partnership | 8,800 |  |  | 8,800 |  |  | 8,800 |  |  | 8,800 |  |  | 8,800 |
Other consolidated entities | 10,880 |  |  | 10,166 |  |  | 9,697 |  |  | 9,432 |  |  | 9,127 |
Total noncontrolling interests in subsidiaries | 72,039 |  |  | 69,958 |  |  | 67,204 |  |  | 67,400 |  |  | 69,461 |
Total equity | 1,616,564 |  |  | 1,579,907 |  |  | 1,517,633 |  |  | 1,529,730 |  |  | 1,520,884 |
Total liabilities, redeemable noncontrolling interest and equity | $ | 3,909,312 |  |  | $ | 3,912,092 |  |  | $ | 3,904,059 |  |  | $ | 3,771,651 |  |  | $ | 3,664,236 |
(1) Please refer to pages 23-25 and 27 for detail. |  |  |  |  |  |  |  |  |
(2) Prior period amounts include retrospective adjustments to reclassify net deferred financing costs in connection with new accounting guidance adopted in the current period.

5

Corporate Office Properties Trust
Consolidated Statements of Operations
(in thousands, except per share data)

| Three Months Ended |  | Years Ended
| 12/31/15 |  | 9/30/15 |  | 6/30/15 |  | 3/31/15 |  | 12/31/14 |  | 12/31/15 |  | 12/31/14
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental revenue | $ | 107,514 |  |  | $ | 109,080 |  |  | $ | 105,508 |  |  | $ | 98,238 |  |  | $ | 97,822 |  |  | $ | 420,340 |  |  | $ | 386,396 |
Tenant recoveries and other real estate operations revenue | 26,963 |  |  | 24,606 |  |  | 22,683 |  |  | 24,472 |  |  | 22,791 |  |  | 98,724 |  |  | 93,329 |
Construction contract and other service revenues | 8,848 |  |  | 17,058 |  |  | 42,172 |  |  | 38,324 |  |  | 26,358 |  |  | 106,402 |  |  | 106,748 |
Total revenues | 143,325 |  |  | 150,744 |  |  | 170,363 |  |  | 161,034 |  |  | 146,971 |  |  | 625,466 |  |  | 586,473 |
Expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Property operating expenses | 48,498 |  |  | 48,897 |  |  | 46,418 |  |  | 50,681 |  |  | 43,334 |  |  | 194,494 |  |  | 179,934 |
Depreciation and amortization associated with real estate operations | 36,237 |  |  | 38,403 |  |  | 33,786 |  |  | 31,599 |  |  | 31,358 |  |  | 140,025 |  |  | 136,086 |
Construction contract and other service expenses | 7,773 |  |  | 16,132 |  |  | 41,293 |  |  | 37,498 |  |  | 24,705 |  |  | 102,696 |  |  | 100,058 |
Impairment losses | 19,744 |  |  | 2,307 |  |  | 1,238 |  |  | — |  |  | 48 |  |  | 23,289 |  |  | 1,416 |
General and administrative expenses | 6,609 |  |  | 5,783 |  |  | 5,884 |  |  | 6,250 |  |  | 7,206 |  |  | 24,526 |  |  | 24,841 |
Leasing expenses | 1,888 |  |  | 1,656 |  |  | 1,650 |  |  | 1,641 |  |  | 1,706 |  |  | 6,835 |  |  | 6,953 |
Business development expenses and land carry costs | 2,521 |  |  | 5,573 |  |  | 2,623 |  |  | 2,790 |  |  | 1,466 |  |  | 13,507 |  |  | 5,573 |
Total operating expenses | 123,270 |  |  | 118,751 |  |  | 132,892 |  |  | 130,459 |  |  | 109,823 |  |  | 505,372 |  |  | 454,861 |
Operating income | 20,055 |  |  | 31,993 |  |  | 37,471 |  |  | 30,575 |  |  | 37,148 |  |  | 120,094 |  |  | 131,612 |
Interest expense | (22,347 | ) |  | (24,121 | ) |  | (21,768 | ) |  | (20,838 | ) |  | (23,286 | ) |  | (89,074 | ) |  | (92,393 | )
Interest and other income | 1,300 |  |  | 692 |  |  | 1,242 |  |  | 1,283 |  |  | 1,148 |  |  | 4,517 |  |  | 4,923 |
(Loss) gain on early extinguishment of debt | (402 | ) |  | 85,745 |  |  | (65 | ) |  | (3 | ) |  | (9,106 | ) |  | 85,275 |  |  | (9,552 | )
(Loss) income from continuing operations before equity in income of unconsolidated entities and income taxes | (1,394 | ) |  | 94,309 |  |  | 16,880 |  |  | 11,017 |  |  | 5,904 |  |  | 120,812 |  |  | 34,590 |
Equity in income of unconsolidated entities | 10 |  |  | 18 |  |  | 9 |  |  | 25 |  |  | 23 |  |  | 62 |  |  | 229 |
Income tax expense | (46 | ) |  | (48 | ) |  | (50 | ) |  | (55 | ) |  | (53 | ) |  | (199 | ) |  | (310 | )
(Loss) income from continuing operations | (1,430 | ) |  | 94,279 |  |  | 16,839 |  |  | 10,987 |  |  | 5,874 |  |  | 120,675 |  |  | 34,509 |
Discontinued operations | — |  |  | — |  |  | 394 |  |  | (238 | ) |  | 22 |  |  | 156 |  |  | 26 |
(Loss) income before gain on sales of real estate | (1,430 | ) |  | 94,279 |  |  | 17,233 |  |  | 10,749 |  |  | 5,896 |  |  | 120,831 |  |  | 34,535 |
Gain on sales of real estate | 64,047 |  |  | 15 |  |  | (1 | ) |  | 3,986 |  |  | 41 |  |  | 68,047 |  |  | 10,671 |
Net income | 62,617 |  |  | 94,294 |  |  | 17,232 |  |  | 14,735 |  |  | 5,937 |  |  | 188,878 |  |  | 45,206 |
Net income attributable to noncontrolling interests |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common units in the Operating Partnership | (2,172 | ) |  | (3,357 | ) |  | (476 | ) |  | (398 | ) |  | (64 | ) |  | (6,403 | ) |  | (1,006 | )
Preferred units in the Operating Partnership | (165 | ) |  | (165 | ) |  | (165 | ) |  | (165 | ) |  | (165 | ) |  | (660 | ) |  | (660 | )
Other consolidated entities | (916 | ) |  | (972 | ) |  | (810 | ) |  | (817 | ) |  | (804 | ) |  | (3,515 | ) |  | (3,285 | )
Net income attributable to COPT | 59,364 |  |  | 89,800 |  |  | 15,781 |  |  | 13,355 |  |  | 4,904 |  |  | 178,300 |  |  | 40,255 |
Preferred share dividends | (3,553 | ) |  | (3,552 | ) |  | (3,553 | ) |  | (3,552 | ) |  | (3,552 | ) |  | (14,210 | ) |  | (15,939 | )
Issuance costs associated with redeemed preferred shares | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,769 | )
Net income attributable to COPT common shareholders | $ | 55,811 |  |  | $ | 86,248 |  |  | $ | 12,228 |  |  | $ | 9,803 |  |  | $ | 1,352 |  |  | $ | 164,090 |  |  | $ | 22,547 |

6

Corporate Office Properties Trust Consolidated Statements of Operations (continued) (in thousands, except per share data)
| Three Months Ended |  | Years Ended
| 12/31/15 |  | 9/30/15 |  | 6/30/15 |  | 3/31/15 |  | 12/31/14 |  | 12/31/15 |  | 12/31/14
For diluted EPS computations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Numerator for diluted EPS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net income attributable to common shareholders | $ | 55,811 |  |  | $ | 86,248 |  |  | $ | 12,228 |  |  | $ | 9,803 |  |  | $ | 1,352 |  |  | $ | 164,090 |  |  | $ | 22,547 |
Dividends on dilutive convertible preferred shares | — |  |  | 372 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Common units in the Operating Partnership | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,403 |  |  | — |
Amount allocable to share-based compensation awards | (230 | ) |  | (369 | ) |  | (113 | ) |  | (122 | ) |  | (100 | ) |  | (706 | ) |  | (432 | )
Numerator for diluted EPS | $ | 55,581 |  |  | $ | 86,251 |  |  | $ | 12,115 |  |  | $ | 9,681 |  |  | $ | 1,252 |  |  | $ | 169,787 |  |  | $ | 22,115 |
Denominator: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Weighted average common shares - basic | 94,164 |  |  | 94,153 |  |  | 94,128 |  |  | 93,199 |  |  | 90,752 |  |  | 93,914 |  |  | 88,092 |
Dilutive convertible preferred shares | — |  |  | 434 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Common units in the Operating Partnership | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 3,692 |  |  | — |
Dilutive effect of share-based compensation awards | — |  |  | 21 |  |  | 35 |  |  | 198 |  |  | 196 |  |  | 61 |  |  | 171 |
Weighted average common shares - diluted | 94,164 |  |  | 94,608 |  |  | 94,163 |  |  | 93,397 |  |  | 90,948 |  |  | 97,667 |  |  | 88,263 |
Diluted EPS | $ | 0.59 |  |  | $ | 0.91 |  |  | $ | 0.13 |  |  | $ | 0.10 |  |  | $ | 0.01 |  |  | $ | 1.74 |  |  | $ | 0.25 |

7

Corporate Office Properties Trust
Consolidated Statements of FFO
(in thousands)

| Three Months Ended |  | Years Ended
| 12/31/15 |  | 9/30/15 |  | 6/30/15 |  | 3/31/15 |  | 12/31/14 |  | 12/31/15 |  | 12/31/14
Net income | $ | 62,617 |  |  | $ | 94,294 |  |  | $ | 17,232 |  |  | $ | 14,735 |  |  | $ | 5,937 |  |  | $ | 188,878 |  |  | $ | 45,206 |
Real estate-related depreciation and amortization | 36,237 |  |  | 38,403 |  |  | 33,786 |  |  | 31,599 |  |  | 31,358 |  |  | 140,025 |  |  | 136,086 |
Impairment losses on previously depreciated operating properties (1)(2) | 331 |  |  | 2,307 |  |  | 1,239 |  |  | 233 |  |  | 48 |  |  | 4,110 |  |  | 1,370 |
Gain on sales of previously depreciated operating properties (2) | (64,047 | ) |  | (15 | ) |  | — |  |  | — |  |  | 2 |  |  | (64,062 | ) |  | (5,117 | )
FFO - per NAREIT (3) | 35,138 |  |  | 134,989 |  |  | 52,257 |  |  | 46,567 |  |  | 37,345 |  |  | 268,951 |  |  | 177,545 |
Operating property acquisition costs | 32 |  |  | 2,695 |  |  | 361 |  |  | 1,046 |  |  | — |  |  | 4,134 |  |  | — |
Gain on sales of non-operating properties, net of associated income tax | — |  |  | — |  |  | 1 |  |  | (3,986 | ) |  | (43 | ) |  | (3,985 | ) |  | (5,578 | )
Impairment losses on non-operating properties, net of associated income tax | 19,413 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 19,413 |  |  | 49 |
Valuation allowance on tax asset associated with FFO comparability adjustments | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Loss on interest rate derivatives | 386 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 386 |  |  | — |
Loss (gain) on early extinguishment of debt (2) | 402 |  |  | (85,745 | ) |  | (315 | ) |  | 3 |  |  | 9,106 |  |  | (85,655 | ) |  | 9,668 |
Issuance costs associated with redeemed preferred shares | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,769 |
Add: Negative FFO of properties conveyed to extinguish debt in default | — |  |  | 2,766 |  |  | 3,419 |  |  | 4,271 |  |  | 3,493 |  |  | 10,456 |  |  | 10,928 |
Demolition costs on redevelopment properties | 225 |  |  | 930 |  |  | 66 |  |  | 175 |  |  | — |  |  | 1,396 |  |  | — |
Executive transition costs | — |  |  | — |  |  | — |  |  | — |  |  | 1,056 |  |  | — |  |  | 1,056 |
FFO - as adjusted for comparability (3) | $ | 55,596 |  |  | $ | 55,635 |  |  | $ | 55,789 |  |  | $ | 48,076 |  |  | $ | 50,957 |  |  | $ | 215,096 |  |  | $ | 195,437 |
Weighted Average Shares for period ended: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common Shares Outstanding | 94,164 |  |  | 94,153 |  |  | 94,128 |  |  | 93,199 |  |  | 90,752 |  |  | 93,914 |  |  | 88,092 |
Dilutive effect of share-based compensation awards | — |  |  | 21 |  |  | 35 |  |  | 198 |  |  | 196 |  |  | 61 |  |  | 171 |
Common Units | 3,677 |  |  | 3,679 |  |  | 3,680 |  |  | 3,732 |  |  | 3,846 |  |  | 3,692 |  |  | 3,897 |
Dilutive convertible preferred shares (4) | — |  |  | 434 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Dilutive noncontrolling interests - preferred units in the Operating Partnership (4) | — |  |  | 176 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Denominator for diluted FFO per share | 97,841 |  |  | 98,463 |  |  | 97,843 |  |  | 97,129 |  |  | 94,794 |  |  | 97,667 |  |  | 92,160 |
Antidilutive preferred securities for diluted FFO, as adjusted for comparability (4) | — |  |  | (610 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Denominator for diluted FFO per share, as adjusted for comparability | 97,841 |  |  | 97,853 |  |  | 97,843 |  |  | 97,129 |  |  | 94,794 |  |  | 97,667 |  |  | 92,160 |
Weighted average common units | (3,677 | ) |  | (3,679 | ) |  | (3,680 | ) |  | (3,732 | ) |  | (3,846 | ) |  | — |  |  | (3,897 | )
Dilutive convertible preferred shares | — |  |  | 434 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Denominator for diluted EPS | 94,164 |  |  | 94,608 |  |  | 94,163 |  |  | 93,397 |  |  | 90,948 |  |  | 97,667 |  |  | 88,263 |
(1) Please see reconciliations on pages 33 through 35. |  |  |  |  |  |  |  |  |  |  |  |  |
(2) Includes continuing and discontinued operations. |  |  |  |  |  |  |  |  |  |  |  |  |
(3) Please refer to the section entitled “Definitions” for a definition of this measure. |  |  |  |  |  |  |  |  |  |
(4) These securities were dilutive for Diluted FFO purposes but antidilutive for Diluted FFO as adjusted for comparability purposes. |  |  |  |

8

Corporate Office Properties Trust
Consolidated Statements of FFO
(in thousands)

| Three Months Ended |  | Years Ended
| 12/31/15 |  | 9/30/15 |  | 6/30/15 |  | 3/31/15 |  | 12/31/14 |  | 12/31/15 |  | 12/31/14
NOI from real estate operations (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate revenues | $ | 134,477 |  |  | $ | 133,686 |  |  | $ | 128,195 |  |  | $ | 122,710 |  |  | $ | 120,611 |  |  | $ | 519,068 |  |  | $ | 479,711 |
Real estate property operating expenses | (48,498 | ) |  | (48,897 | ) |  | (46,407 | ) |  | (50,686 | ) |  | (43,310 | ) |  | (194,488 | ) |  | (179,799 | )
NOI from real estate operations | 85,979 |  |  | 84,789 |  |  | 81,788 |  |  | 72,024 |  |  | 77,301 |  |  | 324,580 |  |  | 299,912 |
General and administrative expenses | (6,609 | ) |  | (5,783 | ) |  | (5,884 | ) |  | (6,250 | ) |  | (7,206 | ) |  | (24,526 | ) |  | (24,841 | )
Leasing expenses | (1,888 | ) |  | (1,656 | ) |  | (1,650 | ) |  | (1,641 | ) |  | (1,706 | ) |  | (6,835 | ) |  | (6,953 | )
Business development expenses and land carry costs | (2,521 | ) |  | (5,573 | ) |  | (2,623 | ) |  | (2,790 | ) |  | (1,466 | ) |  | (13,507 | ) |  | (5,573 | )
NOI from construction contracts and other service operations | 1,075 |  |  | 926 |  |  | 879 |  |  | 826 |  |  | 1,653 |  |  | 3,706 |  |  | 6,690 |
Impairment losses on non-operating properties | (19,413 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (19,413 | ) |  | (49 | )
Equity in income of unconsolidated entities | 10 |  |  | 18 |  |  | 9 |  |  | 25 |  |  | 23 |  |  | 62 |  |  | 229 |
Interest and other income | 1,300 |  |  | 692 |  |  | 1,242 |  |  | 1,283 |  |  | 1,148 |  |  | 4,517 |  |  | 4,923 |
(Loss) gain on early extinguishment of debt | (402 | ) |  | 85,745 |  |  | 315 |  |  | (3 | ) |  | (9,106 | ) |  | 85,655 |  |  | (9,668 | )
Gain on sales of non-operating properties | — |  |  | — |  |  | (1 | ) |  | 3,986 |  |  | 43 |  |  | 3,985 |  |  | 5,578 |
Total interest expense | (22,347 | ) |  | (24,121 | ) |  | (21,768 | ) |  | (20,838 | ) |  | (23,286 | ) |  | (89,074 | ) |  | (92,393 | )
Income tax expense | (46 | ) |  | (48 | ) |  | (50 | ) |  | (55 | ) |  | (53 | ) |  | (199 | ) |  | (310 | )
FFO - per NAREIT (1) | 35,138 |  |  | 134,989 |  |  | 52,257 |  |  | 46,567 |  |  | 37,345 |  |  | 268,951 |  |  | 177,545 |
Preferred share dividends | (3,553 | ) |  | (3,552 | ) |  | (3,553 | ) |  | (3,552 | ) |  | (3,552 | ) |  | (14,210 | ) |  | (15,939 | )
Issuance costs associated with redeemed preferred shares | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (1,769 | )
Noncontrolling interests - preferred units in the Operating Partnership | (165 | ) |  | (165 | ) |  | (165 | ) |  | (165 | ) |  | (165 | ) |  | (660 | ) |  | (660 | )
FFO allocable to other noncontrolling interests | (817 | ) |  | (1,027 | ) |  | (1,072 | ) |  | (670 | ) |  | (867 | ) |  | (3,586 | ) |  | (3,216 | )
Basic and diluted FFO allocable to restricted shares | (115 | ) |  | (541 | ) |  | (202 | ) |  | (183 | ) |  | (123 | ) |  | (1,041 | ) |  | (665 | )
Basic FFO available to common share and common unit holders (1) | 30,488 |  |  | 129,704 |  |  | 47,265 |  |  | 41,997 |  |  | 32,638 |  |  | 249,454 |  |  | 155,296 |
Dividends on dilutive convertible preferred shares | — |  |  | 372 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Distributions on dilutive preferred units in the Operating Partnership | — |  |  | 165 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Diluted FFO available to common share and common unit holders (1) | 30,488 |  |  | 130,241 |  |  | 47,265 |  |  | 41,997 |  |  | 32,638 |  |  | 249,454 |  |  | 155,296 |
Operating property acquisition costs | 32 |  |  | 2,695 |  |  | 361 |  |  | 1,046 |  |  | — |  |  | 4,134 |  |  | — |
Gain on sales of non-operating properties, net of associated income tax | — |  |  | — |  |  | 1 |  |  | (3,986 | ) |  | (43 | ) |  | (3,985 | ) |  | (5,578 | )
Impairment losses on non-operating properties, net of associated income tax | 19,413 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 19,413 |  |  | 49 |
Loss on interest rate derivatives | 386 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 386 |  |  | — |
Loss (gain) on early extinguishment of debt (1) | 402 |  |  | (85,745 | ) |  | (315 | ) |  | 3 |  |  | 9,106 |  |  | (85,655 | ) |  | 9,668 |
Issuance costs associated with redeemed preferred shares | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,769 |
Add: Negative FFO of properties conveyed to extinguish debt in default (2) | — |  |  | 2,766 |  |  | 3,419 |  |  | 4,271 |  |  | 3,493 |  |  | 10,456 |  |  | 10,928 |
Demolition costs on redevelopment properties | 225 |  |  | 930 |  |  | 66 |  |  | 175 |  |  | — |  |  | 1,396 |  |  | — |
Executive transition costs | — |  |  | — |  |  | — |  |  | — |  |  | 1,056 |  |  | — |  |  | 1,056 |
Diluted FFO comparability adjustments allocable to restricted shares | (88 | ) |  | 334 |  |  | (14 | ) |  | (7 | ) |  | (59 | ) |  | 225 |  |  | (78 | )
Dividends and distributions on antidilutive preferred securities (3) | — |  |  | (537 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Diluted FFO avail. to common share and common unit holders, as adj. for comparability (1) | $ | 50,858 |  |  | $ | 50,684 |  |  | $ | 50,783 |  |  | $ | 43,499 |  |  | $ | 46,191 |  |  | $ | 195,824 |  |  | $ | 173,110 |
(1) Please refer to the section entitled “Definitions” for a definition of this measure. |  |  |  |  |  |  |  |  |  |  |  |
(2) Interest expense exceeded NOI from these properties by the amounts in the statement. |  |  |  |
(3) These securities were dilutive for Diluted FFO purposes but antidilutive for Diluted FFO as adjusted for comparability purposes. |  |  |  |

9

Corporate Office Properties Trust
Consolidated Reconciliations of AFFO
(in thousands)

| Three Months Ended |  | Years Ended
| 12/31/15 |  | 9/30/15 |  | 6/30/15 |  | 3/31/15 |  | 12/31/14 |  | 12/31/15 |  | 12/31/14
Diluted FFO available to common share and common unit holders, as adjusted for comparability | $ | 50,858 |  |  | $ | 50,684 |  |  | $ | 50,783 |  |  | $ | 43,499 |  |  | $ | 46,191 |  |  | $ | 195,824 |  |  | $ | 173,110 |
Straight line rent adjustments (1) | (2,614 | ) |  | (5,706 | ) |  | (3,788 | ) |  | (1,271 | ) |  | (379 | ) |  | (13,379 | ) |  | (1,820 | )
Straight line rent adjustments on properties conveyed to extinguish debt in default | — |  |  | (19 | ) |  | (24 | ) |  | (72 | ) |  | (47 | ) |  | (115 | ) |  | (142 | )
Amortization of intangibles included in NOI | 365 |  |  | 474 |  |  | 478 |  |  | 111 |  |  | 208 |  |  | 1,428 |  |  | 855 |
Share-based compensation, net of amounts capitalized | 1,625 |  |  | 1,739 |  |  | 1,658 |  |  | 1,552 |  |  | 1,504 |  |  | 6,574 |  |  | 6,067 |
Amortization of deferred financing costs | 1,127 |  |  | 1,203 |  |  | 1,146 |  |  | 990 |  |  | 1,020 |  |  | 4,466 |  |  | 4,666 |
Amortization of deferred financing costs on debt in default extinguished via conveyance of properties | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (333 | )
Amortization of net debt discounts, net of amounts capitalized | 317 |  |  | 321 |  |  | 264 |  |  | 264 |  |  | 261 |  |  | 1,166 |  |  | 920 |
Amortization of settled debt hedges | — |  |  | — |  |  | — |  |  | — |  |  | 11 |  |  | — |  |  | 57 |
Recurring capital expenditures on properties to be held | (20,086 | ) |  | (12,126 | ) |  | (9,705 | ) |  | (7,349 | ) |  | (8,633 | ) |  | (49,266 | ) |  | (50,199 | )
Diluted AFFO available to common share and common unit holders (“diluted AFFO”) | $ | 31,592 |  |  | $ | 36,570 |  |  | $ | 40,812 |  |  | $ | 37,724 |  |  | $ | 40,136 |  |  | $ | 146,698 |  |  | $ | 133,181 |
Recurring capital expenditures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tenant improvements and incentives on operating properties | $ | 6,836 |  |  | $ | 6,374 |  |  | $ | 6,644 |  |  | $ | 4,390 |  |  | $ | 7,239 |  |  | $ | 24,244 |  |  | $ | 29,651 |
Building improvements on operating properties | 16,674 |  |  | 4,223 |  |  | 4,543 |  |  | 3,203 |  |  | 4,974 |  |  | 28,643 |  |  | 23,432 |
Leasing costs for operating properties | 3,518 |  |  | 2,547 |  |  | 1,485 |  |  | 954 |  |  | 1,341 |  |  | 8,504 |  |  | 8,536 |
Less: Nonrecurring tenant improvements and incentives on operating properties | (393 | ) |  | 205 |  |  | (986 | ) |  | (264 | ) |  | (1,747 | ) |  | (1,438 | ) |  | (2,734 | )
Less: Nonrecurring building improvements on operating properties | (6,551 | ) |  | (1,155 | ) |  | (1,298 | ) |  | (875 | ) |  | (3,012 | ) |  | (9,879 | ) |  | (8,281 | )
Less: Nonrecurring leasing costs for operating properties | 2 |  |  | (68 | ) |  | (683 | ) |  | (59 | ) |  | (162 | ) |  | (808 | ) |  | (405 | )
Recurring capital expenditures | $ | 20,086 |  |  | $ | 12,126 |  |  | $ | 9,705 |  |  | $ | 7,349 |  |  | $ | 8,633 |  |  | $ | 49,266 |  |  | $ | 50,199 |
(1) Includes COPT’s pro rata share of straight line rent adjustments from properties held through joint ventures. |  |  |  |

10

Corporate Office Properties Trust
Consolidated Reconciliations of Adjusted EBITDA
(in thousands)

| Three Months Ended |  | Years Ended
| 12/31/15 |  | 9/30/15 |  | 6/30/15 |  | 3/31/15 |  | 12/31/14 |  | 12/31/15 |  | 12/31/14
Net income | $ | 62,617 |  |  | $ | 94,294 |  |  | $ | 17,232 |  |  | $ | 14,735 |  |  | $ | 5,937 |  |  | $ | 188,878 |  |  | $ | 45,206 |
Interest expense on continuing and discontinued operations | 22,347 |  |  | 24,121 |  |  | 21,768 |  |  | 20,838 |  |  | 23,286 |  |  | 89,074 |  |  | 92,393 |
Income tax expense | 46 |  |  | 48 |  |  | 50 |  |  | 55 |  |  | 53 |  |  | 199 |  |  | 310 |
Depreciation of furniture, fixtures and equipment | 597 |  |  | 590 |  |  | 527 |  |  | 492 |  |  | 513 |  |  | 2,206 |  |  | 2,404 |
Real estate-related depreciation and amortization | 36,237 |  |  | 38,403 |  |  | 33,786 |  |  | 31,599 |  |  | 31,358 |  |  | 140,025 |  |  | 136,086 |
Impairment losses | 19,744 |  |  | 2,307 |  |  | 1,239 |  |  | 233 |  |  | 48 |  |  | 23,523 |  |  | 1,419 |
Loss (gain) on early extinguishment of debt on continuing and discont. operations | 402 |  |  | (85,745 | ) |  | (315 | ) |  | 3 |  |  | 9,106 |  |  | (85,655 | ) |  | 9,668 |
Gain on sales of operating properties | (64,047 | ) |  | (15 | ) |  | — |  |  | — |  |  | 2 |  |  | (64,062 | ) |  | (5,117 | )
Gain on sales of non-operational properties | — |  |  | — |  |  | 1 |  |  | (3,986 | ) |  | (43 | ) |  | (3,985 | ) |  | (5,578 | )
Net loss (gain) on investments in unconsolidated entities included in interest and other income | 6 |  |  | 98 |  |  | (52 | ) |  | 75 |  |  | (74 | ) |  | 127 |  |  | 291 |
Business development expenses | 1,512 |  |  | 1,221 |  |  | 1,181 |  |  | 861 |  |  | 669 |  |  | 4,775 |  |  | 2,680 |
Operating property acquisition costs | 32 |  |  | 2,695 |  |  | 361 |  |  | 1,046 |  |  | — |  |  | 4,134 |  |  | — |
EBITDA from properties conveyed to extinguish debt in default | — |  |  | (15 | ) |  | (843 | ) |  | 90 |  |  | (828 | ) |  | (768 | ) |  | (2,091 | )
Demolition costs on redevelopment properties | 225 |  |  | 930 |  |  | 66 |  |  | 175 |  |  | — |  |  | 1,396 |  |  | — |
Executive transition costs | — |  |  | — |  |  | — |  |  | — |  |  | 1,056 |  |  | — |  |  | 1,056 |
Adjusted EBITDA | $ | 79,718 |  |  | $ | 78,932 |  |  | $ | 75,001 |  |  | $ | 66,216 |  |  | $ | 71,083 |  |  | $ | 299,867 |  |  | $ | 278,727 |
Add back: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
General, administrative and leasing expenses on continuing and discontinued operations | 8,497 |  |  | 7,439 |  |  | 7,534 |  |  | 7,891 |  |  | 8,912 |  |  | 31,361 |  |  | 31,794 |
Land carry costs | 752 |  |  | 727 |  |  | 1,015 |  |  | 708 |  |  | 797 |  |  | 3,202 |  |  | 2,893 |
Depreciation of FF&E | (597 | ) |  | (590 | ) |  | (527 | ) |  | (492 | ) |  | (513 | ) |  | (2,206 | ) |  | (2,404 | )
Income from construction contracts and other service operations | (1,075 | ) |  | (926 | ) |  | (879 | ) |  | (826 | ) |  | (1,653 | ) |  | (3,706 | ) |  | (6,690 | )
Interest and other income, excluding net loss/gain on investments in unconsolidated entities | (1,306 | ) |  | (790 | ) |  | (1,190 | ) |  | (1,358 | ) |  | (1,074 | ) |  | (4,644 | ) |  | (5,214 | )
Equity in income of unconsolidated entities | (10 | ) |  | (18 | ) |  | (9 | ) |  | (25 | ) |  | (23 | ) |  | (62 | ) |  | (229 | )
NOI from properties conveyed to extinguish debt in default | — |  |  | 15 |  |  | 843 |  |  | (90 | ) |  | 828 |  |  | 768 |  |  | 2,091 |
Executive transition costs | — |  |  | — |  |  | — |  |  | — |  |  | (1,056 | ) |  | — |  |  | (1,056 | )
NOI from real estate operations | $ | 85,979 |  |  | $ | 84,789 |  |  | $ | 81,788 |  |  | $ | 72,024 |  |  | $ | 77,301 |  |  | $ | 324,580 |  |  | $ | 299,912 |
Adjusted EBITDA | $ | 79,718 |  |  | $ | 78,932 |  |  | $ | 75,001 |  |  | $ | 66,216 |  |  | $ | 71,083 |  |  |  |  |
Proforma NOI adjustment for mid-period property changes | (1,738 | ) |  | 1,309 |  |  | 509 |  |  | 1,573 |  |  | — |  |  |  |  |
In-place adjusted EBITDA | $ | 77,980 |  |  | $ | 80,241 |  |  | $ | 75,510 |  |  | $ | 67,789 |  |  | $ | 71,083 |  |  |  |  |

11

Corporate Office Properties Trust
Consolidated Office Properties by Segment (1) - 12/31/2015
(square feet in thousands)

|  | Operational Properties (5) |  | Construction/Redevelopment (6)
|  | # of Properties |  | Operational Square Feet |  | Occupancy % |  | Leased % |  | # of Properties |  | Construction/Redevelopment Square Feet |  | Operational Square Feet (5) |  | Total Square Feet
Core Portfolio: (2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Defense IT Locations: (3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fort Meade/Baltimore Washington (“BW”) Corridor: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
National Business Park |  | 29 |  |  | 3,485 |  |  | 97.4 | % |  | 98.3 | % |  | 2 |  |  | 336 |  |  | — |  |  | 336 |
Howard County |  | 33 |  |  | 2,695 |  |  | 94.6 | % |  | 95.0 | % |  | 2 |  |  | 74 |  |  | — |  |  | 74 |
Other |  | 28 |  |  | 1,998 |  |  | 89.5 | % |  | 89.7 | % |  | 3 |  |  | 114 |  |  | 88 |  |  | 202 |
Total Fort Meade/BW Corridor |  | 90 |  |  | 8,178 |  |  | 94.5 | % |  | 95.1 | % |  | 7 |  |  | 524 |  |  | 88 |  |  | 612 |
Northern Virginia (“NoVA”) Defense/IT |  | 13 |  |  | 1,934 |  |  | 81.9 | % |  | 87.1 | % |  | 2 |  |  | 401 |  |  | — |  |  | 401 |
Lackland AFB (San Antonio, Texas) |  | 7 |  |  | 953 |  |  | 100.0 | % |  | 100.0 | % |  | — |  |  | — |  |  | — |  |  | — |
Navy Support |  | 21 |  |  | 1,262 |  |  | 72.1 | % |  | 73.9 | % |  | — |  |  | — |  |  | — |  |  | — |
Redstone Arsenal (Huntsville, Alabama) |  | 6 |  |  | 632 |  |  | 97.0 | % |  | 98.9 | % |  | 1 |  |  | 19 |  |  | — |  |  | 19 |
Data Center Shells |  | 9 |  |  | 1,415 |  |  | 100.0 | % |  | 100.0 | % |  | 3 |  |  | 447 |  |  | — |  |  | 447 |
Total Defense/IT Locations |  | 146 |  |  | 14,374 |  |  | 91.9 | % |  | 93.1 | % |  | 13 |  |  | 1,391 |  |  | 88 |  |  | 1,479 |
Regional Office (4) |  | 11 |  |  | 2,664 |  |  | 97.1 | % |  | 98.0 | % |  | — |  |  | — |  |  | — |  |  | — |
Core Portfolio |  | 157 |  |  | 17,038 |  |  | 92.7 | % |  | 93.9 | % |  | 13 |  |  | 1,391 |  |  | 88 |  |  | 1,479 |
Properties Held for Sale |  | 15 |  |  | 658 |  |  | 84.7 | % |  | 85.2 | % |  | — |  |  | — |  |  | — |  |  | — |
Other Properties |  | 5 |  |  | 357 |  |  | 51.8 | % |  | 51.8 | % |  | — |  |  | — |  |  | — |  |  | — |
Total Portfolio |  | 177 |  |  | 18,053 |  |  | 91.6 | % |  | 92.7 | % |  | 13 |  |  | 1,391 |  |  | 88 |  |  | 1,479 |

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

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

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

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

(5) | Number of properties includes buildings under construction or redevelopment once those buildings become partially operational. Operational square feet includes square feet in operations for a partially operational property; NOI for this property was $573,000 and cash NOI was $91,000 for the three months ended 12/31/15.

(6) | This schedule includes properties under, or contractually committed for, construction or redevelopment as of 12/31/15 and an additional property (DC-17) that became 100% leased on 1/8/16. Please refer to pages 24 and 25.

12

Corporate Office Properties Trust
NOI from Real Estate Operations and Occupancy by Property Grouping
(dollars and square feet in thousands)

|  | 12/31/15 |  |  |  |
|  | # of Operating Office Properties |  | Office Operational Square Feet |  |  |  |  |  | Office Property Annualized Rental Revenue (2) |  | Percentage of Total Office Annualized Rental Revenue |  | NOI from Real Estate Operations for Three Months Ended |  | NOI from Real Estate Operations for Year Ended
Property Grouping |  |  |  | % Occupied (1) |  | % Leased (1) |  |  |  | 12/31/15 |  | 12/31/15
Core Portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same Office Properties (3) |  | 140 |  |  | 14,133 |  |  | 91.9% |  | 93.3% |  | $ | 398,155 |  |  | 81.5 | % |  | $ | 64,437 |  |  | $ | 253,739 |
Office Properties Placed in Service (4) |  | 14 |  |  | 1,746 |  |  | 96.5% |  | 96.7% |  | 40,430 |  |  | 8.3 | % |  | 7,867 |  |  | 23,891 |
Acquired Office Properties (5) |  | 3 |  |  | 1,159 |  |  | 96.7% |  | 96.7% |  | 32,960 |  |  | 6.7 | % |  | 5,050 |  |  | 11,957 |
Wholesale Data Center and Other |  | N/A |  |  | N/A |  |  | N/A |  | N/A |  | N/A |  |  | N/A |  |  | 4,220 |  |  | 9,188 |
Total Core Portfolio |  | 157 |  |  | 17,038 |  |  | 92.7% |  | 93.9% |  | 471,545 |  |  | 96.5 | % |  | 81,574 |  |  | 298,775 |
Office Properties Held for Sale (6) |  | 15 |  |  | 658 |  |  | 84.7% |  | 85.2% |  | 12,251 |  |  | 2.5 | % |  | 2,020 |  |  | 7,681 |
Disposed Office Properties |  | N/A |  |  | N/A |  |  | N/A |  | N/A |  | NA |  |  | N/A |  |  | 1,770 |  |  | 15,262 |
Other Office Properties (Same Office) |  | 5 |  |  | 357 |  |  | 51.8% |  | 51.8% |  | 4,866 |  |  | 1.0 | % |  | 615 |  |  | 2,862 |
Total Portfolio |  | 177 |  |  | 18,053 |  |  | 91.6% |  | 92.7% |  | $ | 488,662 |  |  | 100.0 | % |  | $ | 85,979 |  |  | $ | 324,580 |
|  | 12/31/15 |  |  |  |
|  | # of Operating Office Properties |  | Office Operational Square Feet |  |  |  |  |  | Office Property Annualized Rental Revenue (2) |  | Percentage of Core Portfolio Annualized Rental Revenue |  | NOI from Real Estate Operations for Three Months Ended |  | NOI from Real Estate Operations for Year Ended
Property Grouping |  |  |  | % Occupied (1) |  | % Leased (1) |  |  |  | 12/31/15 |  | 12/31/15
Core Portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations |  | 146 |  |  | 14,374 |  |  | 91.9% |  | 93.1% |  | 394,974 |  |  | 83.8 | % |  | 65,414 |  |  | 249,057 |
Regional Office |  | 11 |  |  | 2,664 |  |  | 97.1% |  | 98.0% |  | 76,571 |  |  | 16.2 | % |  | 12,001 |  |  | 40,729 |
Wholesale Data Center and Other |  | N/A |  |  | N/A |  |  | N/A |  | N/A |  | NA |  |  | NA |  |  | 4,159 |  |  | 8,989 |
Total Core Portfolio |  | 157 |  |  | 17,038 |  |  | 92.7% |  | 93.9% |  | $ | 471,545 |  |  | 100.0 | % |  | $ | 81,574 |  |  | $ | 298,775 |

(1) | Percentages calculated based on operational square feet.

(2) | Excludes annualized rental revenue from our wholesale data center, DC-6, of $21,939 as of 12/31/15.

(3) | Properties held for long-term investment owned and 100% operational since at least 1/1/14.

(4) | Newly constructed or redeveloped properties placed in service that were not fully operational by 1/1/14.

(5) | Includes properties acquired in March, April and August of 2015.

(6) | The carrying value of operating property assets held for sale as of 12/31/15 totaled $78,882.

13

Corporate Office Properties Trust
Real Estate Revenues, NOI and Cash NOI* by Segment
(dollars in thousands)

| Three Months Ended |  | Years Ended
| 12/31/15 |  | 9/30/15 |  | 6/30/15 |  | 3/31/15 |  | 12/31/14 |  | 12/31/15 |  | 12/31/14
Real estate revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |  |  |  |  |  |
Fort Meade/BW Corridor | $ | 61,683 |  |  | $ | 61,400 |  |  | $ | 60,007 |  |  | $ | 61,184 |  |  | $ | 58,133 |  |  | $ | 244,274 |  |  | $ | 233,764 |
NoVA Defense/IT | 11,816 |  |  | 12,875 |  |  | 13,462 |  |  | 11,046 |  |  | 11,280 |  |  | 49,199 |  |  | 48,313 |
Lackland Air Force Base | 12,233 |  |  | 9,018 |  |  | 9,743 |  |  | 8,665 |  |  | 9,635 |  |  | 39,659 |  |  | 34,463 |
Navy Support | 6,840 |  |  | 6,886 |  |  | 7,186 |  |  | 7,265 |  |  | 7,670 |  |  | 28,177 |  |  | 31,335 |
Redstone Arsenal | 3,063 |  |  | 3,061 |  |  | 2,658 |  |  | 2,446 |  |  | 3,016 |  |  | 11,228 |  |  | 10,446 |
Data Center Shells | 5,930 |  |  | 5,665 |  |  | 5,037 |  |  | 5,114 |  |  | 4,900 |  |  | 21,746 |  |  | 18,421 |
Total Defense/IT locations | 101,565 |  |  | 98,905 |  |  | 98,093 |  |  | 95,720 |  |  | 94,634 |  |  | 394,283 |  |  | 376,742 |
Regional Office | 25,023 |  |  | 26,782 |  |  | 24,400 |  |  | 21,960 |  |  | 21,371 |  |  | 98,165 |  |  | 85,025 |
Wholesale Data Center | 6,099 |  |  | 6,078 |  |  | 3,820 |  |  | 3,035 |  |  | 2,661 |  |  | 19,032 |  |  | 10,430 |
Other | 1,790 |  |  | 1,921 |  |  | 1,882 |  |  | 1,995 |  |  | 1,945 |  |  | 7,588 |  |  | 7,514 |
Real estate revenues | $ | 134,477 |  |  | $ | 133,686 |  |  | $ | 128,195 |  |  | $ | 122,710 |  |  | $ | 120,611 |  |  | $ | 519,068 |  |  | $ | 479,711 |
NOI |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |  |  |  |  |  |
Fort Meade/BW Corridor | $ | 41,476 |  |  | $ | 41,294 |  |  | $ | 40,527 |  |  | $ | 37,668 |  |  | $ | 39,472 |  |  | $ | 160,965 |  |  | $ | 152,940 |
NoVA Defense/IT | 7,829 |  |  | 7,725 |  |  | 8,108 |  |  | 5,430 |  |  | 7,022 |  |  | 29,092 |  |  | 29,242 |
Lackland Air Force Base | 4,894 |  |  | 4,465 |  |  | 4,394 |  |  | 3,902 |  |  | 3,713 |  |  | 17,655 |  |  | 14,786 |
Navy Support | 3,686 |  |  | 3,599 |  |  | 3,796 |  |  | 3,867 |  |  | 4,507 |  |  | 14,948 |  |  | 18,759 |
Redstone Arsenal | 2,171 |  |  | 2,173 |  |  | 1,770 |  |  | 1,617 |  |  | 2,225 |  |  | 7,731 |  |  | 7,380 |
Data Center Shells | 5,358 |  |  | 5,133 |  |  | 4,538 |  |  | 4,419 |  |  | 4,231 |  |  | 19,448 |  |  | 16,149 |
Total Defense/IT locations | 65,414 |  |  | 64,389 |  |  | 63,133 |  |  | 56,903 |  |  | 61,170 |  |  | 249,839 |  |  | 239,256 |
Regional Office | 15,608 |  |  | 17,186 |  |  | 15,994 |  |  | 13,212 |  |  | 14,037 |  |  | 62,000 |  |  | 53,598 |
Wholesale Data Center | 4,138 |  |  | 2,070 |  |  | 1,599 |  |  | 823 |  |  | 997 |  |  | 8,630 |  |  | 3,144 |
Other | 819 |  |  | 1,144 |  |  | 1,062 |  |  | 1,086 |  |  | 1,097 |  |  | 4,111 |  |  | 3,914 |
NOI from real estate operations | $ | 85,979 |  |  | $ | 84,789 |  |  | $ | 81,788 |  |  | $ | 72,024 |  |  | $ | 77,301 |  |  | $ | 324,580 |  |  | $ | 299,912 |
Cash NOI |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |  |  |  |  |  |
Fort Meade/BW Corridor | $ | 40,475 |  |  | $ | 40,414 |  |  | $ | 41,727 |  |  | $ | 37,458 |  |  | $ | 39,541 |  |  | $ | 160,074 |  |  | $ | 149,644 |
NoVA Defense/IT | 8,070 |  |  | 6,804 |  |  | 6,448 |  |  | 4,665 |  |  | 7,196 |  |  | 25,987 |  |  | 29,766 |
Lackland Air Force Base | 4,745 |  |  | 3,680 |  |  | 3,222 |  |  | 3,446 |  |  | 3,613 |  |  | 15,093 |  |  | 14,097 |
Navy Support | 3,597 |  |  | 3,565 |  |  | 3,579 |  |  | 3,832 |  |  | 4,450 |  |  | 14,573 |  |  | 18,272 |
Redstone Arsenal | 2,267 |  |  | 1,881 |  |  | 1,832 |  |  | 1,848 |  |  | 2,280 |  |  | 7,828 |  |  | 7,986 |
Data Center Shells | 5,024 |  |  | 4,802 |  |  | 3,831 |  |  | 4,525 |  |  | 4,161 |  |  | 18,182 |  |  | 20,827 |
Total Defense/IT locations | 64,178 |  |  | 61,146 |  |  | 60,639 |  |  | 55,774 |  |  | 61,241 |  |  | 241,737 |  |  | 240,592 |
Regional Office | 15,161 |  |  | 15,939 |  |  | 14,966 |  |  | 13,622 |  |  | 14,208 |  |  | 59,688 |  |  | 52,986 |
Wholesale Data Center | 4,011 |  |  | 1,952 |  |  | 2,206 |  |  | 825 |  |  | 984 |  |  | 8,994 |  |  | 3,041 |
Other | 837 |  |  | 1,117 |  |  | 1,101 |  |  | 1,057 |  |  | 1,106 |  |  | 4,112 |  |  | 3,756 |
Cash NOI from real estate operations | $ | 84,187 |  |  | $ | 80,154 |  |  | $ | 78,912 |  |  | $ | 71,278 |  |  | $ | 77,539 |  |  | $ | 314,531 |  |  | $ | 300,375 |
Straight line rent adjustments | 2,254 |  |  | 5,217 |  |  | 3,446 |  |  | 941 |  |  | 56 |  |  | 11,858 |  |  | 737 |
Add: Amortization of deferred market rental revenue | (178 | ) |  | (293 | ) |  | (308 | ) |  | 59 |  |  | 4 |  |  | (720 | ) |  | (7 | )
Less: Amortization of below-market cost arrangements | (284 | ) |  | (289 | ) |  | (262 | ) |  | (254 | ) |  | (298 | ) |  | (1,089 | ) |  | (1,193 | )
NOI from real estate operations | $ | 85,979 |  |  | $ | 84,789 |  |  | $ | 81,788 |  |  | $ | 72,024 |  |  | $ | 77,301 |  |  | $ | 324,580 |  |  | $ | 299,912 |

* Includes continuing and discontinued operations.
14

Corporate Office Properties Trust
Same Office Properties (1) Average Occupancy Rates by Segment
(square feet in thousands)

| Number of Buildings |  | Rentable Square Feet |  | Three Months Ended |  | Years Ended
|  |  | 12/31/15 |  | 9/30/15 |  | 6/30/15 |  | 3/31/15 |  | 12/31/14 |  | 12/31/15 |  | 12/31/14
Core Portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fort Meade/BW Corridor | 87 |  |  | 7,826 |  |  | 94.7 | % |  | 94.2 | % |  | 94.5 | % |  | 93.9 | % |  | 93.7 | % |  | 94.3 | % |  | 93.5 | %
NoVA Defense/IT | 11 |  |  | 1,537 |  |  | 77.2 | % |  | 76.5 | % |  | 76.7 | % |  | 76.1 | % |  | 81.9 | % |  | 76.6 | % |  | 83.0 | %
Lackland Air Force Base | 6 |  |  | 792 |  |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | %
Navy Support | 20 |  |  | 1,233 |  |  | 73.9 | % |  | 73.3 | % |  | 77.8 | % |  | 82.0 | % |  | 86.1 | % |  | 76.7 | % |  | 86.9 | %
Redstone Arsenal | 4 |  |  | 442 |  |  | 94.5 | % |  | 93.0 | % |  | 87.4 | % |  | 79.4 | % |  | 78.8 | % |  | 88.6 | % |  | 80.6 | %
Data Center Shells | 5 |  |  | 885 |  |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | %
Total Defense/IT Locations | 133 |  |  | 12,715 |  |  | 91.2 | % |  | 90.8 | % |  | 91.2 | % |  | 90.9 | % |  | 91.8 | % |  | 91.0 | % |  | 92.0 | %
Regional Office | 7 |  |  | 1,418 |  |  | 96.9 | % |  | 96.3 | % |  | 95.7 | % |  | 94.8 | % |  | 95.2 | % |  | 95.9 | % |  | 92.0 | %
Core Portfolio Same Office Properties | 140 |  |  | 14,133 |  |  | 91.8 | % |  | 91.3 | % |  | 91.6 | % |  | 91.3 | % |  | 92.2 | % |  | 91.5 | % |  | 92.0 | %
Other Same Office Properties | 5 |  |  | 357 |  |  | 51.6 | % |  | 52.6 | % |  | 57.0 | % |  | 56.8 | % |  | 56.8 | % |  | 54.5 | % |  | 52.8 | %
Total Same Office Properties | 145 |  |  | 14,490 |  |  | 90.8 | % |  | 90.4 | % |  | 90.8 | % |  | 90.4 | % |  | 91.3 | % |  | 90.6 | % |  | 91.1 | %
Corporate Office Properties Trust Same Office Properties (1) Period End Occupancy Rates by Segment (square feet in thousands)
| Number of Buildings |  | Rentable Square Feet |  |  |  |
|  |  | 12/31/15 |  | 9/30/15 |  | 6/30/15 |  | 3/31/15 |  | 12/31/14 |  |  |  |
Core Portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fort Meade/BW Corridor | 87 |  |  | 7,826 |  |  | 94.7 | % |  | 94.2 | % |  | 94.7 | % |  | 94.0 | % |  | 93.9 | % |  |  |  |
NoVA Defense/IT | 11 |  |  | 1,537 |  |  | 77.3 | % |  | 77.3 | % |  | 77.4 | % |  | 76.1 | % |  | 75.7 | % |  |  |  |
Lackland Air Force Base | 6 |  |  | 792 |  |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  |  |  |
Navy Support | 20 |  |  | 1,233 |  |  | 73.8 | % |  | 73.1 | % |  | 77.4 | % |  | 81.9 | % |  | 86.0 | % |  |  |  |
Redstone Arsenal | 4 |  |  | 442 |  |  | 95.8 | % |  | 93.8 | % |  | 91.3 | % |  | 79.4 | % |  | 75.6 | % |  |  |  |
Data Center Shells | 5 |  |  | 885 |  |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  |  |  |
Total Defense/IT Locations | 133 |  |  | 12,715 |  |  | 91.3 | % |  | 90.9 | % |  | 91.5 | % |  | 90.9 | % |  | 91.1 | % |  |  |  |
Regional Office | 7 |  |  | 12,715 |  |  | 91.3 | % |  | 96.3 | % |  | 95.9 | % |  | 95.4 | % |  | 95.2 | % |  |  |  |
Core Portfolio Same Office Properties | 140 |  |  | 14,133 |  |  | 91.9 | % |  | 91.4 | % |  | 91.9 | % |  | 91.4 | % |  | 91.5 | % |  |  |  |
Other Same Office Properties | 5 |  |  | 357 |  |  | 51.8 | % |  | 51.3 | % |  | 57.4 | % |  | 56.8 | % |  | 56.8 | % |  |  |  |
Total Same Office Properties | 145 |  |  | 14,490 |  |  | 90.9 | % |  | 90.4 | % |  | 91.1 | % |  | 90.5 | % |  | 90.6 | % |  |  |  |

(1) Same office properties represent buildings owned and 100% operational since at least January 1, 2014, excluding properties held for future disposition.

15

Corporate Office Properties Trust
Same Office Property Real Estate Revenues, NOI and Cash NOI(1) by Segment
(dollars in thousands)

| Three Months Ended |  | Years Ended
| 12/31/15 |  | 9/30/15 |  | 6/30/15 |  | 3/31/15 |  | 12/31/14 |  | 12/31/15 |  | 12/31/14
Same office property real estate revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |  |  |  |  |  |
Fort Meade/BW Corridor | $ | 58,931 |  |  | $ | 58,965 |  |  | $ | 58,234 |  |  | $ | 59,448 |  |  | $ | 56,538 |  |  | $ | 235,578 |  |  | $ | 230,067 |
NoVA Defense/IT | 8,450 |  |  | 8,359 |  |  | 8,381 |  |  | 8,516 |  |  | 9,170 |  |  | 33,706 |  |  | 36,950 |
Lackland Air Force Base | 10,564 |  |  | 7,912 |  |  | 8,670 |  |  | 8,307 |  |  | 9,634 |  |  | 35,453 |  |  | 34,462 |
Navy Support | 6,840 |  |  | 6,887 |  |  | 7,185 |  |  | 7,265 |  |  | 7,670 |  |  | 28,177 |  |  | 31,335 |
Redstone Arsenal | 2,113 |  |  | 2,111 |  |  | 1,951 |  |  | 1,799 |  |  | 1,856 |  |  | 7,974 |  |  | 7,824 |
Data Center Shells | 4,390 |  |  | 4,423 |  |  | 4,350 |  |  | 4,530 |  |  | 4,525 |  |  | 17,693 |  |  | 17,817 |
Total Defense/IT Locations | 91,288 |  |  | 88,657 |  |  | 88,771 |  |  | 89,865 |  |  | 89,393 |  |  | 358,581 |  |  | 358,455 |
Regional Office | 11,025 |  |  | 11,716 |  |  | 11,189 |  |  | 11,349 |  |  | 11,587 |  |  | 45,279 |  |  | 43,491 |
Other Properties | 1,246 |  |  | 1,349 |  |  | 1,322 |  |  | 1,395 |  |  | 1,379 |  |  | 5,312 |  |  | 5,214 |
Same office property real estate revenues | $ | 103,559 |  |  | $ | 101,722 |  |  | $ | 101,282 |  |  | $ | 102,609 |  |  | $ | 102,359 |  |  | $ | 409,172 |  |  | $ | 407,160 |
Same office property NOI |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |  |  |  |  |  |
Fort Meade/BW Corridor | $ | 39,354 |  |  | $ | 39,391 |  |  | $ | 38,967 |  |  | $ | 36,575 |  |  | $ | 38,295 |  |  | $ | 154,287 |  |  | $ | 150,615 |
NoVA Defense/IT | 5,378 |  |  | 5,281 |  |  | 5,176 |  |  | 4,923 |  |  | 6,194 |  |  | 20,758 |  |  | 23,577 |
Lackland Air Force Base | 3,746 |  |  | 3,672 |  |  | 3,689 |  |  | 3,702 |  |  | 3,712 |  |  | 14,809 |  |  | 14,785 |
Navy Support | 3,706 |  |  | 3,604 |  |  | 3,770 |  |  | 3,893 |  |  | 4,513 |  |  | 14,973 |  |  | 18,811 |
Redstone Arsenal | 1,470 |  |  | 1,442 |  |  | 1,266 |  |  | 1,140 |  |  | 1,230 |  |  | 5,318 |  |  | 5,329 |
Data Center Shells | 3,959 |  |  | 3,980 |  |  | 3,959 |  |  | 3,938 |  |  | 3,935 |  |  | 15,836 |  |  | 15,665 |
Total Defense/IT Locations | 57,613 |  |  | 57,370 |  |  | 56,827 |  |  | 54,171 |  |  | 57,879 |  |  | 225,981 |  |  | 228,782 |
Regional Office | 6,824 |  |  | 7,463 |  |  | 6,730 |  |  | 6,741 |  |  | 7,170 |  |  | 27,758 |  |  | 25,984 |
Other Properties | 615 |  |  | 823 |  |  | 771 |  |  | 653 |  |  | 854 |  |  | 2,862 |  |  | 2,977 |
Same office property NOI | $ | 65,052 |  |  | $ | 65,656 |  |  | $ | 64,328 |  |  | $ | 61,565 |  |  | $ | 65,903 |  |  | $ | 256,601 |  |  | $ | 257,743 |
Same office property cash NOI (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |  |  |  |  |  |
Fort Meade/BW Corridor | $ | 38,906 |  |  | $ | 39,237 |  |  | $ | 37,994 |  |  | $ | 35,698 |  |  | $ | 36,535 |  |  | $ | 151,835 |  |  | $ | 145,537 |
NoVA Defense/IT | 5,229 |  |  | 5,023 |  |  | 4,915 |  |  | 4,678 |  |  | 5,833 |  |  | 19,845 |  |  | 23,181 |
Lackland Air Force Base | 3,748 |  |  | 3,573 |  |  | 3,591 |  |  | 3,603 |  |  | 3,614 |  |  | 14,515 |  |  | 14,098 |
Navy Support | 3,617 |  |  | 3,570 |  |  | 3,552 |  |  | 3,853 |  |  | 4,281 |  |  | 14,592 |  |  | 18,098 |
Redstone Arsenal | 1,521 |  |  | 1,294 |  |  | 1,242 |  |  | 1,231 |  |  | 1,268 |  |  | 5,288 |  |  | 5,696 |
Data Center Shells | 3,802 |  |  | 3,793 |  |  | 3,770 |  |  | 3,727 |  |  | 3,701 |  |  | 15,092 |  |  | 14,567 |
Total Defense/IT Locations | 56,823 |  |  | 56,490 |  |  | 55,064 |  |  | 52,790 |  |  | 55,232 |  |  | 221,167 |  |  | 221,177 |
Regional Office | 7,208 |  |  | 7,052 |  |  | 6,543 |  |  | 6,366 |  |  | 6,974 |  |  | 27,169 |  |  | 25,231 |
Other Properties | 620 |  |  | 833 |  |  | 827 |  |  | 646 |  |  | 883 |  |  | 2,926 |  |  | 2,997 |
Same office property cash NOI | $ | 64,651 |  |  | $ | 64,375 |  |  | $ | 62,434 |  |  | $ | 59,802 |  |  | $ | 63,089 |  |  | $ | 251,262 |  |  | $ | 249,405 |
Straight line rent adjustments | (339 | ) |  | 946 |  |  | 1,117 |  |  | 1,216 |  |  | 2,293 |  |  | 2,940 |  |  | 3,725 |
Add: Amortization of deferred market rental revenue | 28 |  |  | 16 |  |  | 15 |  |  | 39 |  |  | (16 | ) |  | 98 |  |  | (89 | )
Less: Amortization of below-market cost arrangements | (251 | ) |  | (256 | ) |  | (250 | ) |  | (245 | ) |  | (288 | ) |  | (1,002 | ) |  | (1,154 | )
Add: Lease termination fee, gross | 416 |  |  | 185 |  |  | 1,012 |  |  | 753 |  |  | 741 |  |  | 2,366 |  |  | 1,618 |
Add: Cash NOI on tenant-funded landlord assets | 547 |  |  | 390 |  |  | — |  |  | — |  |  | 84 |  |  | 937 |  |  | 4,238 |
Same office property NOI | $ | 65,052 |  |  | $ | 65,656 |  |  | $ | 64,328 |  |  | $ | 61,565 |  |  | $ | 65,903 |  |  | $ | 256,601 |  |  | $ | 257,743 |
Percentage change in same office property cash NOI (2) | 2.48 | % |  |  |  |  |  |  |  |  |  | 0.74 | % |  |

(1) | In addition to excluding the effects of noncash rental revenues and property operating expenses, same office property cash NOI also excludes the effects of gross lease termination fees and revenue recognized as a result of tenant-funded landlord assets.

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

16

Corporate Office Properties Trust
Leasing - Total Office Portfolio
Quarter Ended December 31, 2015
(square feet in thousands)

| Ft Meade/BW Corridor |  | NoVA Defense/IT |  | Navy Support |  | Redstone Arsenal |  | Regional Office |  | Other |  | Total Office
Renewed Space |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Leased Square Feet | 331 |  |  | 26 |  |  | 39 |  |  | — |  |  | 24 |  |  | — |  |  | 419 |
Expiring Square Feet | 346 |  |  | 28 |  |  | 53 |  |  | — |  |  | 41 |  |  | — |  |  | 468 |
Vacated Square Feet | 15 |  |  | 2 |  |  | 13 |  |  | — |  |  | 17 |  |  | — |  |  | 48 |
Retention Rate (% based upon square feet) | 95.6 | % |  | 92.4 | % |  | 74.6 | % |  | — | % |  | 57.5 | % |  | 0.0 | % |  | 89.7 | %
Statistics for Completed Leasing: |  |  |  |  |  |  |  |  |  |  |  |  |
Average Committed Cost per Square Foot | $ | 14.15 |  |  | $ | 18.63 |  |  | $ | 18.26 |  |  | $ | — |  |  | $ | 7.97 |  |  | $ | — |  |  | $ | 14.46 |
Weighted Average Lease Term in Years | 4.6 |  |  | 7.0 |  |  | 4.4 |  |  | — |  |  | 3.3 |  |  | — |  |  | 4.7 |
GAAP Rent Per Square Foot |  |  |  |  |  |  |  |  |  |  |  |  |
Renewal GAAP Rent | $ | 31.96 |  |  | $ | 30.81 |  |  | $ | 27.86 |  |  | $ | — |  |  | $ | 27.06 |  |  | $ | — |  |  | $ | 31.23 |
Expiring GAAP Rent | $ | 27.03 |  |  | $ | 28.98 |  |  | $ | 30.19 |  |  | $ | — |  |  | $ | 27.24 |  |  | $ | — |  |  | $ | 27.46 |
Change in GAAP Rent | 18.3 | % |  | 6.3 | % |  | (7.7 | )% |  | — | % |  | (0.7 | )% |  | 0.00 | % |  | 13.8 | %
Cash Rent Per Square Foot |  |  |  |  |  |  |  |  |  |  |  |  |
Renewal Cash Rent | $ | 30.70 |  |  | $ | 30.00 |  |  | $ | 28.34 |  |  | $ | — |  |  | $ | 26.63 |  |  | $ | — |  |  | $ | 30.20 |
Expiring Cash Rent | $ | 30.46 |  |  | $ | 31.44 |  |  | $ | 32.38 |  |  | $ | — |  |  | $ | 26.70 |  |  | $ | — |  |  | $ | 30.48 |
Change in Cash Rent | 0.8 | % |  | (4.6 | )% |  | (12.5 | )% |  | — | % |  | (0.3 | )% |  | 0.00 | % |  | (0.9 | )%
Average escalations per year | 3.0 | % |  | 2.8 | % |  | 2.7 | % |  | — | % |  | 0.6 | % |  | — | % |  | 2.8 | %
New Leases |  |  |  |  |  |  |  |  |  |  |  |  |
Development and Redevelopment Space |  |  |  |  |  |  |  |  |  |  |  |  |
Leased Square Feet | 89 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 89 |
Statistics for Completed Leasing: |  |  |  |  |  |  |  |  |  |  |  |  |
Average Committed Cost per Square Foot | $ | 68.86 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 68.86 |
Weighted Average Lease Term in Years | 9.7 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 9.7 |
GAAP Rent Per Square Foot | $ | 37.92 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 37.92 |
Cash Rent Per Square Foot | $ | 34.71 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 34.71 |
Other New Leases (1) |  |  |  |  |  |  |  |  |  |  |  |  |
Leased Square Feet | 26 |  |  | 69 |  |  | 21 |  |  | 20 |  |  | 15 |  |  | 7 |  |  | 158 |
Statistics for Completed Leasing: |  |  |  |  |  |  |  |  |  |  |  |  |
Average Committed Cost per Square Foot | $ | 54.24 |  |  | $ | 73.02 |  |  | $ | 45.77 |  |  | $ | 54.28 |  |  | $ | 46.04 |  |  | $ | 2.57 |  |  | $ | 58.20 |
Weighted Average Lease Term in Years | 7.0 |  |  | 9.6 |  |  | 4.7 |  |  | 5.2 |  |  | 4.7 |  |  | 2.0 |  |  | 7.2 |
GAAP Rent Per Square Foot | $ | 29.59 |  |  | $ | 27.28 |  |  | $ | 34.20 |  |  | $ | 22.74 |  |  | $ | 28.91 |  |  | $ | 26.90 |  |  | $ | 28.14 |
Cash Rent Per Square Foot | $ | 28.38 |  |  | $ | 26.51 |  |  | $ | 34.80 |  |  | $ | 22.28 |  |  | $ | 29.37 |  |  | $ | 26.50 |  |  | $ | 27.65 |
Total Square Feet Leased | 446 |  |  | 95 |  |  | 60 |  |  | 20 |  |  | 39 |  |  | 7 |  |  | 666 |
Average escalations per year | 2.8 | % |  | 2.6 | % |  | 2.7 | % |  | 2.8 | % |  | 1.5 | % |  | 3.0 | % |  | 2.7 | %

(1) Other New Leases includes acquired first generation space and vacated second generation space.
Notes: No expiration, renewal or retenanting activity transpired in our Lackland Air Force Base and Data Center Shells segments.
Activity is exclusive of owner occupied space and leases with less than a one-year term. Weighted average lease term was calculated assuming no exercise of any existing early termination rights. Committed costs for leasing are reported above in the period of lease execution. Actual capital expenditures for leasing are reported on page 10 in the period such costs are incurred.
17

Corporate Office Properties Trust
Leasing - Total Office Portfolio
Year Ended December 31, 2015
(square feet in thousands)

| Ft Meade/BW Corridor |  | NoVA Defense/IT |  | Navy Support |  | Redstone Arsenal |  | Data Center Shells |  | Regional Office |  | Other |  | Total Office
Renewed Space |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Leased Square Feet | 627 |  |  | 84 |  |  | 267 |  |  | — |  |  | — |  |  | 246 |  |  | 34 |  |  | 1,258 |
Expiring Square Feet | 813 |  |  | 126 |  |  | 454 |  |  | 11 |  |  | — |  |  | 321 |  |  | 56 |  |  | 1,781 |
Vacated Square Feet | 186 |  |  | 41 |  |  | 188 |  |  | 11 |  |  | — |  |  | 75 |  |  | 22 |  |  | 523 |
Retention Rate (% based upon square feet) | 77.1 | % |  | 67.1 | % |  | 58.7 | % |  | 0.0 | % |  | — | % |  | 76.7 | % |  | 60.7 | % |  | 70.6 | %
Statistics for Completed Leasing: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Average Committed Cost per Square Foot | $ | 13.22 |  |  | $ | 20.81 |  |  | $ | 9.05 |  |  | $ | — |  |  | $ | — |  |  | $ | 12.22 |  |  | $ | 10.76 |  |  | $ | 12.58 |
Weighted Average Lease Term in Years | 4.5 |  |  | 5.6 |  |  | 3.3 |  |  | — |  |  | — |  |  | 4.6 |  |  | 3.1 |  |  | 4.3 |
GAAP Rent Per Square Foot |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Renewal GAAP Rent | $ | 27.72 |  |  | $ | 27.82 |  |  | $ | 25.09 |  |  | $ | — |  |  | $ | — |  |  | $ | 28.05 |  |  | $ | 21.43 |  |  | $ | 27.06 |
Expiring GAAP Rent | $ | 24.73 |  |  | $ | 27.37 |  |  | $ | 26.03 |  |  | $ | — |  |  | $ | — |  |  | $ | 26.78 |  |  | $ | 18.59 |  |  | $ | 25.42 |
Change in GAAP Rent | 12.1 | % |  | 1.7 | % |  | (3.6 | )% |  | 0.0 | % |  | — | % |  | 4.8 | % |  | 15.3 | % |  | 6.5 | %
Cash Rent Per Square Foot |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Renewal Cash Rent | $ | 27.10 |  |  | $ | 28.79 |  |  | $ | 25.42 |  |  | $ | — |  |  | $ | — |  |  | $ | 27.32 |  |  | $ | 20.43 |  |  | $ | 26.72 |
Expiring Cash Rent | $ | 27.40 |  |  | $ | 31.01 |  |  | $ | 27.09 |  |  | $ | — |  |  | $ | — |  |  | $ | 27.78 |  |  | $ | 19.65 |  |  | $ | 27.44 |
Change in Cash Rent | (1.1 | )% |  | (7.2 | )% |  | (6.2 | )% |  | — | % |  | — | % |  | (1.7 | )% |  | 3.9 | % |  | (2.6 | )%
Average escalations per year | 2.8 | % |  | 2.7 | % |  | 2.8 | % |  | — | % |  | — | % |  | 2.6 | % |  | 3.2 | % |  | 2.7 | %
New Leases |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Development and Redevelopment Space |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Leased Square Feet | 104 |  |  | 28 |  |  | — |  |  | — |  |  | 597 |  |  | 4 |  |  | 2 |  |  | 735 |
Statistics for Completed Leasing: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Average Committed Cost per Square Foot | $ | 63.25 |  |  | $ | 98.91 |  |  | $ | — |  |  | $ | — |  |  | $ | 1.34 |  |  | $ | 62.38 |  |  | $ | 60.92 |  |  | $ | 14.27 |
Weighted Average Lease Term in Years | 9.0 |  |  | 11.8 |  |  | — |  |  | — |  |  | 10.0 |  |  | 6.7 |  |  | 5.3 |  |  | 9.9 |
GAAP Rent Per Square Foot | $ | 36.46 |  |  | $ | 35.57 |  |  | $ | — |  |  | $ | — |  |  | $ | 16.53 |  |  | $ | 26.07 |  |  | $ | 27.18 |  |  | $ | 20.15 |
Cash Rent Per Square Foot | $ | 33.59 |  |  | $ | 31.17 |  |  | $ | — |  |  | $ | — |  |  | $ | 15.11 |  |  | $ | 25.17 |  |  | $ | 27.00 |  |  | $ | 18.42 |
Other New Leases (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Leased Square Feet | 231 |  |  | 83 |  |  | 63 |  |  | 40 |  |  | — |  |  | 91 |  |  | 7 |  |  | 515 |
Statistics for Completed Leasing: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Average Committed Cost per Square Foot | $ | 39.58 |  |  | $ | 70.49 |  |  | $ | 35.41 |  |  | $ | 33.01 |  |  | $ | — |  |  | $ | 42.15 |  |  | $ | 2.57 |  |  | $ | 43.49 |
Weighted Average Lease Term in Years | 6.0 |  |  | 8.9 |  |  | 5.3 |  |  | 4.7 |  |  | — |  |  | 6.4 |  |  | 2.0 |  |  | 6.3 |
GAAP Rent Per Square Foot | $ | 25.05 |  |  | $ | 27.26 |  |  | $ | 29.43 |  |  | $ | 21.51 |  |  | $ | — |  |  | $ | 26.02 |  |  | $ | 26.90 |  |  | $ | 25.86 |
Cash Rent Per Square Foot | $ | 24.53 |  |  | $ | 26.70 |  |  | $ | 29.78 |  |  | $ | 20.62 |  |  | $ | — |  |  | $ | 25.30 |  |  | $ | 26.50 |  |  | $ | 25.38 |
Total Square Feet Leased | 962 |  |  | 195 |  |  | 329 |  |  | 40 |  |  | 597 |  |  | 341 |  |  | 43 |  |  | 2,508 |
Average escalations per year | 2.7 | % |  | 2.7 | % |  | 2.8 | % |  | 3.6 | % |  | 2.3 | % |  | 2.7 | % |  | 3.1 | % |  | 2.5 | %

(1) Other New Leases includes acquired first generation space and vacated second generation space.
Activity is exclusive of owner occupied space and leases with less than a one-year term. Weighted average lease term was calculated assuming no exercise of any existing early termination rights. Committed costs for leasing are reported above in the period of lease execution. Actual capital expenditures for leasing are reported on page 10 in the period such costs are incurred.
18

Corporate Office Properties Trust
Lease Expiration Analysis as of 12/31/15 (1)
(dollars and square feet in thousands, except per square foot amounts)

Year and Region of Lease (2) |  | Number of Leases Expiring |  | Square Footage of Leases Expiring |  | Annual Rental Revenue of Expiring Leases (3) |  | Percentage of Total Annualized Rental Revenue Expiring |  | Annual Rental Revenue of Expiring Leases per Occupied Square Foot |
Core Portfolio |  |  |  |  |  |  |  |  |  |  |
Ft Meade/BW Corridor |  | 47 |  | 873 |  |  | 28,890 |  |  | 6.1 | % |  | $33.1 |
NoVA Defense/IT |  | 9 |  | 73 |  |  | 1,599 |  |  | 0.3 | % |  | 21.79 |  |
Navy Support |  | 20 |  | 208 |  |  | 4,820 |  |  | 1.0 | % |  | 23.22 |  |
Regional Office |  | 19 |  | 167 |  |  | 4,656 |  |  | 1.0 | % |  | 27.94 |  |
2016 |  | 95 |  | 1,321 |  |  | 39,965 |  |  | 8.5 | % |  | 30.27 |  |
Ft Meade/BW Corridor |  | 46 |  | 1,346 |  |  | 42,346 |  |  | 9.0 | % |  | 31.46 |  |
NoVA Defense/IT |  | 4 |  | 226 |  |  | 7,443 |  |  | 1.6 | % |  | 32.88 |  |
Navy Support |  | 8 |  | 72 |  |  | 1,307 |  |  | 0.3 | % |  | 18.17 |  |
Redstone Arsenal |  | 1 |  | 2 |  |  | 34 |  |  | — | % |  | 19.89 |  |
Regional Office |  | 14 |  | 132 |  |  | 4,456 |  |  | 0.9 | % |  | 33.74 |  |
2017 |  | 73 |  | 1,778 |  |  | 55,586 |  |  | 11.8 | % |  | 31.26 |  |
Ft Meade/BW Corridor |  | 51 |  | 1,017 |  |  | 33,906 |  |  | 7.2 | % |  | 33.34 |  |
NoVA Defense/IT |  | 10 |  | 357 |  |  | 10,622 |  |  | 2.3 | % |  | 29.71 |  |
Navy Support |  | 16 |  | 171 |  |  | 4,945 |  |  | 1.0 | % |  | 28.89 |  |
Redstone Arsenal |  | 3 |  | 251 |  |  | 6,362 |  |  | 1.3 | % |  | 25.32 |  |
Data Center Shells |  | 1 |  | 155 |  |  | 2,449 |  |  | 0.5 | % |  | 15.80 |  |
Regional Office |  | 13 |  | 370 |  |  | 14,087 |  |  | 3.0 | % |  | 38.09 |  |
2018 |  | 94 |  | 2,321 |  |  | 72,371 |  |  | 15.3 | % |  | 31.17 |  |
Ft Meade/BW Corridor |  | 49 |  | 1,476 |  |  | 46,381 |  |  | 9.8 | % |  | 31.42 |  |
NoVA Defense/IT |  | 9 |  | 340 |  |  | 12,788 |  |  | 2.7 | % |  | 37.57 |  |
Navy Support |  | 8 |  | 42 |  |  | 1,151 |  |  | 0.2 | % |  | 27.35 |  |
Redstone Arsenal |  | 4 |  | 71 |  |  | 1,433 |  |  | 0.3 | % |  | 20.17 |  |
Regional Office |  | 16 |  | 189 |  |  | 5,017 |  |  | 1.1 | % |  | 26.59 |  |
2019 |  | 86 |  | 2,118 |  |  | 66,770 |  |  | 14.2 | % |  | 31.52 |  |

19

Year and Region of Lease (2) |  | Number of Leases Expiring |  | Square Footage of Leases Expiring |  | Annual Rental Revenue of Expiring Leases (3) |  | Percentage of Total Annualized Rental Revenue Expiring |  | Annual Rental Revenue of Expiring Leases per Occupied Square Foot |
Ft Meade/BW Corridor |  | 50 |  | 1,249 |  |  | 37,968 |  |  | 8.1 | % |  | 30.40 |  |
NoVA Defense/IT |  | 7 |  | 124 |  |  | 3,462 |  |  | 0.7 | % |  | 27.83 |  |
Lackland Air Force Base |  | 2 |  | 250 |  |  | 9,092 |  |  | 1.9 | % |  | 36.32 |  |
Navy Support |  | 15 |  | 170 |  |  | 6,758 |  |  | 1.4 | % |  | 39.74 |  |
Redstone Arsenal |  | 3 |  | 141 |  |  | 2,918 |  |  | 0.6 | % |  | 20.76 |  |
Regional Office |  | 14 |  | 261 |  |  | 6,838 |  |  | 1.5 | % |  | 26.16 |  |
2020 |  | 91 |  | 2,195 |  |  | 67,036 |  |  | 14.2 | % |  | 30.53 |  |
Thereafter |  | 141 |  | 6,059 |  |  | 169,817 |  |  | 36.0 | % |  | 28.03 |  |
Core Portfolio |  | 580 |  | 15,792 |  |  | 471,545 |  |  | 100.0 | % |  | 29.86 |  |
Office Properties Held for Sale and Other |  |  |  |  |  |  |  |  |  |  |
Regional Office (Held for Sale) |  | 44 |  | 469 |  |  | 10,426 |  |  | 60.9 | % |  | 22.22 |  |
Other |  | 16 |  | 274 |  |  | 6,691 |  |  | 39.1 | % |  | 24.45 |  |
Office Properties Held for Sale and Other Total Average |  | 60 |  | 743 |  |  | 17,117 |  |  | 100.0 | % |  | 23.04 |  |
Total Portfolio |  | 640 |  | 16,535 |  |  | 488,662 |  |  |  |  | 29.55 |  |

Note: As of December 31, 2015, the weighted average lease term is 4.9 years for the Core Portfolio and the Total Portfolio.
Wholesale Data Center Lease Expiration Analysis

Year of Lease Expiration | Number of Leases Expiring | Raised Floor Square Footage | Critical Load(MW) | Total Annual Rental Revenue of Expiring Leases (3)(000's)
2016 | 2 | 22 |  | 2.00 |  | $ | 4,320 |
2018 | 2 | 1 |  | 0.26 |  | 527 |
2019 | 1 | 6 |  | 1.00 |  | 2,228 |
2020 | 2 | 19 |  | 13.38 |  | 13,343 |
2022 | 1 | 6 |  | 1.00 |  | 1,521 |
|  |  |  | 17.64 |  | $ | 21,939 |

(1) | This expiration analysis reflects occupied space and includes the effect of early renewals completed on existing leases but excludes the effect of new tenant leases on square feet yet to commence as of December 31, 2015 of 209 for the portfolio, including 205 for the Core Portfolio.

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

(3) | Total Annualized Rental Revenue is the monthly contractual base rent as of December 31, 2015 multiplied by 12 plus the estimated annualized expense reimbursements under existing leases.

20

Corporate Office Properties Trust
Top 20 Office Tenants as of 12/31/15
(Based on Annualized Rental Revenue of
office properties, dollars and square feet in thousands)

Tenant |  | Number of Leases |  | Total Occupied Square Feet |  | Percentage of Total Occupied Square Feet |  | Total Annualized Rental Revenue (1) |  | Percentage of Total Annualized Rental Revenue |  | Weighted Average Remaining Lease Term (2)
United States Government | (3) | 63 |  |  | 3,800 |  |  | 23.0 | % |  | $ | 141,497 |  |  | 29.0 | % |  | 4.8 |
Northrop Grumman Corporation |  | 9 |  |  | 764 |  |  | 4.6 | % |  | 22,403 |  |  | 4.6 | % |  | 4.4 |
The Boeing Company |  | 12 |  |  | 739 |  |  | 4.5 | % |  | 21,842 |  |  | 4.5 | % |  | 3.3 |
General Dynamics Corporation |  | 7 |  |  | 528 |  |  | 3.2 | % |  | 19,163 |  |  | 3.9 | % |  | 2.3 |
Computer Sciences Corporation |  | 3 |  |  | 279 |  |  | 1.7 | % |  | 10,632 |  |  | 2.2 | % |  | 3.2 |
Vadata Inc. |  | 6 |  |  | 964 |  |  | 5.8 | % |  | 10,530 |  |  | 2.2 | % |  | 8.9 |
CareFirst, Inc. |  | 2 |  |  | 300 |  |  | 1.8 | % |  | 10,401 |  |  | 2.1 | % |  | 5.9 |
Booz Allen Hamilton, Inc. |  | 6 |  |  | 280 |  |  | 1.7 | % |  | 9,547 |  |  | 2.0 | % |  | 5.2 |
Wells Fargo & Company |  | 3 |  |  | 190 |  |  | 1.1 | % |  | 8,144 |  |  | 1.7 | % |  | 3.0 |
Harris Corporation |  | 8 |  |  | 218 |  |  | 1.3 | % |  | 6,441 |  |  | 1.3 | % |  | 4.7 |
AT&T Corporation |  | 3 |  |  | 308 |  |  | 1.9 | % |  | 5,886 |  |  | 1.2 | % |  | 3.3 |
KEYW Corporation |  | 2 |  |  | 211 |  |  | 1.3 | % |  | 5,803 |  |  | 1.2 | % |  | 8.0 |
Raytheon Company |  | 6 |  |  | 168 |  |  | 1.0 | % |  | 5,781 |  |  | 1.2 | % |  | 3.2 |
Science Applications International Corp. |  | 5 |  |  | 151 |  |  | 0.9 | % |  | 5,410 |  |  | 1.1 | % |  | 4.8 |
L-3 Communications Holdings, Inc. |  | 1 |  |  | 159 |  |  | 1.0 | % |  | 5,390 |  |  | 1.1 | % |  | 3.8 |
Miles & Stockbridge, PC |  | 2 |  |  | 157 |  |  | 0.9 | % |  | 4,916 |  |  | 1.0 | % |  | 11.7 |
Transamerica Life Insurance Company |  | 1 |  |  | 158 |  |  | 1.0 | % |  | 4,591 |  |  | 0.9 | % |  | 6.0 |
University of Maryland |  | 3 |  |  | 172 |  |  | 1.0 | % |  | 4,543 |  |  | 0.9 | % |  | 5.6 |
Engility Holdings, Inc. |  | 3 |  |  | 118 |  |  | 0.7 | % |  | 4,458 |  |  | 0.9 | % |  | 1.8 |
Kratos Defense and Security Solutions |  | 1 |  |  | 131 |  |  | 0.8 | % |  | 4,401 |  |  | 0.9 | % |  | 4.3 |
Subtotal Top 20 Office Tenants |  | 146 |  |  | 9,795 |  |  | 59.2 | % |  | 311,779 |  |  | 63.8 | % |  | 5.0 |
All remaining tenants |  | 494 |  |  | 6,740 |  |  | 40.8 | % |  | 176,883 |  |  | 36.2 | % |  | 4.8 |
Total/Weighted Average |  | 640 |  |  | 16,535 |  |  | 100.0 | % |  | $ | 488,662 |  |  | 100.0 | % |  | 4.9 |

(1) Total Annualized Rental Revenue is the monthly contractual base rent as of 12/31/15, multiplied by 12, plus the estimated annualized expense reimbursements under existing leases.
(2) A number of our leases are subject to certain early termination provisions. The year of lease expiration was computed assuming no exercise of such early termination rights. The weighting of the lease term was computed using Total Rental Revenue.
(3) Substantially all of our government leases are subject to early termination provisions which are customary in government leases. The weighted average remaining lease term was computed assuming no exercise of such early termination rights. As of 12/31/15, $2.5 million in annualized rental revenue (or 1.8% of our annualized rental revenue from the United States Government) was through the General Services Administration (GSA).
21

Corporate Office Properties Trust
Investment Activity
(dollars and square feet in thousands)

Location |  | Property Segment |  | Business Park/Submarket |  | Number of Buildings |  | Square Feet |  | Transaction Date |  | Occupancy on Transaction Date |  | Transaction Price
Operating Property Acquisitions
Quarter Ended March 31,2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |
250 West Pratt Street |  | Regional Office |  | Baltimore City |  | 1 |  |  | 367 |  |  | 3/19/2015 |  | 96.2% |  | $ | 61,802 |
Quarter Ended June 30, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |
2600 Park Tower Drive |  | NoVA Defense/IT |  | Other Northern Virginia |  | 1 |  |  | 237 |  |  | 4/15/2015 |  | 100.0% |  | 80,504 |
Quarter Ended September 30, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |
100 and 30 Light Street |  | Regional Office |  | Baltimore City |  | 1 |  |  | 558 |  | (1) | 8/7/2015 |  | 93.5% |  | 121,231 |
Total - Year Ended December 31, 2015 |  |  |  | 3 |  |  | 1,162 |  |  |  |  |  |  | $ | 263,537 |
Property Dispositions
Quarter Ended March 31,2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |
White Marsh Land |  |  |  |  |  | N/A |  | N/A |  | Various |  |  |  | $ | 17,900 |
Other Land |  |  |  |  |  | N/A |  | N/A |  | Various |  |  |  | 175 |
Subtotal - Quarter Ended March 31, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  | 18,075 |
Quarter Ended September 30, 2015 |  |  |  |  |  |  |  |  |  |  |  |  |  |
1550 Westbranch Drive |  | Regional Office |  | Tysons Corner |  | 1 |  |  | 160 |  |  | 7/27/2015 |  | 100.0% |  | 27,800 |
15000 and 15010 Conference Center Drive (2) |  | NoVA Defense/IT |  | Westfields Corporate Center |  | 2 |  |  | 665 |  |  | 8/28/2015 |  | 25.1% |  | 167,335 |
Subtotal - Quarter Ended September 30, 2015 |  |  |  | 3 |  |  | 825 |  |  |  |  |  |  | 195,135 |
13200 Woodland Park Road |  | Regional Office |  | Herndon |  | 1 |  |  | 397 |  |  | 10/27/2015 |  | 100.0% |  | 84,000 |
9900, 9910 and 9920 Franklin Square Drive |  | Regional Office |  | White Marsh |  | 3 |  |  | 135 |  |  | 11/9/2015 |  | 100.0% |  | 24,150 |
9690 Deereco Road and 375 W. Padonia Road |  | Regional Office |  | Hunt Valley/RTE 83 Corridor |  | 2 |  |  | 240 |  |  | 12/17/2015 |  | 100.0% |  | 44,500 |
Subtotal - Quarter Ended December 31, 2015 |  |  |  | 6 |  |  | 772 |  |  |  |  |  |  | 152,650 |
Total - Year Ended December 31, 2015 |  |  |  | 9 |  |  | 1,597 |  |  |  |  |  |  | $ | 365,860 |

(1) | 30 Light Street is a 560-space structured parking garage adjacent to 100 Light Street, including 10 square feet included above.

(2) | Ownership in these properties was transferred to the mortgage lender on a $150,000 nonrecourse mortgage loan that was secured by the properties. The debt obligation and accrued interest were removed from our balance sheet. The transaction price represents the amount of debt and accrued interest extinguished.

22

Corporate Office Properties Trust
Construction, Redevelopment and Land Owned/Controlled as of 12/31/15
(dollars and square feet in thousands)

| Construction Projects (1) |  | Redevelopment Projects (2) |  | Land Owned/Controlled (3) |  | Total
Segment | Rentable Square Feet
Defense/IT Locations: |  |  |  |  |  |  |
Fort Meade/BW Corridor | 456 |  |  | 156 |  |  | 4,175 |  |  | 4,787 |
NoVA Defense/IT | 401 |  |  | — |  |  | 1,614 |  |  | 2,015 |
Lackland Air Force Base | — |  |  | — |  |  | 1,033 |  |  | 1,033 |
Navy Support | — |  |  | — |  |  | 109 |  |  | 109 |
Redstone Arsenal | 19 |  |  | — |  |  | 4,084 |  |  | 4,103 |
Data Center Shells | 447 |  |  | — |  |  | — |  |  | 447 |
Subtotal Defense/IT Locations | 1,323 |  |  | 156 |  |  | 11,015 |  |  | 12,494 |
Regional Office | — |  |  | — |  |  | 1,613 |  |  | 1,613 |
Other | — |  |  | — |  |  | 3,278 |  |  | 3,278 |
Total | 1,323 |  |  | 156 |  |  | 15,906 |  |  | 17,385 |
| Costs to date by region
Defense/IT Locations: |  |  |  |  |  |  |
Fort Meade/BW Corridor | $ | 80,830 |  |  | $ | 21,688 |  |  | $ | 124,538 |  |  | $ | 227,056 |
NoVA Defense/IT | 38,809 |  |  | — |  |  | 83,890 |  |  | 122,699 |
Lackland Air Force Base | — |  |  | — |  |  | 20,201 |  |  | 20,201 |
Navy Support | — |  |  | — |  |  | 2,588 |  |  | 2,588 |
Redstone Arsenal | 2,677 |  |  | — |  |  | 14,249 |  |  | 16,926 |
Data Center Shells | 42,510 |  |  | — |  |  | — |  |  | 42,510 |
Subtotal Defense/IT Locations | 164,826 |  |  | 21,688 |  |  | 245,466 |  |  | 431,980 |
Regional Office | — |  |  | — |  |  | 45,200 |  |  | 45,200 |
Other | — |  |  | — |  |  | 51,699 |  |  | 51,699 |
Total | $ | 164,826 |  |  | $ | 21,688 |  |  | $ | 342,365 |  |  | $ | 528,879 |
Reconciliation to amounts included in projects in development or held for future development, including land costs, as reported on consolidated balance sheet |  |  |  |  |  |  |
Operating properties | (37,372 | ) |  | (8,540 | ) |  | (32,289 | ) |  | (78,201 | )
Assets held for sale | — |  |  | — |  |  | (17,900 | ) |  | (17,900 | )
Deferred leasing costs and other assets | (3,407 | ) |  | (152 | ) |  | — |  |  | (3,559 | )
Projects in development or held for future development, including associated land costs (4) | $ | 124,047 |  |  | $ | 12,996 |  |  | $ | 292,176 |  |  | $ | 429,219 |

(1) | Represents construction projects as listed on page 24.

(2) | Represents redevelopment projects as listed on page 25.

(3) | Represents our land owned/controlled as listed on page 27.

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

23

Corporate Office Properties Trust
Summary of Construction Projects as of 12/31/15 (1)
(dollars and square feet in thousands)

|  | Property Segment |  | Park/Submarket | Total Rentable Square Feet | Percentage Leased as of 1/8/16 | as of 12/31/15 (2) | Actual or Anticipated Shell Completion Date | Anticipated Operational Date (3)
| Anticipated Total Cost | Cost to Date | Cost to Date Placed in Service
| Property and Location
| 310 Sentinel Way Annapolis Junction, Maryland | Ft Meade/BW Corridor |  | National Bus. Park | 191 |  | 0% | $ | 54,352 |  | $ | 38,838 |  | $ | 9,191 |  | 1Q 15 | 1Q 16
| Patriot Point - DC15 Ashburn, Virginia | Data Center Shells |  | Ashburn | 149 |  | 100% | 29,750 |  | 19,482 |  | — |  | 1Q 16 | 1Q 16
| Patriot Point - DC16 Ashburn, Virginia | Data Center Shells |  | Ashburn | 149 |  | 100% | 29,840 |  | 16,478 |  | — |  | 2Q 16 | 2Q 16
| NOVA Office B Northern Virginia | NoVA Defense/IT |  | Other | 161 |  | 0% | 41,500 |  | 30,336 |  | 3,320 |  | 2Q 15 | 2Q 16
| 7880 Milestone Parkway (4) Hanover, Maryland | Ft Meade/BW Corridor |  | Arundel Preserve | 120 |  | 74% | 31,535 |  | 29,356 |  | 24,861 |  | 3Q 15 | 3Q 16
| Patriot Point - DC - 17 Ashburn, Virginia | Data Center Shells |  | Ashburn | 149 |  | 100% | 22,670 |  | 6,550 |  | — |  | 3Q 16 | 3Q 16
| 2100 Redstone Gateway Huntsville, Alabama | Redstone Arsenal |  | Redstone Gateway | 19 |  | 58% | 5,033 |  | 2,677 |  | — |  | 2Q 16 | 2Q 17
| 540 National Business Parkway Annapolis Junction, Maryland | Ft. Meade/BW Corridor |  | National Bus. Park | 145 |  | 49% | 43,712 |  | 12,636 |  | — |  | 4Q 16 | 4Q 17
| NOVA Office D Northern Virginia | NoVA Defense/IT |  | Other | 240 |  | 100% | 46,525 |  | 8,473 |  | — |  | 1Q 18 | 1Q 18
| Total Under Construction |  |  |  | 1,323 |  | 65% | $ | 304,917 |  | $ | 164,826 |  | $ | 37,372 |  |  |

(1) | Includes properties under active construction and properties that we were contractually committed to construct as of 12/31/15 and an additional property (DC-17) that became 100% leased on 1/8/16.

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

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

(4) | Although classified as under construction, 88 square feet were operational as of 12/31/15; NOI for this property was $573 and cash NOI was $91 for the three months ended 12/31/15.

24

Corporate Office Properties Trust
Summary of Redevelopment Projects as of 12/31/15
(dollars and square feet in thousands)

|  | Property Segment | Park/Submarket | Total Rentable Square Feet | Percentage Leased as of 12/31/15 (3) | as of 12/31/15 (1) | Actual or Anticipated Shell Completion Date | Anticipated Operational Date (2)
|  | Historical Basis, Net | Incremental Redevelopment Cost | Anticipated Total Cost | Cost to Date | Cost to Date Placed in Service
Property and Location |
6708 Alexander Bell Drive Columbia, Maryland |  | Ft Meade/BW Corridor | Howard Co. Perimeter | 52 |  | 0% | $ | 2,662 |  | $ | 8,646 |  | $ | 11,308 |  | $ | 7,918 |  | $ | 2,662 |  | 1Q 15 | 1Q 16
7134 Columbia Gateway Drive Columbia, Maryland |  | Ft Meade/BW Corridor | Howard Co. Perimeter | 22 |  | 0% | 1,755 |  | 2,394 |  | 4,149 |  | 1,923 |  | 1,755 |  | 1Q 16 | 1Q 17
1201 Winterson Rd (AS 13) Linthicum, Maryland |  | Ft Meade/BW Corridor | Airport Square | 68 |  | 0% | 3,079 |  | 12,772 |  | 15,851 |  | 10,100 |  | 3,079 |  | 1Q 16 | 1Q 17
Airport Landing (3) Linthicum, Maryland |  | Ft Meade/BW Corridor | Airport Square |  |  |  |  |  |  |  |  |
Retail Buildings |  |  |  | 14 |  | 56% | 785 |  | 5,598 |  | 6,383 |  | 1,488 |  | 785 |  | 3Q 16 | 3Q 17
Pad Site |  |  |  | N/A |  | 100% | 259 |  | 405 |  | 664 |  | 259 |  | 259 |  | 4Q 16 | 4Q 16
Total Under Redevelopment | 156 |  | 8% | $ | 8,540 |  | $ | 29,815 |  | $ | 38,355 |  | $ | 21,688 |  | $ | 8,540 |  |  |

(1) Cost includes construction, leasing costs and allocated portion of shared infrastructure.
(2) Anticipated operational date is the estimated date when leases have commenced on 100% of a property’s space or one year from the cessation of major construction activities.
(3) The redevelopment of Airport Landing involves the demolition of the existing office property to develop a retail center to serve the submarket. Upon completion, the project’s retail amenities will include: newly constructed retail property totaling 14 square feet; and a 1.2 acre retail pad site already under ground lease for 20 years to a national food service provider. The total percentage leased reported above for redevelopment projects was calculated by including the square footage of the building to be constructed on the pad site by the lessee.
25

Corporate Office Properties Trust
Office Property Construction and Redevelopment Place in Service as of 12/31/15
(square feet in thousands)

|  |  | Rentable Square Feet of Property |  |  |  |  |  | Space Placed in Service Percentage Leased as of 12/31/15
|  |  | Square Feet Placed in Service |  |
| Property Segment |  | Year 2015 |
Property and Location | Park/Submarket | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Total
Ashburn Crossing - DC10 Ashburn, Virginia | Data Center Shells | Ashburn | 121 |  | 121 |  | — |  | — |  | — |  | 121 |  | 100%
NOVA Office A Ashburn, Virginia | NoVA Defense/IT | Ashburn | 159 |  | 159 |  | — |  | — |  | — |  | 159 |  | 100%
Sentry Gateway - Z San Antonio, Texas | Lackland Air Force Base | San Antonio | 160 |  | 160 |  | — |  | — |  | — |  | 160 |  | 100%
731 Arbor Way (Hillcrest III) Blue Bell, Pennsylvania | Regional Office | Philadelphia | 141 |  | 111 |  | — |  | 30 |  | — |  | 141 |  | 100%
7400 Redstone Huntsville, Alabama | Redstone Arsenal | Huntsville | 69 |  | — |  | 69 |  | — |  | — |  | 69 |  | 100%
7880 Milestone Parkway Hanover, Maryland | Ft Meade/BW Corridor | Arundel Preserve | 120 |  | — |  | — |  | 88 |  | — |  | 88 |  | 100%
Southpoint Manassas DC12 Manassas, Virginia | Data Center Shells | Other Northern Virginia | 150 |  | — |  | — |  | 150 |  | — |  | 150 |  | 100%
Southpoint Manassas DC14 Manassas, Virginia | Data Center Shells | Other Northern Virginia | 150 |  | — |  | — |  | 150 |  | — |  | 150 |  | 100%
44417 Pecan Court St. Mary’s County, Maryland | Navy Support | St. Mary’s County | 29 |  | — |  | — |  | 29 |  | — |  | 29 |  | 0%
Total Construction/Redevelopment Placed Into Service | 551 |  | 69 |  | 447 |  | — |  | 1,067 |  | 97%

26

Corporate Office Properties Trust
Summary of Land Owned/Controlled as of 12/31/15 (1)

Location | Acres |  | Estimated Developable Square Feet (in thousands) |  | Costs to Date (2)
Land Owned/Controlled for Future Development |  |  |  |  |
Defense IT Locations: |  |  |  |  |  |  |
Fort Meade/BW Corridor: |  |  |  |  |
National Business Park | 233 |  |  | 1,956 |  |  |
Howard County | 27 |  |  | 590 |  |  |
Other | 143 |  |  | 1,629 |  |  |
Total Fort Meade/BW Corridor | 403 |  |  | 4,175 |  |  |
NoVA Defense/IT | 64 |  |  | 1,614 |  |  |
Lackland AFB | 68 |  |  | 1,033 |  |  |
Navy Support | 44 |  |  | 109 |  |  |
Redstone Arsenal (3) | 428 |  |  | 4,084 |  |  |
Total Defense/IT Locations | 1,007 |  |  | 11,015 |  |  |
Regional Office | 52 |  |  | 1,613 |  |  |
Total land owned/controlled for future development | 1,059 |  |  | 12,628 |  |  | $ | 258,377 |
Other land owned/controlled | 282 |  |  | 3,278 |  |  | 33,799 |
Land held for sale | 98 |  |  | 1,675 |  |  | 17,900 |
Land owned/controlled | 1,439 |  |  | 17,581 |  |  | $ | 310,076 |
Land held for sale | (98 | ) |  | (1,675 | ) |  | (17,900 | )
Land held, net | 1,341 |  |  | 15,906 |  |  | $ | 292,176 |

(1) | This land inventory schedule excludes all properties listed as construction or redevelopment as detailed on pages 24 and 25, and includes properties under ground lease to us.

(2) | Represents total costs to date included in “projects in development or held for future development, including associated land costs,” as reported on page 23 (in thousands).

(3) | Includes land owned under a long-term master lease agreement to LW Redstone Company, a consolidated joint venture (see page 32). As this land is developed in the future, the joint venture will execute site-specific leases under the master lease agreement. Rental payments will commence under the site-specific leases as cash rents under tenant leases commence at the respective properties. The costs incurred on this land totaled $14,200 as of 12/31/15.

27

Corporate Office Properties Trust
Quarterly Equity Analysis
(dollars, shares and units in thousands, except per share amounts)

SHAREHOLDER CLASSIFICATION | Common Shares |  | Common Units |  | As if Converted Preferred Shares/Units |  | Total |  | Diluted Ownership % of Total
As of December 31, 2015:
Insiders | 581 |  |  | 309 |  |  | — |  |  | 890 |  |  | 0.90 | %
Non-insiders | 93,951 |  |  | 3,368 |  |  | 610 |  |  | 97,929 |  |  | 99.10 | %
Total | 94,532 |  |  | 3,677 |  |  | 610 |  |  | 98,819 |  |  | 100.00 | %

COMMON EQUITY - End of Quarter | 12/31/15 |  | 9/30/15 |  | 6/30/15 |  | 3/31/15 |  | 12/31/14
Unrestricted Common Shares | 94,154 |  |  | 94,145 |  |  | 94,133 |  |  | 94,097 |  |  | 92,865 |
Restricted Common Shares | 378 |  |  | 389 |  |  | 397 |  |  | 439 |  |  | 390 |
Common Shares | 94,532 |  |  | 94,534 |  |  | 94,530 |  |  | 94,536 |  |  | 93,255 |
Common Units | 3,677 |  |  | 3,677 |  |  | 3,680 |  |  | 3,680 |  |  | 3,838 |
Total | 98,209 |  |  | 98,211 |  |  | 98,210 |  |  | 98,216 |  |  | 97,093 |
End of Quarter Common Share Price | $ | 21.83 |  |  | $ | 21.03 |  |  | $ | 23.54 |  |  | $ | 29.38 |  |  | $ | 28.37 |
Market Value of Common Shares/Units | $ | 2,143,902 |  |  | $ | 2,065,377 |  |  | $ | 2,311,863 |  |  | $ | 2,885,586 |  |  | $ | 2,754,528 |
PREFERRED EQUITY - End of Quarter |  |  |  |  |  |  |  |  |  |  |  |  |  |
Nonconvertible Preferred Equity - liquidation preference |  |  |  |  |  |  |  |  |  |  |  |  |  |
Redeemable Series L Shares Outstanding - 7.375% | $ | 172,500 |  |  | $ | 172,500 |  |  | $ | 172,500 |  |  | $ | 172,500 |  |  | $ | 172,500 |
Convertible Preferred Equity - liquidation preference |  |  |  |  |  |  |  |  |  |  |  |  |  |
Convertible Series I Units - 7.5% (1) | 8,800 |  |  | 8,800 |  |  | 8,800 |  |  | 8,800 |  |  | 8,800 |
Convertible Series K Shares - 5.6% (2) | 26,583 |  |  | 26,583 |  |  | 26,583 |  |  | 26,583 |  |  | 26,583 |
Total Convertible Preferred Equity | 35,383 |  |  | 35,383 |  |  | 35,383 |  |  | 35,383 |  |  | 35,383 |
Total Liquidation Preference of Preferred Equity | $ | 207,883 |  |  | $ | 207,883 |  |  | $ | 207,883 |  |  | $ | 207,883 |  |  | $ | 207,883 |
CAPITALIZATION |  |  |  |  |  |  |  |  |  |  |  |  |  |
Liquidation Preference of Preferred Shares/Units | $ | 207,883 |  |  | $ | 207,883 |  |  | $ | 207,883 |  |  | $ | 207,883 |  |  | $ | 207,883 |
Market Value of Common Shares/Units | 2,143,902 |  |  | 2,065,377 |  |  | 2,311,863 |  |  | 2,885,586 |  |  | 2,754,528 |
Total Equity Market Capitalization | $ | 2,351,785 |  |  | $ | 2,273,260 |  |  | $ | 2,519,746 |  |  | $ | 3,093,469 |  |  | $ | 2,962,411 |

(1) 352 units outstanding with a liquidation preference of $25 per unit, and convertible into 176 common units.
(2) 532 shares outstanding with a liquidation preference of $50 per share, and convertible into 434 shares.
28

Corporate Office Properties Trust
Debt Analysis as of December 31, 2015
(dollars in thousands)

| Stated Rate |  | GAAP Effective Rate |  | Weighted Average Maturity (in Years) |  | Maximum Availability |  | Outstanding Balance |  | Carrying Value |  | Average Stated Interest Rates for Three Months Ended 12/31/15 (1) |  |
Debt Outstanding |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed rate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Secured debt | 6.08% |  | 6.04% |  | 3.5 |  |  |  | $ | 281,702 |  |  | $ | 281,208 |  |  | 6.1% |  |
Senior Unsecured Notes | 4.32% |  | 4.47% |  | 7.6 |  |  |  | 1,200,000 |  |  | 1,185,842 |  |  | 4.3% |  |
Other Unsecured Debt | 0.00% |  | 6.50% |  | 10.3 |  |  |  | 2,061 |  |  | 1,508 |  |  | 0.0% |  |
Total fixed rate debt | 4.65% |  | 4.77% |  | 6.8 |  |  |  | $ | 1,483,763 |  |  | $ | 1,468,558 |  |  | 4.7% |  |
Variable rate |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Secured debt | 2.20% |  | 2.20% |  | 1.6 |  |  |  |  | $ | 49,967 |  |  | $ | 49,792 |  |  | 2.3% |  |
Unsecured Revolving Credit Facility | 1.59% |  | 1.59% |  | 3.3 |  | $ | 800,000 |  |  | 43,500 |  |  | 43,500 |  |  | 1.4% |  |
Unsecured Term Loans | 1.92% |  | 1.92% |  | 4.7 |  |  |  |  | 520,000 |  |  | 515,902 |  |  | 1.8% |  |
Total variable rate debt | 1.92% |  | 1.92% |  | 4.3 |  |  |  |  | $ | 613,467 |  |  | $ | 609,194 |  |  | 2.9% | (1)(2) |
Total Consolidated Debt outstanding | 3.85% |  | 3.94% |  | 6.1 |  |  |  | $ | 2,097,230 |  |  | $ | 2,077,752 |  |  | 4.1% | (1)(2) |
Variable Rate Loans Subject to Interest Rate Swaps (1) |  |  |  |  |  |  |  |  | $ | 413,941 |  |  |  |  | 1.0% |  |
% of Fixed Rate Loans (1) |  |  |  |  |  |  |  |  | 90.5 | % |  |  |  |  |  |
% of Variable Rate Loans (1) |  |  |  |  |  |  |  |  | 9.5 | % |  |  |  |  |  |
|  |  |  |  |  |  |  |  | 100.0 | % |  |  |  |  |  |  |
Recourse debt |  |  |  |  |  |  |  |  | $ | 1,859,129 |  |  | $ | 1,839,685 |  |  |  |  |
Nonrecourse debt |  |  |  |  |  |  |  |  | 238,101 |  |  | 238,067 |  |  |  |  |
Total Consolidated Debt outstanding |  |  |  |  |  |  |  |  | $ | 2,097,230 |  |  | $ | 2,077,752 |  |  |  |  |

(1) | Includes the effect of interest rate swaps in effect during certain of the periods set forth above that hedge the risk of changes in interest rates on certain of our one-month LIBOR-based variable rate debt.

(2) Includes facility commitment fees incurred for our Unsecured Revolving Credit Facility.
29

Corporate Office Properties Trust
Debt Analysis (continued)
(dollars in thousands)

| December 31, 2015 |  |
Secured debt | $ | 331,000 |  |  |
Unsecured debt | 1,746,752 |  |  |
Numerator for debt to adjusted book ratio | $ | 2,077,752 |  |  |
Less: Cash and cash equivalents | (60,310 | ) |  |
Numerator for adjusted debt to in-place adjusted EBITDA ratio | $ | 2,017,442 |  |  |
Unencumbered adjusted book | $ | 4,270,416 |  |  |
Encumbered adjusted book | 570,538 |  |  |
Total adjusted book | $ | 4,840,954 |  |  |
# of Operating Office Properties |  |  |
Unencumbered | 158 |  |  |
Encumbered | 19 |  |  |
Total | 177 |  |  |
Square Feet of Office Properties (in thousands) |  |  |
Unencumbered | 15,398 |  |  |
Encumbered | 2,655 |  |  |
Total | 18,053 |  |  |
| Three Months Ended 12/31/15 |  |
NOI from unencumbered real estate operations | $ | 72,091 |  |  |
NOI from encumbered real estate operations | 13,888 |  |  |
Total NOI from real estate operations | $ | 85,979 |  |  |
Unencumbered adjusted EBITDA | $ | 65,848 |  |  |
Encumbered adjusted EBITDA (1) | 13,870 |  |  |
Total adjusted EBITDA (1) | $ | 79,718 |  |  |
Debt ratios (coverage ratios excluding capitalized interest) — All coverage computations include discontinued operations | Three Months Ended 12/31/15 |  |
Adjusted EBITDA debt service coverage ratio | 3.6x |  |
Adjusted EBITDA fixed charge coverage ratio | 2.9x |  |
Adjusted debt to in-place adjusted EBITDA ratio | 6.5x |  |
| As of and for Three Months Ended 12/31/15
Unsecured Senior Notes Covenants | Actual |  | Required
Total Debt / Total Assets | 44.3% |  | Less than 60%
Secured Debt / Total Assets | 7.0% |  | Less than 40%
Debt Service Coverage | 3.2x |  | Greater than 1.5x
Unencumbered Assets / Unsecured Debt | 236.1% |  | Greater than 150%

(1) | Except for Unsecured Senior Notes Covenants, amounts exclude the effect of properties that served as collateral for debt in default that we extinguished via conveyance of such properties.

30

Corporate Office Properties Trust
Debt Maturity Schedule
(dollars in thousands)

|  |  | GAAP |  |  |  |  |  |  |  |
| Stated |  | Effective |  |  |  |  |  |  |  |
| Rate |  | Rate |  | 2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | Total
Unsecured Debt |  |  |  |  |  |  |  |  |  |  |
Unsecured Revolving Credit Facility (1) | LIBOR + 1.20% |  | 1.59% |  | $ | — |  | $ | — |  | $ | — |  | $ | 43,500 |  | $ | — |  | $ | — |  | $ | 43,500 |
Senior Unsecured Notes |  |  |  |  |  |  |  |  |  |  |
Due 6/15/21 | 3.70% |  | 3.85% |  | — |  | — |  | — |  | — |  | — |  | 300,000 |  | 300,000 |
Due 5/15/23 | 3.60% |  | 3.70% |  | — |  | — |  | — |  | — |  | — |  | 350,000 |  | 350,000 |
Due 2/15/24 | 5.25% |  | 5.49% |  | — |  | — |  | — |  | — |  | — |  | 250,000 |  | 250,000 |
Due 7/1/25 | 5.00% |  | 5.15% |  | — |  | — |  | — |  | — |  | — |  | 300,000 |  | 300,000 |
Total Senior Unsecured Notes |  |  |  |  | — |  | — |  | — |  | — |  | — |  | 1,200,000 |  | 1,200,000 |
Other Unsecured Debt |  |  |  |  |  |  |  |  |  |  |
2019 maturities | LIBOR + 2.10% |  | 2.34% |  | — |  | — |  | — |  | 120,000 |  | — |  | — |  | 120,000 |
2020 maturities | LIBOR + 1.40% |  | 1.65% |  | — |  | — |  | — |  | — |  | 300,000 |  | — |  | 300,000 |
2022 maturities (2) | LIBOR + 1.80% |  | 2.23% |  | — |  | — |  | — |  | — |  | — |  | 100,000 |  | 100,000 |
2026 maturities | 0.00% |  | 6.50% |  | 200 |  | 200 |  | 200 |  | 200 |  | 200 |  | 1,061 |  | 2,061 |
Total Other Unsecured Debt |  |  |  |  | 200 |  | 200 |  | 200 |  | 120,200 |  | 300,200 |  | 101,061 |  | 522,061 |
Total Unsecured Debt |  |  |  |  | $ | 200 |  | $ | 200 |  | $ | 200 |  | $ | 163,700 |  | $ | 300,200 |  | $ | 1,301,061 |  | $ | 1,765,561 |
Secured Debt |  |  |  |  |  |  |  |  |  |  |
Fixed Rate Secured Debt |  |  |  |  |  |  |  |  |  |  |
2016 maturities | 7.22% |  | 7.21% |  | $ | 169,343 |  | $ | — |  | $ | — |  | $ | — |  | — |  | $ | — |  | $ | 169,343 |
2019 maturities | 7.87% |  | 6.76% |  | 356 |  | 385 |  | 417 |  | 412 |  | — |  | — |  | 1,570 |
Thereafter | 4.31% |  | 4.24% |  | 1,829 |  | 2,298 |  | 2,400 |  | 2,506 |  | 2,614 |  | 99,142 |  | 110,789 |
Total Fixed Rate Secured Debt |  |  |  |  | 171,528 |  | 2,683 |  | 2,817 |  | 2,918 |  | 2,614 |  | 99,142 |  | 281,702 |
Variable Rate Secured Debt |  |  |  |  |  |  |  |  |  |  |
2016 maturities | LIBOR + 2.0% |  | 2.24% |  | 36,026 |  | — |  | — |  | — |  | — |  | — |  | 36,026 |
2020 maturities | LIBOR + 1.85% |  | 2.09% |  | 355 |  | 369 |  | 383 |  | 396 |  | 12,438 |  | — |  | 13,941 |
Variable Rate Secured Debt |  |  |  |  | 36,381 |  | 369 |  | 383 |  | 396 |  | 12,438 |  | — |  | 49,967 |
Total Secured Debt |  |  |  |  | $ | 207,909 |  | $ | 3,052 |  | $ | 3,200 |  | $ | 3,314 |  | $ | 15,052 |  | $ | 99,142 |  | $ | 331,669 |
Total Debt |  |  |  |  | $ | 208,109 |  | $ | 3,252 |  | $ | 3,400 |  | $ | 167,014 |  | $ | 315,252 |  | $ | 1,400,203 |  | $ | 2,097,230 |
Fixed Rate Debt | 4.65% |  | 4.77% |  | $ | 171,728 |  | $ | 2,883 |  | $ | 3,017 |  | $ | 3,118 |  | $ | 2,814 |  | $ | 1,300,203 |  | $ | 1,483,763 |
Variable Rate Debt | 1.92% |  | 1.92% |  | 36,381 |  | 369 |  | 383 |  | 163,896 |  | 312,438 |  | 100,000 |  | 613,467 |
Total Debt |  |  |  |  | $ | 208,109 |  | $ | 3,252 |  | $ | 3,400 |  | $ | 167,014 |  | $ | 315,252 |  | $ | 1,400,203 |  | $ | 2,097,230 |
Balloon Payments |  |  |  |  | $ | 201,713 |  | $ | — |  | $ | — |  | $ | 163,500 |  | $ | 312,132 |  | $ | 1,391,229 |  | $ | 2,068,574 |
Scheduled Principal Amortization |  |  |  |  | 6,396 |  | 3,252 |  | 3,400 |  | 3,514 |  | 3,120 |  | 8,974 |  | 28,656 |
Total Debt |  |  |  |  | $ | 208,109 |  | $ | 3,252 |  | $ | 3,400 |  | $ | 167,014 |  | $ | 315,252 |  | $ | 1,400,203 |  | $ | 2,097,230 |
|  |  |  |  |  |  | Net debt discounts and deferred financing costs | (19,478 | )
|  |  |  |  |  |  | Numerator for debt to adjusted book | $ | 2,077,752 |

(1) | Matures in May 2019, and may be extended by two six-month periods at our option, subject to certain conditions.

(2) | An additional $150,000 in borrowings is available to be drawn under this loan through September 2016.

31

Corporate Office Properties Trust
Consolidated Joint Ventures as of 12/31/15
(dollars and square feet in thousands)

Operating Properties | Operational Square Feet | Occupancy % | Leased % | Total Assets (1) | Venture Level Debt | % COPT Owned
Suburban Maryland: |  |  |  |  |  |  |  |  |
M Square Associates, LLC (2 properties) | 242 |  | 100.0% | 100.0% | $ | 53,469 |  | $ | 36,026 |  | 50%
Huntsville, AL: |  |  |  |  |  |
LW Redstone Company, LLC (5 properties) | 495 |  | 100.0% | 100.0% | 85,757 |  | 50,742 |  | 85%
Total/Average | 737 |  | 100.0% | 100.0% | $ | 139,226 |  | $ | 86,768 |  |
NOI of Operating Properties for the Three Months Ended 12/31/15 (2) | $ | 3,271 |  |  |  |  |  |  |  |
NOI of Operating Properties for the Year Ended 12/31/15 (2) | $ | 12,037 |  |  |  |  |  |

Non-operational Properties | Estimated Developable Square Feet |  |  | Total Assets (1) | Venture Level Debt | % COPT Owned
Suburban Maryland: |  |  |  |  |  |  |  |  |
M Square Research Park | 525 |  |  |  | $ | 2,986 |  | $ | — |  | 50%
Huntsville, Alabama: |  |  |  |  |  |  |  |  |
Redstone Gateway (3) | 4,084 |  |  |  | 61,855 |  | — |  | 85%
Washington, DC: |  |  |  |  |  |
Stevens Place | 185 |  |  |  | 5,284 |  | — |  | 95%
Total | 4,794 |  |  |  | $ | 70,125 |  | $ | — |  |

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

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

(3) | Total assets include $44.9 million due from the City of Huntsville (including accrued interest) in connection with infrastructure costs funded by the joint venture.

32

Corporate Office Properties Trust Supplementary Reconciliations of Non-GAAP Measures (dollars in thousands)
| Three Months Ended |  | Years Ended
| 12/31/15 |  | 9/30/15 |  | 6/30/15 |  | 3/31/15 |  | 12/31/14 |  | 12/31/15 |  | 12/31/14
GAAP revenues from real estate operations from continuing operations | $ | 134,477 |  |  | $ | 133,686 |  |  | $ | 128,191 |  |  | $ | 122,710 |  |  | $ | 120,613 |  |  | $ | 519,064 |  |  | $ | 479,725 |
Revenues from discontinued operations | — |  |  | — |  |  | 4 |  |  | — |  |  | (2 | ) |  | 4 |  |  | (14 | )
Real estate revenues | $ | 134,477 |  |  | $ | 133,686 |  |  | $ | 128,195 |  |  | $ | 122,710 |  |  | $ | 120,611 |  |  | $ | 519,068 |  |  | $ | 479,711 |
GAAP property operating expenses from continuing operations | $ | 48,498 |  |  | $ | 48,897 |  |  | $ | 46,418 |  |  | $ | 50,681 |  |  | $ | 43,334 |  |  | $ | 194,494 |  |  | $ | 179,934 |
Property operating expenses from discontinued operations | — |  |  | — |  |  | (11 | ) |  | 5 |  |  | (24 | ) |  | (6 | ) |  | (135 | )
Real estate property operating expenses | $ | 48,498 |  |  | $ | 48,897 |  |  | $ | 46,407 |  |  | $ | 50,686 |  |  | $ | 43,310 |  |  | $ | 194,488 |  |  | $ | 179,799 |
Discontinued Operations |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues from real estate operations | $ | — |  |  | $ | — |  |  | $ | 4 |  |  | $ | — |  |  | $ | (2 | ) |  | $ | 4 |  |  | $ | (14 | )
Property operating expenses | — |  |  | — |  |  | 11 |  |  | (5 | ) |  | 24 |  |  | 6 |  |  | 135 |
Gain (loss) on early extinguishment of debt | — |  |  | — |  |  | 380 |  |  | — |  |  | — |  |  | 380 |  |  | (116 | )
Impairment (losses) recoveries | — |  |  | — |  |  | (1 | ) |  | (233 | ) |  | — |  |  | (234 | ) |  | (3 | )
Gain on sales of depreciated real estate properties | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 24 |
Discontinued operations | $ | — |  |  | $ | — |  |  | $ | 394 |  |  | $ | (238 | ) |  | $ | 22 |  |  | $ | 156 |  |  | $ | 26 |
Gain on sales of real estate, net, per statements of operations | $ | 64,047 |  |  | $ | 15 |  |  | $ | (1 | ) |  | $ | 3,986 |  |  | $ | 41 |  |  | $ | 68,047 |  |  | $ | 10,671 |
Gain on sales of real estate from discontinued operations | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 24 |
Gain on sales of real estate from continuing and discont. operations | 64,047 |  |  | 15 |  |  | (1 | ) |  | 3,986 |  |  | 41 |  |  | 68,047 |  |  | 10,695 |
Gain on sales of non-operating properties | — |  |  | — |  |  | 1 |  |  | (3,986 | ) |  | (43 | ) |  | (3,985 | ) |  | (5,578 | )
Gain on sales of operating properties | $ | 64,047 |  |  | $ | 15 |  |  | $ | — |  |  | $ | — |  |  | $ | (2 | ) |  | $ | 64,062 |  |  | $ | 5,117 |
Impairment losses, per statements of operations | $ | 19,744 |  |  | $ | 2,307 |  |  | $ | 1,238 |  |  | $ | — |  |  | $ | 48 |  |  | $ | 23,289 |  |  | $ | 1,416 |
Impairment losses on discontinued operations | — |  |  | — |  |  | 1 |  |  | 233 |  |  | — |  |  | 234 |  |  | 3 |
Total impairment losses | $ | 19,744 |  |  | $ | 2,307 |  |  | $ | 1,239 |  |  | $ | 233 |  |  | $ | 48 |  |  | $ | 23,523 |  |  | $ | 1,419 |
Impairment losses on previously depreciated operating properties | (331 | ) |  | (2,307 | ) |  | (1,239 | ) |  | (233 | ) |  | (48 | ) |  | (4,110 | ) |  | (1,370 | )
Impairment losses on non-operating properties | $ | 19,413 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 19,413 |  |  | $ | 49 |

33

Corporate Office Properties Trust Supplementary Reconciliations of Non-GAAP Measures (continued) (dollars in thousands)
| Three Months Ended |  | Years Ended
| 12/31/15 |  | 9/30/15 |  | 6/30/15 |  | 3/31/15 |  | 12/31/14 |  | 12/31/15 |  | 12/31/14
Total interest expense | $ | 22,347 |  |  | $ | 24,121 |  |  | $ | 21,768 |  |  | $ | 20,838 |  |  | $ | 23,286 |  |  | $ | 89,074 |  |  | $ | 92,393 |
Less: Amortization of deferred financing costs | (1,127 | ) |  | (1,203 | ) |  | (1,146 | ) |  | (990 | ) |  | (1,020 | ) |  | (4,466 | ) |  | (4,666 | )
Less: Amortization of net debt discounts and prem., net of amounts capitalized | (317 | ) |  | (321 | ) |  | (264 | ) |  | (264 | ) |  | (261 | ) |  | (1,166 | ) |  | (920 | )
Less: Loss on interest rate derivatives | (386 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (386 | ) |  | — |
Less: Interest expense on debt in default extinguished via conveyance of properties | — |  |  | (2,781 | ) |  | (4,261 | ) |  | (4,182 | ) |  | (4,320 | ) |  | (11,224 | ) |  | (12,684 | )
Denominator for interest coverage | 20,517 |  |  | 19,816 |  |  | 16,097 |  |  | 15,402 |  |  | 17,685 |  |  | 71,832 |  |  | 74,123 |
Scheduled principal amortization | 1,717 |  |  | 1,692 |  |  | 1,670 |  |  | 1,649 |  |  | 1,603 |  |  | 6,728 |  |  | 6,517 |
Denominator for debt service coverage | 22,234 |  |  | 21,508 |  |  | 17,767 |  |  | 17,051 |  |  | 19,288 |  |  | 78,560 |  |  | 80,640 |
Capitalized interest | 1,510 |  |  | 1,559 |  |  | 1,950 |  |  | 2,132 |  |  | 1,740 |  |  | 7,151 |  |  | 6,065 |
Preferred share dividends - redeemable non-convertible | 3,553 |  |  | 3,552 |  |  | 3,553 |  |  | 3,552 |  |  | 3,552 |  |  | 14,210 |  |  | 15,939 |
Preferred unit distributions | 165 |  |  | 165 |  |  | 165 |  |  | 165 |  |  | 165 |  |  | 660 |  |  | 660 |
Denominator for fixed charge coverage | $ | 27,462 |  |  | $ | 26,784 |  |  | $ | 23,435 |  |  | $ | 22,900 |  |  | $ | 24,745 |  |  | $ | 100,581 |  |  | $ | 103,304 |
Preferred share dividends | $ | 3,553 |  |  | $ | 3,552 |  |  | $ | 3,553 |  |  | $ | 3,552 |  |  | $ | 3,552 |  |  | $ | 14,210 |  |  | $ | 15,939 |
Preferred unit distributions | 165 |  |  | 165 |  |  | 165 |  |  | 165 |  |  | 165 |  |  | 660 |  |  | 660 |
Common share dividends | 25,998 |  |  | 26,000 |  |  | 26,002 |  |  | 25,998 |  |  | 25,638 |  |  | 103,998 |  |  | 97,944 |
Common unit distributions | 1,011 |  |  | 1,011 |  |  | 1,012 |  |  | 1,012 |  |  | 1,055 |  |  | 4,046 |  |  | 4,270 |
Total dividends/distributions | $ | 30,727 |  |  | $ | 30,728 |  |  | $ | 30,732 |  |  | $ | 30,727 |  |  | $ | 30,410 |  |  | $ | 122,914 |  |  | $ | 118,813 |
Common share dividends | $ | 25,998 |  |  | $ | 26,000 |  |  | $ | 26,002 |  |  | $ | 25,998 |  |  | $ | 25,638 |  |  | $ | 103,998 |  |  | $ | 97,944 |
Common unit distributions | 1,011 |  |  | 1,011 |  |  | 1,012 |  |  | 1,012 |  |  | 1,055 |  |  | 4,046 |  |  | 4,270 |
Dividends and distributions on dilutive preferred securities | — |  |  | 537 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Dividends and distributions for diluted FFO payout ratio | 27,009 |  |  | 27,548 |  |  | 27,014 |  |  | 27,010 |  |  | 26,693 |  |  | 108,044 |  |  | 102,214 |
Dividends and distributions on antidilutive preferred securities | — |  |  | (537 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Dividends and distributions for other payout ratios | $ | 27,009 |  |  | $ | 27,011 |  |  | $ | 27,014 |  |  | $ | 27,010 |  |  | $ | 26,693 |  |  | $ | 108,044 |  |  | $ | 102,214 |

34

Corporate Office Properties Trust Supplementary Reconciliations of Non-GAAP Measures (continued) (dollars in thousands)
| Three Months Ended |  |  |  |
| 12/31/15 |  | 9/30/15 |  | 6/30/15 |  | 3/31/15 |  | 12/31/14 |  |  |  |
Total Assets | $ | 3,909,312 |  |  | $ | 3,912,092 |  |  | $ | 3,904,059 |  |  | $ | 3,771,651 |  |  | $ | 3,664,236 |  |  |  |  |
Accumulated depreciation | 700,363 |  |  | 675,747 |  |  | 723,470 |  |  | 724,539 |  |  | 703,083 |  |  |  |  |
Accumulated depreciation included in assets held for sale | 18,317 |  |  | 65,872 |  |  | 24,930 |  |  | — |  |  | — |  |  |  |  |
Accumulated amort. of real estate intangibles and deferred leasing costs | 195,506 |  |  | 189,571 |  |  | 211,522 |  |  | 219,437 |  |  | 214,611 |  |  |  |  |
Accumulated amortization of real estate intangibles and deferred leasing costs included in assets held for sale | 17,456 |  |  | 26,260 |  |  | 15,271 |  |  | — |  |  | — |  |  |  |  |
Less: Adj. book assoc. with properties conveyed to extinguish debt in default | — |  |  | — |  |  | (130,471 | ) |  | (131,623 | ) |  | (131,118 | ) |  |  |  |
Adjusted book | $ | 4,840,954 |  |  | $ | 4,869,542 |  |  | $ | 4,748,781 |  |  | $ | 4,584,004 |  |  | $ | 4,450,812 |  |  |  |  |
Debt, net | $ | 2,077,752 |  |  | $ | 2,114,859 |  |  | $ | 2,123,308 |  |  | $ | 1,994,118 |  |  | $ | 1,914,036 |  |  |  |  |
Less: Debt in default extinguished via conveyance of properties | — |  |  | — |  |  | (150,000 | ) |  | (150,000 | ) |  | (150,000 | ) |  |  |  |  |
Numerator for debt to adjusted book ratio | 2,077,752 |  |  | 2,114,859 |  |  | 1,973,308 |  |  | 1,844,118 |  |  | 1,764,036 |  |  |  |  |
Less: Cash and cash equivalents | (60,310 | ) |  | (3,840 | ) |  | (37,074 | ) |  | (4,429 | ) |  | (6,077 | ) |  |  |  |
Adjusted debt | $ | 2,017,442 |  |  | $ | 2,111,019 |  |  | $ | 1,936,234 |  |  | $ | 1,839,689 |  |  | $ | 1,757,959 |  |  |  |  |  |  |

35

Corporate Office Properties Trust
Definitions
Non-GAAP Measures
We believe that the measures defined below that are not determined in accordance with generally accepted accounting principles (“GAAP”) are helpful to investors in measuring our performance and comparing it to that of other real estate investment trusts (“REITs”). Since these measures exclude certain items includable in their respective most comparable GAAP measures, reliance on the measures has limitations; management compensates for these limitations by using the measures simply as supplemental measures that are weighed in balance with other GAAP and non-GAAP measures. These measures are not necessarily indications of our cash flow available to fund cash needs. Additionally, they should not be used as an alternative to the respective most comparable GAAP measures when evaluating our financial performance or to cash flow from operating, investing and financing activities when evaluating our liquidity or ability to make cash distributions or pay debt service.
Adjusted book
Defined as total assets presented on our consolidated balance sheet excluding the effect of accumulated depreciation on real estate properties, accumulated amortization of intangible assets on real estate acquisitions and accumulated amortization of deferred leasing costs, and excluding the effect of properties that served as collateral for debt in default that we extinguished via conveyance of such properties.
Adjusted debt
Defined as the carrying value of our debt, as adjusted to subtract cash and cash equivalents as of the end of the period and debt in default that was extinguished via conveyance of properties.
Adjusted debt to in-place adjusted EBITDA ratio
Defined as adjusted debt (as defined above) divided by in-place adjusted EBITDA (defined below) for the three month period that is annualized by multiplying by four.
Adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”)
Adjusted EBITDA is net income (loss) adjusted for the effects of interest expense, depreciation and amortization, impairment losses, gain on sales of properties, gain or loss on early extinguishment of debt, net gain on unconsolidated entities, operating property acquisition costs, loss on interest rate derivatives, income taxes, business development expenses, demolition costs on redevelopment properties and executive transition costs, and excluding the effect of properties that served as collateral for debt in default that we extinguished via conveyance of such properties. We believe that adjusted EBITDA is a useful supplemental measure of performance for assessing our un-levered performance. We believe that net income is the most directly comparable GAAP measure to adjusted EBITDA.
Amortization of acquisition intangibles included in NOI
Represents the amortization of intangible asset and liability categories that is included in net operating income, including amortization of above- or below-market leases and above- or below-market cost arrangements.
Basic FFO available to common share and common unit holders (“Basic FFO”)
This measure is FFO adjusted to subtract (1) preferred share dividends, (2) income attributable to noncontrolling interests through ownership of preferred units in Corporate Office Properties, L.P. (the “Operating Partnership”) or interests in other consolidated entities not owned by us, (3) depreciation and amortization allocable to noncontrolling interests in other consolidated entities, (4) Basic FFO allocable to restricted shares and (5) issuance costs associated with redeemed preferred shares. With these adjustments, Basic FFO represents FFO available to common shareholders and holders of common units in the Operating Partnership (“common units”). Common units are substantially similar to our common shares of beneficial interest (“common shares”) and are exchangeable into common shares, subject to certain conditions. We believe that Basic FFO is useful to investors due to the close correlation of common units to common shares. We believe that net income is the most directly comparable GAAP measure to Basic FFO.
36

Corporate Office Properties Trust
Definitions
Cash net operating income (“Cash NOI”)
Defined as NOI from real estate operations adjusted to eliminate the effects of noncash rental revenues and property operating expenses (comprised of straight-line rental adjustments, which includes the amortization of tenant incentives, and amortization of acquisition intangibles included in FFO and NOI). Under GAAP, rental revenue is recognized evenly over the term of tenant leases. Many leases provide for contractual rent increases and the effect of accounting under GAAP for such leases is to accelerate the recognition of lease revenue. Since some leases provide for periods under the lease in which rental concessions are provided to tenants, the effect of accounting under GAAP is to allocate rental revenue to such periods. Also under GAAP, when a property is acquired, we allocate the acquisition to certain intangible components (including above- and below-market leases and above- or below-market cost arrangements), which are then amortized into FFO and NOI over their estimated lives. We believe that Cash NOI is an important supplemental measure of operating performance for a REIT’s operating real estate because it makes adjustments to NOI for the above stated items that are not associated with cash to us. As is the case with NOI, the measure is useful in our opinion in evaluating and comparing the performance of geographic segments, same-office property groupings and individual properties. We believe that net income is the most directly comparable GAAP measure to Cash NOI.
Debt to Adjusted book
Defined as debt, as adjusted to subtract debt in default that was extinguished via conveyance of properties, divided by Adjusted book (defined above).
Diluted adjusted funds from operations available to common share and common unit holders (“Diluted AFFO”)
Defined as Diluted FFO, as adjusted for comparability, adjusted for the following: (1) the elimination of the effect of (a) noncash rental revenues and property operating expenses (comprised of straight-line rental adjustments, which includes the amortization of recurring tenant incentives, and amortization of acquisition intangibles included in FFO and NOI, both of which are described under “Cash NOI” below), (b) share-based compensation, net of amounts capitalized, (c) amortization of deferred financing costs, (d) amortization of debt discounts and premiums and (e) amortization of settlements of debt hedges; and (2) recurring capital expenditures. Recurring capital expenditures are defined as tenant improvements and incentives, building improvements and leasing costs for operating properties that are not (1) items contemplated prior to the acquisition of a property, (2) improvements associated with the expansion of a building or its improvements, (3) renovations to a building which change the underlying classification of the building (for example, from industrial to office or Class C office to Class B office) or (4) capital improvements that represent the addition of something new to the property rather than the replacement of something (for example, the addition of a new heating and air conditioning unit that is not replacing one that was previously there); recurring capital expenditures excludes expenditures of operating properties included in disposition plans during the period that were already sold or are held for future disposition. We believe that Diluted AFFO is an important supplemental measure of liquidity for an equity REIT because it provides management and investors with an indication of our ability to incur and service debt and to fund dividends and other cash needs. We believe that the numerator to diluted EPS is the most directly comparable GAAP measure to Diluted AFFO.
Diluted FFO available to common share and common unit holders (“Diluted FFO”)
Diluted FFO is Basic FFO adjusted to add back any changes in Basic FFO that would result from the assumed conversion of securities that are convertible or exchangeable into common shares. The computation of Diluted FFO assumes the conversion of common units in the Operating Partnership but does not assume the conversion of other securities that are convertible into common shares if the conversion of those securities would increase Diluted FFO per share in a given period. We believe that Diluted FFO is useful to investors because it is the numerator used to compute Diluted FFO per share, discussed below. We believe that the numerator to diluted EPS is the most directly comparable GAAP measure to Diluted FFO.
Diluted FFO available to common share and common unit holders, as adjusted for comparability (“Diluted FFO, as adjusted for comparability”) and FFO, as adjusted for comparability
Defined as Diluted FFO or FFO adjusted to exclude: operating property acquisition costs: gains on sales of, and impairment losses on, properties other than previously depreciated operating properties, net of associated income tax; gain or loss on early extinguishment of debt; FFO associated with properties that secured non-recourse debt on which we defaulted and, subsequently, extinguished via conveyance of such properties (including property NOI, interest expense and gains on debt extinguishment); loss on interest rate derivatives; demolition costs on redevelopment properties; executive transition costs; and accounting charges for original issuance costs associated with redeemed preferred shares. We believe that the excluded items are not reflective of normal operations and, as a result, believe that a measure that excludes these items is a
37

Corporate Office Properties Trust
Definitions
useful supplemental measure in evaluating operating performance. The adjustment for FFO associated with properties securing non-recourse debt on which we defaulted pertains to the periods subsequent to our default on the loan’s payment terms, which was the result of our decision to not support payments on the loan since the estimated fair value of the properties was less than the loan balance. While we continued as the legal owner of the properties during this period, all cash flows produced by them went directly to the lender and we did not fund any debt service shortfalls, which included incremental additional interest under the default rate. We believe that the numerator to diluted EPS is the most directly comparable GAAP measure to this non-GAAP measure.
Diluted FFO per share
Diluted FFO per share is (1) Diluted FFO divided by (2) the sum of the (a) weighted average common shares outstanding during a period, (b) weighted average common units outstanding during a period and (c) weighted average number of potential additional common shares that would have been outstanding during a period if other securities that are convertible or exchangeable into common shares were converted or exchanged. The computation of Diluted FFO per share assumes the conversion of common units in the Operating Partnership but does not assume the conversion of other securities that are convertible into common shares if the conversion of those securities would increase Diluted FFO per share in a given period. We believe that Diluted FFO per share is useful to investors because it provides investors with a further context for evaluating our FFO results in the same manner that investors use earnings per share (“EPS”) in evaluating net income available to common shareholders. We believe that diluted EPS is the most directly comparable GAAP measure to Diluted FFO per share.
Diluted FFO per share, as adjusted for comparability
Defined as (1) Diluted FFO available to common share and common unit holders, as adjusted for comparability divided by (2) the sum of the (a) weighted average common shares outstanding during a period, (b) weighted average common units outstanding during a period and (c) weighted average number of potential additional common shares that would have been outstanding during a period if other securities that are convertible or exchangeable into common shares were converted or exchanged. The computation of this measure assumes the conversion of common units in the Operating Partnership but does not assume the conversion of other securities that are convertible into common shares if the conversion of those securities would increase the per share measure in a given period. As discussed above, we believe that the excluded items are not indicative of normal operations. As such, we believe that a measure that excludes these items is a useful supplemental measure in evaluating our operating performance. We believe that diluted EPS is the most directly comparable GAAP measure.
Dividend coverage-Diluted FFO, Diluted FFO, as adjusted for comparability, and Dividend coverage-Diluted AFFO
These measures divide either Diluted FFO, Diluted FFO, as adjusted for comparability, or Diluted AFFO by the sum of (1) dividends on common shares and (2) distributions to holders of interests in the Operating Partnership and dividends on convertible preferred shares when such distributions and dividends are included in Diluted FFO.
Funds from operations (“FFO” or “FFO per NAREIT”)
Defined as net income computed using GAAP, excluding gains on sales of, and impairment losses on, previously depreciated operating properties and real estate-related depreciation and amortization. When multiple properties consisting of both operating and non-operating properties exist on a single tax parcel, we classify all of the gains on sales of, and impairment losses on, the tax parcel as all being for previously depreciated operating properties when most of the value of the parcel is associated with operating properties on the parcel. We believe that we use the National Association of Real Estate Investment Trust’s (“NAREIT”) definition of FFO, although others may interpret the definition differently and, accordingly, our presentation of FFO may differ from those of other REITs. We believe that FFO is useful to management and investors as a supplemental measure of operating performance because, by excluding gains related to sales of, and impairment losses on, previously depreciated operating properties and excluding real estate-related depreciation and amortization, FFO can help one compare our operating performance between periods. We believe that net income is the most directly comparable GAAP measure to FFO.
In-place adjusted EBITDA
Defined as Adjusted EBITDA, as further adjusted for: (1) the removal of NOI pertaining to properties in the quarterly periods in which such properties were sold; and (2) the addition of pro forma adjustments to NOI for properties acquired or placed into service subsequent to the commencement of a quarter made in order to reflect a full quarter
38

Corporate Office Properties Trust
Definitions
of ownership/operations. We believe that in-place adjusted EBITDA is a useful supplemental measure of performance for assessing our un-levered performance, as further adjusted for changes in operating properties subsequent to the commencement of a quarter. We believe that net income is the most directly comparable GAAP measure to in-place adjusted EBITDA.
Net operating income (“NOI”) from real estate operations
NOI is real estate revenues from continuing and discontinued operations reduced by total property expenses associated with real estate operations, including discontinued operations; total property expenses, as used in this definition, do not include depreciation, amortization or interest expense associated with real estate operations. We believe that NOI is an important supplemental measure of operating performance for a REIT’s operating real estate because it provides a measure of the core real estate operations that is unaffected by depreciation, amortization, financing and general, administrative and leasing expenses; we believe this measure is particularly useful in evaluating the performance of geographic segments, same-office property groupings and individual properties. We believe that net income is the most directly comparable GAAP measure to NOI.
NOI debt service coverage ratio and Adjusted EBITDA debt service coverage ratio
These measures divide either NOI from real estate operations or Adjusted EBITDA by the sum of interest expense on continuing and discontinued operations (excluding amortization of deferred financing costs and amortization of debt discounts and premiums, net of amounts capitalized, gains or losses on interest rate derivatives and interest expense on debt in default to be extinguished via conveyance of properties) and scheduled principal amortization on mortgage loans for continuing and discontinued operations.
NOI fixed charge coverage ratio and Adjusted EBITDA fixed charge coverage ratio
These measures divide either NOI from real estate operations or Adjusted EBITDA by the sum of (1) interest expense on continuing and discontinued operations (excluding amortization of deferred financing costs and amortization of debt discounts and premiums, net of amounts capitalized, gains or losses on interest rate derivatives and interest expense on debt in default to be extinguished via conveyance of properties), (2) scheduled principal amortization on mortgage loans for continuing and discontinued operations, (3) capitalized interest, (4) dividends on preferred shares and (5) distributions on preferred units in the Operating Partnership not owned by us.
NOI interest coverage ratio and Adjusted EBITDA interest coverage ratio
These measures divide either NOI from real estate operations or Adjusted EBITDA by interest expense on continuing and discontinued operations (excluding amortization of deferred financing costs and amortization of debt discounts and premiums, net of amounts capitalized, gains on losses on interest rate derivatives and interest expense on debt in default to be extinguished via conveyance of properties).
Payout ratios based on: Diluted FFO; Diluted FFO, as adjusted for comparability; and Diluted AFFO
These payout ratios are defined as (1) the sum of (a) dividends on common shares and (b) distributions to holders of interests in the Operating Partnership and dividends on convertible preferred shares when such distributions and dividends are included in Diluted FFO divided by (2) the respective non-GAAP measures on which the payout ratios are based.
Real estate revenue operating margin
Defined as NOI from real estate operations divided by real estate revenue, including continuing and discontinued operations.
Recurring capital expenditures
Definition is included above in the definition for Diluted AFFO.
Rental revenue operating margin
Defined as NOI from real estate operations divided by real estate rental revenue, including continuing and discontinued operations.
39

Corporate Office Properties Trust
Definitions
Same office property NOI
Defined as NOI from real estate operations of Same Office Properties. We believe that Same Office Property NOI is an important supplemental measure of operating performance of Same Office Properties for the same reasons discussed above for NOI from real estate operations.
Same office property cash NOI
Defined as cash NOI attributable to same office properties with additional adjustments to eliminate the effects of: (1) lease termination fees paid by tenants to terminate their lease obligations prior to the end of the agreed upon lease terms; and (2) rental revenue recognized under GAAP resulting from landlord assets funded by tenants. Lease termination fees and tenant-funded landlord improvements are often recognized as revenue in large one-time lump sum amounts. We believe that cash NOI attributable to same office properties with additional adjustments to eliminate the effects of these amounts is a useful supplemental measure of operating performance in evaluating same-office property groupings. We believe that net income is the most directly comparable GAAP measure to Same office property cash NOI.
40

Corporate Office Properties Trust
Definitions
Other Definitions
Acquisition Costs — Transaction costs expensed in connection with executed or anticipated acquisitions of operating properties.
Annualized Rental Revenue — The monthly contractual base rent as of the reporting date multiplied by 12, plus the estimated annualized expense reimbursements under existing leases for occupied space.
Construction Properties — Properties under active construction and properties that we were contractually committed to construct.
Core Portfolio — Represents Defense/IT Locations and Regional Office properties excluding properties held for sale.
Defense/IT Locations — Represents properties in locations that support United States Government agencies and their contractors, most of whom are engaged in national security, defense and IT related activities servicing what we believe are growing, durable priority missions.
First Generation Space — Newly constructed or redeveloped space that has never been occupied.
Operational Space — The portion of a property in operations (excludes portion under construction or redevelopment).
Pre-Construction Properties — Properties on which work associated with one or more of the following tasks is underway on a regular basis: pursuing entitlements, planning, design and engineering, bidding, permitting and premarketing/preleasing. Typically, these projects, as categorized in this Supplemental Information package, are targeted to begin construction in 12 months or less.
Redevelopment Properties — Properties previously in operations on which activities to substantially renovate such properties were underway or approved.
Regional Office Properties — Includes traditional office properties located in select urban/urban-like submarkets within our regional footprint with durable Class-A office fundamentals and characteristics, as well as other properties supporting general commercial office tenants.
Same Office Properties — Operating office properties owned and 100% operational since at least January 1, 2014, excluding properties held for future disposition and properties under redevelopment.
Second Generation Space — Space leased that has been previously occupied.
Total Portfolio — Operating properties, excluding the effect of properties serving as collateral for debt which is in default that we expect to extinguish via property conveyance.
41

| 6711 Columbia Gateway Drive, Suite 300
Columbia, Maryland 21046
Telephone 443-285-5400
Facsimile 443-285-7650
www.copt.com
NYSE: OFC
| NEWS RELEASE
FOR IMMEDIATE RELEASE | IR Contacts: |
| Stephanie Krewson-Kelly | Michelle Layne
| VP, Investor Relations | Investor Relations Specialist
| 443-285-5453 | 443-285-5452
| stephanie.kelly@copt.com | michelle.layne@copt.com

COPT REPORTS 2015 RESULTS
COLUMBIA, MD February 12, 2016 - Corporate Office Properties Trust (“COPT” or the “Company”) (NYSE: OFC) announced financial and operating results for the fourth quarter and full year ended December 31, 2015.
Management Comments
“Fourth quarter and full year results topped off a year of significant achievement for the Company,” stated Roger A. Waesche, Jr., COPT’s President & Chief Executive Officer. “During the year, we further honed our portfolio by investing in development projects at multiple strategic locations and upgraded our portfolio by recycling suburban office assets into urban locations. As a result of these tactics, we now derive 84% of our core portfolio’s annualized revenue from locations that are tied to national defense. We are off to a strong start in 2016, and will continue recycling capital from suburban assets in order to grow our Defense IT locations and to further strengthen our balance sheet.”
Financial Highlights
4 th Quarter Financial Results:

• | Diluted earnings per share (“EPS”) was $0.59 for the quarter ended December 31, 2015 as compared to $0.01 for the fourth quarter of 2014.

• | Diluted funds from operations per share (“FFOPS”), as calculated in accordance with NAREIT’s definition, was $0.31 for the fourth quarter of 2015 as compared to $0.34 for the fourth quarter of 2014.

• | FFOPS, as adjusted for comparability, was $0.52 for the quarter ended December 31, 2015 as compared to $0.49 for the fourth quarter of 2014, a 6.1% increase.

Full Year 2015 Financial Results:

• | EPS was $1.74 for the year ended December 31, 2015 as compared to $0.25 for 2014.

• | Per NAREIT’s definition, FFOPS for 2015 was $2.55 as compared to $1.69 for 2014.

• | FFOPS for the full year 2015, as adjusted for comparability, was $2.01 as compared to $1.88 reported for 2014, a 6.9% increase.

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

Operating Performance Highlights
Portfolio Summary:

• | At December 31, 2015, the Company’s core portfolio of 157 operating office properties totaled 17.0 million square feet that were 92.7% occupied and 93.9% leased.

• | At year end, the Company had 15 operating properties and 98 acres of land held for sale. The held for sale properties total 658,000 square feet and, at December 31, 2015, were 84.7% occupied.

Same Office Performance:

• | At December 31, 2015, COPT’s same office portfolio represented 85% of the core portfolio’s rentable square feet, consisted of 145 properties that were 90.9% occupied and 92.3% leased.

• | For the quarter ended December 31, 2015, the Company’s same office property cash NOI increased 2.5% as compared to the quarter ended December 31, 2014.

• | For the full year, same office property cash NOI increased 0.7% as compared to 2014.

Leasing:

• | Square Feet Leased - For the year and quarter ended December 31, 2015, the Company completed 2.5 million and 666,000 square feet of leasing, respectively. For the year, the Company completed 735,000 square feet of development leasing, modestly exceeding expectations.

On January 8, 2016, the Company executed a 149,000 square foot build-to-suit in Northern Virginia with a Defense /IT customer. Including this 100% pre-leased project, which was out for signature at the end of 4Q15, the Company completed 884,000 square feet of development leasing in 2015.

• | Strong Renewal Rates - During the year and fourth quarter, the Company renewed 71% and 90% of expiring leases, respectively, which exceeded expectations.

• | Rent Spreads Met Expectations - For the year and the quarter ended December 31, 2015, GAAP rent on renewed space increased 6.5% and 13.8%, respectively; on a cash basis, renewal rates declined by 2.6% for the year and by only 0.9% in the fourth quarter, as compared to the expiring rents.

• | Lease Term Lengthening - For the full year, lease terms averaged 4.3 years on renewals and 8.4 years on development and other new leases, for an average term of 6.3 years on all leasing completed during the year. In the fourth quarter, lease terms on 419,000 square feet of renewals averaged 4.7 years and 8.1 years on 247,000 square feet of development and other new leasing, for an average lease term of 6.0 years in the quarter.

Investment Activity Highlights
Development & Redevelopment Projects:

• | The Company has nine properties totaling 1.3 million square feet under construction that, at December 31, 2015, were 65% pre-leased. The nine projects have a total estimated cost of $304.9 million, of which $164.8 million has been incurred.

• | COPT has 156,000 square feet in four properties under redevelopment, representing a total expected cost of $38.4 million, of which $21.7 million has been invested. The four projects were 8% leased at year end 2015.

Acquisitions:

• | During 2015, the Company acquired three buildings, including an associated free-standing structured parking garage, totaling 1.2 million square feet for $263.5 million.

ii

Dispositions:

• | During 2015, the Company disposed of nine buildings aggregating 1.6 million square feet and non-strategic land for $365.9 million. This total included the disposition of two properties in Northern Virginia that collateralized a $150 million loan that was extinguished in exchange for title to the properties.

• | During the fourth quarter, the Company completed the following $153 million of asset sales:

◦ | The disposition of 13200 Woodland Park Road in Herndon, Virginia, for $84.0 million. The building contains approximately 397,000 rentable square feet and was 100% leased to Booz Allen Hamilton Inc. until December 31, 2015.

◦ | The disposition of 9900, 9910 and 9920 Franklin Square Drive in the White Marsh submarket of Greater Baltimore, Maryland, for $24 million. The three properties contained roughly 135,000 rentable square feet that were 100% occupied.

◦ | The disposition of 9690 Deereco Road and 375 W. Padonia Road in Timonium, a suburban submarket of Greater Baltimore, Maryland, for $44.5 million. The properties contained 240,000 rentable square feet that were 100% occupied at the time of sale.

Balance Sheet and Capital Transaction Highlights

• | As of December 31, 2015, the Company’s debt to adjusted book ratio was 42.9%, adjusted debt to in-place adjusted EBITDA ratio was 6.5x, and, for the quarter ended December 31, 2015, its adjusted EBITDA fixed charge coverage ratio was 2.9x.

• | The Company’s weighted average interest rate was 4.1% for the quarter ended December 31, 2015 and, including the effect of interest rate swaps, 90% of the Company’s debt was subject to fixed interest rates and the debt portfolio has a weighted average maturity of 6.1 years.

• | During the year ended December 31, 2015:

◦ | The Company issued $26.6 million of common equity from its ATM facility at an average gross price of $30.29.

◦ | In May, the Company amended the terms of its $800 million line of credit to: (1) extend the maturity date from July 2017, to May 2019 plus two six-month extension options; and (2) lower the interest rate spread and the facility fee to current market.

◦ | Also in May, the Company amended the terms of its $250 million Term Loan that was previously scheduled to mature on February 2017. The Company increased the Term Loan balance by $50 million, to $300 million, extended the maturity date to May 2020 and lowered the interest rate.

◦ | In late June, the Company issued $300 million of 5.00% senior unsecured notes due July 2025.

◦ | In December, the Company entered into a new 7-year $250 million Term Loan and used $100 million of proceeds to retire the $100 million Term Loan that was scheduled to mature in 2016. Through the new Term Loan’s delayed draw feature, the Company will use the remaining $150 million to retire a $162.5 million secured loan that is prepayable at par in July 2016.

iii

2016 FFO Guidance:
Management is maintaining its previously issued guidance ranges for full year FFOPS, as adjusted for comparability, of $1.95-$2.05, and establishing guidance for the first quarter ending March 31, 2016 at a range of $0.46-$0.48. Reconciliations of projected diluted EPS to projected FFOPS are provided as follows:

|  | Three Months Ending |  | Year Ending
|  | March 31, 2016 |  | December 31, 2016
|  | Low |  | High |  | Low |  | High
EPS |  | $ | 0.03 |  |  | $ | 0.05 |  |  | $ | 0.42 |  |  | $ | 0.52 |
Real estate depreciation and amortization |  | 0.40 |  |  | 0.40 |  |  | 1.60 |  |  | 1.60 |
Gains on sales of operating properties |  | — |  |  | — |  |  | (0.10 | ) |  | (0.10 | )
FFOPS, NAREIT definition |  | 0.43 |  |  | 0.45 |  |  | 1.92 |  |  | 2.02 |
Executive transition costs |  | 0.03 |  |  | 0.03 |  |  | 0.03 |  |  | 0.03 |
FFOPS, as adjusted for comparability |  | $ | 0.46 |  |  | $ | 0.48 |  |  | $ | 1.95 |  |  | $ | 2.05 |

Associated Supplemental Presentation
The Company has posted a slide presentation to accompany management’s prepared remarks for its fourth quarter and full year 2015 conference call, the details of which are provided below. You may access the slide presentation on the ‘Investors’ section of the website (www.copt.com). Please have the slides available to review during management’s comments.
Conference Call Information
Management will discuss fourth quarter and full year 2015 earnings results on its conference call today at 12:00 p.m. Eastern Time, details of which are listed below:
Earnings Release Date: Friday, February 12, 2016 at 6:00 a.m. Eastern Time
Conference Call Date: Friday, February 12, 2016
Time: 12:00 p.m. Eastern Time
Telephone Number: (within the U.S.) 888-713-4205
Telephone Number: (outside the U.S.) 617-213-4862
Passcode: 47665945#
Please use the following link to pre-register and view important information about this conference call. Pre-registering is not mandatory but is recommended as it will provide you immediate entry into the call and will facilitate the timely start of the conference. To pre-register, please click on the below link:
https://www.theconferencingservice.com/prereg/key.process?key=PX64ACELX
You may also pre-register in the Investors section of the Company’s website at www.copt.com. Alternatively, you may be placed into the call by an operator by calling the number provided above at least 5 to 10 minutes before the start of the call.
A replay of this call will be available beginning Friday, February 12, at 4:00 p.m. Eastern Time through Friday, February 26, at midnight Eastern Time. To access the replay within the United States, please call 888-286-8010 and use passcode 93348081. To access the replay outside the United States, please call 617-801-6888 and use passcode 93348081.
iv

The conference call will also be available via live webcast in the Investor Relations section of the Company’s website at www.copt.com. A replay of the conference calls will be immediately available via webcast in the Investor Relations section of the Company’s website.
Definitions
For definitions of certain terms used in this press release, please refer to the information furnished in our Supplemental Information Package filed as a Form 8-K which can be found on our website (www.copt.com). Reconciliations of non-GAAP measures to the most directly comparable GAAP measures are included in the attached tables.
Company Information
COPT is an office REIT that owns, manages, develops and selectively acquires office and data center properties in locations that support United States Government agencies and their contractors, most of whom are engaged in national security, defense and information technology (“IT”) related activities servicing priority missions (“Defense/IT Locations”). We also own a complementary portfolio of traditional Class-A office properties located in select urban/urban-like submarkets within our regional footprint (“Regional Office Properties”). As of December 31, 2015, we derived 84% of core portfolio annualized revenue from Defense/IT Locations and 16% from our Regional Office Properties. As of December 31, 2015, our core portfolio of 157 office properties encompassed 17.0 million square feet and was 93.9% leased.
Forward-Looking Information
This press release may contain “forward-looking” statements, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that are based on the Company’s current expectations, estimates and projections about future events and financial trends affecting the Company. Forward-looking statements can be identified by the use of words such as “may,” “will,” “should,” “could,” “believe,” “anticipate,” “expect,” “estimate,” “plan” or other comparable terminology. Forward-looking statements are inherently subject to risks and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate. Accordingly, the Company can give no assurance that these expectations, estimates and projections will be achieved. Future events and actual results may differ materially from those discussed in the forward-looking statements.
Important factors that may affect these expectations, estimates, and projections include, but are not limited to:

* | general economic and business conditions, which will, among other things, affect office property and data center demand and rents, tenant creditworthiness, interest rates, financing availability and property values;

* | adverse changes in the real estate markets including, among other things, increased competition with other companies;

* | governmental actions and initiatives, including risks associated with the impact of a prolonged government shutdown or budgetary reductions or impasses, such as a reduction in rental revenues, non-renewal of leases, and/or a curtailment of demand for additional space by the Company's strategic customers;

* | the Company’s ability to borrow on favorable terms;

* | risks of real estate acquisition and development activities, including, among other things, risks that development projects may not be completed on schedule, that tenants may not take occupancy or pay rent or that development or operating costs may be greater than anticipated;

* | risks of investing through joint venture structures, including risks that the Company’s joint venture partners may not fulfill their financial obligations as investors or may take actions that are inconsistent with the Company’s objectives;

* | changes in the Company’s plans for properties or views of market economic conditions or failure to obtain development rights, either of which could result in recognition of significant impairment losses;

* | the Company’s ability to satisfy and operate effectively under Federal income tax rules relating to real estate investment trusts and partnerships;

* | the Company's ability to achieve projected results;

* | the dilutive effects of issuing additional common shares; and

* | environmental requirements.

The Company undertakes no obligation to update or supplement any forward-looking statements. For further information, please refer to the Company’s filings with the Securities and Exchange Commission, particularly the section entitled “Risk Factors” in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2014.
v

Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(in thousands, except per share data)

| For the Three Months Ended December 31, 2015 |  | For the Year Ended December 31,
| 2015 |  | 2014 |  | 2015 |  | 2014
Revenues |  |  |  |  |  |  |  |  |
Real estate revenues | $ | 134,477 |  |  | $ | 120,613 |  |  | $ | 519,064 |  |  | $ | 479,725 |
Construction contract and other service revenues | 8,848 |  |  | 26,358 |  |  | 106,402 |  |  | 106,748 |
Total revenues | 143,325 |  |  | 146,971 |  |  | 625,466 |  |  | 586,473 |
Expenses |  |  |  |  |  |  |  |  |
Property operating expenses | 48,498 |  |  | 43,334 |  |  | 194,494 |  |  | 179,934 |
Depreciation and amortization associated with real estate operations | 36,237 |  |  | 31,358 |  |  | 140,025 |  |  | 136,086 |
Construction contract and other service expenses | 7,773 |  |  | 24,705 |  |  | 102,696 |  |  | 100,058 |
Impairment losses | 19,744 |  |  | 48 |  |  | 23,289 |  |  | 1,416 |
General and administrative expenses | 6,609 |  |  | 7,206 |  |  | 24,526 |  |  | 24,841 |
Leasing expenses | 1,888 |  |  | 1,706 |  |  | 6,835 |  |  | 6,953 |
Business development expenses and land carry costs | 2,521 |  |  | 1,466 |  |  | 13,507 |  |  | 5,573 |
Total operating expenses | 123,270 |  |  | 109,823 |  |  | 505,372 |  |  | 454,861 |
Operating income | 20,055 |  |  | 37,148 |  |  | 120,094 |  |  | 131,612 |
Interest expense | (22,347 | ) |  | (23,286 | ) |  | (89,074 | ) |  | (92,393 | )
Interest and other income | 1,300 |  |  | 1,148 |  |  | 4,517 |  |  | 4,923 |
(Loss) gain on early extinguishment of debt | (402 | ) |  | (9,106 | ) |  | 85,275 |  |  | (9,552 | )
(Loss) income from continuing operations before equity in income of unconsolidated entities and income taxes | (1,394 | ) |  | 5,904 |  |  | 120,812 |  |  | 34,590 |
Equity in income of unconsolidated entities | 10 |  |  | 23 |  |  | 62 |  |  | 229 |
Income tax expense | (46 | ) |  | (53 | ) |  | (199 | ) |  | (310 | )
(Loss) income from continuing operations | (1,430 | ) |  | 5,874 |  |  | 120,675 |  |  | 34,509 |
Discontinued operations | — |  |  | 22 |  |  | 156 |  |  | 26 |
(Loss) income before gain on sales of real estate | (1,430 | ) |  | 5,896 |  |  | 120,831 |  |  | 34,535 |
Gain on sales of real estate, net of income taxes | 64,047 |  |  | 41 |  |  | 68,047 |  |  | 10,671 |
Net income | 62,617 |  |  | 5,937 |  |  | 188,878 |  |  | 45,206 |
Net income attributable to noncontrolling interests |  |  |  |  |  |  |  |  |
Common units in the Operating Partnership (“OP”) | (2,172 | ) |  | (64 | ) |  | (6,403 | ) |  | (1,006 | )
Preferred units in the OP | (165 | ) |  | (165 | ) |  | (660 | ) |  | (660 | )
Other consolidated entities | (916 | ) |  | (804 | ) |  | (3,515 | ) |  | (3,285 | )
Net income attributable to COPT | 59,364 |  |  | 4,904 |  |  | 178,300 |  |  | 40,255 |
Preferred share dividends | (3,553 | ) |  | (3,552 | ) |  | (14,210 | ) |  | (15,939 | )
Issuance costs associated with redeemed preferred shares | — |  |  | — |  |  | — |  |  | (1,769 | )
Net income attributable to COPT common shareholders | $ | 55,811 |  |  | $ | 1,352 |  |  | $ | 164,090 |  |  | $ | 22,547 |
Earnings per share (“EPS”) computation: |  |  |  |  |  |  |  |  |
Numerator for diluted EPS: |  |  |  |  |  |  |  |  |
Net income attributable to common shareholders | $ | 55,811 |  |  | $ | 1,352 |  |  | $ | 164,090 |  |  | $ | 22,547 |
Common units in the OP | — |  |  | — |  |  | 6,403 |  |  | — |
Amount allocable to share-based compensation awards | (230 | ) |  | (100 | ) |  | (706 | ) |  | (432 | )
Numerator for diluted EPS | $ | 55,581 |  |  | $ | 1,252 |  |  | $ | 169,787 |  |  | $ | 22,115 |
Denominator: |  |  |  |  |  |  |  |  |
Weighted average common shares - basic | 94,164 |  |  | 90,752 |  |  | 93,914 |  |  | 88,092 |
Common units in the OP | — |  |  | — |  |  | 3,692 |  |  | — |
Dilutive effect of share-based compensation awards | — |  |  | 196 |  |  | 61 |  |  | 171 |
Weighted average common shares - diluted | 94,164 |  |  | 90,948 |  |  | 97,667 |  |  | 88,263 |
Diluted EPS | $ | 0.59 |  |  | $ | 0.01 |  |  | $ | 1.74 |  |  | $ | 0.25 |

vi

Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(in thousands, except per share data)

| For the Three Months Ended December 31, 2015 |  | For the Year Ended December 31,
| 2015 |  | 2014 |  | 2015 |  | 2014
Net income | $ | 62,617 |  |  | $ | 5,937 |  |  | $ | 188,878 |  |  | $ | 45,206 |
Real estate-related depreciation and amortization | 36,237 |  |  | 31,358 |  |  | 140,025 |  |  | 136,086 |
Impairment losses on previously depreciated operating properties | 331 |  |  | 48 |  |  | 4,110 |  |  | 1,370 |
Gain on sales of previously depreciated operating properties | (64,047 | ) |  | 2 |  |  | (64,062 | ) |  | (5,117 | )
Funds from operations (“FFO”) | 35,138 |  |  | 37,345 |  |  | 268,951 |  |  | 177,545 |
Noncontrolling interests - preferred units in the OP | (165 | ) |  | (165 | ) |  | (660 | ) |  | (660 | )
FFO allocable to other noncontrolling interests | (817 | ) |  | (867 | ) |  | (3,586 | ) |  | (3,216 | )
Preferred share dividends | (3,553 | ) |  | (3,552 | ) |  | (14,210 | ) |  | (15,939 | )
Issuance costs associated with redeemed preferred shares | — |  |  | — |  |  | — |  |  | (1,769 | )
Basic and diluted FFO allocable to share-based compensation awards | (115 | ) |  | (123 | ) |  | (1,041 | ) |  | (665 | )
Basic and diluted FFO available to common share and common unit holders (“Diluted FFO”) | 30,488 |  |  | 32,638 |  |  | 249,454 |  |  | 155,296 |
Operating property acquisition costs | 32 |  |  | — |  |  | 4,134 |  |  | — |
Gain on sales of non-operating properties | — |  |  | (43 | ) |  | (3,985 | ) |  | (5,578 | )
Impairment losses on other properties | 19,413 |  |  | — |  |  | 19,413 |  |  | 49 |
Loss on interest rate derivatives | 386 |  |  | — |  |  | 386 |  |  | — |
Loss (gain) on early extinguishment of debt | 402 |  |  | 9,106 |  |  | (85,655 | ) |  | 9,668 |
Issuance costs associated with redeemed preferred shares | — |  |  | — |  |  | — |  |  | 1,769 |
Add: Negative FFO of properties conveyed to extinguish debt in default (1) | — |  |  | 3,493 |  |  | 10,456 |  |  | 10,928 |
Demolition costs on redevelopment properties | 225 |  |  | — |  |  | 1,396 |  |  | — |
Executive transition costs | — |  |  | 1,056 |  |  | — |  |  | 1,056 |
Diluted FFO comparability adjustments allocable to share-based compensation awards | (88 | ) |  | (59 | ) |  | 225 |  |  | (78 | )
Diluted FFO available to common share and common unit holders, as adjusted for comparability | 50,858 |  |  | 46,191 |  |  | 195,824 |  |  | 173,110 |
Straight line rent adjustments | (2,614 | ) |  | (379 | ) |  | (13,379 | ) |  | (1,820 | )
Straight line rent adjustments - properties in default conveyed | — |  |  | (47 | ) |  | (115 | ) |  | (142 | )
Amortization of intangibles included in net operating income | 365 |  |  | 208 |  |  | 1,428 |  |  | 855 |
Share-based compensation, net of amounts capitalized | 1,625 |  |  | 1,504 |  |  | 6,574 |  |  | 6,067 |
Amortization of deferred financing costs | 1,127 |  |  | 1,020 |  |  | 4,466 |  |  | 4,666 |
Amortization of deferred financing costs - properties in default conveyed | — |  |  | — |  |  | — |  |  | (333 | )
Amortization of net debt discounts, net of amounts capitalized | 317 |  |  | 261 |  |  | 1,166 |  |  | 920 |
Amortization of settled debt hedges | — |  |  | 11 |  |  | — |  |  | 57 |
Recurring capital expenditures | (20,086 | ) |  | (8,633 | ) |  | (49,266 | ) |  | (50,199 | )
Diluted adjusted funds from operations available to common share and common unit holders (“Diluted AFFO”) | $ | 31,592 |  |  | $ | 40,136 |  |  | $ | 146,698 |  |  | $ | 133,181 |
Diluted FFO per share | $ | 0.31 |  |  | $ | 0.34 |  |  | $ | 2.55 |  |  | $ | 1.69 |
Diluted FFO per share, as adjusted for comparability | $ | 0.52 |  |  | $ | 0.49 |  |  | $ | 2.01 |  |  | $ | 1.88 |
Dividends/distributions per common share/unit | $ | 0.275 |  |  | $ | 0.275 |  |  | $ | 1.100 |  |  | $ | 1.100 |

(1) Interest expense exceeded net operating income from these properties by the amounts in the statement.
vii

Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(Dollars and shares in thousands, except per share data)

|  | December 31, 2015 |  | December 31, 2014
Balance Sheet Data |  |  |  |  |  |
Properties, net of accumulated depreciation |  | $ | 3,349,748 |  |  | $ | 3,296,914 |
Total assets |  | 3,909,312 |  |  | 3,664,236 |
Debt, net |  | 2,077,752 |  |  | 1,914,036 |
Total liabilities |  | 2,273,530 |  |  | 2,124,935 |
Redeemable noncontrolling interest |  | 19,218 |  |  | 18,417 |
Equity |  | 1,616,564 |  |  | 1,520,884 |
Debt to adjusted book |  | 42.9 | % |  | 39.6 | %
Core Portfolio Data (as of period end) (1) |  |  |  |  |  |
Number of operating properties |  | 157 |  |  | 173 |
Total net rentable square feet owned (in thousands) |  | 17,038 |  |  | 16,790 |
Occupancy % |  | 92.7 | % |  | 90.9 | %
Leased % |  | 93.9 | % |  | 92.4 | %

| For the Three Months Ended December 31, 2015 |  | For the Year Ended December 31,
2015 |  | 2014 |  | 2015 |  | 2014
Payout ratios |  |  |  |  |  |  |  |  |  |  |
Diluted FFO | 88.6 | % |  | 81.8 | % |  | 43.3 | % |  | 65.8 | %
Diluted FFO, as adjusted for comparability | 53.1 | % |  | 57.8 | % |  | 55.2 | % |  | 59.0 | %
Diluted AFFO | 85.5 | % |  | 66.5 | % |  | 73.7 | % |  | 76.7 | %
Adjusted EBITDA interest coverage ratio | 3.9 | x |  | 4.0 | x |  | 4.2 | x |  | 3.8 | x
Adjusted EBITDA fixed charge coverage ratio | 2.9 | x |  | 2.9 | x |  | 3.0 | x |  | 2.7 | x
Adjusted debt to in-place adjusted EBITDA ratio (2) | 6.5 | x |  | 6.2 | x |  | N/A |  |  | N/A |
Reconciliation of denominators for per share measures |  |  |  |  |  |  |
Denominator for diluted EPS | 94,164 |  |  | 90,948 |  |  | 97,667 |  |  | 88,263 |
Weighted average common units | 3,677 |  |  | 3,846 |  |  | — |  |  | 3,897 |
Denominator for diluted FFO per share | 97,841 |  |  | 94,794 |  |  | 97,667 |  |  | 92,160 |
Reconciliation of FFO to FFO, as adjusted for comparability |  |  |  |  |  |  |  |  |  |  |
FFO, per NAREIT | $ | 35,138 |  |  | $ | 37,345 |  |  | $ | 268,951 |  |  | $ | 177,545 |
Gain on sales of non-operating properties | — |  |  | (43 | ) |  | (3,985 | ) |  | (5,578 | )
Impairment losses on non-operating properties, net of associated tax | 19,413 |  |  | — |  |  | 19,413 |  |  | 49 |
Operating property acquisition costs | 32 |  |  | — |  |  | 4,134 |  |  | — |
Loss on interest rate derivatives | 386 |  |  | — |  |  | 386 |  |  | — |
Loss (gain) on early extinguishment of debt, continuing and discontinued operations | 402 |  |  | 9,106 |  |  | (85,655 | ) |  | 9,668 |
Issuance costs associated with redeemed preferred shares | — |  |  | — |  |  | — |  |  | 1,769 |
Add: Negative FFO of properties conveyed to extinguish debt in default | — |  |  | 3,493 |  |  | 10,456 |  |  | 10,928 |
Demolition costs on redevelopment properties | 225 |  |  | — |  |  | 1,396 |  |  | — |
Executive transition costs | — |  |  | 1,056 |  |  | — |  |  | 1,056 |
FFO, as adjusted for comparability | $ | 55,596 |  |  | $ | 50,957 |  |  | $ | 215,096 |  |  | $ | 195,437 |

(1) | Represents operating properties held for long-term investment.

(2) | Represents debt as of period end divided by in-place adjusted EBITDA for the period, as annualized (i.e. three month periods are multiplied by four).

viii

Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(Dollars in thousands)

| For the Three Months Ended December 31, 2015 |  | For the Year Ended December 31,
| 2015 |  | 2014 |  | 2015 |  | 2014
Reconciliation of common share dividends to dividends and distributions for payout ratios |  |  |  |  |  |  |  |  |
Common share dividends | $ | 25,998 |  |  | $ | 25,638 |  |  | $ | 103,998 |  |  | $ | 97,944 |
Common unit distributions | 1,011 |  |  | 1,055 |  |  | 4,046 |  |  | 4,270 |
Dividends and distributions for payout ratios | $ | 27,009 |  |  | $ | 26,693 |  |  | $ | 108,044 |  |  | $ | 102,214 |
Reconciliation of GAAP net income to adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”) and in-place adjusted EBITDA |  |  |  |  |  |  |  |  |  |  |
Net income | $ | 62,617 |  |  | $ | 5,937 |  |  | $ | 188,878 |  |  | $ | 45,206 |
Interest expense on continuing operations | 22,347 |  |  | 23,286 |  |  | 89,074 |  |  | 92,393 |
Income tax expense | 46 |  |  | 53 |  |  | 199 |  |  | 310 |
Real estate-related depreciation and amortization | 36,237 |  |  | 31,358 |  |  | 140,025 |  |  | 136,086 |
Depreciation of furniture, fixtures and equipment | 597 |  |  | 513 |  |  | 2,206 |  |  | 2,404 |
Impairment losses | 19,744 |  |  | 48 |  |  | 23,523 |  |  | 1,419 |
Loss (gain) on early extinguishment of debt on continuing and discontinued operations | 402 |  |  | 9,106 |  |  | (85,655 | ) |  | 9,668 |
Gain on sales of operating properties | (64,047 | ) |  | 2 |  |  | (64,062 | ) |  | (5,117 | )
Gain on sales of non-operational properties | — |  |  | (43 | ) |  | (3,985 | ) |  | (5,578 | )
Net loss on investments in unconsolidated entities included in interest and other income | 6 |  |  | (74 | ) |  | 127 |  |  | 291 |
Business development expenses | 1,512 |  |  | 669 |  |  | 4,775 |  |  | 2,680 |
Operating property acquisition costs | 32 |  |  | — |  |  | 4,134 |  |  | — |
EBITDA of properties conveyed to extinguish debt in default | — |  |  | (828 | ) |  | (768 | ) |  | (2,091 | )
Demolition costs on redevelopment properties | 225 |  |  | — |  |  | 1,396 |  |  | — |
Executive transition costs | — |  |  | 1,056 |  |  | — |  |  | 1,056 |
Adjusted EBITDA | $ | 79,718 |  |  | $ | 71,083 |  |  | $ | 299,867 |  |  | $ | 278,727 |
Proforma net operating income adjustment for mid-period property changes | (1,738 | ) |  | — |  |  |  |  |
In-place adjusted EBITDA | $ | 77,980 |  |  | $ | 71,083 |  |  |  |  |
Reconciliation of interest expense to the denominators for interest coverage-Adjusted EBITDA and fixed charge coverage-Adjusted EBITDA |  |  |  |  |  |  |  |  |  |  |
Interest expense | $ | 22,347 |  |  | $ | 23,286 |  |  | $ | 89,074 |  |  | $ | 92,393 |
Less: Amortization of deferred financing costs | (1,127 | ) |  | (1,020 | ) |  | (4,466 | ) |  | (4,666 | )
Less: Amortization of net debt discount, net of amounts capitalized | (317 | ) |  | (261 | ) |  | (1,166 | ) |  | (920 | )
Less: Loss on interest rate derivatives | (386 | ) |  | — |  |  | (386 | ) |  | — |
Less: Interest expense on debt in default extinguished via conveyance of properties | — |  |  | (4,320 | ) |  | (11,224 | ) |  | (12,684 | )
Denominator for interest coverage-Adjusted EBITDA | 20,517 |  |  | 17,685 |  |  | 71,832 |  |  | 74,123 |
Scheduled principal amortization | 1,717 |  |  | 1,603 |  |  | 6,728 |  |  | 6,517 |
Capitalized interest | 1,510 |  |  | 1,740 |  |  | 7,151 |  |  | 6,065 |
Preferred share dividends | 3,553 |  |  | 3,552 |  |  | 14,210 |  |  | 15,939 |
Preferred unit distributions | 165 |  |  | 165 |  |  | 660 |  |  | 660 |
Denominator for fixed charge coverage-Adjusted EBITDA | $ | 27,462 |  |  | $ | 24,745 |  |  | $ | 100,581 |  |  | $ | 103,304 |

ix

Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(Dollars in thousands)

| For the Three Months Ended December 31, 2015 |  | For the Year Ended December 31,
| 2015 |  | 2014 |  | 2015 |  | 2014
Reconciliations of tenant improvements and incentives, capital improvements and leasing costs for operating properties to recurring capital expenditures |  |  |  |  |  |  |
Tenant improvements and incentives on operating properties | $ | 6,836 |  |  | $ | 7,239 |  |  | $ | 24,244 |  |  | $ | 29,651 |
Building improvements on operating properties | 16,674 |  |  | 4,974 |  |  | 28,643 |  |  | 23,432 |
Leasing costs for operating properties | 3,518 |  |  | 1,341 |  |  | 8,504 |  |  | 8,536 |
Less: Nonrecurring tenant improvements and incentives on operating properties | (393 | ) |  | (1,747 | ) |  | (1,438 | ) |  | (2,734 | )
Less: Nonrecurring building improvements on operating properties | (6,551 | ) |  | (3,012 | ) |  | (9,879 | ) |  | (8,281 | )
Less: Nonrecurring leasing costs for operating properties | 2 |  |  | (162 | ) |  | (808 | ) |  | (405 | )
Recurring capital expenditures | $ | 20,086 |  |  | $ | 8,633 |  |  | $ | 49,266 |  |  | $ | 50,199 |
Same office property cash NOI | $ | 64,651 |  |  | $ | 63,089 |  |  | $ | 251,262 |  |  | $ | 249,405 |
Straight line rent adjustments | (339 | ) |  | 2,293 |  |  | 2,940 |  |  | 3,725 |
Add: Amortization of deferred market rental revenue | 28 |  |  | (16 | ) |  | 98 |  |  | (89 | )
Less: Amortization of below-market cost arrangements | (251 | ) |  | (288 | ) |  | (1,002 | ) |  | (1,154 | )
Add: Lease termination fee, gross | 416 |  |  | 741 |  |  | 2,366 |  |  | 1,618 |
Add: Cash NOI on tenant-funded landlord assets | 547 |  |  | 84 |  |  | 937 |  |  | 4,238 |
Same office property NOI | $ | 65,052 |  |  | $ | 65,903 |  |  | $ | 256,601 |  |  | $ | 257,743 |

|  | December 31, 2015 |  | December 31, 2014
Reconciliation of total assets to adjusted book |  |  |  |  |  |
Total assets |  | $ | 3,909,312 |  |  | $ | 3,664,236 |
Accumulated depreciation |  | 700,363 |  |  | 703,083 |
Accumulated depreciation included in assets held for sale |  | 18,317 |  |  | — |
Accumulated amortization of real estate intangibles and deferred leasing costs |  | 195,506 |  |  | 214,611 |
Accumulated amortization of real estate intangibles and deferred leasing costs included in assets held for sale |  | 17,456 |  |  | — |
Less: Adjusted book associated with properties conveyed to extinguish debt in default |  | — |  |  | (131,118 | )
Adjusted book |  | $ | 4,840,954 |  |  | $ | 4,450,812 |
Reconciliation of debt to adjusted debt |  |  |  |
Debt, net |  | $ | 2,077,752 |  |  | $ | 1,914,036 |
Less: Debt in default extinguished via conveyance of properties |  | — |  |  | (150,000 | )
Numerator for debt to adjusted book ratio |  | 2,077,752 |  |  | 1,764,036 |
Less: Cash and cash equivalents |  | (60,310 | ) |  | (6,077 | )
Adjusted debt |  | $ | 2,017,442 |  |  | $ | 1,757,959 |

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