EX-99.1 2 copt12312018ex991.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 real estate investment trust (“REIT”). COPT is listed on the New York Stock Exchange under the symbol “OFC” and is an 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 the United States Government and its 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 (sometimes also referred to as “Mission-Centric”). We also own a portfolio of office properties located in select urban/urban-like submarkets in the Greater Washington, DC/Baltimore region with durable Class-A office fundamentals and characteristics; these properties are included in a segment referred to as Regional Office Properties (sometimes also referred to as “Urban-Centric”). As of December 31, 2018, we derived 88% of our core portfolio annualized revenue from Defense/IT Locations and 12% from our Regional Office Properties. As of December 31, 2018, our core portfolio of 161 office and data center shell properties, including six owned through an unconsolidated joint venture, encompassed 17.9 million square feet and was 94.0% leased. As of the same date, we also owned a wholesale data center with a critical load of 19.25 megawatts in operations.

Management: | Investor Relations:
Stephen E. Budorick, President & CEO | Stephanie M. Krewson-Kelly, VP of IR
Paul R. Adkins, EVP & COO | 443-285-5453, stephanie.kelly@copt.com
Anthony Mifsud, EVP & CFO | Michelle Layne, Manager of IR
| 443-285-5452, michelle.layne@copt.com

Corporate Credit Rating: Fitch: BBB- Positive; Moody’s: Baa3 Stable; and S&P: BBB- Stable
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; security breaches relating to cyber attacks, cyber intrusions and other factors; and environmental requirements. We undertake no obligation to update or supplement any forward-looking statements. For further information, 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, 2017.
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
BTIG |  | Tom Catherwood |  | 212-738-6410 |  | tcatherwood@btig.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
Evercore ISI |  | Steve Sakwa |  | 212-446-9462 |  | steve.sakwa@evercoreisi.com
Green Street Advisors |  | Daniel Ismail |  | 949-640-8780 |  | dismail@greenst.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. |  | Haendel St. Juste |  | 212-205-7860 |  | haendel.st.juste@mizuhogroup.com
Raymond James |  | Bill Crow |  | 727-567-2594 |  | bill.crow@raymondjames.com
Robert W. Baird & Co., Inc. |  | Dave Rodgers |  | 216-737-7341 |  | drodgers@rwbaird.com
Stifel Financial Corp. |  | John Guinee |  | 443-224-1307 |  | jwguinee@stifel.com
SunTrust Robinson Humphrey, Inc. |  | Michael Lewis |  | 212-319-5659 |  | michael.lewis@suntrust.com
Wells Fargo Securities |  | Blaine Heck |  | 443-263-6529 |  | blaine.heck@wellsfargo.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)

|  | Page |  | Three Months Ended |  | Year Ended
SUMMARY OF RESULTS |  | Refer. |  | 12/31/18 |  | 9/30/18 |  | 6/30/18 |  | 3/31/18 |  | 12/31/17 |  | 12/31/18 |  | 12/31/17
Net income |  | 6 |  | $ | 18,456 |  |  | $ | 20,322 |  |  | $ | 21,085 |  |  | $ | 18,780 |  |  | $ | 11,008 |  |  | $ | 78,643 |  |  | $ | 74,941 |
NOI from real estate operations |  | 13 |  | $ | 80,738 |  |  | $ | 80,854 |  |  | $ | 80,918 |  |  | $ | 78,526 |  |  | $ | 81,439 |  |  | $ | 321,036 |  |  | $ | 323,821 |
Same Properties NOI |  | 16 |  | $ | 71,413 |  |  | $ | 71,619 |  |  | $ | 71,937 |  |  | $ | 69,840 |  |  | $ | 72,246 |  |  | $ | 284,809 |  |  | $ | 287,684 |
Same Properties Cash NOI |  | 17 |  | $ | 70,923 |  |  | $ | 71,813 |  |  | $ | 71,809 |  |  | $ | 68,905 |  |  | $ | 71,711 |  |  | $ | 283,450 |  |  | $ | 284,470 |
Adjusted EBITDA |  | 10 |  | $ | 75,200 |  |  | $ | 75,768 |  |  | $ | 75,572 |  |  | $ | 73,707 |  |  | $ | 76,862 |  |  | $ | 300,247 |  |  | $ | 303,391 |
Diluted AFFO avail. to common share and unit holders |  | 9 |  | $ | 42,755 |  |  | $ | 38,340 |  |  | $ | 39,742 |  |  | $ | 38,218 |  |  | $ | 31,920 |  |  | $ | 160,264 |  |  | $ | 155,313 |
Dividend per common share |  | N/A |  | $ | 0.275 |  |  | $ | 0.275 |  |  | $ | 0.275 |  |  | $ | 0.275 |  |  | $ | 0.275 |  |  | $ | 1.100 |  |  | $ | 1.100 |
Per share - diluted: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
EPS |  | 8 |  | $ | 0.16 |  |  | $ | 0.18 |  |  | $ | 0.19 |  |  | $ | 0.17 |  |  | $ | 0.10 |  |  | $ | 0.69 |  |  | $ | 0.56 |
FFO - NAREIT |  | 8 |  | $ | 0.47 |  |  | $ | 0.50 |  |  | $ | 0.51 |  |  | $ | 0.49 |  |  | $ | 0.47 |  |  | $ | 1.97 |  |  | $ | 1.94 |
FFO - as adjusted for comparability |  | 8 |  | $ | 0.50 |  |  | $ | 0.50 |  |  | $ | 0.51 |  |  | $ | 0.50 |  |  | $ | 0.53 |  |  | $ | 2.01 |  |  | $ | 2.02 |
Numerators for diluted per share amounts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Diluted EPS |  | 6 |  | $ | 16,906 |  |  | $ | 18,583 |  |  | $ | 19,317 |  |  | $ | 17,033 |  |  | $ | 9,509 |  |  | $ | 71,839 |  |  | $ | 55,230 |
Diluted FFO available to common share and unit holders |  | 7 |  | $ | 51,834 |  |  | $ | 53,642 |  |  | $ | 53,720 |  |  | $ | 51,537 |  |  | $ | 48,824 |  |  | $ | 211,942 |  |  | $ | 199,170 |
Diluted FFO available to common share and unit holders, as adjusted for comparability |  | 7 |  | $ | 54,974 |  |  | $ | 53,938 |  |  | $ | 53,941 |  |  | $ | 51,738 |  |  | $ | 54,065 |  |  | $ | 215,800 |  |  | $ | 207,356 |
Payout ratios: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Diluted FFO |  | N/A |  | 59.0 | % |  | 56.3 | % |  | 54.3 | % |  | 56.0 | % |  | 58.7 | % |  | 56.0 | % |  | 56.8 | %
Diluted FFO - as adjusted for comparability |  | N/A |  | 55.6 | % |  | 56.0 | % |  | 54.1 | % |  | 55.8 | % |  | 53.0 | % |  | 55.0 | % |  | 54.6 | %
Diluted AFFO |  | N/A |  | 71.5 | % |  | 78.8 | % |  | 73.4 | % |  | 75.5 | % |  | 89.7 | % |  | 74.1 | % |  | 72.9 | %
CAPITALIZATION |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Market Capitalization |  | 28 |  | $ | 4,193,726 |  |  | $ | 5,119,467 |  |  | $ | 4,979,083 |  |  | $ | 4,598,028 |  |  | $ | 4,903,623 |  |  |  |  |
Total Equity Market Capitalization |  | 28 |  | $ | 2,355,222 |  |  | $ | 3,296,155 |  |  | $ | 3,095,017 |  |  | $ | 2,729,913 |  |  | $ | 3,061,456 |  |  |  |  |
Gross debt |  | 29 |  | $ | 1,868,504 |  |  | $ | 1,853,312 |  |  | $ | 1,914,066 |  |  | $ | 1,898,115 |  |  | $ | 1,872,167 |  |  |  |  |
Net debt to adjusted book |  | 31 |  | 38.9 | % |  | 39.2 | % |  | 41.1 | % |  | 41.2 | % |  | 40.8 | % |  | N/A |  |  | N/A |
Net debt plus preferred equity to adjusted book |  | 31 |  | 39.1 | % |  | 39.4 | % |  | 41.3 | % |  | 41.3 | % |  | 41.0 | % |  | N/A |  |  | N/A |
Adjusted EBITDA fixed charge coverage ratio |  | 31 |  | 3.6 | x |  | 3.6 | x |  | 3.6 | x |  | 3.5 | x |  | 3.7 | x |  | 3.6 | x |  | 3.4 | x
Net debt to in-place adjusted EBITDA ratio |  | 31 |  | 6.0 | x |  | 6.1 | x |  | 6.3 | x |  | 6.4 | x |  | 6.1 | x |  | N/A |  |  | N/A |
Net debt plus pref. equity to in-place adj. EBITDA ratio |  | 31 |  | 6.0 | x |  | 6.1 | x |  | 6.3 | x |  | 6.4 | x |  | 6.1 | x |  | N/A |  |  | N/A |

3

Corporate Office Properties Trust
Selected Portfolio Data (1)

| 12/31/2018 |  | 9/30/2018 |  | 6/30/2018 |  | 3/31/2018 (2) |  | 12/31/17
Operating Office and Data Center Shell Properties |  |  |  |  |  |  |  |  |
# of Properties |  |  |  |  |  |  |  |  |
Total Portfolio | 163 |  |  | 161 |  |  | 159 |  | 159 |  |  | 159 |
Consolidated Portfolio | 157 |  |  | 155 |  |  | 153 |  | 153 |  |  | 153 |
Core Portfolio | 161 |  |  | 159 |  |  | 157 |  | 157 |  |  | 156 |
Same Properties | 147 |  |  | 147 |  |  | 147 |  | 147 |  |  | 147 |
% Occupied |  |  |  |  |  |  |  |  |
Total Portfolio | 93.0 | % |  | 92.1 | % |  | 91.4 | % |  | 91.0 | % |  | 93.6 | %
Consolidated Portfolio | 92.6 | % |  | 91.7 | % |  | 90.9 | % |  | 90.5 | % |  | 93.2 | %
Core Portfolio (2) | 93.1 | % |  | 92.2 | % |  | 91.5 | % |  | 91.1 | % |  | 94.5 | %
Same Properties | 93.0 | % |  | 92.1 | % |  | 91.2 | % |  | 90.9 | % |  | 92.1 | %
% Leased |  |  |  |  |  |  |  |  |
Total Portfolio | 93.9 | % |  | 93.9 | % |  | 93.3 | % |  | 91.8 | % |  | 94.2 | %
Consolidated Portfolio | 93.5 | % |  | 93.5 | % |  | 92.9 | % |  | 91.3 | % |  | 93.9 | %
Core Portfolio (2) | 94.0 | % |  | 94.0 | % |  | 93.4 | % |  | 91.9 | % |  | 95.1 | %
Same Properties | 93.8 | % |  | 93.8 | % |  | 93.3 | % |  | 91.7 | % |  | 92.8 | %
Square Feet (in thousands) |  |  |  |  |  |  |  |  |
Total Portfolio | 18,094 |  |  | 17,867 |  |  | 17,655 |  |  | 17,613 |  |  | 17,345 |
Consolidated Portfolio | 17,132 |  |  | 16,905 |  |  | 16,694 |  |  | 16,651 |  |  | 16,383 |
Core Portfolio | 17,937 |  |  | 17,710 |  |  | 17,498 |  |  | 17,456 |  |  | 17,059 |
Same Properties | 16,221 |  |  | 16,221 |  |  | 16,221 |  |  | 16,221 |  |  | 16,221 |
Wholesale Data Center (in megawatts (“MWs”)) |  |  |  |  |  |  |  |  |
MWs Operational | 19.25 |  |  | 19.25 |  |  | 19.25 |  |  | 19.25 |  |  | 19.25 |
MWs Leased (3) | 16.86 |  |  | 16.86 |  |  | 16.86 |  |  | 16.86 |  |  | 16.86 |

(1) | Our total portfolio, core portfolio and Same Properties reporting included six properties owned through an unconsolidated joint venture totaling 962,000 square feet that were 100% occupied and leased.

(2) | The data above reflects the effect of two properties reported as fully placed in service during the first quarter of 2018 that were previously reported as construction projects since they were held for future lease to the United States Government. If these two properties were reported as fully placed in service as of 12/31/17, our Core Portfolio would have been 92.8% occupied and 93.3% leased as of 12/31/17. Our Same Properties data is reported as if these two properties were fully placed in service as of 1/1/17.

(3) | Leased to tenants with further expansion rights of up to a combined 17.92 megawatts as of 12/31/18.

4

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

| 12/31/18 |  | 9/30/18 |  | 6/30/18 |  | 3/31/18 |  | 12/31/17
Assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Properties, net: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating properties, net | $ | 2,847,265 |  |  | $ | 2,796,577 |  |  | $ | 2,760,632 |  |  | $ | 2,740,264 |  |  | $ | 2,737,611 |
Construction and redevelopment in progress, including land (1) | 139,304 |  |  | 149,042 |  |  | 91,630 |  |  | 61,844 |  |  | 50,316 |
Land held (1) | 264,057 |  |  | 261,808 |  |  | 331,275 |  |  | 356,171 |  |  | 353,178 |
Total properties, net | 3,250,626 |  |  | 3,207,427 |  |  | 3,183,537 |  |  | 3,158,279 |  |  | 3,141,105 |
Assets held for sale (2) | — |  |  | 42,226 |  |  | 42,226 |  |  | 42,226 |  |  | 42,226 |
Cash and cash equivalents | 8,066 |  |  | 9,492 |  |  | 8,472 |  |  | 8,888 |  |  | 12,261 |
Investment in unconsolidated real estate joint venture | 39,845 |  |  | 40,318 |  |  | 40,806 |  |  | 41,311 |  |  | 41,787 |
Accounts receivable, net | 26,277 |  |  | 19,245 |  |  | 23,656 |  |  | 23,982 |  |  | 31,802 |
Deferred rent receivable, net | 89,350 |  |  | 89,171 |  |  | 89,606 |  |  | 87,985 |  |  | 86,710 |
Intangible assets on real estate acquisitions, net | 43,470 |  |  | 47,065 |  |  | 50,586 |  |  | 54,600 |  |  | 59,092 |
Deferred leasing costs, net | 50,191 |  |  | 49,510 |  |  | 48,183 |  |  | 47,886 |  |  | 48,322 |
Investing receivables | 56,982 |  |  | 55,688 |  |  | 54,427 |  |  | 58,800 |  |  | 57,493 |
Interest rate derivatives | 5,617 |  |  | 10,875 |  |  | 9,792 |  |  | 7,960 |  |  | 3,073 |
Prepaid expenses and other assets, net | 85,581 |  |  | 79,349 |  |  | 61,071 |  |  | 64,321 |  |  | 71,334 |
Total assets | $ | 3,656,005 |  |  | $ | 3,650,366 |  |  | $ | 3,612,362 |  |  | $ | 3,596,238 |  |  | $ | 3,595,205 |
Liabilities and equity |  |  |  |  |  |  |  |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Debt | $ | 1,823,909 |  |  | $ | 1,808,030 |  |  | $ | 1,871,445 |  |  | $ | 1,854,886 |  |  | $ | 1,828,333 |
Accounts payable and accrued expenses | 92,855 |  |  | 90,224 |  |  | 88,885 |  |  | 95,721 |  |  | 108,137 |
Rents received in advance and security deposits | 30,079 |  |  | 23,159 |  |  | 24,905 |  |  | 26,569 |  |  | 25,648 |
Dividends and distributions payable | 30,856 |  |  | 30,483 |  |  | 29,449 |  |  | 29,146 |  |  | 28,921 |
Deferred revenue associated with operating leases | 9,125 |  |  | 10,006 |  |  | 10,783 |  |  | 11,246 |  |  | 11,682 |
Deferred property sale (2) | — |  |  | 43,377 |  |  | 43,377 |  |  | 43,377 |  |  | 43,377 |
Capital lease obligation | 660 |  |  | 660 |  |  | 640 |  |  | 11,778 |  |  | 15,853 |
Other liabilities | 15,213 |  |  | 9,267 |  |  | 9,849 |  |  | 17,643 |  |  | 41,822 |
Total liabilities | 2,002,697 |  |  | 2,015,206 |  |  | 2,079,333 |  |  | 2,090,366 |  |  | 2,103,773 |
Redeemable noncontrolling interests | 26,260 |  |  | 25,431 |  |  | 24,544 |  |  | 23,848 |  |  | 23,125 |
Equity: |  |  |  |  |  |  |  |  |  |  |  |
COPT’s shareholders’ equity: |  |  |  |  |  |  |  |  |  |  |  |
Common shares | 1,102 |  |  | 1,088 |  |  | 1,033 |  |  | 1,022 |  |  | 1,013 |
Additional paid-in capital | 2,431,355 |  |  | 2,390,484 |  |  | 2,254,430 |  |  | 2,221,427 |  |  | 2,201,047 |
Cumulative distributions in excess of net income | (846,808 | ) |  | (833,508 | ) |  | (822,270 | ) |  | (813,302 | ) |  | (802,085 | )
Accumulated other comprehensive (loss) income | (238 | ) |  | 10,108 |  |  | 9,012 |  |  | 7,204 |  |  | 2,167 |
Total COPT’s shareholders’ equity | 1,585,411 |  |  | 1,568,172 |  |  | 1,442,205 |  |  | 1,416,351 |  |  | 1,402,142 |
Noncontrolling interests in subsidiaries: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common units in the Operating Partnership | 19,168 |  |  | 19,525 |  |  | 44,651 |  |  | 44,327 |  |  | 45,097 |
Preferred units in the Operating Partnership | 8,800 |  |  | 8,800 |  |  | 8,800 |  |  | 8,800 |  |  | 8,800 |
Other consolidated entities | 13,669 |  |  | 13,232 |  |  | 12,829 |  |  | 12,546 |  |  | 12,268 |
Total noncontrolling interests in subsidiaries | 41,637 |  |  | 41,557 |  |  | 66,280 |  |  | 65,673 |  |  | 66,165 |
Total equity | 1,627,048 |  |  | 1,609,729 |  |  | 1,508,485 |  |  | 1,482,024 |  |  | 1,468,307 |
Total liabilities, redeemable noncontrolling interests and equity | $ | 3,656,005 |  |  | $ | 3,650,366 |  |  | $ | 3,612,362 |  |  | $ | 3,596,238 |  |  | $ | 3,595,205 |

(1) | Refer to pages 24, 25 and 27 for detail.

(2) | The carrying amount and sale proceeds relate to a property sale not recognized for accounting purposes until 10/1/18.

5

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

| Three Months Ended |  | Year Ended
| 12/31/18 |  | 9/30/18 |  | 6/30/18 |  | 3/31/18 |  | 12/31/17 |  | 12/31/18 |  | 12/31/17
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Rental revenue | $ | 103,599 |  |  | $ | 102,132 |  |  | $ | 101,121 |  |  | $ | 100,834 |  |  | $ | 101,485 |  |  | $ | 407,686 |  |  | $ | 405,722 |
Tenant recoveries and other real estate operations revenue | 27,226 |  |  | 26,856 |  |  | 28,041 |  |  | 27,444 |  |  | 26,200 |  |  | 109,567 |  |  | 104,258 |
Construction contract and other service revenues | 7,657 |  |  | 8,423 |  |  | 17,581 |  |  | 27,198 |  |  | 36,882 |  |  | 60,859 |  |  | 102,840 |
Total revenues | 138,482 |  |  | 137,411 |  |  | 146,743 |  |  | 155,476 |  |  | 164,567 |  |  | 578,112 |  |  | 612,820 |
Expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Property operating expenses | 51,298 |  |  | 49,340 |  |  | 49,446 |  |  | 50,951 |  |  | 47,449 |  |  | 201,035 |  |  | 190,964 |
Depreciation and amortization associated with real estate operations | 36,219 |  |  | 34,195 |  |  | 33,190 |  |  | 33,512 |  |  | 33,938 |  |  | 137,116 |  |  | 134,228 |
Construction contract and other service expenses | 7,111 |  |  | 8,058 |  |  | 16,941 |  |  | 26,216 |  |  | 36,029 |  |  | 58,326 |  |  | 99,618 |
Impairment losses | 2,367 |  |  | — |  |  | — |  |  | — |  |  | 13,659 |  |  | 2,367 |  |  | 15,123 |
General and administrative expenses | 5,105 |  |  | 5,796 |  |  | 6,067 |  |  | 5,861 |  |  | 5,552 |  |  | 22,829 |  |  | 24,008 |
Leasing expenses | 1,976 |  |  | 1,103 |  |  | 1,561 |  |  | 1,431 |  |  | 1,447 |  |  | 6,071 |  |  | 6,829 |
Business development expenses and land carry costs | 1,425 |  |  | 1,567 |  |  | 1,234 |  |  | 1,614 |  |  | 1,646 |  |  | 5,840 |  |  | 6,213 |
Total operating expenses | 105,501 |  |  | 100,059 |  |  | 108,439 |  |  | 119,585 |  |  | 139,720 |  |  | 433,584 |  |  | 476,983 |
Operating income | 32,981 |  |  | 37,352 |  |  | 38,304 |  |  | 35,891 |  |  | 24,847 |  |  | 144,528 |  |  | 135,837 |
Interest expense | (18,475 | ) |  | (19,181 | ) |  | (18,945 | ) |  | (18,784 | ) |  | (19,211 | ) |  | (75,385 | ) |  | (76,983 | )
Interest and other income | 74 |  |  | 1,486 |  |  | 1,439 |  |  | 1,359 |  |  | 1,501 |  |  | 4,358 |  |  | 6,318 |
Gain on sales of real estate | 2,367 |  |  | — |  |  | (23 | ) |  | (4 | ) |  | 4,452 |  |  | 2,340 |  |  | 9,890 |
Loss on early extinguishment of debt | (258 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (258 | ) |  | (513 | )
Income before equity in income of unconsolidated entities and income taxes | 16,689 |  |  | 19,657 |  |  | 20,775 |  |  | 18,462 |  |  | 11,589 |  |  | 75,583 |  |  | 74,549 |
Equity in income of unconsolidated entities | 1,577 |  |  | 374 |  |  | 373 |  |  | 373 |  |  | 372 |  |  | 2,697 |  |  | 1,490 |
Income tax benefit (expense) | 190 |  |  | 291 |  |  | (63 | ) |  | (55 | ) |  | (953 | ) |  | 363 |  |  | (1,098 | )
Net income | 18,456 |  |  | 20,322 |  |  | 21,085 |  |  | 18,780 |  |  | 11,008 |  |  | 78,643 |  |  | 74,941 |
Net income attributable to noncontrolling interests: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common units in the Operating Partnership | (210 | ) |  | (380 | ) |  | (608 | ) |  | (544 | ) |  | (314 | ) |  | (1,742 | ) |  | (1,890 | )
Preferred units in the Operating Partnership | (165 | ) |  | (165 | ) |  | (165 | ) |  | (165 | ) |  | (165 | ) |  | (660 | ) |  | (660 | )
Other consolidated entities | (1,061 | ) |  | (1,080 | ) |  | (878 | ) |  | (921 | ) |  | (908 | ) |  | (3,940 | ) |  | (3,646 | )
Net income attributable to COPT | 17,020 |  |  | 18,697 |  |  | 19,434 |  |  | 17,150 |  |  | 9,621 |  |  | 72,301 |  |  | 68,745 |
Preferred share dividends | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (6,219 | )
Issuance costs associated with redeemed preferred shares | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (6,847 | )
Net income attributable to COPT common shareholders | $ | 17,020 |  |  | $ | 18,697 |  |  | $ | 19,434 |  |  | $ | 17,150 |  |  | $ | 9,621 |  |  | $ | 72,301 |  |  | $ | 55,679 |
Amount allocable to share-based compensation awards | (114 | ) |  | (114 | ) |  | (117 | ) |  | (117 | ) |  | (112 | ) |  | (462 | ) |  | (449 | )
Numerator for diluted EPS | $ | 16,906 |  |  | $ | 18,583 |  |  | $ | 19,317 |  |  | $ | 17,033 |  |  | $ | 9,509 |  |  | $ | 71,839 |  |  | $ | 55,230 |

6

Corporate Office Properties Trust
Funds from Operations
(in thousands)

| Three Months Ended |  | Year Ended
| 12/31/18 |  | 9/30/18 |  | 6/30/18 |  | 3/31/18 |  | 12/31/17 |  | 12/31/18 |  | 12/31/17
Net income | $ | 18,456 |  |  | $ | 20,322 |  |  | $ | 21,085 |  |  | $ | 18,780 |  |  | $ | 11,008 |  |  | $ | 78,643 |  |  | $ | 74,941 |
Real estate-related depreciation and amortization | 36,219 |  |  | 34,195 |  |  | 33,190 |  |  | 33,512 |  |  | 33,938 |  |  | 137,116 |  |  | 134,228 |
Impairment losses on previously depreciated operating properties | 6 |  |  | — |  |  | — |  |  | — |  |  | 9,004 |  |  | 6 |  |  | 10,455 |
Gain on sales of previously depreciated operating properties | (2,367 | ) |  | — |  |  | 23 |  |  | 4 |  |  | (4,452 | ) |  | (2,340 | ) |  | (4,491 | )
Depreciation and amortization on unconsolidated real estate JV (1) | 565 |  |  | 564 |  |  | 564 |  |  | 563 |  |  | 563 |  |  | 2,256 |  |  | 2,252 |
FFO - per NAREIT (2)(3) | 52,879 |  |  | 55,081 |  |  | 54,862 |  |  | 52,859 |  |  | 50,061 |  |  | 215,681 |  |  | 217,385 |
Preferred share dividends | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (6,219 | )
Issuance costs associated with redeemed preferred shares | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (6,847 | )
Noncontrolling interests - preferred units in the Operating Partnership | (165 | ) |  | (165 | ) |  | (165 | ) |  | (165 | ) |  | (165 | ) |  | (660 | ) |  | (660 | )
FFO allocable to other noncontrolling interests (4) | (1,011 | ) |  | (1,060 | ) |  | (753 | ) |  | (944 | ) |  | (874 | ) |  | (3,768 | ) |  | (3,675 | )
Basic and diluted FFO allocable to share-based compensation awards | (200 | ) |  | (214 | ) |  | (224 | ) |  | (213 | ) |  | (198 | ) |  | (851 | ) |  | (814 | )
Basic FFO available to common share and common unit holders (3) | 51,503 |  |  | 53,642 |  |  | 53,720 |  |  | 51,537 |  |  | 48,824 |  |  | 210,402 |  |  | 199,170 |
Redeemable noncontrolling interests | 331 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,540 |  |  | — |
Diluted FFO available to common share and common unit holders (3) | 51,834 |  |  | 53,642 |  |  | 53,720 |  |  | 51,537 |  |  | 48,824 |  |  | 211,942 |  |  | 199,170 |
Gain on sales of non-operating properties | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (5,399 | )
Impairment losses on non-operating properties | 2,361 |  |  | — |  |  | — |  |  | — |  |  | 4,655 |  |  | 2,361 |  |  | 4,668 |
Income tax expense associated with FFO comparability adjustments | — |  |  | — |  |  | — |  |  | — |  |  | 800 |  |  | — |  |  | 800 |
Gain on interest rate derivatives | — |  |  | — |  |  | — |  |  | — |  |  | (191 | ) |  | — |  |  | (234 | )
Loss on early extinguishment of debt | 258 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 258 |  |  | 513 |
Issuance costs associated with redeemed preferred shares | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,847 |
Demolition costs on redevelopment and nonrecurring improvements | 163 |  |  | 251 |  |  | 9 |  |  | 39 |  |  | — |  |  | 462 |  |  | 294 |
Executive transition costs | 371 |  |  | 46 |  |  | 213 |  |  | 163 |  |  | — |  |  | 793 |  |  | 732 |
Diluted FFO comparability adjustments allocable to share-based compensation awards | (13 | ) |  | (1 | ) |  | (1 | ) |  | (1 | ) |  | (23 | ) |  | (16 | ) |  | (35 | )
Diluted FFO avail. to common share and common unit holders, as adj. for comparability (3) | $ | 54,974 |  |  | $ | 53,938 |  |  | $ | 53,941 |  |  | $ | 51,738 |  |  | $ | 54,065 |  |  | $ | 215,800 |  |  | $ | 207,356 |

(1) | FFO adjustment pertaining to COPT’s share of an unconsolidated real estate joint venture reported on page 33.

(2) | See reconciliation on page 34 for components of FFO per NAREIT.

(3) | Refer to the section entitled “Definitions” for a definition of this measure.

(4) | Pertains to noncontrolling interests in consolidated real estate joint ventures reported on page 32.

7

Corporate Office Properties Trust
Diluted Share and Unit Computations
(in thousands)

| Three Months Ended |  | Year Ended
| 12/31/18 |  | 9/30/18 |  | 6/30/18 |  | 3/31/18 |  | 12/31/17 |  | 12/31/18 |  | 12/31/17
EPS Denominator: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Weighted average common shares - basic | 108,528 |  |  | 104,379 |  |  | 101,789 |  |  | 100,999 |  |  | 99,304 |  |  | 103,946 |  |  | 98,969 |
Dilutive effect of share-based compensation awards | 45 |  |  | 231 |  |  | 119 |  |  | 144 |  |  | 68 |  |  | 134 |  |  | 132 |
Dilutive effect of forward equity sale agreements | — |  |  | 178 |  |  | — |  |  | — |  |  | 215 |  |  | 45 |  |  | 54 |
Weighted average common shares - diluted | 108,573 |  |  | 104,788 |  |  | 101,908 |  |  | 101,143 |  |  | 99,587 |  |  | 104,125 |  |  | 99,155 |
Diluted EPS | $ | 0.16 |  |  | $ | 0.18 |  |  | $ | 0.19 |  |  | $ | 0.17 |  |  | $ | 0.10 |  |  | $ | 0.69 |  |  | $ | 0.56 |
Weighted Average Shares for period ended: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common Shares Outstanding | 108,528 |  |  | 104,379 |  |  | 101,789 |  |  | 100,999 |  |  | 99,304 |  |  | 103,946 |  |  | 98,969 |
Dilutive effect of share-based compensation awards | 45 |  |  | 231 |  |  | 119 |  |  | 144 |  |  | 68 |  |  | 134 |  |  | 132 |
Dilutive effect of forward equity sale agreements | — |  |  | 178 |  |  | — |  |  | — |  |  | 215 |  |  | 45 |  |  | 54 |
Common Units | 1,345 |  |  | 2,135 |  |  | 3,197 |  |  | 3,221 |  |  | 3,252 |  |  | 2,468 |  |  | 3,362 |
Redeemable noncontrolling interests | 1,126 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 936 |  |  | — |
Denominator for diluted FFO per share and as adjusted for comparability | 111,044 |  |  | 106,923 |  |  | 105,105 |  |  | 104,364 |  |  | 102,839 |  |  | 107,529 |  |  | 102,517 |
Weighted average common units | (1,345 | ) |  | (2,135 | ) |  | (3,197 | ) |  | (3,221 | ) |  | (3,252 | ) |  | (2,468 | ) |  | (3,362 | )
Redeemable noncontrolling interests | (1,126 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (936 | ) |  | — |
Denominator for diluted EPS | 108,573 |  |  | 104,788 |  |  | 101,908 |  |  | 101,143 |  |  | 99,587 |  |  | 104,125 |  |  | 99,155 |
Diluted FFO per share - NAREIT | $ | 0.47 |  |  | $ | 0.50 |  |  | $ | 0.51 |  |  | $ | 0.49 |  |  | $ | 0.47 |  |  | $ | 1.97 |  |  | $ | 1.94 |
Diluted FFO per share - as adjusted for comparability | $ | 0.50 |  |  | $ | 0.50 |  |  | $ | 0.51 |  |  | $ | 0.50 |  |  | $ | 0.53 |  |  | $ | 2.01 |  |  | $ | 2.02 |

8

Corporate Office Properties Trust
Adjusted Funds from Operations
(in thousands)

| Three Months Ended |  | Year Ended
| 12/31/18 |  | 9/30/18 |  | 6/30/18 |  | 3/31/18 |  | 12/31/17 |  | 12/31/18 |  | 12/31/17
Diluted FFO available to common share and common unit holders, as adjusted for comparability | $ | 54,974 |  |  | $ | 53,938 |  |  | $ | 53,941 |  |  | $ | 51,738 |  |  | $ | 54,065 |  |  | $ | 215,800 |  |  | $ | 207,356 |
Straight line rent adjustments and lease incentive amortization | (46 | ) |  | 582 |  |  | (1,195 | ) |  | (828 | ) |  | (1,343 | ) |  | (1,487 | ) |  | 46 |
Amortization of intangibles included in NOI | 153 |  |  | 153 |  |  | 231 |  |  | 356 |  |  | 342 |  |  | 893 |  |  | 1,344 |
Share-based compensation, net of amounts capitalized | 1,601 |  |  | 1,557 |  |  | 1,550 |  |  | 1,485 |  |  | 1,523 |  |  | 6,193 |  |  | 5,353 |
Amortization of deferred financing costs | 550 |  |  | 468 |  |  | 468 |  |  | 468 |  |  | 443 |  |  | 1,954 |  |  | 2,928 |
Amortization of net debt discounts, net of amounts capitalized | 365 |  |  | 362 |  |  | 358 |  |  | 354 |  |  | 350 |  |  | 1,439 |  |  | 1,379 |
Accum. other comprehensive loss on derivatives amortized to expense | 34 |  |  | 33 |  |  | 34 |  |  | 34 |  |  | 54 |  |  | 135 |  |  | 143 |
Replacement capital expenditures (1) | (14,848 | ) |  | (18,803 | ) |  | (15,613 | ) |  | (15,520 | ) |  | (23,475 | ) |  | (64,784 | ) |  | (63,026 | )
Other diluted AFFO adjustments associated with real estate JVs (2) | (28 | ) |  | 50 |  |  | (32 | ) |  | 131 |  |  | (39 | ) |  | 121 |  |  | (210 | )
Diluted AFFO available to common share and common unit holders (“diluted AFFO”) | $ | 42,755 |  |  | $ | 38,340 |  |  | $ | 39,742 |  |  | $ | 38,218 |  |  | $ | 31,920 |  |  | $ | 160,264 |  |  | $ | 155,313 |
Replacement capital expenditures (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Tenant improvements and incentives | $ | 7,876 |  |  | $ | 12,894 |  |  | $ | 8,117 |  |  | $ | 8,615 |  |  | $ | 14,804 |  |  | $ | 37,502 |  |  | $ | 37,034 |
Building improvements | 9,306 |  |  | 5,975 |  |  | 5,775 |  |  | 1,921 |  |  | 9,241 |  |  | 22,977 |  |  | 22,308 |
Leasing costs | 3,800 |  |  | 2,945 |  |  | 1,822 |  |  | 1,280 |  |  | 3,242 |  |  | 9,847 |  |  | 8,487 |
Net (exclusions from) additions to tenant improvements and incentives | (2,131 | ) |  | (896 | ) |  | 1,315 |  |  | 3,289 |  |  | (2,929 | ) |  | 1,577 |  |  | 2,984 |
Excluded building improvements | (3,984 | ) |  | (2,134 | ) |  | (1,370 | ) |  | 415 |  |  | (853 | ) |  | (7,073 | ) |  | (7,757 | )
Excluded leasing costs | (19 | ) |  | 19 |  |  | (46 | ) |  | — |  |  | (30 | ) |  | (46 | ) |  | (30 | )
Replacement capital expenditures | $ | 14,848 |  |  | $ | 18,803 |  |  | $ | 15,613 |  |  | $ | 15,520 |  |  | $ | 23,475 |  |  | $ | 64,784 |  |  | $ | 63,026 |
(1) Refer to the section entitled “Definitions” for a definition of this measure. |  |  |  |
(2) AFFO adjustments pertaining to noncontrolling interests on consolidated joint ventures reported on page 32 and COPT’s share of an unconsolidated real estate joint venture reported on page 33. |  |  |  |

9

Corporate Office Properties Trust
EBITDAre and Adjusted EBITDA
(in thousands)

| Three Months Ended |  | Year Ended
| 12/31/18 |  | 9/30/18 |  | 6/30/18 |  | 3/31/18 |  | 12/31/17 |  | 12/31/18 |  | 12/31/17
Net income | $ | 18,456 |  |  | $ | 20,322 |  |  | $ | 21,085 |  |  | $ | 18,780 |  |  | $ | 11,008 |  |  | $ | 78,643 |  |  | $ | 74,941 |
Interest expense | 18,475 |  |  | 19,181 |  |  | 18,945 |  |  | 18,784 |  |  | 19,211 |  |  | 75,385 |  |  | 76,983 |
Income tax (benefit) expense | (190 | ) |  | (291 | ) |  | 63 |  |  | 55 |  |  | 953 |  |  | (363 | ) |  | 1,098 |
Depreciation of furniture, fixtures and equipment | 404 |  |  | 561 |  |  | 459 |  |  | 523 |  |  | 600 |  |  | 1,947 |  |  | 2,273 |
Real estate-related depreciation and amortization | 36,219 |  |  | 34,195 |  |  | 33,190 |  |  | 33,512 |  |  | 33,938 |  |  | 137,116 |  |  | 134,228 |
Impairment losses on previously depreciated operating properties | 6 |  |  | — |  |  | — |  |  | — |  |  | 9,004 |  |  | 6 |  |  | 10,455 |
Gain on sales of previously depreciated operating properties | (2,367 | ) |  | — |  |  | 23 |  |  | 4 |  |  | (4,452 | ) |  | (2,340 | ) |  | (4,491 | )
Adjustments from unconsolidated real estate JV (1) | 832 |  |  | 830 |  |  | 828 |  |  | 824 |  |  | 829 |  |  | 3,314 |  |  | 3,310 |
EBITDAre | 71,835 |  |  | 74,798 |  |  | 74,593 |  |  | 72,482 |  |  | 71,091 |  |  | $ | 293,708 |  |  | $ | 298,797 |
Impairment losses on non-operating properties | 2,361 |  |  | — |  |  | — |  |  | — |  |  | 4,655 |  |  | 2,361 |  |  | 4,668 |
Loss on early extinguishment of debt | 258 |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 258 |  |  | 513 |
Gain on sales of non-operating properties | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (5,399 | )
Net gain on other investments | (449 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (449 | ) |  | — |
Business development expenses | 661 |  |  | 673 |  |  | 757 |  |  | 1,023 |  |  | 1,116 |  |  | 3,114 |  |  | 3,786 |
Demolition costs on redevelopment and nonrecurring improvements | 163 |  |  | 251 |  |  | 9 |  |  | 39 |  |  | — |  |  | 462 |  |  | 294 |
Executive transition costs | 371 |  |  | 46 |  |  | 213 |  |  | 163 |  |  | — |  |  | 793 |  |  | 732 |
Adjusted EBITDA | 75,200 |  |  | 75,768 |  |  | 75,572 |  |  | 73,707 |  |  | 76,862 |  |  | $ | 300,247 |  |  | $ | 303,391 |
Proforma NOI adjustment for property changes within period | 2,052 |  |  | 166 |  |  | 418 |  |  | — |  |  | (578 | ) |  |  |  |
In-place adjusted EBITDA | $ | 77,252 |  |  | $ | 75,934 |  |  | $ | 75,990 |  |  | $ | 73,707 |  |  | $ | 76,284 |  |  |  |  |

(1) Includes COPT’s share of adjusted EBITDA adjustments in an unconsolidated real estate joint venture (see page 33).
10

Corporate Office Properties Trust
Office and Data Center Shell Properties by Segment (1) - 12/31/18
(square feet in thousands)

|  | # of Properties |  | Operational Square Feet |  | Occupancy % |  | Leased %
Core Portfolio: (2) |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |
Fort Meade/Baltimore Washington (“BW”) Corridor: |  |  |  |  |  |  |  |  |  |  |  |
National Business Park |  | 31 |  |  | 3,816 |  |  | 87.8 | % |  | 88.7 | %
Howard County |  | 34 |  |  | 2,665 |  |  | 94.9 | % |  | 95.2 | %
Other |  | 22 |  |  | 1,623 |  |  | 92.5 | % |  | 94.6 | %
Total Fort Meade/BW Corridor |  | 87 |  |  | 8,104 |  |  | 91.1 | % |  | 92.0 | %
Northern Virginia (“NoVA”) Defense/IT |  | 13 |  |  | 1,999 |  |  | 91.3 | % |  | 91.9 | %
Lackland AFB (San Antonio, Texas) |  | 7 |  |  | 953 |  |  | 100.0 | % |  | 100.0 | %
Navy Support |  | 21 |  |  | 1,252 |  |  | 90.5 | % |  | 93.0 | %
Redstone Arsenal (Huntsville, Alabama) |  | 8 |  |  | 669 |  |  | 99.0 | % |  | 99.3 | %
Data Center Shells: |  |  |  |  |  |  |  |
Consolidated Properties |  | 12 |  |  | 1,991 |  |  | 100.0 | % |  | 100.0 | %
Unconsolidated JV Properties (3) |  | 6 |  |  | 962 |  |  | 100.0 | % |  | 100.0 | %
Total Defense/IT Locations |  | 154 |  |  | 15,930 |  |  | 93.6 | % |  | 94.4 | %
Regional Office |  | 7 |  |  | 2,007 |  |  | 89.2 | % |  | 91.5 | %
Core Portfolio |  | 161 |  |  | 17,937 |  |  | 93.1 | % |  | 94.0 | %
Other Properties |  | 2 |  |  | 157 |  |  | 77.2 | % |  | 77.2 | %
Total Portfolio |  | 163 |  |  | 18,094 |  |  | 93.0 | % |  | 93.9 | %
Consolidated Portfolio |  | 157 |  |  | 17,132 |  |  | 92.6 | % |  | 93.5 | %

(1) | This 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.

(3) | See page 33 for additional disclosure regarding an unconsolidated real estate joint venture.

11

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

|  | 12/31/18 |  |  |  |
|  | # of Office and Data Center Shell Properties |  | Operational Square Feet |  |  |  |  |  | Office and Data Center Shell Properties Annualized Rental Revenue (2) |  | Percentage of Total Office and Data Center Shell Properties Annualized Rental Revenue (2) |  | NOI from Real Estate Operations for Three Months Ended |  | NOI from Real Estate Operations for Year Ended
Property Grouping |  |  |  | % Occupied (1) |  | % Leased (1) |  |  |  | 12/31/18 |  | 12/31/18
Core Portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same Properties: (3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated properties |  | 139 |  |  | 15,102 |  |  | 92.7% |  | 93.6% |  | $ | 456,136 |  |  | 91.3 | % |  | $ | 69,747 |  |  | $ | 278,181 |
Unconsolidated real estate JV (4) |  | 6 |  |  | 962 |  |  | 100.0% |  | 100.0% |  | 5,515 |  |  | 1.1 | % |  | 1,211 |  |  | 4,818 |
Total Same Properties in Core Portfolio (3) |  | 145 |  |  | 16,064 |  |  | 93.1% |  | 93.9% |  | 461,651 |  |  | 92.4 | % |  | 70,958 |  |  | 282,999 |
Properties Placed in Service (5) |  | 16 |  |  | 1,873 |  |  | 93.1% |  | 94.8% |  | 34,934 |  |  | 7.0 | % |  | 5,372 |  |  | 19,937 |
Wholesale Data Center and Other |  | N/A |  |  | N/A |  |  | N/A |  | N/A |  | N/A |  |  | N/A |  |  | 3,933 |  |  | 16,134 |
Total Core Portfolio |  | 161 |  |  | 17,937 |  |  | 93.1% |  | 94.0% |  | 496,585 |  |  | 99.4 | % |  | 80,263 |  |  | 319,070 |
Disposed Office Properties |  | N/A |  |  | N/A |  |  | N/A |  | N/A |  | N/A |  |  | N/A |  |  | 20 |  |  | 156 |
Other Properties (Same Properties) |  | 2 |  |  | 157 |  |  | 77.2% |  | 77.2% |  | 3,196 |  |  | 0.6 | % |  | 455 |  |  | 1,810 |
Total Portfolio |  | 163 |  |  | 18,094 |  |  | 93.0% |  | 93.9% |  | $ | 499,781 |  |  | 100.0 | % |  | $ | 80,738 |  |  | $ | 321,036 |
Consolidated Portfolio |  | 157 |  |  | 17,132 |  |  | 92.6% |  | 93.5% |  | $ | 494,266 |  |  | 98.9 | % |  | $ | 79,527 |  |  | $ | 316,218 |
|  | 12/31/18 |  |  |  |
|  | # of Office and Data Center Shell Properties |  | Operational Square Feet |  |  |  |  |  | Office and Data Center Shell Properties Annualized Rental Revenue (2) |  | Percentage of Core Office and Data Center Shell Properties Annualized Rental Revenue (2) |  | NOI from Real Estate Operations for Three Months Ended |  | NOI from Real Estate Operations for Year Ended
Property Grouping |  |  |  | % Occupied (1) |  | % Leased (1) |  |  |  | 12/31/18 |  | 12/31/18
Core Portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated properties |  | 148 |  |  | 14,968 |  |  | 93.2% |  | 94.0% |  | $ | 433,838 |  |  | 87.4 | % |  | $ | 67,622 |  |  | $ | 268,049 |
Unconsolidated real estate JV (4) |  | 6 |  |  | 962 |  |  | 100.0% |  | 100.0% |  | 5,515 |  |  | 1.1 | % |  | 1,211 |  |  | 4,818 |
Total Defense/IT Locations |  | 154 |  |  | 15,930 |  |  | 93.6% |  | 94.4% |  | 439,353 |  |  | 88.5 | % |  | 68,833 |  |  | 272,867 |
Regional Office |  | 7 |  |  | 2,007 |  |  | 89.2% |  | 91.5% |  | 57,232 |  |  | 11.5 | % |  | 7,502 |  |  | 30,792 |
Wholesale Data Center and Other |  | N/A |  |  | N/A |  |  | N/A |  | N/A |  | N/A |  |  | N/A |  |  | 3,928 |  |  | 15,411 |
Total Core Portfolio |  | 161 |  |  | 17,937 |  |  | 93.1% |  | 94.0% |  | $ | 496,585 |  |  | 100.0 | % |  | $ | 80,263 |  |  | $ | 319,070 |

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

(2) | Excludes Annualized Rental Revenue from our wholesale data center, DC-6, of $23.1 million as of 12/31/18. With regard to properties owned through an unconsolidated real estate joint venture, we include the portion of Annualized Rental Revenue allocable to COPT’s ownership interest.

(3) | Includes office and data center shell properties continually owned and 100% operational since at least 1/1/17.

(4) | Represents total information pertaining to properties owned through an unconsolidated real estate joint venture except for the amounts reported for Annualized Rental Revenue and NOI from real estate operations, which represent the portion allocable to COPT’s ownership interest. See page 33 for additional disclosure regarding this joint venture.

(5) | Newly constructed or redeveloped properties placed in service that were not fully operational by 1/1/17.

12

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

| Three Months Ended |  | Year Ended
| 12/31/18 |  | 9/30/18 |  | 6/30/18 |  | 3/31/18 |  | 12/31/17 |  | 12/31/18 |  | 12/31/17
Consolidated real estate revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |  |  |  |  |  |
Fort Meade/BW Corridor | $ | 62,756 |  |  | $ | 61,396 |  |  | $ | 61,993 |  |  | $ | 62,782 |  |  | $ | 62,220 |  |  | $ | 248,927 |  |  | $ | 245,613 |
NoVA Defense/IT | 13,879 |  |  | 13,960 |  |  | 13,118 |  |  | 12,561 |  |  | 12,126 |  |  | 53,518 |  |  | 47,118 |
Lackland Air Force Base | 11,207 |  |  | 11,254 |  |  | 12,382 |  |  | 11,443 |  |  | 11,522 |  |  | 46,286 |  |  | 47,209 |
Navy Support | 8,031 |  |  | 7,899 |  |  | 8,127 |  |  | 7,870 |  |  | 7,587 |  |  | 31,927 |  |  | 29,540 |
Redstone Arsenal | 3,726 |  |  | 3,734 |  |  | 3,652 |  |  | 3,633 |  |  | 3,706 |  |  | 14,745 |  |  | 14,322 |
Data Center Shells-Consolidated | 7,175 |  |  | 6,689 |  |  | 5,955 |  |  | 5,831 |  |  | 6,322 |  |  | 25,650 |  |  | 24,320 |
Total Defense/IT Locations | 106,774 |  |  | 104,932 |  |  | 105,227 |  |  | 104,120 |  |  | 103,483 |  |  | 421,053 |  |  | 408,122 |
Regional Office | 15,329 |  |  | 15,272 |  |  | 15,296 |  |  | 15,284 |  |  | 15,868 |  |  | 61,181 |  |  | 68,262 |
Wholesale Data Center | 7,929 |  |  | 7,781 |  |  | 8,105 |  |  | 8,077 |  |  | 7,674 |  |  | 31,892 |  |  | 28,875 |
Other | 793 |  |  | 1,003 |  |  | 534 |  |  | 797 |  |  | 660 |  |  | 3,127 |  |  | 4,721 |
Consolidated real estate revenues | $ | 130,825 |  |  | $ | 128,988 |  |  | $ | 129,162 |  |  | $ | 128,278 |  |  | $ | 127,685 |  |  | $ | 517,253 |  |  | $ | 509,980 |
NOI |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |  |  |  |  |  |
Fort Meade/BW Corridor | $ | 41,331 |  |  | $ | 41,549 |  |  | $ | 41,894 |  |  | $ | 41,178 |  |  | $ | 41,880 |  |  | $ | 165,952 |  |  | $ | 164,916 |
NoVA Defense/IT | 8,699 |  |  | 8,442 |  |  | 8,209 |  |  | 7,838 |  |  | 8,202 |  |  | 33,188 |  |  | 30,180 |
Lackland Air Force Base | 4,843 |  |  | 4,822 |  |  | 4,888 |  |  | 4,845 |  |  | 4,835 |  |  | 19,398 |  |  | 19,397 |
Navy Support | 4,438 |  |  | 4,691 |  |  | 4,696 |  |  | 4,566 |  |  | 4,359 |  |  | 18,391 |  |  | 16,921 |
Redstone Arsenal | 2,194 |  |  | 2,165 |  |  | 2,143 |  |  | 2,193 |  |  | 2,217 |  |  | 8,695 |  |  | 8,539 |
Data Center Shells: |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated properties | 6,117 |  |  | 6,115 |  |  | 5,156 |  |  | 5,037 |  |  | 5,486 |  |  | 22,425 |  |  | 21,611 |
COPT’s share of unconsolidated real estate JV (1) | 1,211 |  |  | 1,206 |  |  | 1,202 |  |  | 1,199 |  |  | 1,203 |  |  | 4,818 |  |  | 4,805 |
Total Defense/IT Locations | 68,833 |  |  | 68,990 |  |  | 68,188 |  |  | 66,856 |  |  | 68,182 |  |  | 272,867 |  |  | 266,369 |
Regional Office | 7,548 |  |  | 7,847 |  |  | 8,127 |  |  | 7,406 |  |  | 8,860 |  |  | 30,928 |  |  | 39,280 |
Wholesale Data Center | 3,960 |  |  | 3,816 |  |  | 3,955 |  |  | 3,819 |  |  | 4,164 |  |  | 15,550 |  |  | 15,324 |
Other | 397 |  |  | 201 |  |  | 648 |  |  | 445 |  |  | 233 |  |  | 1,691 |  |  | 2,848 |
NOI from real estate operations | $ | 80,738 |  |  | $ | 80,854 |  |  | $ | 80,918 |  |  | $ | 78,526 |  |  | $ | 81,439 |  |  | $ | 321,036 |  |  | $ | 323,821 |

(1) See page 33 for additional disclosure regarding an unconsolidated real estate joint venture.
13

Corporate Office Properties Trust
Cash NOI by Segment
(dollars in thousands)

| Three Months Ended |  | Year Ended
| 12/31/18 |  | 9/30/18 |  | 6/30/18 |  | 3/31/18 |  | 12/31/17 |  | 12/31/18 |  | 12/31/17
Cash NOI |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |  |  |  |  |  |
Fort Meade/BW Corridor | $ | 41,027 |  |  | $ | 41,398 |  |  | $ | 41,338 |  |  | $ | 40,212 |  |  | $ | 41,685 |  |  | $ | 163,975 |  |  | $ | 163,932 |
NoVA Defense/IT | 8,773 |  |  | 9,394 |  |  | 7,312 |  |  | 7,218 |  |  | 7,426 |  |  | 32,697 |  |  | 29,663 |
Lackland Air Force Base | 5,157 |  |  | 5,012 |  |  | 5,067 |  |  | 5,024 |  |  | 5,016 |  |  | 20,260 |  |  | 19,721 |
Navy Support | 4,508 |  |  | 4,925 |  |  | 4,933 |  |  | 4,577 |  |  | 4,341 |  |  | 18,943 |  |  | 16,910 |
Redstone Arsenal | 2,219 |  |  | 2,221 |  |  | 2,200 |  |  | 2,167 |  |  | 2,165 |  |  | 8,807 |  |  | 8,311 |
Data Center Shells: |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated properties | 5,688 |  |  | 5,630 |  |  | 4,755 |  |  | 4,297 |  |  | 4,646 |  |  | 20,370 |  |  | 20,053 |
COPT’s share of unconsolidated real estate JV (1) | 1,154 |  |  | 1,144 |  |  | 1,134 |  |  | 1,132 |  |  | 1,130 |  |  | 4,564 |  |  | 4,469 |
Total Defense/IT Locations | 68,526 |  |  | 69,724 |  |  | 66,739 |  |  | 64,627 |  |  | 66,409 |  |  | 269,616 |  |  | 263,059 |
Regional Office | 6,990 |  |  | 7,108 |  |  | 7,465 |  |  | 6,894 |  |  | 8,428 |  |  | 28,457 |  |  | 37,200 |
Wholesale Data Center | 3,601 |  |  | 3,391 |  |  | 3,479 |  |  | 3,374 |  |  | 3,470 |  |  | 13,845 |  |  | 13,415 |
Other | 435 |  |  | 236 |  |  | 673 |  |  | 469 |  |  | 263 |  |  | 1,813 |  |  | 2,306 |
Cash NOI from real estate operations | 79,552 |  |  | 80,459 |  |  | 78,356 |  |  | 75,364 |  |  | 78,570 |  |  | 313,731 |  |  | 315,980 |
Straight line rent adjustments and lease incentive amortization | 56 |  |  | (576 | ) |  | 1,209 |  |  | 519 |  |  | 1,027 |  |  | 1,208 |  |  | (1,336 | )
Amortization of acquired above- and below-market rents | (97 | ) |  | (98 | ) |  | (176 | ) |  | (300 | ) |  | (287 | ) |  | (671 | ) |  | (1,123 | )
Amortization of below-market cost arrangements | (152 | ) |  | (148 | ) |  | (148 | ) |  | (149 | ) |  | (149 | ) |  | (597 | ) |  | (595 | )
Lease termination fees, gross | 906 |  |  | 830 |  |  | 771 |  |  | 1,155 |  |  | 828 |  |  | 3,662 |  |  | 2,911 |
Tenant funded landlord assets and lease incentives | 416 |  |  | 325 |  |  | 838 |  |  | 1,870 |  |  | 1,377 |  |  | 3,449 |  |  | 7,648 |
Cash NOI adjustments in unconsolidated real estate JV | 57 |  |  | 62 |  |  | 68 |  |  | 67 |  |  | 73 |  |  | 254 |  |  | 336 |
NOI from real estate operations | $ | 80,738 |  |  | $ | 80,854 |  |  | $ | 80,918 |  |  | $ | 78,526 |  |  | $ | 81,439 |  |  | $ | 321,036 |  |  | $ | 323,821 |

(1) See page 33 for additional disclosure regarding an unconsolidated real estate joint venture.
14

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

| Number of Buildings |  | Rentable Square Feet |  | Three Months Ended |  | Year Ended
|  |  | 12/31/18 |  | 9/30/18 |  | 6/30/18 |  | 3/31/18 |  | 12/31/17 |  | 12/31/18 |  | 12/31/17
Core Portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fort Meade/BW Corridor | 81 |  |  | 7,750 |  |  | 92.4 | % |  | 92.2 | % |  | 91.3 | % |  | 91.4 | % |  | 93.7 | % |  | 91.8 | % |  | 92.9 | %
NoVA Defense/IT | 12 |  |  | 1,759 |  |  | 83.9 | % |  | 80.6 | % |  | 80.5 | % |  | 80.0 | % |  | 79.5 | % |  | 81.3 | % |  | 78.7 | %
Lackland Air Force Base | 7 |  |  | 953 |  |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | %
Navy Support | 21 |  |  | 1,252 |  |  | 89.8 | % |  | 87.1 | % |  | 88.3 | % |  | 87.7 | % |  | 85.6 | % |  | 88.2 | % |  | 81.5 | %
Redstone Arsenal | 6 |  |  | 632 |  |  | 100.0 | % |  | 99.7 | % |  | 99.2 | % |  | 99.2 | % |  | 99.2 | % |  | 99.5 | % |  | 99.1 | %
Data Center Shells | 11 |  |  | 1,711 |  |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | %
Total Defense/IT Locations | 138 |  |  | 14,057 |  |  | 92.9 | % |  | 92.1 | % |  | 91.7 | % |  | 91.6 | % |  | 92.6 | % |  | 92.1 | % |  | 91.7 | %
Regional Office | 7 |  |  | 2,007 |  |  | 89.3 | % |  | 88.3 | % |  | 87.3 | % |  | 87.3 | % |  | 90.0 | % |  | 88.1 | % |  | 92.2 | %
Core Portfolio Same Properties | 145 |  |  | 16,064 |  |  | 92.4 | % |  | 91.6 | % |  | 91.1 | % |  | 91.1 | % |  | 92.3 | % |  | 91.6 | % |  | 91.8 | %
Other Same Properties | 2 |  |  | 157 |  |  | 77.2 | % |  | 80.6 | % |  | 80.6 | % |  | 79.9 | % |  | 59.0 | % |  | 79.6 | % |  | 70.2 | %
Total Same Properties | 147 |  |  | 16,221 |  |  | 92.3 | % |  | 91.5 | % |  | 91.0 | % |  | 91.0 | % |  | 92.0 | % |  | 91.5 | % |  | 91.6 | %
Corporate Office Properties Trust Same Properties (1) Period End Occupancy Rates by Segment (square feet in thousands)
| Number of Buildings |  | Rentable Square Feet |  | Three Months Ended |  |
|  |  | 12/31/18 |  | 9/30/18 |  | 6/30/18 |  | 3/31/18 |  | 12/31/17 |  |  |  |
Core Portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fort Meade/BW Corridor | 81 |  |  | 7,750 |  |  | 92.3 | % |  | 92.9 | % |  | 91.7 | % |  | 91.3 | % |  | 93.6 | % |  |  |  |
NoVA Defense/IT | 12 |  |  | 1,759 |  |  | 90.1 | % |  | 81.6 | % |  | 80.6 | % |  | 80.3 | % |  | 79.5 | % |  |  |  |
Lackland Air Force Base | 7 |  |  | 953 |  |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  |  |  |
Navy Support | 21 |  |  | 1,252 |  |  | 90.5 | % |  | 88.0 | % |  | 88.3 | % |  | 88.0 | % |  | 87.7 | % |  |  |  |
Redstone Arsenal | 6 |  |  | 632 |  |  | 100.0 | % |  | 100.0 | % |  | 99.2 | % |  | 99.2 | % |  | 99.2 | % |  |  |  |
Data Center Shells | 11 |  |  | 1,711 |  |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  |  |  |
Total Defense/IT Locations | 138 |  |  | 14,057 |  |  | 93.7 | % |  | 92.7 | % |  | 91.9 | % |  | 91.6 | % |  | 92.8 | % |  |  |  |
Regional Office | 7 |  |  | 2,007 |  |  | 89.2 | % |  | 89.0 | % |  | 87.2 | % |  | 86.8 | % |  | 89.5 | % |  |  |  |
Core Portfolio Same Properties | 145 |  |  | 16,064 |  |  | 93.1 | % |  | 92.2 | % |  | 91.3 | % |  | 91.0 | % |  | 92.4 | % |  |  |  |
Other Same Properties | 2 |  |  | 157 |  |  | 77.2 | % |  | 77.2 | % |  | 82.2 | % |  | 80.1 | % |  | 62.3 | % |  |  |  |
Total Same Properties | 147 |  |  | 16,221 |  |  | 93.0 | % |  | 92.1 | % |  | 91.2 | % |  | 90.9 | % |  | 92.1 | % |  |  |  |

(1) | Includes office and data center shell properties continually owned and 100% operational since at least 1/1/17.

15

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

| Three Months Ended |  | Year Ended
| 12/31/18 |  | 9/30/18 |  | 6/30/18 |  | 3/31/18 |  | 12/31/17 |  | 12/31/18 |  | 12/31/17
Same Properties real estate revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |  |  |  |  |  |
Fort Meade/BW Corridor | $ | 60,906 |  |  | $ | 59,623 |  |  | $ | 59,940 |  |  | $ | 60,542 |  |  | $ | 60,135 |  |  | $ | 241,011 |  |  | $ | 237,785 |
NoVA Defense/IT | 11,962 |  |  | 11,804 |  |  | 11,458 |  |  | 11,107 |  |  | 11,030 |  |  | 46,331 |  |  | 44,250 |
Lackland Air Force Base | 11,200 |  |  | 11,254 |  |  | 12,382 |  |  | 11,443 |  |  | 11,523 |  |  | 46,279 |  |  | 47,210 |
Navy Support | 8,031 |  |  | 7,899 |  |  | 8,127 |  |  | 7,870 |  |  | 7,586 |  |  | 31,927 |  |  | 29,539 |
Redstone Arsenal | 3,340 |  |  | 3,339 |  |  | 3,281 |  |  | 3,328 |  |  | 3,390 |  |  | 13,288 |  |  | 13,125 |
Data Center Shells | 3,084 |  |  | 2,818 |  |  | 3,186 |  |  | 3,217 |  |  | 3,021 |  |  | 12,305 |  |  | 12,073 |
Total Defense/IT Locations | 98,523 |  |  | 96,737 |  |  | 98,374 |  |  | 97,507 |  |  | 96,685 |  |  | 391,141 |  |  | 383,982 |
Regional Office | 15,300 |  |  | 15,271 |  |  | 15,294 |  |  | 15,168 |  |  | 15,871 |  |  | 61,033 |  |  | 64,412 |
Other Properties | 821 |  |  | 1,003 |  |  | 528 |  |  | 783 |  |  | 658 |  |  | 3,135 |  |  | 3,931 |
Same Properties real estate revenues | $ | 114,644 |  |  | $ | 113,011 |  |  | $ | 114,196 |  |  | $ | 113,458 |  |  | $ | 113,214 |  |  | $ | 455,309 |  |  | $ | 452,325 |
Same Properties NOI |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |  |  |  |  |  |
Fort Meade/BW Corridor | $ | 40,195 |  |  | $ | 40,307 |  |  | $ | 40,246 |  |  | $ | 39,653 |  |  | $ | 40,448 |  |  | $ | 160,401 |  |  | $ | 159,901 |
NoVA Defense/IT | 7,690 |  |  | 7,349 |  |  | 7,179 |  |  | 6,775 |  |  | 7,152 |  |  | 28,993 |  |  | 27,615 |
Lackland Air Force Base | 4,836 |  |  | 4,822 |  |  | 4,888 |  |  | 4,845 |  |  | 4,835 |  |  | 19,391 |  |  | 19,397 |
Navy Support | 4,438 |  |  | 4,691 |  |  | 4,696 |  |  | 4,566 |  |  | 4,360 |  |  | 18,391 |  |  | 16,922 |
Redstone Arsenal | 2,369 |  |  | 2,340 |  |  | 2,296 |  |  | 2,398 |  |  | 2,394 |  |  | 9,403 |  |  | 9,358 |
Data Center Shells: |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated properties | 2,719 |  |  | 2,717 |  |  | 2,717 |  |  | 2,665 |  |  | 2,623 |  |  | 10,818 |  |  | 10,503 |
COPT’s share of unconsolidated real estate JV (1) | 1,211 |  |  | 1,206 |  |  | 1,202 |  |  | 1,199 |  |  | 1,203 |  |  | 4,818 |  |  | 4,805 |
Total Defense/IT Locations | 63,458 |  |  | 63,432 |  |  | 63,224 |  |  | 62,101 |  |  | 63,015 |  |  | 252,215 |  |  | 248,501 |
Regional Office | 7,500 |  |  | 7,846 |  |  | 8,125 |  |  | 7,313 |  |  | 8,909 |  |  | 30,784 |  |  | 36,521 |
Other Properties | 455 |  |  | 341 |  |  | 588 |  |  | 426 |  |  | 322 |  |  | 1,810 |  |  | 2,662 |
Same Properties NOI | $ | 71,413 |  |  | $ | 71,619 |  |  | $ | 71,937 |  |  | $ | 69,840 |  |  | $ | 72,246 |  |  | $ | 284,809 |  |  | $ | 287,684 |

(1) See page 33 for additional disclosure regarding an unconsolidated real estate joint venture.
16

Corporate Office Properties Trust
Same Properties Cash NOI by Segment
(dollars in thousands)

| Three Months Ended |  | Year Ended
| 12/31/18 |  | 9/30/18 |  | 6/30/18 |  | 3/31/18 |  | 12/31/17 |  | 12/31/18 |  | 12/31/17 |
Same Properties cash NOI |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |  |  |  |  |  |
Fort Meade/BW Corridor | $ | 39,951 |  |  | $ | 40,474 |  |  | $ | 39,906 |  |  | $ | 38,850 |  |  | $ | 40,090 |  |  | $ | 159,181 |  |  | $ | 159,183 |
NoVA Defense/IT | 7,709 |  |  | 7,801 |  |  | 7,770 |  |  | 7,212 |  |  | 7,433 |  |  | 30,492 |  |  | 28,438 |
Lackland Air Force Base | 5,157 |  |  | 5,012 |  |  | 5,067 |  |  | 5,024 |  |  | 5,016 |  |  | 20,260 |  |  | 19,721 |
Navy Support | 4,508 |  |  | 4,924 |  |  | 4,934 |  |  | 4,577 |  |  | 4,342 |  |  | 18,943 |  |  | 16,910 |
Redstone Arsenal | 2,434 |  |  | 2,407 |  |  | 2,364 |  |  | 2,384 |  |  | 2,351 |  |  | 9,589 |  |  | 9,136 |
Data Center Shells: |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated properties | 2,576 |  |  | 2,567 |  |  | 2,558 |  |  | 2,476 |  |  | 2,521 |  |  | 10,177 |  |  | 10,025 |
COPT’s share of unconsolidated real estate JV (1) | 1,154 |  |  | 1,144 |  |  | 1,134 |  |  | 1,132 |  |  | 1,130 |  |  | 4,564 |  |  | 4,469 |
Total Defense/IT Locations | 63,489 |  |  | 64,329 |  |  | 63,733 |  |  | 61,655 |  |  | 62,883 |  |  | 253,206 |  |  | 247,882 |
Regional Office | 6,943 |  |  | 7,107 |  |  | 7,463 |  |  | 6,801 |  |  | 8,476 |  |  | 28,314 |  |  | 34,467 |
Other Properties | 491 |  |  | 377 |  |  | 613 |  |  | 449 |  |  | 352 |  |  | 1,930 |  |  | 2,121 |
Same Properties cash NOI | 70,923 |  |  | 71,813 |  |  | 71,809 |  |  | 68,905 |  |  | 71,711 |  |  | 283,450 |  |  | 284,470 |
Straight line rent adjustments and lease incentive amortization | (638 | ) |  | (1,088 | ) |  | (1,005 | ) |  | (1,556 | ) |  | (1,050 | ) |  | (4,287 | ) |  | (2,808 | )
Amortization of acquired above- and below-market rents | (97 | ) |  | (98 | ) |  | (176 | ) |  | (300 | ) |  | (287 | ) |  | (671 | ) |  | (1,123 | )
Amortization of below-market cost arrangements | (147 | ) |  | (147 | ) |  | (148 | ) |  | (147 | ) |  | (147 | ) |  | (589 | ) |  | (590 | )
Lease termination fees, gross | 906 |  |  | 759 |  |  | 558 |  |  | 1,008 |  |  | 828 |  |  | 3,231 |  |  | 2,911 |
Tenant funded landlord assets and lease incentives | 409 |  |  | 318 |  |  | 831 |  |  | 1,863 |  |  | 1,118 |  |  | 3,421 |  |  | 4,488 |
Cash NOI adjustments in unconsolidated real estate JV | 57 |  |  | 62 |  |  | 68 |  |  | 67 |  |  | 73 |  |  | 254 |  |  | 336 |
Same Properties NOI | $ | 71,413 |  |  | $ | 71,619 |  |  | $ | 71,937 |  |  | $ | 69,840 |  |  | $ | 72,246 |  |  | $ | 284,809 |  |  | $ | 287,684 |
Percentage change in total Same Properties cash NOI (2) | (1.1 | )% |  |  |  |  |  |  |  |  |  | (0.4 | )% |  |
Percentage change in Defense/IT Locations Same Properties cash NOI (2) | 1.0 | % |  |  |  |  |  |  |  |  |  | 2.1 | % |  |

(1) | See page 33 for additional disclosure regarding an unconsolidated real estate joint venture.

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

17

Corporate Office Properties Trust
Leasing - Office and Data Center Shell Portfolio (1)
Quarter Ended 12/31/18
(square feet in thousands)

| Defense/IT Locations |  |  |  |  |  |
| Ft Meade/BW Corridor |  | NoVA Defense/IT |  | Navy Support |  | Redstone Arsenal |  | Data Center Shells |  | Total Defense/IT Locations |  | Regional Office |  | Other |  | Total Office
Renewed Space |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Leased Square Feet | 467 |  |  | 110 |  |  | 63 |  |  | 17 |  |  | — |  |  | 657 |  |  | 1 |  |  | 46 |  |  | 704 |
Expiring Square Feet | 589 |  |  | 113 |  |  | 77 |  |  | 22 |  |  | — |  |  | 801 |  |  | 10 |  |  | 46 |  |  | 857 |
Vacating Square Feet | 122 |  |  | 4 |  |  | 13 |  |  | 5 |  |  | — |  |  | 143 |  |  | 9 |  |  | — |  |  | 153 |
Retention Rate (% based upon square feet) | 79.3 | % |  | 96.7 | % |  | 82.8 | % |  | 79.1 | % |  | — | % |  | 82.1 | % |  | 10.6 | % |  | 100.0 | % |  | 82.2 | %
Statistics for Completed Leasing: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Per Annum Average Committed Cost per Square Foot (2) | $ | 1.82 |  |  | $ | 4.09 |  |  | $ | 0.34 |  |  | $ | 5.31 |  |  | $ | — |  |  | $ | 2.15 |  |  | $ | — |  |  | $ | 2.89 |  |  | $ | 2.19 |
Weighted Average Lease Term in Years | 4.9 |  |  | 4.5 |  |  | 2.7 |  |  | 4.6 |  |  | — |  |  | 4.6 |  |  | 5.0 |  |  | 4.8 |  |  | 4.6 |
Average Rent Per Square Foot |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Renewal Average Rent | $ | 37.33 |  |  | $ | 36.82 |  |  | $ | 14.94 |  |  | $ | 21.84 |  |  | $ | — |  |  | $ | 34.67 |  |  | $ | 16.57 |  |  | $ | 28.13 |  |  | $ | 34.22 |
Expiring Average Rent | $ | 34.67 |  |  | $ | 39.27 |  |  | $ | 15.86 |  |  | $ | 19.42 |  |  | $ | — |  |  | $ | 33.22 |  |  | $ | 14.05 |  |  | $ | 33.95 |  |  | $ | 33.23 |
Change in Average Rent | 7.7 | % |  | (6.2 | )% |  | (5.8 | )% |  | 12.4 | % |  | — | % |  | 4.4 | % |  | 17.9 | % |  | (17.1 | )% |  | 3.0 | %
Cash Rent Per Square Foot |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Renewal Cash Rent | $ | 36.30 |  |  | $ | 35.26 |  |  | $ | 15.79 |  |  | $ | 20.57 |  |  | $ | — |  |  | $ | 33.73 |  |  | $ | 15.60 |  |  | $ | 26.50 |  |  | $ | 33.23 |
Expiring Cash Rent | $ | 36.70 |  |  | $ | 44.37 |  |  | $ | 16.53 |  |  | $ | 20.94 |  |  | $ | — |  |  | $ | 35.61 |  |  | $ | 15.15 |  |  | $ | 37.05 |  |  | $ | 35.68 |
Change in Cash Rent | (1.1 | )% |  | (20.5 | )% |  | (4.4 | )% |  | (1.7 | )% |  | — | % |  | (5.3 | )% |  | 3.0 | % |  | (28.5 | )% |  | (6.9 | )%
Average escalations per year | 2.8 | % |  | 2.5 | % |  | 2.0 | % |  | 3.0 | % |  | — | % |  | 2.7 | % |  | 3.0 | % |  | 2.5 | % |  | 2.7 | %
New Leases |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Development and Redevelopment Space (3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Leased Square Feet | 11 |  |  | — |  |  | — |  |  | — |  |  | 366 |  |  | 377 |  |  | — |  |  | — |  |  | 377 |
Statistics for Completed Leasing: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Per Annum Average Committed Cost per Square Foot (2) | $ | 14.80 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 0.43 |  |  | $ | — |  |  | $ | — |  |  | $ | 0.43 |
Weighted Average Lease Term in Years | 5.8 |  |  | — |  |  | — |  |  | — |  |  | 15.0 |  |  | 14.7 |  |  | — |  |  | — |  |  | 14.7 |
Average Rent Per Square Foot | $ | 28.55 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 14.51 |  |  | $ | 14.92 |  |  | $ | — |  |  | $ | — |  |  | $ | 14.92 |
Cash Rent Per Square Foot | $ | 30.00 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 12.73 |  |  | $ | 13.23 |  |  | $ | — |  |  | $ | — |  |  | $ | 13.23 |
Other New Leases (3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Leased Square Feet | 191 |  |  | 22 |  |  | 3 |  |  | 2 |  |  | — |  |  | 217 |  |  | 31 |  |  | — |  |  | 248 |
Statistics for Completed Leasing: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Per Annum Average Committed Cost per Square Foot (2) | $ | 3.63 |  |  | $ | 6.63 |  |  | $ | 0.67 |  |  | $ | 2.53 |  |  | $ | — |  |  | $ | 3.88 |  |  | $ | 9.95 |  |  | $ | — |  |  | $ | 4.64 |
Weighted Average Lease Term in Years | 9.3 |  |  | 6.5 |  |  | 2.0 |  |  | 5.5 |  |  | — |  |  | 8.9 |  |  | 5.6 |  |  | — |  |  | 8.5 |
Average Rent Per Square Foot | $ | 17.02 |  |  | $ | 27.99 |  |  | $ | 15.00 |  |  | $ | 20.81 |  |  | $ | — |  |  | $ | 18.12 |  |  | $ | 31.75 |  |  | $ | — |  |  | $ | 19.82 |
Cash Rent Per Square Foot | $ | 17.48 |  |  | $ | 27.74 |  |  | $ | 15.00 |  |  | $ | 19.22 |  |  | $ | — |  |  | $ | 18.48 |  |  | $ | 31.18 |  |  | $ | — |  |  | $ | 20.07 |
Total Square Feet Leased | 669 |  |  | 131 |  |  | 66 |  |  | 19 |  |  | 366 |  |  | 1,251 |  |  | 32 |  |  | 46 |  |  | 1,329 |
Average escalations per year | 2.5 | % |  | 2.5 | % |  | 1.9 | % |  | 3.0 | % |  | 2.3 | % |  | 2.4 | % |  | 2.6 | % |  | 2.5 | % |  | 2.4 | %
Average escalations excl. data center shells |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2.5 | %

(1) | Activity is exclusive of owner occupied space and leases with less than a one-year term. Weighted average lease term is based on the non-cancelable term of tenant leases determined in accordance with GAAP. Committed costs for leasing are reported above in the period of lease execution. Actual capital expenditures for leasing are reported on page 9 in the period such costs are incurred.

(2) | Committed costs include tenant improvements and leasing commissions and exclude free rent concession.

(3) | Other New Leases includes acquired first generation space and vacated second generation space. Effective 7/1/18, Other New Leases also includes leases executed on developed and redeveloped space previously placed in service; leases of this type executed prior to 7/1/18 were included in Development and Redevelopment Space.

18

Corporate Office Properties Trust
Leasing - Office and Data Center Shell Portfolio (1)
Year Ended 12/31/18
(square feet in thousands)

| Defense/IT Locations |  |  |  |  |  |
| Ft Meade/BW Corridor |  | NoVA Defense/IT |  | Navy Support |  | Redstone Arsenal |  | Data Center Shells |  | Total Defense/IT Locations |  | Regional Office |  | Other |  | Total
Renewed Space |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Leased Square Feet | 1,525 |  |  | 193 |  |  | 377 |  |  | 268 |  |  | — |  |  | 2,363 |  |  | 124 |  |  | 51 |  |  | 2,538 |
Expiring Square Feet | 2,043 |  |  | 207 |  |  | 445 |  |  | 275 |  |  | — |  |  | 2,971 |  |  | 215 |  |  | 51 |  |  | 3,237 |
Vacating Square Feet | 518 |  |  | 14 |  |  | 68 |  |  | 7 |  |  | — |  |  | 608 |  |  | 91 |  |  | — |  |  | 699 |
Retention Rate (% based upon square feet) | 74.6 | % |  | 93.3 | % |  | 84.7 | % |  | 97.3 | % |  | — | % |  | 79.6 | % |  | 57.6 | % |  | 100.0 | % |  | 78.4 | %
Statistics for Completed Leasing: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Per Annum Average Committed Cost per Square Foot (2) | $ | 1.80 |  |  | $ | 4.36 |  |  | $ | 2.19 |  |  | $ | 0.83 |  |  | $ | — |  |  | $ | 1.96 |  |  | $ | 4.14 |  |  | $ | 3.02 |  |  | $ | 2.09 |
Weighted Average Lease Term in Years | 4.5 |  |  | 3.9 |  |  | 2.0 |  |  | 1.3 |  |  | — |  |  | 3.7 |  |  | 4.8 |  |  | 4.4 |  |  | 3.8 |
Average Rent Per Square Foot |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Renewal Average Rent | $ | 36.14 |  |  | $ | 33.70 |  |  | $ | 26.77 |  |  | $ | 21.63 |  |  | $ | — |  |  | $ | 32.80 |  |  | $ | 30.17 |  |  | $ | 28.26 |  |  | $ | 32.58 |
Expiring Average Rent | $ | 33.27 |  |  | $ | 34.21 |  |  | $ | 24.98 |  |  | $ | 20.90 |  |  | $ | — |  |  | $ | 30.62 |  |  | $ | 27.06 |  |  | $ | 33.45 |  |  | $ | 30.51 |
Change in Average Rent | 8.6 | % |  | (1.5 | )% |  | 7.2 | % |  | 3.5 | % |  | — | % |  | 7.1 | % |  | 11.5 | % |  | (15.5 | )% |  | 6.8 | %
Cash Rent Per Square Foot |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Renewal Cash Rent | $ | 35.02 |  |  | $ | 32.91 |  |  | $ | 26.73 |  |  | $ | 21.51 |  |  | $ | — |  |  | $ | 32.00 |  |  | $ | 28.84 |  |  | $ | 26.80 |  |  | $ | 31.74 |
Expiring Cash Rent | $ | 35.18 |  |  | $ | 38.68 |  |  | $ | 26.61 |  |  | $ | 21.01 |  |  | $ | — |  |  | $ | 32.50 |  |  | $ | 28.56 |  |  | $ | 36.22 |  |  | $ | 32.38 |
Change in Cash Rent | (0.5 | )% |  | (14.9 | )% |  | 0.4 | % |  | 2.4 | % |  | — | % |  | (1.5 | )% |  | 1.0 | % |  | (26.0 | )% |  | (2.0 | )%
Average escalations per year | 2.6 | % |  | 2.5 | % |  | 2.2 | % |  | 3.0 | % |  | — | % |  | 2.6 | % |  | 2.5 | % |  | 2.5 | % |  | 2.6 | %
New Leases |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Development and Redevelopment Space (3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Leased Square Feet | 96 |  |  | 159 |  |  | — |  |  | 18 |  |  | 798 |  |  | 1,071 |  |  | — |  |  | — |  |  | 1,071 |
Statistics for Completed Leasing: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Per Annum Average Committed Cost per Square Foot (2) | $ | 8.00 |  |  | $ | 7.84 |  |  | $ | — |  |  | $ | 11.02 |  |  | $ | — |  |  | $ | 2.06 |  |  | $ | — |  |  | $ | — |  |  | $ | 2.06 |
Weighted Average Lease Term in Years | 8.8 |  |  | 10.0 |  |  | — |  |  | 7.7 |  |  | 13.4 |  |  | 12.4 |  |  | — |  |  | — |  |  | 12.4 |
Average Rent Per Square Foot | $ | 29.28 |  |  | $ | 35.15 |  |  | $ | — |  |  | $ | 19.55 |  |  | $ | 16.18 |  |  | $ | 20.23 |  |  | $ | — |  |  | $ | — |  |  | $ | 20.23 |
Cash Rent Per Square Foot | $ | 28.50 |  |  | $ | 35.15 |  |  | $ | — |  |  | $ | 20.04 |  |  | $ | 14.34 |  |  | $ | 18.80 |  |  | $ | — |  |  | $ | — |  |  | $ | 18.80 |
Other New Leases (4) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Leased Square Feet | 371 |  |  | 50 |  |  | 99 |  |  | 9 |  |  | — |  |  | 529 |  |  | 63 |  |  | 5 |  |  | 596 |
Statistics for Completed Leasing: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Per Annum Average Committed Cost per Square Foot (2) | $ | 4.65 |  |  | $ | 8.01 |  |  | $ | 5.56 |  |  | $ | 4.81 |  |  | $ | — |  |  | $ | 5.14 |  |  | $ | 10.49 |  |  | $ | 7.35 |  |  | $ | 5.72 |
Weighted Average Lease Term in Years | 8.5 |  |  | 5.8 |  |  | 5.3 |  |  | 5.6 |  |  | — |  |  | 7.6 |  |  | 6.6 |  |  | 2.5 |  |  | 7.4 |
Average Rent Per Square Foot | $ | 21.53 |  |  | $ | 29.03 |  |  | $ | 24.25 |  |  | $ | 24.80 |  |  | $ | — |  |  | $ | 22.80 |  |  | $ | 32.19 |  |  | $ | 25.60 |  |  | $ | 23.82 |
Cash Rent Per Square Foot | $ | 21.21 |  |  | $ | 28.51 |  |  | $ | 24.49 |  |  | $ | 22.94 |  |  | $ | — |  |  | $ | 22.54 |  |  | $ | 31.29 |  |  | $ | 24.95 |  |  | $ | 23.48 |
Total Square Feet Leased | 1,992 |  |  | 403 |  |  | 476 |  |  | 294 |  |  | 798 |  |  | 3,962 |  |  | 187 |  |  | 56 |  |  | 4,205 |
Average escalations per year | 2.6 | % |  | 1.0 | % |  | 2.4 | % |  | 2.6 | % |  | 2.4 | % |  | 2.3 | % |  | 2.5 | % |  | 2.6 | % |  | 2.3 | %
Average escalations excl. data center shells |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2.3 | %

(1) | Activity is exclusive of owner occupied space and leases with less than a one-year term. Retention rate excludes the effect of 108,000 square feet vacated in a property in the Ft Meade/BW Corridor that was removed from service for redevelopment in June 2018; our retention rate would be 75.9% if the effect of this vacancy was included. Weighted average lease term is based on the non-cancelable term of tenant leases determined in accordance with GAAP. Committed costs for leasing are reported above in the period of lease execution. Actual capital expenditures for leasing are reported on page 9 in the period such costs are incurred.

(2) | Committed costs include tenant improvements and leasing commissions and exclude free rent concession.

(3) | Excludes a long-term contract executed in June 2018 to use an asset at a confidential Defense/IT Location, the economics of which are equivalent to that of a 115,000 square foot office property or 190,000 data center shell lease.

(4) | Other New Leases includes acquired first generation space and vacated second generation space. Effective 7/1/18, Other New Leases also includes leases executed on developed and redeveloped space previously placed in service; leases of this type executed prior to 7/1/18 are included in Development and Redevelopment Space.

19

Corporate Office Properties Trust
Lease Expiration Analysis as of 12/31/18 (1)
(dollars and square feet in thousands, except per square foot amounts)
Office and Data Center Shells

Segment of Lease and Year of Expiration (2) |  | Square Footage of Leases Expiring |  | Annualized Rental Revenue of Expiring Leases (3) |  | Percentage of Core/Total Annualized Rental Revenue Expiring (3)(4) |  | Annualized Rental Revenue of Expiring Leases per Occupied Sq. Foot |
Core Portfolio |  |  |  |  |  |  |  |  |
Ft Meade/BW Corridor |  | 1,353 |  |  | $ | 44,231 |  |  | 8.9 | % |  | $ | 32.70 |  |
NoVA Defense/IT |  | 201 |  |  | 7,112 |  |  | 1.4 | % |  | 35.41 |  |
Navy Support |  | 188 |  |  | 4,535 |  |  | 0.9 | % |  | 24.13 |  |
Redstone Arsenal |  | 38 |  |  | 920 |  |  | 0.2 | % |  | 24.05 |  |
Data Center Shells-Consolidated properties |  | 155 |  |  | 2,675 |  |  | 0.5 | % |  | 17.26 |  |
Regional Office |  | 127 |  |  | 3,897 |  |  | 0.8 | % |  | 30.59 |  |
2019 |  | 2,062 |  |  | 63,370 |  |  | 12.8 | % |  | 30.73 |  |
Ft Meade/BW Corridor |  | 1,051 |  |  | 36,800 |  |  | 7.4 | % |  | 35.03 |  |
NoVA Defense/IT |  | 175 |  |  | 5,211 |  |  | 1.0 | % |  | 29.76 |  |
Lackland Air Force Base |  | 250 |  |  | 11,633 |  |  | 2.3 | % |  | 46.47 |  |
Navy Support |  | 253 |  |  | 9,370 |  |  | 1.9 | % |  | 37.04 |  |
Redstone Arsenal |  | 253 |  |  | 5,317 |  |  | 1.1 | % |  | 20.99 |  |
Regional Office |  | 115 |  |  | 3,697 |  |  | 0.7 | % |  | 32.13 |  |
2020 |  | 2,097 |  |  | 72,028 |  |  | 14.5 | % |  | 34.34 |  |
Ft Meade/BW Corridor |  | 893 |  |  | 30,767 |  |  | 6.2 | % |  | 34.46 |  |
NoVA Defense/IT |  | 108 |  |  | 3,025 |  |  | 0.6 | % |  | 27.99 |  |
Navy Support |  | 268 |  |  | 7,338 |  |  | 1.5 | % |  | 27.42 |  |
Redstone Arsenal |  | 159 |  |  | 3,589 |  |  | 0.7 | % |  | 22.58 |  |
Regional Office |  | 39 |  |  | 1,196 |  |  | 0.2 | % |  | 30.89 |  |
2021 |  | 1,467 |  |  | 45,915 |  |  | 9.2 | % |  | 31.31 |  |
Ft Meade/BW Corridor |  | 603 |  |  | 19,973 |  |  | 4.0 | % |  | 33.13 |  |
NoVA Defense/IT |  | 135 |  |  | 4,745 |  |  | 1.0 | % |  | 35.11 |  |
Navy Support |  | 139 |  |  | 3,118 |  |  | 0.6 | % |  | 22.37 |  |
Redstone Arsenal |  | 2 |  |  | 55 |  |  | — | % |  | 29.31 |  |
Regional Office |  | 489 |  |  | 16,171 |  |  | 3.3 | % |  | 33.05 |  |
2022 |  | 1,368 |  |  | 44,062 |  |  | 8.9 | % |  | 32.20 |  |
Ft Meade/BW Corridor |  | 1,342 |  |  | 45,034 |  |  | 9.1 | % |  | 33.56 |  |
NoVA Defense/IT |  | 144 |  |  | 4,552 |  |  | 0.9 | % |  | 31.67 |  |
Navy Support |  | 103 |  |  | 2,530 |  |  | 0.5 | % |  | 24.61 |  |
Redstone Arsenal |  | 4 |  |  | 98 |  |  | — | % |  | 23.49 |  |
Regional Office |  | 163 |  |  | 4,781 |  |  | 1.0 | % |  | 29.35 |  |
2023 |  | 1,756 |  |  | 56,995 |  |  | 11.5 | % |  | 32.46 |  |
Thereafter |  |  |  |  |  |  |  |  |
Consolidated Properties |  | 6,988 |  |  | 208,700 |  |  | 42.0 | % |  | 29.87 |  |
Unconsolidated JV Properties |  | 962 |  |  | 5,515 |  |  | 1.1 | % |  | 11.47 |  |
Core Portfolio |  | 16,700 |  |  | $ | 496,585 |  |  | 100.0 | % |  | $ | 30.07 |  |

20

Segment of Lease and Year of Expiration (2) |  | Square Footage of Leases Expiring |  | Annualized Rental Revenue of Expiring Leases (3) |  | Percentage of Core/Total Annualized Rental Revenue Expiring (3)(4) |  | Annualized Rental Revenue of Expiring Leases per Occupied Sq. Foot |
Core Portfolio |  | 16,700 |  |  | $ | 496,585 |  |  | 99.4 | % |  | $ | 30.07 |  |
Other Properties |  | 121 |  |  | 3,196 |  |  | 0.6 | % |  | 26.33 |  |
Total Portfolio |  | 16,821 |  |  | $ | 499,781 |  |  | 100.0 | % |  | $ | 30.04 |  |
Consolidated Portfolio |  | 15,859 |  |  | $ | 494,266 |  |  |  |  |  |
Unconsolidated JV Properties |  | 962 |  |  | $ | 5,515 |  |  |  |  |  |

Note: As of 12/31/18, the weighted average lease term is 4.9 years for the Core Portfolio, 4.9 years for the Total Portfolio and 4.8 years for the Consolidated Portfolio.
Wholesale Data Center

Year of Lease Expiration |  | Critical Load(MW) |  | Total Annualized Rental Revenue of Expiring Leases (3)(000's)
2019 |  | 1.11 |  |  | $ | 2,014 |
2020 |  | 12.55 |  |  | 16,837 |
2021 |  | 0.05 |  |  | 116 |
2022 |  | 2.00 |  |  | 1,941 |
2023 |  | 1.15 |  |  | 1,981 |
Thereafter |  | — |  |  | 228 |
|  | 16.86 |  |  | $ | 23,117 |

(1) | This expiration analysis reflects occupied space of our total portfolio (including consolidated and unconsolidated properties) 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 12/31/18 of 167,000 for the Core Portfolio. With regard to properties owned through an unconsolidated real estate joint venture, the amounts reported above reflect 100% of the properties’ square footage but only reflect the portion of Annualized Rental Revenue that was allocable to COPT’s ownership interest.

(2) | A number of our leases are subject to certain early termination provisions. The year of lease expiration is based on the non-cancelable term of tenant leases determined in accordance with GAAP.

(3) | Total Annualized Rental Revenue is the monthly contractual base rent as of 12/31/18 (ignoring free rent then in effect) multiplied by 12 plus the estimated annualized expense reimbursements under existing leases. The amounts reported above for Annualized Rental Revenue include the portion of properties owned through an unconsolidated real estate joint venture that was allocable to COPT’s ownership interest.

(4) | Amounts reported represent the percentage of our Core Portfolio for components of such portfolio while other amounts represent the percentage of our total portfolio.

21

Corporate Office Properties Trust
2019 Core Portfolio Quarterly Lease Expiration Analysis as of 12/31/18 (1)
(dollars and square feet in thousands, except per square foot amounts)

Segment of Lease and Quarter of Expiration (2) |  | Square Footage of Leases Expiring |  | Annualized Rental Revenue of Expiring Leases (3) |  | Percentage of Core Annualized Rental Revenue Expiring (3)(4) |  | Annualized Rental Revenue of Expiring Leases per Occupied Sq. Foot
Core Portfolio |  |  |  |  |  |  |  |
Ft Meade/BW Corridor |  | 275 |  |  | $ | 7,763 |  |  | 1.6 | % |  | $ | 28.24 |
NoVA Defense/IT |  | 3 |  |  | 92 |  |  | — | % |  | 34.40 |
Navy Support |  | 45 |  |  | 1,009 |  |  | 0.2 | % |  | 22.37 |
Redstone Arsenal |  | 9 |  |  | 191 |  |  | — | % |  | 21.01 |
Regional Office |  | 61 |  |  | 1,747 |  |  | 0.4 | % |  | 28.62 |
Q1 2019 |  | 393 |  |  | 10,802 |  |  | 2.2 | % |  | 27.50 |
Ft Meade/BW Corridor |  | 186 |  |  | 5,480 |  |  | 1.1 | % |  | 29.51 |
NoVA Defense/IT |  | 126 |  |  | 5,099 |  |  | 1.0 | % |  | 40.32 |
Navy Support |  | 15 |  |  | 361 |  |  | 0.1 | % |  | 24.19 |
Regional Office |  | 14 |  |  | 408 |  |  | 0.1 | % |  | 29.35 |
Q2 2019 |  | 341 |  |  | 11,348 |  |  | 2.3 | % |  | 33.28 |
Ft Meade/BW Corridor |  | 186 |  |  | 6,505 |  |  | 1.3 | % |  | 34.98 |
NoVA Defense/IT |  | 72 |  |  | 1,921 |  |  | 0.4 | % |  | 26.78 |
Navy Support |  | 77 |  |  | 1,408 |  |  | 0.3 | % |  | 18.22 |
Regional Office |  | 2 |  |  | 75 |  |  | — | % |  | 48.43 |
Q3 2019 |  | 337 |  |  | 9,909 |  |  | 2.0 | % |  | 29.45 |
Ft Meade/BW Corridor |  | 705 |  |  | 24,483 |  |  | 4.9 | % |  | 34.68
Navy Support |  | 51 |  |  | 1,757 |  |  | 0.4 | % |  | 34.71 |
Redstone Arsenal |  | 29 |  |  | 729 |  |  | 0.1 | % |  | 25.00 |
Data Center Shells-Consolidated Properties |  | 155 |  |  | 2,675 |  |  | 0.5 | % |  | 17.26 |
Regional Office |  | 51 |  |  | 1,667 |  |  | 0.3 | % |  | 32.74 |
Q4 2019 |  | 991 |  |  | 31,311 |  |  | 6.3 | % |  | 31.57 |
|  | 2,062 |  |  | $ | 63,370 |  |  | 12.8 | % |  | $ | 30.73 |

(1) | This expiration analysis reflects occupied space of our total portfolio (including consolidated and unconsolidated properties) 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 12/31/18.

(2) | A number of our leases are subject to certain early termination provisions. The period of lease expiration is based on the non-cancelable term of tenant leases determined in accordance with GAAP.

(3) | Total Annualized Rental Revenue is the monthly contractual base rent as of 12/31/18 (ignoring free rent then in effect) multiplied by 12 plus the estimated annualized expense reimbursements under existing leases.

(4) | Amounts reported represent the percentage of our Core Portfolio.

22

Corporate Office Properties Trust
Top 20 Tenants as of 12/31/18 (1)
(dollars and square feet in thousands)

Tenant |  | Total Annualized Rental Revenue (2) |  | Percentage of Total Annualized Rental Revenue (2) |  | Occupied Square Feet in Office and Data Center Shells (3) |  | Weighted Average Remaining Lease Term in Office and Data Center Shells (3)
United States Government | (4) | $ | 171,150 |  |  | 32.7 | % |  | 4,262 |  |  | 5.3 |
VADATA, Inc. |  | 46,282 |  |  | 8.9 | % |  | 2,798 |  |  | 8.1 |
General Dynamics Corporation |  | 24,459 |  |  | 4.7 | % |  | 666 |  |  | 3.9 |
The Boeing Company |  | 19,743 |  |  | 3.8 | % |  | 688 |  |  | 2.2 |
CACI International Inc |  | 12,522 |  |  | 2.4 | % |  | 319 |  |  | 3.4 |
Northrop Grumman Corporation |  | 12,111 |  |  | 2.3 | % |  | 450 |  |  | 1.7 |
CareFirst Inc. |  | 11,723 |  |  | 2.2 | % |  | 342 |  |  | 3.9 |
Booz Allen Hamilton, Inc. |  | 10,600 |  |  | 2.0 | % |  | 294 |  |  | 2.6 |
University of Maryland |  | 7,290 |  |  | 1.4 | % |  | 242 |  |  | 4.9 |
Wells Fargo & Company |  | 6,891 |  |  | 1.3 | % |  | 186 |  |  | 9.1 |
Science Applications International Corp. | (5) | 6,669 |  |  | 1.3 | % |  | 181 |  |  | 2.6 |
The Raytheon Company |  | 5,525 |  |  | 1.1 | % |  | 147 |  |  | 2.3 |
Miles and Stockbridge, PC |  | 5,504 |  |  | 1.1 | % |  | 160 |  |  | 8.7 |
KEYW Corporation |  | 5,284 |  |  | 1.0 | % |  | 177 |  |  | 6.0 |
Kratos Defense and Security Solutions |  | 5,063 |  |  | 1.0 | % |  | 131 |  |  | 1.3 |
Transamerica Life Insurance Company |  | 4,712 |  |  | 0.9 | % |  | 141 |  |  | 3.0 |
The MITRE Corporation |  | 4,170 |  |  | 0.8 | % |  | 118 |  |  | 5.6 |
Accenture Federal Services, LLC |  | 3,831 |  |  | 0.7 | % |  | 128 |  |  | 0.9 |
AT&T Corporation |  | 3,825 |  |  | 0.7 | % |  | 153 |  |  | 2.9 |
International Business Machines Corp. |  | 3,587 |  |  | 0.7 | % |  | 178 |  |  | 0.8 |
Subtotal Top 20 Tenants |  | 370,941 |  |  | 71.0 | % |  | 11,761 |  |  | 5.2 |
All remaining tenants |  | 151,957 |  |  | 29.0 | % |  | 5,060 |  |  | 4.1 |
Total/Weighted Average |  | $ | 522,898 |  |  | 100.0 | % |  | 16,821 |  |  | 4.9 |

(1) | Includes Annualized Rental Revenue (“ARR”) in our portfolio of operating office and data center shells and our wholesale data center. For six properties owned through an unconsolidated real estate joint venture, includes COPT’s share of those properties’ ARR of $5.5 million (see page 33 for additional information).

(2) | Total ARR is the monthly contractual base rent as of 12/31/18, multiplied by 12, plus the estimated annualized expense reimbursements under existing leases. With regard to properties owned through unconsolidated real estate joint ventures, the amounts reported above reflect 100% of the properties’ square footage but only reflect the portion of ARR that was allocable to COPT’s ownership interest.

(3) | Weighted average remaining lease term is based on the non-cancelable term of tenant leases determined in accordance with GAAP for our office and data center shell properties (i.e., excluding the effect of our wholesale data center leases). The weighting of the lease term was computed based on occupied square feet.

(4) | Substantially all of our government leases are subject to early termination provisions which are customary in government leases. As of 12/31/18, $2.0 million in ARR (or 1% of our ARR from the United States Government and 0.4% of our total ARR) was through the General Services Administration (GSA).

(5) | Includes Engility Corporation as a result of its merger with Science Applications International on 1/14/19.

23

Corporate Office Properties Trust
Summary of Construction Projects as of 12/31/18 (1)
(dollars and square feet in thousands)

|  |  | Total Rentable Square Feet | Percentage Leased as of 1/2/19 | as of 12/31/18 (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
| Fort Meade/BW Corridor: |  |  |  |  |  |  |  |
| 5801 University Research Court (4) College Park, Maryland |  | 71 |  | 100% | $ | 18,844 |  | $ | 16,070 |  | $ | 13,591 |  | 3Q 18 | 2Q 19
| Redstone Arsenal: |  |  |  |  |  |  |
| 4100 Market Street Huntsville, Alabama |  | 36 |  | 59% | 7,459 |  | 4,898 |  | — |  | 4Q 18 | 4Q 19
| 4000 Market Street (5) Huntsville, Alabama |  | 43 |  | 63% | 9,099 |  | 6,973 |  | 3,684 |  | 4Q 18 | 4Q 19
| 8800 Redstone Gateway Huntsville, Alabama |  | 76 |  | 0% | 17,325 |  | 992 |  | — |  | 3Q 19 | 3Q 20
| Subtotal / Average |  | 155 |  | 31% | 33,883 |  | 12,863 |  | 3,684 |  |  |
| Data Center Shells: |  |  |  |  |  |  |  |
| IN 1 Northern Virginia |  | 150 |  | 100% | 18,745 |  | 13,362 |  | — |  | 1Q 19 | 1Q 19
| DC 23 Northern Virginia |  | 149 |  | 100% | 21,347 |  | 4,902 |  | — |  | 2Q 19 | 2Q 19
| MP 1 Northern Virginia |  | 216 |  | 100% | 36,080 |  | 25,306 |  | — |  | 2Q 19 | 2Q 19
| IN 2 Northern Virginia |  | 216 |  | 100% | 29,600 |  | 7,298 |  | — |  | 2Q 19 | 2Q 19
| Subtotal / Average |  | 731 |  | 100% | 105,772 |  | 50,868 |  | — |  |  |
| Regional Office: |  |  |  |  |  |  |  |
| 2100 L Street Washington, DC |  | 190 |  | 43% | 174,000 |  | 82,619 |  | — |  | 1Q 20 | 1Q 21
| Total Under Construction |  | 1,147 |  | 81% | $ | 332,499 |  | $ | 162,420 |  | $ | 17,275 |  |  |

(1) | Includes properties under, or contractually committed for, construction as of 12/31/18.

(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 earlier of 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, 60,000 square feet were operational as of 12/31/18.

(5) | Although classified as under construction, 18,000 square feet were operational as of 12/31/18.

24

Corporate Office Properties Trust
Summary of Redevelopment Projects as of 12/31/18
(dollars and square feet in thousands)

|  | Property Segment | Total Rentable Square Feet | Percentage Leased as of 2/6/19 | as of 12/31/18 (1) | Actual or Anticipated 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 |
6950 Columbia Gateway Columbia, Maryland |  | Ft Meade/BW Corridor | 106 |  | 9% | $ | 10,172 |  | $ | 14,962 |  | $ | 25,134 |  | $ | 11,642 |  | $ | 11,019 |  | 2Q 19 | 2Q 20

(1) | Cost includes land, construction, leasing costs and allocated portion of shared infrastructure.

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

25

Corporate Office Properties Trust
Construction and Redevelopment Placed in Service as of 12/31/18
(square feet in thousands)

|  | Total Property |  | Square Feet Placed in Service in 2018 | Space Placed in Service % Leased as of 12/31/18
| Property Segment | % Leased as of 1/2/19 |  |
Property and Location | Rentable Square Feet | Prior Year | 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | Total 2018
540 National Business Parkway Annapolis Junction, Maryland | Ft Meade/BW Corridor | 49% | 145 |  | 71 |  | 74 |  | — |  | — |  | — |  | 74 |  | 49%
7142 Columbia Gateway Columbia, Maryland | Ft Meade/BW Corridor | 100% | 22 |  | — |  | 11 |  | 2 |  | 5 |  | 4 |  | 22 |  | 100%
BLC 1 Northern Virginia | Data Center Shells | 100% | 149 |  | — |  | — |  | 149 |  | — |  | — |  | 149 |  | 100%
BLC 2 Northern Virginia | Data Center Shells | 100% | 149 |  | — |  | — |  | — |  | 149 |  | — |  | 149 |  | 100%
5801 University Research Court College Park, Maryland | Ft Meade/BW Corridor | 100% | 71 |  | — |  | — |  | — |  | 60 |  | — |  | 60 |  | 100%
MP 2 Northern Virginia | Data Center Shells | 100% | 216 |  | — |  | — |  | — |  | — |  | 216 |  | 216 |  | 100%
4000 Market Street Huntsville, Alabama | Redstone Arsenal | 63% | 43 |  | — |  | — |  | — |  | — |  | 18 |  | 18 |  | 100%
Project EX (1) Confidential | Defense/IT Locations | 100% | N/A |  | — |  | — |  | — |  | — |  | N/A |  | N/A |  | 100%
Total Construction/Redevelopment Placed in Service (1) | 89% | 795 |  | 71 |  | 85 |  | 151 |  | 214 |  | 238 |  | 688 |  | 90%

(1) | Project EX is land under a long-term contract that was placed in service in the fourth quarter of 2018. This project is excluded from the total line since we do not report square footage for the land.

26

Corporate Office Properties Trust
Summary of Land Owned/Controlled as of 12/31/18 (1)

Location | Acres |  | Estimated Developable Square Feet (in thousands) |  | Carrying Amount
Land Owned/Controlled for Future Development |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |
Fort Meade/BW Corridor: |  |  |  |  |
National Business Park | 196 |  |  | 2,106 |  |  |
Howard County | 19 |  |  | 290 |  |  |
Other | 131 |  |  | 1,440 |  |  |
Total Fort Meade/BW Corridor | 346 |  |  | 3,836 |  |  |
NoVA Defense/IT | 59 |  |  | 1,965 |  |  |
Lackland AFB | 49 |  |  | 785 |  |  |
Navy Support | 44 |  |  | 109 |  |  |
Redstone Arsenal (2) | 414 |  |  | 3,928 |  |  |
Data Center Shells | 10 |  |  | 216 |  |  |
Total Defense/IT Locations | 922 |  |  | 10,839 |  |  |
Regional Office | 10 |  |  | 900 |  |  |
Total land owned/controlled for future development | 932 |  |  | 11,739 |  |  | $ | 259,528 |
Other land owned/controlled | 150 |  |  | 1,638 |  |  | 4,529 |
Land held, net | 1,082 |  |  | 13,377 |  |  | $ | 264,057 |

(1) | This land inventory schedule includes properties under ground lease to us and excludes all properties listed as construction or redevelopment as detailed on pages 24 and 25. The costs associated with the land included on this summary are reported on our consolidated balance sheet in the line entitled “land held.”

(2) | This land is controlled under a long-term master lease agreement to LW Redstone Company, LLC, 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.

27

Corporate Office Properties Trust
Capitalization Overview
(dollars, shares and units in thousands)

|  | Wtd. Avg. |  |  |  | Effective |  | Gross Debt
|  | Maturity |  | Stated |  | Rate |  | Balance at
|  | (Years) |  | Rate |  | (1)(2) |  | 12/31/18
Debt |  |  |  |  |  |
Secured debt |  | 5.1 |  |  | 4.22 | % |  | 4.10 | % |  | $ | 174,043 |
Unsecured debt |  | 4.4 |  |  | 4.10 | % |  | 4.11 | % |  | 1,664,461 |
Total Consolidated Debt | 4.5 |  |  | 4.11 | % |  | 4.11 | % |  | $ | 1,838,504 |
Fixed rate debt (2) |  | 4.7 |  |  | 4.30 | % |  | 4.15 | % |  | $ | 1,711,926 |
Variable rate debt |  | 4.0 |  |  | 3.60 | % |  | 3.65 | % |  | 126,578 |
Total Consolidated Debt |  |  |  |  |  |  |  | $ | 1,838,504 |
Preferred Equity |  |  | Redeemable |  |  |
7.5% Series I Convertible Preferred Units (3) |  | Sep-19 |  |  |  |  | $ | 8,800 |
Common Equity |  |  |  |  |  |  |  |
Common Shares |  |  |  |  |  |  |  | 110,242 |
Common Units |  |  |  |  |  |  |  | 1,333 |
Total Common Shares and Units |  |  |  |  |  | 111,575 |
Closing Common Share Price on 12/31/18 |  |  |  | $ | 21.03 |
Common Equity Market Capitalization |  |  |  | $ | 2,346,422 |
Total Equity Market Capitalization |  |  |  | $ | 2,355,222 |
Total Market Capitalization |  |  |  | $ | 4,193,726 |
Forward Equity Sale Agreements Capacity (4) |  |  |  | $ | 46,362 |
(1) Excludes the effect of deferred financing cost amortization.
(2) Includes the effect of interest rate swaps with notional amounts of $362.8 million that hedge the risk of changes in interest rates on variable rate debt.
(3) 352,000 units outstanding with a liquidation preference of $25 per unit, and convertible into 176,000 common units.
(4) Based on settlement value on remaining capacity as of 12/31/18.

| Investment Grade Ratings & Outlook: | Latest Affirmation
| Fitch |  | BBB- | Positive | 9/12/18
| Moody’s |  | Baa3 | Stable | 11/20/18
| Standard & Poor’s | BBB- | Stable | 5/1/18

28

Corporate Office Properties Trust
Summary of Outstanding Debt as of 12/31/18
(dollars in thousands)

|  |  |  |  |  |  |  |  |  |  | Balloon |  |
|  |  |  |  |  |  |  |  |  |  | Payment |  |
| Stated |  | Amount | Maturity |  |  |  | Stated |  | Amount | Due Upon | Maturity |
Unsecured Debt | Rate |  | Outstanding | Date |  |  | Secured Debt | Rate |  | Outstanding | Maturity | Date |
Revolving Credit Facility | L + 1.10% |  |  | $ | 213,000 |  | Mar-23 | (1)(2) |  | 7015 Albert Einstein Drive | 7.87 | % |  | $ | 411 |  | $ | — |  | Nov-19 |
Senior Unsecured Notes |  |  |  |  |  |  | 7200 & 7400 Redstone Gateway (3) | L + 1.85% |  |  | 12,834 |  | 12,132 |  | Oct-20 |
3.70% due 2021 | 3.70 | % |  | $ | 300,000 |  | Jun-21 |  |  | 7740 Milestone Parkway | 3.96 | % |  | 17,786 |  | 15,902 |  | Feb-23 |
3.60% due 2023 | 3.60 | % |  | 350,000 |  | May-23 |  |  | 100 & 30 Light Street | 4.32 | % |  | 52,551 |  | 47,676 |  | Jun-23 |
5.25% due 2024 | 5.25 | % |  | 250,000 |  | Feb-24 |  |  | 1000, 1200 and 1100 Redstone |  |  |  |  |  |
5.00% due 2025 | 5.00 | % |  | 300,000 |  | Jul-25 |  |  | Gateway (3) | 4.47 | % | (4) | 33,923 |  | 27,649 |  | Jun-24 |
Subtotal - Senior Unsecured Notes | 4.32 | % |  | $ | 1,200,000 |  |  |  |  | M Square (5825 & 5850 |  |  |  |  |  |
|  |  |  |  |  |  | University Research Court) (3) | 3.82 | % |  | 42,960 |  | 35,603 |  | Jun-26 |
Unsecured Bank Term Loans |  |  |  |  |  |  | 2100 L Street (2)(3) | L + 2.35% |  |  | 13,578 |  | 13,578 |  | Sep-22 | (5)
2022 Maturity | L + 1.25% |  |  | $ | 250,000 |  | Dec-22 | (2) |  | Total Secured Debt | 4.22 | % |  | $ | 174,043 |  |  |  |
Other Unsecured Debt | — | % |  | 1,461 |  | May-26 |  |  |  |  |  |  |  |  |
Total Unsecured Debt | 4.10 | % |  | $ | 1,664,461 |  |  |  |  |  |  |  |  |  |  |
Debt Summary |  |  |  |  |  |  |  |  |  |  |  |  |
Total Unsecured Debt | 4.10 | % |  | $ | 1,664,461 |  |  |  |  |  |  |  |  |  |  |
Total Secured Debt | 4.22 | % |  | 174,043 |  |  |  |  |  |  |  |  |  |  |
Consolidated Debt | 4.11 | % |  | $ | 1,838,504 |  |  |  |  |  |  |  |  |  |  |
Net discounts and deferred |  |  |  |  |  |  |  |  |  |  |  |  |
financing costs |  |  | (14,595 | ) |  |  |  |  |  |  |  |  |  |
Debt, per balance sheet |  |  | $ | 1,823,909 |  |  |  |  |  |  |  |  |  |  |
Consolidated Debt |  |  | $ | 1,838,504 |  |  |  |  |  |  |  |  |  |  |
COPT’s share of unconsolid. JV gross debt (6) |  | 30,000 |  |  |  |  |  |  |  |  |  |  |
Gross debt |  |  | $ | 1,868,504 |  |  |  |  |  |  |  |  |  |  |

(1) | The Company's $800 million Revolving Credit Facility matures in March 2023 and may be extended for two six-month periods, at our option.

(2) | Pre-payable anytime without penalty.

(3) | These properties are owned through consolidated joint ventures.

(4) | Represents the weighted average rate of three loans on the properties.

(5) | The loan maturity may be extended by one year, provided certain conditions are met.

(6) | See page 33 for additional disclosure regarding an unconsolidated real estate joint venture.

29

Corporate Office Properties Trust
Summary of Outstanding Debt as of 12/31/18 (continued)
(1) Revolving Credit Facility maturity of $213.0 million scheduled for 2023 is presented assuming our exercise of two six-month extension options.
(2) Includes the effect of interest rate swaps in effect that hedge the risk of changes in interest rates on variable rate debt.
30

Corporate Office Properties Trust
Debt Analysis
(dollars and square feet in thousands)

|  |  |  |  | As of and for Three |  |  |  |  |  | As of and for Three
|  |  |  |  | Months Ended |  | Line of Credit & |  | Months Ended
Senior Note Covenants (1) |  | Required |  | 12/31/18 |  | Term Loan Covenants (1) | Required |  | 12/31/18
Total Debt / Total Assets |  | < 60% |  | 39.4% |  | Total Debt / Total Assets | < 60% |  | 34.5%
Secured Debt / Total Assets |  | < 40% |  | 3.7% |  | Secured Debt / Total Assets | < 40% |  | 3.4%
Debt Service Coverage |  | > 1.5x |  | 4.0x |  | Adjusted EBITDA / Fixed Charges | > 1.5x |  | 3.5x
Unencumbered Assets / Unsecured Debt |  | > 150% |  | 252.0% |  | Unsecured Debt / Unencumbered Assets | < 60% |  | 34.6%
|  |  |  |  |  |  | Unencumbered Adjusted NOI / Unsecured Interest Expense | > 1.75x |  | 4.1x
Debt Ratios |  | Source |  |  |  | Unencumbered Portfolio Analysis |  |  |
Gross debt |  |  | p. 29 |  | $ | 1,868,504 |  |  | # of unencumbered properties | 147 |
Adjusted book |  | p. 36 |  | $ | 4,785,794 |  |  | % of total portfolio | 90 | %
Net debt / adjusted book ratio |  |  |  | 38.9 | % |  | Unencumbered square feet in-service |  | 15,630 |
Net debt plus pref. equity / adj. book ratio |  |  |  | 39.1 | % |  | % of total portfolio |  | 86 | %
Net debt |  |  | p. 36 |  | $ | 1,860,145 |  |  | NOI from unencumbered real estate operations |  | $ | 73,923 |
Net debt plus preferred equity |  |  | p. 36 |  | $ | 1,868,945 |  |  | % of total NOI from real estate operations |  | 92 | %
In-place adjusted EBITDA |  | p. 10 |  | $ | 77,252 |  |  | Adjusted EBITDA from unencumbered real estate operations |  | $ | 68,562 |
Net debt / in-place adjusted EBITDA ratio | 6.0 | x |  | % of total adjusted EBITDA from real estate operations |  | 91 | %
Net debt plus pref. equity / in-place adj. EBITDA ratio | 6.0 | x |  | Unencumbered adjusted book |  | $ | 4,287,840 |
Denominator for debt service coverage |  | p. 35 |  | $ | 18,865 |  |  | % of total adjusted book |  | 90 | %
Denominator for fixed charge coverage |  | p. 35 |  | $ | 20,778 |  |  |  |  |  |
Adjusted EBITDA |  | p. 10 |  | $ | 75,200 |  |  |  |  |
Adjusted EBITDA debt service coverage ratio |  |  | 4.0 | x |  |  |  |
Adjusted EBITDA fixed charge coverage ratio |  |  | 3.6 | x |  |  |  |  |  |

(1) The covenants are calculated as defined in the applicable agreements, and the calculations differ between those agreements.
31

Corporate Office Properties Trust
Consolidated Real Estate Joint Ventures as of 12/31/18
(dollars and square feet in thousands)

Operating Properties | Operational Square Feet | Occupancy % | Leased % | NOI for the Three Months Ended 12/31/18 (1) | NOI for the Year Ended 12/31/18 (1) | Total Assets (2) | Venture Level Debt | % COPT Owned
Suburban Maryland: |  |  |  |  |  |  |  |  |  |  |
M Square Associates, LLC (3 properties) | 302 |  | 98.2% | 98.2% | $ | 1,832 |  | $ | 6,266 |  | $ | 66,337 |  | $ | 42,960 |  | 50%
Huntsville, Alabama: |  |  |  |  |  |  |  |
LW Redstone Company, LLC (7 properties) | 532 |  | 98.7% | 99.1% | 1,847 |  | 7,406 |  | 84,510 |  | 46,757 |  | 85%
Total/Average | 834 |  | 98.6% | 98.6% | $ | 3,679 |  | $ | 13,672 |  | $ | 150,847 |  | $ | 89,717 |  |

Non-operating Properties | Estimated Developable Square Feet |  |  | Total Assets (1) | Venture Level Debt | % COPT Owned
Suburban Maryland: |  |  |  |  |  |  |  |  |
M Square Research Park | 461 |  |  |  | $ | 9,002 |  | $ | — |  | 50%
Huntsville, Alabama: |  |  |  |  |  |  |  |  |
Redstone Gateway (3) | 4,065 |  |  |  | 85,023 |  | — |  | 85%
Washington, DC: |  |  |  |  |  |
Stevens Place | 190 |  |  |  | 83,118 |  | 13,578 |  | 95%
Total | 4,716 |  |  |  | $ | 177,143 |  | $ | 13,578 |  |

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

(2) Total assets includes the assets of the consolidated joint venture plus any outside investment basis.

(3) | Total assets include $57.0 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
Unconsolidated Real Estate Joint Venture as of 12/31/18
(dollars and square feet in thousands)

Joint venture information |  |  |  |  |  |  |
COPT ownership % | 50 | % |  |  |  |  |  |
Investment in unconsolidated real estate joint venture | $ | 39,845 |  |  |  |  |  |  |
Number of properties | 6 |  |  |  |  |  |  |
Square feet | 962 |  |  |  |  |  |  |
Percentage occupied | 100 | % |  |  |  |  |  |
Balance sheet information | Venture |  | COPT’s Share (1) |  |  |  |
Operating properties, net | $ | 123,704 |  |  | $ | 61,852 |  |  |  |  |
Total Assets | $ | 139,524 |  |  | $ | 69,762 |  |  |  |  |
Debt | $ | 59,646 |  |  | $ | 29,823 |  |  |  |  |
| Three Months Ended 12/31/18 |  | Year Ended 12/31/18
Operating information | Venture |  | COPT’s Share (1) |  | Venture |  | COPT’s Share (1)
Revenue | $ | 2,929 |  |  | $ | 1,464 |  |  | $ | 11,634 |  |  | $ | 5,817 |
Operating expenses | (507 | ) |  | (253 | ) |  | (1,998 | ) |  | (999 | )
NOI and EBITDA | 2,422 |  |  | 1,211 |  |  | 9,636 |  |  | 4,818 |
Interest expense | (533 | ) |  | (267 | ) |  | (2,115 | ) |  | (1,058 | )
Depreciation and amortization | (1,130 | ) |  | (565 | ) |  | (4,513 | ) |  | (2,256 | )
Net income | $ | 759 |  |  | $ | 379 |  |  | $ | 3,008 |  |  | $ | 1,504 |
NOI (per above) | $ | 2,422 |  |  | $ | 1,211 |  |  | $ | 9,636 |  |  | $ | 4,818 |
Tenant funded landlord assets | (149 | ) |  | (75 | ) |  | (548 | ) |  | (274 | )
Straight line rent adjustments | 35 |  |  | 18 |  |  | 40 |  |  | 20 |
Cash NOI | $ | 2,308 |  |  | $ | 1,154 |  |  | $ | 9,128 |  |  | $ | 4,564 |

(1) COPT’s share represents the portion allocable to our ownership interest.
33

Corporate Office Properties Trust Supplementary Reconciliations of Non-GAAP Measures (dollars in thousands)
| Three Months Ended |  | Year Ended
| 12/31/18 |  | 9/30/18 |  | 6/30/18 |  | 3/31/18 |  | 12/31/17 |  | 12/31/18 |  | 12/31/17
Gain on sales of real estate, net, per statements of operations | $ | 2,367 |  |  | $ | — |  |  | $ | (23 | ) |  | $ | (4 | ) |  | $ | 4,452 |  |  | $ | 2,340 |  |  | $ | 9,890 |
Gain on sales of non-operating properties | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (5,399 | )
Gain on sales of previously depreciated operating properties | $ | 2,367 |  |  | $ | — |  |  | $ | (23 | ) |  | $ | (4 | ) |  | $ | 4,452 |  |  | $ | 2,340 |  |  | $ | 4,491 |
Impairment losses, per statements of operations | $ | 2,367 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 13,659 |  |  | $ | 2,367 |  |  | $ | 15,123 |
Impairment losses on previously depreciated operating properties | (6 | ) |  | — |  |  | — |  |  | — |  |  | (9,004 | ) |  | (6 | ) |  | (10,455 | )
Impairment losses on non-operating properties | $ | 2,361 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 4,655 |  |  | $ | 2,361 |  |  | $ | 4,668 |
NOI from real estate operations (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate revenues | $ | 130,825 |  |  | $ | 128,988 |  |  | $ | 129,162 |  |  | $ | 128,278 |  |  | $ | 127,685 |  |  | $ | 517,253 |  |  | $ | 509,980 |
Real estate property operating expenses | (51,298 | ) |  | (49,340 | ) |  | (49,446 | ) |  | (50,951 | ) |  | (47,449 | ) |  | (201,035 | ) |  | (190,964 | )
COPT’s share of NOI in unconsolidated real estate JV (2) | 1,211 |  |  | 1,206 |  |  | 1,202 |  |  | 1,199 |  |  | 1,203 |  |  | 4,818 |  |  | 4,805 |
NOI from real estate operations | 80,738 |  |  | 80,854 |  |  | 80,918 |  |  | 78,526 |  |  | 81,439 |  |  | 321,036 |  |  | 323,821 |
General and administrative expenses | (5,105 | ) |  | (5,796 | ) |  | (6,067 | ) |  | (5,861 | ) |  | (5,552 | ) |  | (22,829 | ) |  | (24,008 | )
Leasing expenses | (1,976 | ) |  | (1,103 | ) |  | (1,561 | ) |  | (1,431 | ) |  | (1,447 | ) |  | (6,071 | ) |  | (6,829 | )
Business development expenses and land carry costs | (1,425 | ) |  | (1,567 | ) |  | (1,234 | ) |  | (1,614 | ) |  | (1,646 | ) |  | (5,840 | ) |  | (6,213 | )
NOI from construction contracts and other service operations | 546 |  |  | 365 |  |  | 640 |  |  | 982 |  |  | 853 |  |  | 2,533 |  |  | 3,222 |
Impairment losses on non-operating properties | (2,361 | ) |  | — |  |  | — |  |  | — |  |  | (4,655 | ) |  | (2,361 | ) |  | (4,668 | )
Equity in income (loss) of unconsolidated non-real estate entities | 1,198 |  |  | (2 | ) |  | (1 | ) |  | (2 | ) |  | (2 | ) |  | 1,193 |  |  | (5 | )
Interest and other income | 74 |  |  | 1,486 |  |  | 1,439 |  |  | 1,359 |  |  | 1,501 |  |  | 4,358 |  |  | 6,318 |
Loss on early extinguishment of debt | (258 | ) |  | — |  |  | — |  |  | — |  |  | — |  |  | (258 | ) |  | (513 | )
Gain on sales of non-operating properties | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 5,399 |
Interest expense | (18,475 | ) |  | (19,181 | ) |  | (18,945 | ) |  | (18,784 | ) |  | (19,211 | ) |  | (75,385 | ) |  | (76,983 | )
COPT’s share of interest expense of unconsolidated real estate JV (2) | (267 | ) |  | (266 | ) |  | (264 | ) |  | (261 | ) |  | (266 | ) |  | (1,058 | ) |  | (1,058 | )
Income tax benefit (expense) | 190 |  |  | 291 |  |  | (63 | ) |  | (55 | ) |  | (953 | ) |  | 363 |  |  | (1,098 | )
FFO - per NAREIT (1) | $ | 52,879 |  |  | $ | 55,081 |  |  | $ | 54,862 |  |  | $ | 52,859 |  |  | $ | 50,061 |  |  | $ | 215,681 |  |  | $ | 217,385 |
(1) Refer to the section entitled “Definitions” for a definition of this measure. |  |  |  |
(2) See page 33 for a schedule of the related components. |  |  |  |

34

Corporate Office Properties Trust Supplementary Reconciliations of Non-GAAP Measures (continued) (dollars in thousands)
| Three Months Ended |  | Year Ended
| 12/31/18 |  | 9/30/18 |  | 6/30/18 |  | 3/31/18 |  | 12/31/17 |  | 12/31/18 |  | 12/31/17
Total interest expense | $ | 18,475 |  |  | $ | 19,181 |  |  | $ | 18,945 |  |  | $ | 18,784 |  |  | $ | 19,211 |  |  | $ | 75,385 |  |  | $ | 76,983 |
Less: Amortization of deferred financing costs | (550 | ) |  | (468 | ) |  | (468 | ) |  | (468 | ) |  | (443 | ) |  | (1,954 | ) |  | (2,928 | )
Less: Amortization of net debt discounts, net of amounts capitalized | (365 | ) |  | (362 | ) |  | (358 | ) |  | (354 | ) |  | (350 | ) |  | (1,439 | ) |  | (1,379 | )
Less: Accum. other comprehensive loss on derivatives amortized to expense | (34 | ) |  | (33 | ) |  | (34 | ) |  | (34 | ) |  | (54 | ) |  | (135 | ) |  | (143 | )
Gain on interest rate derivatives | — |  |  | — |  |  | — |  |  | — |  |  | 191 |  |  | — |  |  | 234 |
COPT’s share of interest expense of unconsolidated real estate JV, excluding deferred financing costs | 260 |  |  | 261 |  |  | 258 |  |  | 255 |  |  | 260 |  |  | 1,034 |  |  | 1,034 |
Denominator for interest coverage | 17,786 |  |  | 18,579 |  |  | 18,343 |  |  | 18,183 |  |  | 18,815 |  |  | 72,891 |  |  | 73,801 |
Scheduled principal amortization | 1,079 |  |  | 1,060 |  |  | 1,049 |  |  | 1,052 |  |  | 1,034 |  |  | 4,240 |  |  | 4,062 |
Denominator for debt service coverage | 18,865 |  |  | 19,639 |  |  | 19,392 |  |  | 19,235 |  |  | 19,849 |  |  | 77,131 |  |  | 77,863 |
Capitalized interest | 1,748 |  |  | 1,410 |  |  | 1,397 |  |  | 1,374 |  |  | 1,032 |  |  | 5,929 |  |  | 5,229 |
Preferred share dividends | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 6,219 |
Preferred unit distributions | 165 |  |  | 165 |  |  | 165 |  |  | 165 |  |  | 165 |  |  | 660 |  |  | 660 |
Denominator for fixed charge coverage | $ | 20,778 |  |  | $ | 21,214 |  |  | $ | 20,954 |  |  | $ | 20,774 |  |  | $ | 21,046 |  |  | $ | 83,720 |  |  | $ | 89,971 |
Preferred share dividends | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 6,219 |
Preferred unit distributions | 165 |  |  | 165 |  |  | 165 |  |  | 165 |  |  | 165 |  |  | 660 |  |  | 660 |
Common share dividends - unrestricted shares | 30,206 |  |  | 29,821 |  |  | 28,284 |  |  | 27,974 |  |  | 27,747 |  |  | 116,285 |  |  | 109,489 |
Common share dividends - restricted shares | 114 |  |  | 114 |  |  | 117 |  |  | 117 |  |  | 112 |  |  | 462 |  |  | 449 |
Common unit distributions | 367 |  |  | 373 |  |  | 879 |  |  | 879 |  |  | 894 |  |  | 2,498 |  |  | 3,661 |
Total dividends/distributions | $ | 30,852 |  |  | $ | 30,473 |  |  | $ | 29,445 |  |  | $ | 29,135 |  |  | $ | 28,918 |  |  | $ | 119,905 |  |  | $ | 120,478 |
Common share dividends - unrestricted shares | $ | 30,206 |  |  | $ | 29,821 |  |  | $ | 28,284 |  |  | $ | 27,974 |  |  | $ | 27,747 |  |  | $ | 116,285 |  |  | $ | 109,489 |
Common unit distributions | 367 |  |  | 373 |  |  | 879 |  |  | 879 |  |  | 894 |  |  | 2,498 |  |  | 3,661 |
Dividends and distributions for payout ratios | $ | 30,573 |  |  | $ | 30,194 |  |  | $ | 29,163 |  |  | $ | 28,853 |  |  | $ | 28,641 |  |  | $ | 118,783 |  |  | $ | 113,150 |

35

Corporate Office Properties Trust Supplementary Reconciliations of Non-GAAP Measures (continued) (dollars in thousands)
| Three Months Ended |  |  |  |
| 12/31/18 |  | 9/30/18 |  | 6/30/18 |  | 3/31/18 |  | 12/31/17 |  |  |  |
Total Assets | $ | 3,656,005 |  |  | $ | 3,650,366 |  |  | $ | 3,612,362 |  |  | $ | 3,596,238 |  |  | $ | 3,595,205 |  |  |  |  |
Accumulated depreciation | 897,903 |  |  | 867,659 |  |  | 839,478 |  |  | 813,457 |  |  | 786,193 |  |  |  |  |
Accumulated amort. of real estate intangibles and deferred leasing costs | 204,882 |  |  | 200,229 |  |  | 201,645 |  |  | 197,520 |  |  | 193,151 |  |  |  |  |
COPT’s share of liabilities of unconsolidated real estate JV | 29,917 |  |  | 30,103 |  |  | 30,015 |  |  | 30,100 |  |  | 29,908 |  |  |  |  |
COPT’s share of accumulated depreciation and amortization of unconsolidated real estate JV | 5,446 |  |  | 4,881 |  |  | 4,317 |  |  | 3,752 |  |  | 3,189 |  |  |  |  |
Less: Disposed property included in assets held for sale (1) | — |  |  | (42,226 | ) |  | (42,226 | ) |  | (42,226 | ) |  | (42,226 | ) |  |  |  |
Less: Cash and cash equivalents | (8,066 | ) |  | (9,492 | ) |  | (8,472 | ) |  | (8,888 | ) |  | (12,261 | ) |  |  |  |
Less: COPT’s share of cash of unconsolidated real estate JV | (293 | ) |  | (444 | ) |  | (410 | ) |  | (295 | ) |  | (371 | ) |  |  |  |
Adjusted book | $ | 4,785,794 |  |  | $ | 4,701,076 |  |  | $ | 4,636,709 |  |  | $ | 4,589,658 |  |  | $ | 4,552,788 |  |  |  |  |
Gross debt (page 29) | $ | 1,868,504 |  |  | $ | 1,853,312 |  |  | $ | 1,914,066 |  |  | $ | 1,898,115 |  |  | $ | 1,872,167 |  |  |  |  |  |  |
Less: Cash and cash equivalents | (8,066 | ) |  | (9,492 | ) |  | (8,472 | ) |  | (8,888 | ) |  | (12,261 | ) |  |  |  |  |  |
Less: COPT’s share of cash of unconsolidated real estate JV | (293 | ) |  | (444 | ) |  | (410 | ) |  | (295 | ) |  | (371 | ) |  |  |  |
Net debt | $ | 1,860,145 |  |  | $ | 1,843,376 |  |  | $ | 1,905,184 |  |  | $ | 1,888,932 |  |  | $ | 1,859,535 |  |  |  |  |  |  |
Preferred equity | 8,800 |  |  | 8,800 |  |  | 8,800 |  |  | 8,800 |  |  | 8,800 |  |  |  |  |
Net debt plus preferred equity | $ | 1,868,945 |  |  | $ | 1,852,176 |  |  | $ | 1,913,984 |  |  | $ | 1,897,732 |  |  | $ | 1,868,335 |  |  |  |  |

(1) | We provided a financial guaranty to the buyer of this property under which we provided a limited indemnification for losses it could incur related to a potential defined capital event occurring on the property. Accordingly, we did not recognize the sale of the property for accounting purposes until the expiration of the guaranty on 10/1/18, and we reported the sale price of the property, less sale costs, as a liability on our consolidated balance sheet as of 12/31/17 and each subsequent reporting date through 9/30/18. Our financial guaranty to the buyer expired on 10/1/18, resulting in no loss to us.

36

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 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 cash and cash equivalents, accumulated depreciation on real estate properties, accumulated amortization of intangible assets on real estate acquisitions, accumulated amortization of deferred leasing costs, disposed properties included in assets held for sale, unconsolidated real estate joint venture (“JV”) cash and cash equivalents, liabilities and accumulated depreciation and amortization (of real estate intangibles and deferred leasing costs) allocable to our ownership interest in the JV and the effect of properties serving as collateral for debt in default that we extinguished (or intend to extinguish) via conveyance of such properties.
Adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”)
Adjusted EBITDA is net income 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 or loss on other investments, operating property acquisition costs, income taxes, business development expenses, demolition costs on redevelopment and nonrecurring improvements and executive transition costs. Adjusted EBITDA also includes adjustments to net income for the effects of the items noted above pertaining to an unconsolidated real estate JV that was allocable to our ownership interest in the JV. While EBITDA (earnings before interest, taxes, depreciation and amortization) is a universally-defined supplemental measure, Adjusted EBITDA incorporates additional adjustments for gains and losses from investing and financing activities and certain other items that we believe are not closely correlated to (or associated with) our operating performance. We believe that adjusted EBITDA is a useful supplemental measure 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.
37

Corporate Office Properties Trust
Definitions
Cash net operating income (“Cash NOI”)
Defined as NOI from real estate operations adjusted to eliminate the effects of: straight-line rental adjustments, amortization of tenant incentives, amortization of acquisition intangibles included in FFO and NOI (including above- and below-market leases and above- or below-market cost arrangements), lease termination fees from tenants to terminate their lease obligations prior to the end of the agreed upon lease terms and rental revenue recognized under GAAP resulting from landlord assets and lease incentives funded by tenants. Cash NOI also includes adjustments to NOI from real estate operations for the effects of the items noted above pertaining to an unconsolidated real estate JV that were allocable to our ownership interest in the JV. Under GAAP, rental revenue is recognized evenly over the term of tenant leases (through straight-line rental adjustments and amortization of tenant incentives), which, given the long term nature of our leases, does not align with the economics of when tenant payments are due to us under the arrangements. Also under GAAP, when a property is acquired, we allocate the acquisition to certain intangible components, which are then amortized into NOI over their estimated lives, even though the resulting revenue adjustments are not reflective of our lease economics. In addition, revenue from lease termination fees and tenant-funded landlord improvements, absent an adjustment from us, would result in large one-time lump sum amounts in Cash NOI that we do not believe are reflective of a property’s long-term value. We believe that Cash NOI is a useful supplemental measure of operating performance for a REIT’s operating real estate because it makes adjustments to NOI for the above stated items to be more reflective of the economics of when tenant payments are due to us under our leases and the value of our properties. As is the case with NOI, the measure is useful in our opinion in evaluating and comparing the performance of geographic segments, Same Properties groupings and individual properties. We believe that operating income, as reported on our consolidated statements of operations, is the most directly comparable GAAP measure to Cash NOI.
COPT’s share of NOI from unconsolidated real estate JV
Represents the net of revenues and property operating expenses of real estate operations owned through an unconsolidated JV that is allocable to COPT’s ownership interest. This measure is included in the computation of NOI, our segment performance measure, as discussed below.
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” above), (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) replacement capital expenditures (defined below). Diluted AFFO also includes adjustments to Diluted FFO, as adjusted for comparability for the effects of the items noted above pertaining to an unconsolidated real estate JV that were allocable to our ownership interest in the JV. We believe that Diluted AFFO is a useful supplemental measure of operating performance for a REIT because it incorporates adjustments for: certain revenue and expenses that are not associated with cash to or from us during the period; and certain capital expenditures for operating properties incurred during the period that do require cash outlays. We believe that net income 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 net income is the most directly comparable GAAP measure to Diluted FFO.
38

Corporate Office Properties Trust
Definitions
Diluted FFO available to common share and common unit holders, as adjusted for comparability (“Diluted 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; 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 and nonrecurring improvements; executive transition costs; and accounting charges for original issuance costs associated with redeemed preferred shares. Diluted FFO, as adjusted for comparability also includes adjustments to Diluted FFO for the effects of the items noted above pertaining to an unconsolidated real estate JV that were allocable to our ownership interest in the JV. We believe this to be a useful supplemental measure alongside Diluted FFO as it excludes gains and losses from certain investing and financing activities and certain other items that we believe are not closely correlated to (or associated with) our 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 net income 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. We believe this to be a useful supplemental measure alongside Diluted FFO per share as it excludes gains and losses from investing and financing activities and certain other items that we believe are not closely correlated to (or associated with) our operating performance. We believe that diluted EPS is the most directly comparable GAAP measure.
Earnings before interest, income taxes, depreciation and amortization for real estate (“EBITDAre”)
Defined as net income adjusted for the effects of interest expense, depreciation and amortization, impairment losses on operating properties, gain on sales of operating properties and income taxes. EBITDAre also includes adjustments to net income for the effects of the items noted above pertaining to an unconsolidated real estate JV that was allocable to our ownership interest in the JV. While EBITDA (earnings before interest, taxes, depreciation and amortization) is a universally-defined supplemental measure, EBITDAre incorporates additional adjustments for gains and losses from investing activities related to our investments in operating properties. We believe that EBITDAre is a useful supplemental measure for assessing our un-levered performance. We believe that net income is the most directly comparable GAAP measure to EBITDAre.
39

Corporate Office Properties Trust
Definitions
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. FFO also includes adjustments to net income for the effects of the items noted above pertaining to an unconsolidated real estate JV that were allocable to our ownership interest in the JV. 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.
Gross debt
Defined as total consolidated outstanding debt, which is debt reported per our balance sheet adjusted to exclude net discounts and premiums and deferred financing costs, as further adjusted to include outstanding debt of an unconsolidated real estate JV that were allocable to our ownership interest in the JV.
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 (a) properties acquired or placed in service subsequent to the commencement of a quarter made in order to reflect a full quarter of ownership/operations and (b) significant mid-quarter occupancy changes associated with properties recently placed in service with no occupancy. The measure also includes adjustments to Adjusted EBITDA for the effects of the items noted above pertaining to an unconsolidated real estate JV that were allocable to our ownership interest in the JV. 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 debt
Defined as Gross debt (total outstanding debt reported per our balance sheet as adjusted to exclude net discounts and premiums and deferred financing costs), 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. The measure also includes adjustments to Gross debt for the effects of the items noted above pertaining to an unconsolidated real estate JV that were allocable to our ownership interest in the JV.
Net debt plus preferred equity
Defined as Net debt plus the total liquidation preference of our outstanding preferred equity.
Net debt to Adjusted book and Net debt plus preferred equity to Adjusted book
These measures divide either Net debt or Net debt plus preferred equity (defined above) by Adjusted book (defined above).
Net debt to in-place adjusted EBITDA ratio and Net debt plus preferred equity to in-place adjusted EBITDA ratio
Defined as Net debt or Net debt plus preferred equity (as defined above) divided by in-place adjusted EBITDA (defined above) for the three month period that is annualized by multiplying by four.
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Corporate Office Properties Trust
Definitions
Net operating income from real estate operations (“NOI”)
NOI, which is our segment performance measure, includes: consolidated real estate revenues; consolidated property operating expenses; and the net of revenues and property operating expenses of real estate operations owned through an unconsolidated real estate JV that is allocable to COPT’s ownership interest in the JV. 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 Properties groupings and individual properties. We believe that operating income, as reported on our consolidated statements of operations, 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 (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.
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 (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, (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 (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 unrestricted 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.
Replacement capital expenditures
Replacement capital expenditures are defined as tenant improvements and incentives, building improvements and leasing costs incurred during the period 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), (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) or (5) replacements of significant components of a building after the building has reached the end of its original useful life. Replacement capital expenditures excludes expenditures of operating properties included in disposition plans during the period that were already sold or are held for future disposition. For cash tenant incentives not due to the tenant for a period exceeding three months past the date on which such incentives were incurred, we recognize such incentives as replacement capital expenditures in the periods such incentives are due to the tenant. Replacement capital expenditures, which is included in the computation of Diluted AFFO, is intended to represent non-transformative capital expenditures of existing properties held for long-term investment. We believe that the excluded expenditures are more closely associated with our investing activities than the performance of our operating portfolio.
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Corporate Office Properties Trust
Definitions
Same Properties NOI and Same Properties Cash NOI
Defined as NOI, or Cash NOI, from real estate operations of Same Properties. We believe that these are important supplemental measures of operating performance of Same Properties for the same reasons discussed above for NOI from real estate operations and Cash NOI.
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. With regard to properties owned through an unconsolidated real estate JV, we include the portion of Annualized Rental Revenue allocable to COPT’s ownership interest.
Average escalations — Leasing statistic used to report average increase in rental rates over lease terms for leases with a term of greater than one-year.
Construction Properties — Properties under, or contractually committed for, construction.
Core Portfolio — Represents Defense/IT Locations and Regional Office properties.
Defense/IT Locations — Represents properties in locations that support the United States Government and its 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).
Redevelopment Properties — Properties previously in operations on which activities to substantially renovate such properties were underway or approved.
Regional Office Properties — Includes office properties located in select urban/urban-like submarkets in the Greater Washington, DC/Baltimore region with durable Class-A office fundamentals and characteristics. In prior years, this segment also included suburban properties that did not meet these characteristics (that were since disposed).
Same Properties — Operating office and data center shell properties continually owned and 100% operational since at least 1/1/17, excluding properties held for sale.
Second Generation Space — Space leased that has been previously occupied.
Total Portfolio — Operating properties, including ones owned through an unconsolidated real estate JV.
42

| 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
| 443-285-5453 | 443-285-5452
| stephanie.kelly@copt.com | michelle.layne@copt.com

COPT Reports 4Q and Full Year 2018 Results
COLUMBIA, MD February 7, 2019-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, 2018.
Management Comments
“Our fourth quarter represented a strong finish to a solid year,” stated Stephen E. Budorick, COPT’s President & Chief Executive Officer. “Leasing further accelerated during the fourth quarter, resulting in nearly 250,000 square feet of vacancy leasing, 377,000 square feet of development leasing, and 700,000 square feet of renewals, resulting in a robust 82% retention rate. For the year, we leased over 4.2 million square feet, including nearly 600,000 square feet of vacancy leasing, and 1.1 million square feet of development leasing-the second highest level in our 20 year history as a public company.” He continued, “Thus far in 2019, we have completed the lease for the second floor at 310 NBP with the U.S. Government, are in advanced negotiations on a significant level of development leasing, and are on track to register another strong year of leasing in the operating portfolio.”
Financial Highlights
4 th Quarter Financial Results:

• | Diluted earnings per share (“EPS”) was $0.16 for the quarter ended December 31, 2018 as compared to $0.10 for the fourth quarter of 2017.

• | Diluted funds from operations per share (“FFOPS”), as calculated in accordance with NAREIT’s definition, was $0.47 for the fourth quarter of 2018, equal to fourth quarter 2017 results.

• | FFOPS, as adjusted for comparability, was $0.50 for the quarter ended December 31, 2018 as compared to $0.53 for the fourth quarter of 2017.

Full Year 2018 Financial Results:

• | EPS for the year ended December 31, 2018 was $0.69 as compared to $0.56 for 2017.

• | Per NAREIT’s definition, FFOPS for 2018 was $1.97 as compared to $1.94 for 2017.

• | FFOPS, as adjusted for comparability, for 2018 was $2.01 as compared to $2.02 for 2017.

Adjustments for comparability encompass items such as gains and impairment losses on non-operating properties, losses on early extinguishment of debt, derivative gains (losses), issuance costs associated with
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redeemed preferred shares, demolition costs of redevelopment and nonrecurring improvements, and executive transition costs.
Operating Performance Highlights
Operating Portfolio Summary:

• | At December 31, 2018, the Company’s core portfolio of 161 operating office properties was 93.1% occupied and 94.0% leased.

During the quarter, the Company placed two developments aggregating 238,000 square feet plus our build-to-suit for a defense contractor into service; all three developments were 100% leased. During the year, the Company placed seven developments totaling 688,000 square feet that were 90% leased and the build-to-suit for a defense contractor that was 100% leased into service.
Same-Property Performance:

• | At December 31, 2018, COPT’s same-property portfolio of 147 buildings was 93.0% occupied and 93.8% leased.

• | For the quarter and year ended December 31, 2018, the Company’s same-property cash NOI from Defense/IT locations increased 1.0% and 2.1%, respectively, over the prior year’s comparable periods. For the same time periods, the Company’s total same-property cash NOI decreased 1.1% and 0.4%, respectively, over the prior year’s comparable periods.

Leasing:

• | Square Feet Leased–For the quarter ended December 31, 2018, the Company leased 1.3 million total square feet, including 704,000 square feet of renewing leases, 248,000 square feet of new leases on vacant space, and 377,000 square feet in development projects.

For the year ended December 31, 2018, the Company leased 4.2 million total square feet, including 2.5 million square feet of renewing leases, 596,000 square feet of new leases on vacant space, and 1.1 million square feet in development projects.

• | Renewal Rates–During the fourth quarter and year ended December 31, 2018, the Company renewed 82.2% and 78.4%, respectively, of total expiring leases.

• | Rent Spreads & Average Escalations on Renewing Leases–For the quarter ended December 31, 2018, rents on renewed space increased 3.0% on a GAAP basis and decreased 6.9% on a cash basis; average annual escalations on renewing leases in the fourth quarter were 2.7%. For the year ended December 31, 2018, rents on renewed space increased 6.8% on a GAAP basis and decreased 2.0% on a cash basis; average annual escalations on renewing leases for the year were 2.6%.

• | Lease Terms–In the fourth quarter, lease terms averaged 4.6 years on renewing leases, 8.5 years on new leasing of vacant space, and 14.7 years on development leasing. For the year, lease terms averaged 3.8 years on renewing leases, 7.4 years on new leasing of vacant space, and 12.4 years on development leasing.

Investment Activity Highlights
Development & Redevelopment Projects:

• | Construction Pipeline. At January 2, 2019, the Company’s construction pipeline consisted of nine properties totaling 1.1 million square feet that were 81% leased. These projects have a total estimated cost of $332.5 million, of which $162.4 million has been incurred.

ii

• | Redevelopment. At the end of the quarter, one project was under redevelopment totaling 106,000 square feet that was 0% leased. Subsequent to the quarter, the Company executed a 10,000 square foot pre-lease, bringing the project to 9% leased. The Company has invested $11.6 million of the $25.1 million anticipated total cost.

Balance Sheet and Capital Transaction Highlights

• | As of December 31, 2018, the Company’s net debt plus preferred equity to adjusted book ratio was 39.1% and its net debt plus preferred equity to in-place adjusted EBITDA ratio was 6.0x. For the same period, the Company’s adjusted EBITDA fixed charge coverage ratio was 3.6x.

• | As of December 31, 2018 and including the effect of interest rate swaps, the Company’s weighted average effective interest rate was 4.1%; additionally, 93% of the Company’s debt was subject to fixed interest rates and the consolidated debt portfolio had a weighted average maturity of 4.5 years.

• | During the fourth quarter and year ended December 31, 2018, the Company issued 1.4 million and 5.9 million common shares under its forward equity sale agreement for net proceeds of $40.0 million and $172.5 million, respectively. Also during the year, the Company issued 992,000 common shares through its At-the-Market (“ATM”) program at an average gross price of $30.46 per share for net proceeds of $29.8 million.

• | In October, the Company entered into a new $800 million credit agreement to replace its existing $800 million revolving credit facility. The new credit facility has a maturity date of March 2023, plus two six-month extension options. The new facility’s interest rate is calculated as LIBOR plus 77.5-145 basis points; based on the Company’s current credit ratings, the initial spread over LIBOR is 110 basis points.

Associated Supplemental Presentation
Prior to the call, the Company will post a slide presentation to accompany management’s prepared remarks for its fourth quarter and year end 2018 conference call, the details of which are provided below. The accompanying slide presentation can be viewed on and downloaded from the ‘Latest Updates’ section of COPT’s Investors website: https://investors.copt.com/
Conference Call Information
Management will discuss fourth quarter and year end 2018 results on its conference call tomorrow at 12:00 p.m. Eastern Time, details of which are listed below:
Conference Call Date: Friday, February 8, 2019
Time: 12:00 p.m. Eastern Time
Telephone Number: (within the U.S.) 855-463-9057
Telephone Number: (outside the U.S.) 661-378-9894
Passcode: 1485747
The conference call will also be available via live webcast in the ‘Latest Updates’ section of COPT’s Investors website: https://investors.copt.com/
Replay Information
A replay of the conference call will be immediately available via webcast on the Investors website. Additionally, a telephonic replay of this call will be available beginning at 3:00 p.m. Eastern Time on Friday, February 8, through 3:00 p.m. Eastern Time on Friday, February 22. To access the replay within the United States, please call 855-859-2056; to access it from outside the United States, please call 404-537-3406. In either case, use passcode 1485747.
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Definitions
For definitions of certain terms used in this press release, please refer to the information furnished in the Company’s Supplemental Information Package furnished on a Form 8-K which can be found on its 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 a REIT that owns, manages, leases, develops and selectively acquires office and data center properties in locations that support the United States Government and its contractors, most of whom are engaged in national security, defense and information technology (“IT”) related activities servicing what it believes are growing, durable, priority missions (“Defense/IT Locations”). The Company also owns a portfolio of office properties located in select urban/urban-like submarkets in the Greater Washington, DC/Baltimore region with durable Class-A office fundamentals and characteristics (“Regional Office Properties”). As of December 31, 2018, the Company derived 88% of its core portfolio annualized revenue from Defense/IT Locations and 12% from its Regional Office Properties. As of the same date and including six buildings owned through an unconsolidated joint venture, COPT’s core portfolio of 161 office and data center shell properties encompassed 17.9 million square feet and was 94.0% leased; the Company also owned one wholesale data center with a critical load of 19.25 megawatts.
iv

Forward-Looking Information
This press release may contain “forward-looking” statements, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that are based on the Company’s current expectations, estimates and projections about future events and financial trends affecting the Company. Forward-looking statements can be identified by the use of words such as “may,” “will,” “should,” “could,” “believe,” “anticipate,” “expect,” “estimate,” “plan” or other comparable terminology. Forward-looking statements are inherently subject to risks and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate. Although the Company believes that the expectations, estimates and projections reflected in such forward-looking statements are based on reasonable assumptions at the time made, the Company can give no assurance that these expectations, estimates and projections will be achieved. Future events and actual results may differ materially from those discussed in the forward-looking statements.
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;

* | possible adverse changes in tax laws;

* | the dilutive effects of issuing additional common shares;

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

* | security breaches relating to cyber attacks, cyber intrusions or other factors; 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, 2017.
v

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

| For the Three Months Ended December 31, |  | For the Years Ended December 31,
| 2018 |  | 2017 |  | 2018 |  | 2017
Revenues |  |  |  |  |  |  |  |  |
Real estate revenues | $ | 130,825 |  |  | $ | 127,685 |  |  | $ | 517,253 |  |  | $ | 509,980 |
Construction contract and other service revenues | 7,657 |  |  | 36,882 |  |  | 60,859 |  |  | 102,840 |
Total revenues | 138,482 |  |  | 164,567 |  |  | 578,112 |  |  | 612,820 |
Expenses |  |  |  |  |  |  |  |  |
Property operating expenses | 51,298 |  |  | 47,449 |  |  | 201,035 |  |  | 190,964 |
Depreciation and amortization associated with real estate operations | 36,219 |  |  | 33,938 |  |  | 137,116 |  |  | 134,228 |
Construction contract and other service expenses | 7,111 |  |  | 36,029 |  |  | 58,326 |  |  | 99,618 |
Impairment losses | 2,367 |  |  | 13,659 |  |  | 2,367 |  |  | 15,123 |
General and administrative expenses | 5,105 |  |  | 5,552 |  |  | 22,829 |  |  | 24,008 |
Leasing expenses | 1,976 |  |  | 1,447 |  |  | 6,071 |  |  | 6,829 |
Business development expenses and land carry costs | 1,425 |  |  | 1,646 |  |  | 5,840 |  |  | 6,213 |
Total operating expenses | 105,501 |  |  | 139,720 |  |  | 433,584 |  |  | 476,983 |
Operating income | 32,981 |  |  | 24,847 |  |  | 144,528 |  |  | 135,837 |
Interest expense | (18,475 | ) |  | (19,211 | ) |  | (75,385 | ) |  | (76,983 | )
Interest and other income | 74 |  |  | 1,501 |  |  | 4,358 |  |  | 6,318 |
Gain on sales of real estate | 2,367 |  |  | 4,452 |  |  | 2,340 |  |  | 9,890 |
Loss on early extinguishment of debt | (258 | ) |  | — |  |  | (258 | ) |  | (513 | )
Income before equity in income of unconsolidated entities and income taxes | 16,689 |  |  | 11,589 |  |  | 75,583 |  |  | 74,549 |
Equity in income of unconsolidated entities | 1,577 |  |  | 372 |  |  | 2,697 |  |  | 1,490 |
Income tax benefit (expense) | 190 |  |  | (953 | ) |  | 363 |  |  | (1,098 | )
Net income | 18,456 |  |  | 11,008 |  |  | 78,643 |  |  | 74,941 |
Net income attributable to noncontrolling interests: |  |  |  |  |  |  |  |  |
Common units in the Operating Partnership (“OP”) | (210 | ) |  | (314 | ) |  | (1,742 | ) |  | (1,890 | )
Preferred units in the OP | (165 | ) |  | (165 | ) |  | (660 | ) |  | (660 | )
Other consolidated entities | (1,061 | ) |  | (908 | ) |  | (3,940 | ) |  | (3,646 | )
Net income attributable to COPT | 17,020 |  |  | 9,621 |  |  | 72,301 |  |  | 68,745 |
Preferred share dividends | — |  |  | — |  |  | — |  |  | (6,219 | )
Issuance costs associated with redeemed preferred shares | — |  |  | — |  |  | — |  |  | (6,847 | )
Net income attributable to COPT common shareholders | $ | 17,020 |  |  | $ | 9,621 |  |  | $ | 72,301 |  |  | $ | 55,679 |
Earnings per share (“EPS”) computation: |  |  |  |  |  |  |  |  |
Numerator for diluted EPS: |  |  |  |  |  |  |  |  |
Net income attributable to COPT common shareholders | $ | 17,020 |  |  | $ | 9,621 |  |  | $ | 72,301 |  |  | $ | 55,679 |
Amount allocable to share-based compensation awards | (114 | ) |  | (112 | ) |  | (462 | ) |  | (449 | )
Numerator for diluted EPS | $ | 16,906 |  |  | $ | 9,509 |  |  | $ | 71,839 |  |  | $ | 55,230 |
Denominator: |  |  |  |  |  |  |  |  |
Weighted average common shares - basic | 108,528 |  |  | 99,304 |  |  | 103,946 |  |  | 98,969 |
Dilutive effect of share-based compensation awards | 45 |  |  | 68 |  |  | 134 |  |  | 132 |
Dilutive effect of forward equity sale agreements | — |  |  | 215 |  |  | 45 |  |  | 54 |
Weighted average common shares - diluted | 108,573 |  |  | 99,587 |  |  | 104,125 |  |  | 99,155 |
Diluted EPS | $ | 0.16 |  |  | $ | 0.10 |  |  | $ | 0.69 |  |  | $ | 0.56 |

vi

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

| For the Three Months Ended December 31, |  | For the Years Ended December 31,
| 2018 |  | 2017 |  | 2018 |  | 2017
Net income | $ | 18,456 |  |  | $ | 11,008 |  |  | $ | 78,643 |  |  | $ | 74,941 |
Real estate-related depreciation and amortization | 36,219 |  |  | 33,938 |  |  | 137,116 |  |  | 134,228 |
Impairment losses on previously depreciated operating properties | 6 |  |  | 9,004 |  |  | 6 |  |  | 10,455 |
Gain on sales of previously depreciated operating properties | (2,367 | ) |  | (4,452 | ) |  | (2,340 | ) |  | (4,491 | )
Depreciation and amortization on unconsolidated real estate JV | 565 |  |  | 563 |  |  | 2,256 |  |  | 2,252 |
Funds from operations (“FFO”) | 52,879 |  |  | 50,061 |  |  | 215,681 |  |  | 217,385 |
Preferred share dividends | — |  |  | — |  |  | — |  |  | (6,219 | )
Issuance costs associated with redeemed preferred shares | — |  |  | — |  |  | — |  |  | (6,847 | )
Noncontrolling interests - preferred units in the OP | (165 | ) |  | (165 | ) |  | (660 | ) |  | (660 | )
FFO allocable to other noncontrolling interests | (1,011 | ) |  | (874 | ) |  | (3,768 | ) |  | (3,675 | )
Basic and diluted FFO allocable to share-based compensation awards | (200 | ) |  | (198 | ) |  | (851 | ) |  | (814 | )
Basic FFO available to common share and common unit holders (“Basic FFO”) | 51,503 |  |  | 48,824 |  |  | 210,402 |  |  | 199,170 |
Redeemable noncontrolling interests | 331 |  |  | — |  |  | 1,540 |  |  | — |
Diluted FFO available to common share and common unit holders (“Diluted FFO”) | 51,834 |  |  | 48,824 |  |  | 211,942 |  |  | 199,170 |
Gain on sales of non-operating properties | — |  |  | — |  |  | — |  |  | (5,399 | )
Impairment losses on non-operating properties | 2,361 |  |  | 4,655 |  |  | 2,361 |  |  | 4,668 |
Income tax expense associated with FFO comparability adjustments | — |  |  | 800 |  |  | — |  |  | 800 |
Gain on interest rate derivatives | — |  |  | (191 | ) |  | — |  |  | (234 | )
Loss on early extinguishment of debt | 258 |  |  | — |  |  | 258 |  |  | 513 |
Issuance costs associated with redeemed preferred shares | — |  |  | — |  |  | — |  |  | 6,847 |
Demolition costs on redevelopment and nonrecurring improvements | 163 |  |  | — |  |  | 462 |  |  | 294 |
Executive transition costs | 371 |  |  | — |  |  | 793 |  |  | 732 |
Diluted FFO comparability adjustments allocable to share-based compensation awards | (13 | ) |  | (23 | ) |  | (16 | ) |  | (35 | )
Diluted FFO available to common share and common unit holders, as adjusted for comparability | 54,974 |  |  | 54,065 |  |  | 215,800 |  |  | 207,356 |
Straight line rent adjustments and lease incentive amortization | (46 | ) |  | (1,343 | ) |  | (1,487 | ) |  | 46 |
Amortization of intangibles included in net operating income | 153 |  |  | 342 |  |  | 893 |  |  | 1,344 |
Share-based compensation, net of amounts capitalized | 1,601 |  |  | 1,523 |  |  | 6,193 |  |  | 5,353 |
Amortization of deferred financing costs | 550 |  |  | 443 |  |  | 1,954 |  |  | 2,928 |
Amortization of net debt discounts, net of amounts capitalized | 365 |  |  | 350 |  |  | 1,439 |  |  | 1,379 |
Accum. other comprehensive loss on derivatives amortized to expense | 34 |  |  | 54 |  |  | 135 |  |  | 143 |
Replacement capital expenditures | (14,848 | ) |  | (23,475 | ) |  | (64,784 | ) |  | (63,026 | )
Other diluted AFFO adjustments associated with real estate JVs | (28 | ) |  | (39 | ) |  | 121 |  |  | (210 | )
Diluted adjusted funds from operations available to common share and common unit holders (“Diluted AFFO”) | $ | 42,755 |  |  | $ | 31,920 |  |  | $ | 160,264 |  |  | $ | 155,313 |
Diluted FFO per share | $ | 0.47 |  |  | $ | 0.47 |  |  | $ | 1.97 |  |  | $ | 1.94 |
Diluted FFO per share, as adjusted for comparability | $ | 0.50 |  |  | $ | 0.53 |  |  | $ | 2.01 |  |  | $ | 2.02 |
Dividends/distributions per common share/unit | $ | 0.275 |  |  | $ | 0.275 |  |  | $ | 1.100 |  |  | $ | 1.100 |

vii

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

| December 31, 2018 |  | December 31, 2017
Balance Sheet Data |  |  |  |  |
Properties, net of accumulated depreciation | $ | 3,250,626 |  |  | $ | 3,141,105 |
Total assets | 3,656,005 |  |  | 3,595,205 |
Debt, per balance sheet | 1,823,909 |  |  | 1,828,333 |
Total liabilities | 2,002,697 |  |  | 2,103,773 |
Redeemable noncontrolling interest | 26,260 |  |  | 23,125 |
Equity | 1,627,048 |  |  | 1,468,307 |
Net debt to adjusted book | 38.9 | % |  | 40.8 | %
Core Portfolio Data (as of period end) (1) |  |  |  |  |
Number of operating properties | 161 |  |  | 156 |
Total net rentable square feet owned (in thousands) | 17,937 |  |  | 17,059 |
Occupancy % | 93.1 | % |  | 94.5 | %
Leased % | 94.0 | % |  | 95.1 | %

| For the Three Months Ended December 31, |  | For the Years Ended December 31,
2018 |  | 2017 |  | 2018 |  | 2017
Payout ratios |  |  |  |  |  |  |  |  |  |  |
Diluted FFO | 59.0 | % |  | 58.7 | % |  | 56.0 | % |  | 56.8 | %
Diluted FFO, as adjusted for comparability | 55.6 | % |  | 53.0 | % |  | 55.0 | % |  | 54.6 | %
Diluted AFFO | 71.5 | % |  | 89.7 | % |  | 74.1 | % |  | 72.9 | %
Adjusted EBITDA fixed charge coverage ratio | 3.6 | x |  | 3.7 | x |  | 3.6 | x |  | 3.4 | x
Net debt to in-place adjusted EBITDA ratio (2) | 6.0 | x |  | 6.1 | x |  | N/A |  |  | N/A |
Net debt plus preferred equity to in-place adjusted EBITDA ratio (3) | 6.0 | x |  | 6.1 | x |  | N/A |  |  | N/A |
Reconciliation of denominators for per share measures |  |  |  |  |  |  |
Denominator for diluted EPS | 108,573 |  |  | 99,587 |  |  | 104,125 |  |  | 99,155 |
Weighted average common units | 1,345 |  |  | 3,252 |  |  | 2,468 |  |  | 3,362 |
Redeemable noncontrolling interests | 1,126 |  |  | — |  |  | 936 |  |  | — |
Denominator for diluted FFO per share and as adjusted for comparability | 111,044 |  |  | 102,839 |  |  | 107,529 |  |  | 102,517 |

(1) | Represents Defense/IT Locations and Regional Office properties.

(2) | Represents net 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).

(3) | Represents net debt plus the total liquidation preference of preferred equity as of period end divided by in-place adjusted EBITDA for the period, as annualized (i.e. three month periods are multiplied by four).

viii

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

| For the Three Months Ended December 31, |  | For the Years Ended December 31,
| 2018 |  | 2017 |  | 2018 |  | 2017
Reconciliation of common share dividends to dividends and distributions for payout ratios |  |  |  |  |  |  |  |  |
Common share dividends - unrestricted shares | $ | 30,206 |  |  | $ | 27,747 |  |  | $ | 116,285 |  |  | $ | 109,489 |
Common unit distributions | 367 |  |  | 894 |  |  | 2,498 |  |  | 3,661 |
Dividends and distributions for payout ratios | $ | 30,573 |  |  | $ | 28,641 |  |  | $ | 118,783 |  |  | $ | 113,150 |
Reconciliation of GAAP net income to earnings before interest, income taxes, depreciation and amortization for real estate (“EBITDAre”), adjusted EBITDA and in-place adjusted EBITDA |  |  |  |  |  |  |  |  |  |  |
Net income | $ | 18,456 |  |  | $ | 11,008 |  |  | $ | 78,643 |  |  | $ | 74,941 |
Interest expense | 18,475 |  |  | 19,211 |  |  | 75,385 |  |  | 76,983 |
Income tax (benefit) expense | (190 | ) |  | 953 |  |  | (363 | ) |  | 1,098 |
Depreciation of furniture, fixtures and equipment | 404 |  |  | 600 |  |  | 1,947 |  |  | 2,273 |
Real estate-related depreciation and amortization | 36,219 |  |  | 33,938 |  |  | 137,116 |  |  | 134,228 |
Impairment losses on previously depreciated operating properties | 6 |  |  | 9,004 |  |  | 6 |  |  | 10,455 |
Gain on sales of previously depreciated operating properties | (2,367 | ) |  | (4,452 | ) |  | (2,340 | ) |  | (4,491 | )
Adjustments from unconsolidated real estate JV | 832 |  |  | 829 |  |  | 3,314 |  |  | 3,310 |
EBITDAre | 71,835 |  |  | 71,091 |  |  | 293,708 |  |  | 298,797 |
Impairment losses on non-operating properties | 2,361 |  |  | 4,655 |  |  | 2,361 |  |  | 4,668 |
Loss on early extinguishment of debt | 258 |  |  | — |  |  | 258 |  |  | 513 |
Gain on sales of non-operating properties | — |  |  | — |  |  | — |  |  | (5,399 | )
Net gain on other investments | (449 | ) |  | — |  |  | (449 | ) |  | — |
Business development expenses | 661 |  |  | 1,116 |  |  | 3,114 |  |  | 3,786 |
Demolition costs on redevelopment and nonrecurring improvements | 163 |  |  | — |  |  | 462 |  |  | 294 |
Executive transition costs | 371 |  |  | — |  |  | 793 |  |  | 732 |
Adjusted EBITDA | 75,200 |  |  | 76,862 |  |  | $ | 300,247 |  |  | $ | 303,391 |
Proforma net operating income adjustment for property changes within period | 2,052 |  |  | (578 | ) |  |  |  |
In-place adjusted EBITDA | $ | 77,252 |  |  | $ | 76,284 |  |  |  |  |
Reconciliation of interest expense to the denominators for fixed charge coverage-Adjusted EBITDA |  |  |  |  |  |  |  |  |  |  |
Interest expense | $ | 18,475 |  |  | $ | 19,211 |  |  | $ | 75,385 |  |  | $ | 76,983 |
Less: Amortization of deferred financing costs | (550 | ) |  | (443 | ) |  | (1,954 | ) |  | (2,928 | )
Less: Amortization of net debt discounts, net of amounts capitalized | (365 | ) |  | (350 | ) |  | (1,439 | ) |  | (1,379 | )
Less: Accum. other comprehensive loss on derivatives amortized to expense | (34 | ) |  | (54 | ) |  | (135 | ) |  | (143 | )
Gain on interest rate derivatives | — |  |  | 191 |  |  | — |  |  | 234 |
COPT’s share of interest expense of unconsolidated real estate JV, excluding deferred financing costs | 260 |  |  | 260 |  |  | 1,034 |  |  | 1,034 |
Scheduled principal amortization | 1,079 |  |  | 1,034 |  |  | 4,240 |  |  | 4,062 |
Capitalized interest | 1,748 |  |  | 1,032 |  |  | 5,929 |  |  | 5,229 |
Preferred share dividends | — |  |  | — |  |  | — |  |  | 6,219 |
Preferred unit distributions | 165 |  |  | 165 |  |  | 660 |  |  | 660 |
Denominator for fixed charge coverage-Adjusted EBITDA | $ | 20,778 |  |  | $ | 21,046 |  |  | $ | 83,720 |  |  | $ | 89,971 |

ix

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

| For the Three Months Ended December 31, |  | For the Years Ended December 31,
| 2018 |  | 2017 |  | 2018 |  | 2017
Reconciliations of tenant improvements and incentives, capital improvements and leasing costs for operating properties to replacement capital expenditures |  |  |  |  |  |  |
Tenant improvements and incentives | $ | 7,876 |  |  | $ | 14,804 |  |  | $ | 37,502 |  |  | $ | 37,034 |
Building improvements | 9,306 |  |  | 9,241 |  |  | 22,977 |  |  | 22,308 |
Leasing costs | 3,800 |  |  | 3,242 |  |  | 9,847 |  |  | 8,487 |
Net (exclusions from) additions to tenant improvements and incentives | (2,131 | ) |  | (2,929 | ) |  | 1,577 |  |  | 2,984 |
Excluded building improvements | (3,984 | ) |  | (853 | ) |  | (7,073 | ) |  | (7,757 | )
Excluded leasing costs | (19 | ) |  | (30 | ) |  | (46 | ) |  | (30 | )
Replacement capital expenditures | $ | 14,848 |  |  | $ | 23,475 |  |  | $ | 64,784 |  |  | $ | 63,026 |
Same Properties cash NOI | $ | 70,923 |  |  | $ | 71,711 |  |  | $ | 283,450 |  |  | $ | 284,470 |
Straight line rent adjustments and lease incentive amortization | (638 | ) |  | (1,050 | ) |  | (4,287 | ) |  | (2,808 | )
Amortization of acquired above- and below-market rents | (97 | ) |  | (287 | ) |  | (671 | ) |  | (1,123 | )
Amortization of below-market cost arrangements | (147 | ) |  | (147 | ) |  | (589 | ) |  | (590 | )
Lease termination fees, gross | 906 |  |  | 828 |  |  | 3,231 |  |  | 2,911 |
Tenant funded landlord assets and lease incentives | 409 |  |  | 1,118 |  |  | 3,421 |  |  | 4,488 |
Cash NOI adjustments in unconsolidated real estate JV | 57 |  |  | 73 |  |  | 254 |  |  | 336 |
Same Properties NOI | $ | 71,413 |  |  | $ | 72,246 |  |  | $ | 284,809 |  |  | $ | 287,684 |

|  | December 31, 2018 |  | December 31, 2017
Reconciliation of total assets to adjusted book |  |  |  |  |  |
Total assets |  | $ | 3,656,005 |  |  | $ | 3,595,205 |
Accumulated depreciation |  | 897,903 |  |  | 786,193 |
Accumulated amortization of real estate intangibles and deferred leasing costs |  | 204,882 |  |  | 193,151 |
COPT’s share of liabilities of unconsolidated real estate JV |  | 29,917 |  |  | 29,908 |
COPT’s share of accumulated depreciation and amortization of unconsolidated real estate JV |  | 5,446 |  |  | 3,189 |
Less: Disposed property included in assets held for sale |  | — |  |  | (42,226 | )
Less: Cash and cash equivalents |  | (8,066 | ) |  | (12,261 | )
Less: COPT’s share of cash of unconsolidated real estate JV |  | (293 | ) |  | (371 | )
Adjusted book |  | $ | 4,785,794 |  |  | $ | 4,552,788 |
Reconciliation of debt outstanding to net debt and net debt plus preferred equity |  |  |  |
Debt outstanding (excluding net debt discounts and deferred financing costs) |  | $ | 1,868,504 |  |  | $ | 1,872,167 |
Less: Cash and cash equivalents |  | (8,066 | ) |  | (12,261 | )
Less: COPT’s share of cash of unconsolidated real estate JV |  | (293 | ) |  | (371 | )
Net debt |  | $ | 1,860,145 |  |  | $ | 1,859,535 |
Preferred equity |  | 8,800 |  |  | 8,800 |
Net debt plus preferred equity |  | $ | 1,868,945 |  |  | $ | 1,868,335 |

x