EX-99.1 2 copt3312021ex991.htm EX-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. 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. As of March 31, 2021, we derived 88% of our core portfolio annualized rental revenue from Defense/IT Locations and 12% from Regional Office Properties. As of March 31, 2021, our core portfolio of 180 office and data center shell properties, including 17 owned through unconsolidated joint ventures, encompassed 20.8 million square feet and was 94.9% leased. As of the same date, we also owned a wholesale data center with a critical load of 19.25 megawatts that was 86.7% leased.

Management: | Investor Relations:
Stephen E. Budorick, President & CEO | Stephanie Krewson-Kelly, VP of IR
Todd Hartman, 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- Stable; 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 and we undertake no obligation to update or supplement any forward-looking statements. The areas of risk that may affect these expectations, estimates and projections include, but are not limited to, those risks described in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2020.
1

Corporate Office Properties Trust
Equity Research Coverage

Firm |  | Senior Analyst |  | Phone |  | Email
Bank of America Securities |  | Jamie Feldman |  | 646-855-5808 |  | james.feldman@bofa.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 |  | Daniel Ismail |  | 949-640-8780 |  | dismail@greenstreet.com
Jefferies & Co. |  | Peter Abramowitz |  | 212-336-7241 |  | pabramowitz@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. |  | Tayo Okusanya |  | 646-949-9672 |  | omotayo.okusanya@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
SMBC Nikko Securities America, Inc. |  | Rich Anderson |  | 646-521-2351 |  | randerson@smbcnikko-si.com
Truist Securities |  | Michael Lewis |  | 212-319-5659 |  | michael.r.lewis@truist.com
Wells Fargo Securities |  | Blaine Heck |  | 443-263-6529 |  | blaine.heck@wellsfargo.com

With the exception of Green Street, 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 |  |
SUMMARY OF RESULTS |  | Refer. |  | 3/31/21 |  | 12/31/20 |  | 9/30/20 |  | 6/30/20 |  | 3/31/20 |  |  |  |
Net (loss) income |  | 6 |  | $ | (6,079) |  |  | $ | 83,549 |  |  | $ | (31,342) |  |  | $ | 25,121 |  |  | $ | 25,550 |  |  |  |  |
NOI from real estate operations |  | 13 |  | $ | 89,107 |  |  | $ | 89,304 |  |  | $ | 84,643 |  |  | $ | 84,059 |  |  | $ | 83,830 |  |  |  |  |
Same Properties NOI |  | 16 |  | $ | 75,833 |  |  | $ | 77,142 |  |  | $ | 75,595 |  |  | $ | 76,456 |  |  | $ | 76,755 |  |  |  |  |
Same Properties cash NOI |  | 17 |  | $ | 74,000 |  |  | $ | 77,886 |  |  | $ | 75,077 |  |  | $ | 76,991 |  |  | $ | 76,041 |  |  |  |  |
Adjusted EBITDA |  | 10 |  | $ | 83,338 |  |  | $ | 82,298 |  |  | $ | 80,062 |  |  | $ | 78,582 |  |  | $ | 77,989 |  |  |  |  |
Diluted AFFO avail. to common share and unit holders |  | 9 |  | $ | 52,387 |  |  | $ | 56,792 |  |  | $ | 50,340 |  |  | $ | 46,690 |  |  | $ | 41,495 |  |  |  |  |
Dividend per common share |  | N/A |  | $ | 0.275 |  |  | $ | 0.275 |  |  | $ | 0.275 |  |  | $ | 0.275 |  |  | $ | 0.275 |  |  |  |  |
Per share - diluted: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
EPS |  | 8 |  | $ | (0.06) |  |  | $ | 0.73 |  |  | $ | (0.29) |  |  | $ | 0.21 |  |  | $ | 0.21 |  |  |  |  |
FFO - Nareit |  | 8 |  | $ | 0.27 |  |  | $ | 0.53 |  |  | $ | 0.04 |  |  | $ | 0.51 |  |  | $ | 0.41 |  |  |  |  |
FFO - as adjusted for comparability |  | 8 |  | $ | 0.56 |  |  | $ | 0.56 |  |  | $ | 0.54 |  |  | $ | 0.51 |  |  | $ | 0.51 |  |  |  |  |
Numerators for diluted per share amounts: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Diluted EPS |  | 6 |  | $ | (6,839) |  |  | $ | 81,501 |  |  | $ | (31,990) |  |  | $ | 23,388 |  |  | $ | 23,957 |  |  |  |  |
Diluted FFO available to common share and unit holders |  | 7 |  | $ | 30,997 |  |  | $ | 60,137 |  |  | $ | 5,069 |  |  | $ | 57,809 |  |  | $ | 46,706 |  |  |  |  |
Diluted FFO available to common share and unit holders, as adjusted for comparability |  | 7 |  | $ | 64,454 |  |  | $ | 64,188 |  |  | $ | 61,485 |  |  | $ | 57,817 |  |  | $ | 57,866 |  |  |  |  |
Payout ratios: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Diluted FFO |  | N/A |  | 100.5% |  | 51.8% |  | 613.6% |  | 53.9% |  | 66.6% |  |  |  |
Diluted FFO - as adjusted for comparability |  | N/A |  | 48.3% |  | 48.6% |  | 50.7% |  | 53.9% |  | 53.9% |  |  |  |
Diluted AFFO |  | N/A |  | 59.5% |  | 54.9% |  | 61.9% |  | 66.8% |  | 75.1% |  |  |  |
CAPITALIZATION |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Market Capitalization |  | 26 |  | $ | 5,226,694 |  |  | $ | 5,062,432 |  |  | $ | 4,898,459 |  |  | $ | 4,908,346 |  |  | $ | 4,609,280 |  |  |  |  |
Total Equity Market Capitalization |  | 26 |  | $ | 2,995,090 |  |  | $ | 2,960,967 |  |  | $ | 2,701,186 |  |  | $ | 2,885,245 |  |  | $ | 2,520,400 |  |  |  |  |
Gross debt |  | 27 |  | $ | 2,257,854 |  |  | $ | 2,127,715 |  |  | $ | 2,247,523 |  |  | $ | 2,073,351 |  |  | $ | 2,139,130 |  |  |  |  |
Net debt to adjusted book |  | 29 |  | 40.8% |  | 39.1% |  | 41.0% |  | 38.6% |  | 38.2% |  |  |  |
Net debt plus preferred equity to adjusted book |  | 29 |  | 40.8% |  | 39.1% |  | 41.1% |  | 38.8% |  | 38.3% |  |  |  |
Adjusted EBITDA fixed charge coverage ratio |  | 29 |  | 4.3x |  | 4.1x |  | 3.9x |  | 3.8x |  | 3.8x |  |  |  |
Net debt plus pref. equity to in-place adj. EBITDA ratio |  | 29 |  | 6.6x |  | 6.2x |  | 6.8x |  | 6.4x |  | 6.3x |  |  |  |
Net debt adjusted for fully-leased development plus pref. equity to in-place adj. EBITDA ratio |  | 29 |  | 6.3x |  | 5.9x |  | 6.4x |  | 5.9x |  | 5.8x |  |  |  |

3

Corporate Office Properties Trust
Selected Portfolio Data (1)

| 3/31/21 |  | 12/31/20 |  | 9/30/20 |  | 6/30/20 |  | 3/31/20 |
Operating Office and Data Center Shell Properties |  |  |  |  |  |  |  |  |  |
# of Properties |  |  |  |  |  |  |  |  |  |
Total Portfolio | 182 |  | 181 |  | 176 |  | 174 |  | 171 |
Consolidated Portfolio | 165 |  | 164 |  | 161 |  | 159 |  | 156 |
Core Portfolio | 180 |  | 179 |  | 174 |  | 172 |  | 169 |
Same Properties | 161 |  | 161 |  | 161 |  | 161 |  | 161 |
% Occupied |  |  |  |  |  |  |  |  |  |
Total Portfolio | 93.8 | % |  | 94.1 | % |  | 93.8 | % |  | 93.4 | % |  | 93.7 | % |
Consolidated Portfolio | 92.9 | % |  | 93.2 | % |  | 93.0 | % |  | 92.5 | % |  | 92.8 | % |
Core Portfolio | 94.0 | % |  | 94.3 | % |  | 94.0 | % |  | 93.6 | % |  | 94.0 | % |
Same Properties | 92.8 | % |  | 93.1 | % |  | 93.0 | % |  | 92.8 | % |  | 93.2 | % |
% Leased |  |  |  |  |  |  |  |  |  |
Total Portfolio | 94.7 | % |  | 94.8 | % |  | 94.4 | % |  | 94.5 | % |  | 94.9 | % |
Consolidated Portfolio | 93.9 | % |  | 94.0 | % |  | 93.6 | % |  | 93.7 | % |  | 94.2 | % |
Core Portfolio | 94.9 | % |  | 95.0 | % |  | 94.6 | % |  | 94.7 | % |  | 95.2 | % |
Same Properties | 93.8 | % |  | 94.0 | % |  | 93.6 | % |  | 94.0 | % |  | 94.5 | % |
Square Feet (in thousands) |  |  |  |  |  |  |  |  |  |
Total Portfolio | 21,006 |  | 20,959 |  | 20,389 |  | 19,781 |  | 19,378 |
Consolidated Portfolio | 18,257 |  | 18,209 |  | 17,940 |  | 17,346 |  | 16,943 |
Core Portfolio | 20,849 |  | 20,802 |  | 20,232 |  | 19,624 |  | 19,221 |
Same Properties | 17,802 |  | 17,802 |  | 17,802 |  | 17,802 |  | 17,802 |
Wholesale Data Center |  |  |  |  |  |  |  |  |  |
Megawatts Operational | 19.25 |  | 19.25 |  | 19.25 |  | 19.25 |  | 19.25 |
% Leased | 86.7 | % |  | 86.7 | % |  | 86.7 | % |  | 90.6 | % |  | 76.9 | % |

(1)Includes properties owned through unconsolidated real estate joint ventures (see page 31).
4

Corporate Office Properties Trust
Consolidated Balance Sheets
(in thousands)

| 3/31/21 |  | 12/31/20 |  | 9/30/20 |  | 6/30/20 |  | 3/31/20
Assets |  |  |  |  |  |  |  |  |
Properties, net: |  |  |  |  |  |  |  |  |
Operating properties, net | $ | 3,106,698 |  |  | $ | 3,115,280 |  |  | $ | 2,999,892 |  |  | $ | 2,888,817 |  |  | $ | 2,813,949 |
Development and redevelopment in progress, including land (1) | 187,290 |  |  | 172,614 |  |  | 302,158 |  |  | 315,243 |  |  | 300,836 |
Land held (1) | 285,266 |  |  | 274,655 |  |  | 284,888 |  |  | 309,039 |  |  | 304,843 |
Total properties, net | 3,579,254 |  |  | 3,562,549 |  |  | 3,586,938 |  |  | 3,513,099 |  |  | 3,419,628 |
Property - operating right-of-use assets | 39,810 |  |  | 40,570 |  |  | 36,442 |  |  | 31,009 |  |  | 27,793 |
Property - finance right-of-use assets | 40,091 |  |  | 40,425 |  |  | 40,432 |  |  | 40,441 |  |  | 40,450 |
Cash and cash equivalents | 36,139 |  |  | 18,369 |  |  | 11,458 |  |  | 21,596 |  |  | 159,061 |
Investment in unconsolidated real estate joint ventures | 28,934 |  |  | 29,303 |  |  | 49,662 |  |  | 50,457 |  |  | 51,220 |
Accounts receivable, net | 44,916 |  |  | 41,637 |  |  | 36,151 |  |  | 30,404 |  |  | 30,317 |
Deferred rent receivable | 98,048 |  |  | 92,876 |  |  | 92,853 |  |  | 90,493 |  |  | 89,690 |
Intangible assets on real estate acquisitions, net | 18,137 |  |  | 19,344 |  |  | 22,433 |  |  | 24,768 |  |  | 26,078 |
Deferred leasing costs, net | 56,508 |  |  | 58,613 |  |  | 59,392 |  |  | 58,666 |  |  | 58,608 |
Investing receivables, net | 71,831 |  |  | 68,754 |  |  | 74,136 |  |  | 72,333 |  |  | 71,197 |
Prepaid expenses and other assets, net | 99,280 |  |  | 104,583 |  |  | 110,292 |  |  | 78,059 |  |  | 80,415 |
Total assets | $ | 4,112,948 |  |  | $ | 4,077,023 |  |  | $ | 4,120,189 |  |  | $ | 4,011,325 |  |  | $ | 4,054,457 |
Liabilities and equity |  |  |  |  |  |  |  |  |
Liabilities: |  |  |  |  |  |  |  |  |
Debt | $ | 2,207,903 |  |  | $ | 2,086,918 |  |  | $ | 2,181,551 |  |  | $ | 2,012,019 |  |  | $ | 2,076,839 |
Accounts payable and accrued expenses | 96,465 |  |  | 142,717 |  |  | 140,921 |  |  | 149,836 |  |  | 128,441 |
Rents received in advance and security deposits | 30,922 |  |  | 33,425 |  |  | 30,276 |  |  | 30,459 |  |  | 33,323 |
Dividends and distributions payable | 31,305 |  |  | 31,231 |  |  | 31,307 |  |  | 31,302 |  |  | 31,301 |
Deferred revenue associated with operating leases | 10,221 |  |  | 10,832 |  |  | 8,579 |  |  | 8,821 |  |  | 6,972 |
Property - operating lease liabilities | 30,176 |  |  | 30,746 |  |  | 26,382 |  |  | 20,796 |  |  | 17,365 |
Interest rate derivatives | 7,640 |  |  | 9,522 |  |  | 10,977 |  |  | 65,612 |  |  | 63,232 |
Other liabilities | 15,599 |  |  | 12,490 |  |  | 17,038 |  |  | 12,408 |  |  | 8,886 |
Total liabilities | 2,430,231 |  |  | 2,357,881 |  |  | 2,447,031 |  |  | 2,331,253 |  |  | 2,366,359 |
Redeemable noncontrolling interests | 25,925 |  |  | 25,430 |  |  | 23,522 |  |  | 23,148 |  |  | 22,912 |
Equity: |  |  |  |  |  |  |  |  |
COPT’s shareholders’ equity: |  |  |  |  |  |  |  |  |
Common shares | 1,123 |  |  | 1,122 |  |  | 1,122 |  |  | 1,122 |  |  | 1,122 |
Additional paid-in capital | 2,476,807 |  |  | 2,478,906 |  |  | 2,479,321 |  |  | 2,477,977 |  |  | 2,476,677 |
Cumulative distributions in excess of net income | (847,407) |  |  | (809,836) |  |  | (860,647) |  |  | (797,959) |  |  | (790,600) |
Accumulated other comprehensive loss | (7,391) |  |  | (9,157) |  |  | (10,548) |  |  | (64,513) |  |  | (62,201) |
Total COPT’s shareholders’ equity | 1,623,132 |  |  | 1,661,035 |  |  | 1,609,248 |  |  | 1,616,627 |  |  | 1,624,998 |
Noncontrolling interests in subsidiaries: |  |  |  |  |  |  |  |  |
Common units in the Operating Partnership | 21,345 |  |  | 20,465 |  |  | 19,522 |  |  | 19,611 |  |  | 19,600 |
Preferred units in the Operating Partnership | — |  |  | — |  |  | 8,800 |  |  | 8,800 |  |  | 8,800 |
Other consolidated entities | 12,315 |  |  | 12,212 |  |  | 12,066 |  |  | 11,886 |  |  | 11,788 |
Total noncontrolling interests in subsidiaries | 33,660 |  |  | 32,677 |  |  | 40,388 |  |  | 40,297 |  |  | 40,188 |
Total equity | 1,656,792 |  |  | 1,693,712 |  |  | 1,649,636 |  |  | 1,656,924 |  |  | 1,665,186 |
Total liabilities, redeemable noncontrolling interests and equity | $ | 4,112,948 |  |  | $ | 4,077,023 |  |  | $ | 4,120,189 |  |  | $ | 4,011,325 |  |  | $ | 4,054,457 |

(1)Refer to pages 23 and 25 for detail.
5

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

| Three Months Ended |  |
| 3/31/21 |  | 12/31/20 |  | 9/30/20 |  | 6/30/20 |  | 3/31/20 |  |  |  |
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Lease revenue | $ | 144,624 |  |  | $ | 139,093 |  |  | $ | 133,875 |  |  | $ | 132,147 |  |  | $ | 131,012 |  |  |  |  |
Other property revenue | 540 |  |  | 535 |  |  | 568 |  |  | 391 |  |  | 1,104 |  |  |  |  |
Construction contract and other service revenues | 16,558 |  |  | 24,400 |  |  | 20,323 |  |  | 12,236 |  |  | 13,681 |  |  |  |  |
Total revenues | 161,722 |  |  | 164,028 |  |  | 154,766 |  |  | 144,774 |  |  | 145,797 |  |  |  |  |
Operating expenses |  |  |  |  |  |  |  |  |  |  |  |  |
Property operating expenses | 56,974 |  |  | 52,085 |  |  | 51,552 |  |  | 50,204 |  |  | 49,999 |  |  |  |  |
Depreciation and amortization associated with real estate operations | 37,321 |  |  | 36,653 |  |  | 35,332 |  |  | 33,612 |  |  | 32,596 |  |  |  |  |
Construction contract and other service expenses | 15,793 |  |  | 23,563 |  |  | 19,220 |  |  | 11,711 |  |  | 13,121 |  |  |  |  |
Impairment losses | — |  |  | — |  |  | 1,530 |  |  | — |  |  | — |  |  |  |  |
General and administrative expenses | 6,062 |  |  | 7,897 |  |  | 5,558 |  |  | 6,511 |  |  | 5,303 |  |  |  |  |
Leasing expenses | 2,344 |  |  | 1,993 |  |  | 1,909 |  |  | 1,647 |  |  | 2,183 |  |  |  |  |
Business development expenses and land carry costs | 1,094 |  |  | 999 |  |  | 1,094 |  |  | 1,262 |  |  | 1,118 |  |  |  |  |
Total operating expenses | 119,588 |  |  | 123,190 |  |  | 116,195 |  |  | 104,947 |  |  | 104,320 |  |  |  |  |
Interest expense | (17,519) |  |  | (17,148) |  |  | (17,152) |  |  | (16,797) |  |  | (16,840) |  |  |  |  |
Interest and other income | 1,865 |  |  | 3,341 |  |  | 1,746 |  |  | 2,282 |  |  | 1,205 |  |  |  |  |
Credit loss recoveries (expense) (1) | 907 |  |  | 772 |  |  | 1,465 |  |  | (615) |  |  | (689) |  |  |  |  |
Gain on sales of real estate | (490) |  |  | 30,204 |  |  | — |  |  | — |  |  | 5 |  |  |  |  |
Gain on sale of investment in unconsolidated real estate joint venture | — |  |  | 29,416 |  |  | — |  |  | — |  |  | — |  |  |  |  |
Loss on early extinguishment of debt | (33,166) |  |  | (4,069) |  |  | (3,237) |  |  | — |  |  | — |  |  |  |  |
Loss on interest rate derivatives | — |  |  | — |  |  | (53,196) |  |  | — |  |  | — |  |  |  |  |
(Loss) income before equity in income of unconsolidated entities and income taxes | (6,269) |  |  | 83,354 |  |  | (31,803) |  |  | 24,697 |  |  | 25,158 |  |  |  |  |
Equity in income of unconsolidated entities | 222 |  |  | 453 |  |  | 477 |  |  | 454 |  |  | 441 |  |  |  |  |
Income tax expense | (32) |  |  | (258) |  |  | (16) |  |  | (30) |  |  | (49) |  |  |  |  |
Net (loss) income | (6,079) |  |  | 83,549 |  |  | (31,342) |  |  | 25,121 |  |  | 25,550 |  |  |  |  |
Net loss (income) attributable to noncontrolling interests: |  |  |  |  |  |  |  |  |  |  |  |  |
Common units in the Operating Partnership | 85 |  |  | (995) |  |  | 386 |  |  | (284) |  |  | (287) |  |  |  |  |
Preferred units in the Operating Partnership | — |  |  | (69) |  |  | (77) |  |  | (77) |  |  | (77) |  |  |  |  |
Other consolidated entities | (675) |  |  | (817) |  |  | (812) |  |  | (1,263) |  |  | (1,132) |  |  |  |  |
Net (loss) income attributable to COPT common shareholders | $ | (6,669) |  |  | $ | 81,668 |  |  | $ | (31,845) |  |  | $ | 23,497 |  |  | $ | 24,054 |  |  |  |  |
Amount allocable to share-based compensation awards | (170) |  |  | (280) |  |  | (145) |  |  | (109) |  |  | (97) |  |  |  |  |
Redeemable noncontrolling interests | — |  |  | 44 |  |  | — |  |  | — |  |  | — |  |  |  |  |
Distributions on dilutive convertible preferred units | — |  |  | 69 |  |  | — |  |  | — |  |  | — |  |  |  |  |
Numerator for diluted EPS | $ | (6,839) |  |  | $ | 81,501 |  |  | $ | (31,990) |  |  | $ | 23,388 |  |  | $ | 23,957 |  |  |  |  |

(1)Excludes credit losses on lease revenue, which are included in lease revenue.
6

Corporate Office Properties Trust
Funds from Operations
(in thousands)

| Three Months Ended |  |
| 3/31/21 |  | 12/31/20 |  | 9/30/20 |  | 6/30/20 |  | 3/31/20 |  |  |  |
Net (loss) income | $ | (6,079) |  |  | $ | 83,549 |  |  | $ | (31,342) |  |  | $ | 25,121 |  |  | $ | 25,550 |  |  |  |  |
Real estate-related depreciation and amortization | 37,321 |  |  | 36,653 |  |  | 35,332 |  |  | 33,612 |  |  | 32,596 |  |  |  |  |
Impairment losses on real estate | — |  |  | — |  |  | 1,530 |  |  | — |  |  | — |  |  |  |  |
Gain on sales of real estate | 490 |  |  | (30,204) |  |  | — |  |  | — |  |  | (5) |  |  |  |  |
Gain on sale of investment in unconsolidated real estate JV | — |  |  | (29,416) |  |  | — |  |  | — |  |  | — |  |  |  |  |
Depreciation and amortization on unconsolidated real estate JVs (1) | 454 |  |  | 874 |  |  | 819 |  |  | 818 |  |  | 818 |  |  |  |  |
FFO - per Nareit (2)(3) | 32,186 |  |  | 61,456 |  |  | 6,339 |  |  | 59,551 |  |  | 58,959 |  |  |  |  |
Noncontrolling interests - preferred units in the Operating Partnership | — |  |  | (69) |  |  | (77) |  |  | (77) |  |  | (77) |  |  |  |  |
FFO allocable to other noncontrolling interests (4) | (1,027) |  |  | (1,091) |  |  | (1,074) |  |  | (1,525) |  |  | (12,015) |  |  |  |  |
Basic FFO allocable to share-based compensation awards | (162) |  |  | (272) |  |  | (119) |  |  | (254) |  |  | (193) |  |  |  |  |
Basic FFO available to common share and common unit holders (3) | 30,997 |  |  | 60,024 |  |  | 5,069 |  |  | 57,695 |  |  | 46,674 |  |  |  |  |
Dilutive preferred units in the Operating Partnership | — |  |  | 69 |  |  | — |  |  | 77 |  |  | — |  |  |  |  |
Redeemable noncontrolling interests | — |  |  | 44 |  |  | — |  |  | 37 |  |  | 32 |  |  |  |  |
Diluted FFO available to common share and common unit holders - per Nareit (3) | 30,997 |  |  | 60,137 |  |  | 5,069 |  |  | 57,809 |  |  | 46,706 |  |  |  |  |
Loss on early extinguishment of debt | 33,166 |  |  | 4,069 |  |  | 3,237 |  |  | — |  |  | — |  |  |  |  |
Loss on interest rate derivatives | — |  |  | — |  |  | 53,196 |  |  | — |  |  | — |  |  |  |  |
Demolition costs on redevelopment and nonrecurring improvements | — |  |  | — |  |  | 11 |  |  | 9 |  |  | 43 |  |  |  |  |
Dilutive preferred units in the Operating Partnership | — |  |  | — |  |  | 77 |  |  | — |  |  | 77 |  |  |  |  |
FFO allocation to other noncontrolling interests resulting from capital event (4) | — |  |  | — |  |  | — |  |  | — |  |  | 11,090 |  |  |  |  |
Diluted FFO comparability adjustments for redeemable noncontrolling interests | 458 |  |  | — |  |  | 34 |  |  | — |  |  | — |  |  |  |  |
Diluted FFO comparability adjustments allocable to share-based compensation awards | (167) |  |  | (18) |  |  | (139) |  |  | (1) |  |  | (50) |  |  |  |  |
Diluted FFO available to common share and common unit holders, as adjusted for comparability (3) | $ | 64,454 |  |  | $ | 64,188 |  |  | $ | 61,485 |  |  | $ | 57,817 |  |  | $ | 57,866 |  |  |  |  |

(1)FFO adjustment pertaining to COPT’s share of unconsolidated real estate joint ventures reported on page 31.
(2)See reconciliation on page 32 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 30.
7

Corporate Office Properties Trust
Diluted Share and Unit Computations
(in thousands, except per share data)

| Three Months Ended |  |
| 3/31/21 |  | 12/31/20 |  | 9/30/20 |  | 6/30/20 |  | 3/31/20 |  |  |  |
EPS Denominator: |  |  |  |  |  |  |  |  |  |  |  |  |
Weighted average common shares - basic | 111,888 |  |  | 111,817 |  |  | 111,811 |  |  | 111,800 |  |  | 111,724 |  |  |  |  |
Dilutive effect of share-based compensation awards | — |  |  | 320 |  |  | — |  |  | 321 |  |  | 239 |  |  |  |  |
Dilutive effect of redeemable noncontrolling interests | — |  |  | 117 |  |  | — |  |  | — |  |  | — |  |  |  |  |
Dilutive convertible preferred units | — |  |  | 155 |  |  | — |  |  | — |  |  | — |  |  |  |  |
Weighted average common shares - diluted | 111,888 |  |  | 112,409 |  |  | 111,811 |  |  | 112,121 |  |  | 111,963 |  |  |  |  |
Diluted EPS | $ | (0.06) |  |  | $ | 0.73 |  |  | $ | (0.29) |  |  | $ | 0.21 |  |  | $ | 0.21 |  |  |  |  |
Weighted Average Shares for period ended: |  |  |  |  |  |  |  |  |  |  |  |  |
Common shares | 111,888 |  |  | 111,817 |  |  | 111,811 |  |  | 111,800 |  |  | 111,724 |  |  |  |  |
Dilutive effect of share-based compensation awards | 261 |  |  | 320 |  |  | 274 |  |  | 321 |  |  | 239 |  |  |  |  |
Common units | 1,246 |  |  | 1,239 |  |  | 1,240 |  |  | 1,237 |  |  | 1,226 |  |  |  |  |
Redeemable noncontrolling interests | — |  |  | 117 |  |  | — |  |  | 157 |  |  | 110 |  |  |  |  |
Dilutive convertible preferred units | — |  |  | 155 |  |  | — |  |  | 176 |  |  | — |  |  |  |  |
Denominator for diluted FFO per share | 113,395 |  |  | 113,648 |  |  | 113,325 |  |  | 113,691 |  |  | 113,299 |  |  |  |  |
Redeemable noncontrolling interests | 940 |  |  | — |  |  | 109 |  |  | — |  |  | — |  |  |  |  |
Dilutive convertible preferred units | — |  |  | — |  |  | 176 |  |  | — |  |  | 176 |  |  |  |  |
Denominator for diluted FFO per share, as adjusted for comparability | 114,335 |  |  | 113,648 |  |  | 113,610 |  |  | 113,691 |  |  | 113,475 |  |  |  |  |
Weighted average common units | (1,246) |  |  | (1,239) |  |  | (1,240) |  |  | (1,237) |  |  | (1,226) |  |  |  |  |
Redeemable noncontrolling interests | (940) |  |  | — |  |  | (109) |  |  | (157) |  |  | (110) |  |  |  |  |
Anti-dilutive EPS effect of share-based compensation awards | (261) |  |  | — |  |  | (274) |  |  | — |  |  | — |  |  |  |  |
Dilutive convertible preferred units | — |  |  | — |  |  | (176) |  |  | (176) |  |  | (176) |  |  |  |  |
Denominator for diluted EPS | 111,888 |  |  | 112,409 |  |  | 111,811 |  |  | 112,121 |  |  | 111,963 |  |  |  |  |
Diluted FFO per share - Nareit | $ | 0.27 |  |  | $ | 0.53 |  |  | $ | 0.04 |  |  | $ | 0.51 |  |  | $ | 0.41 |  |  |  |  |
Diluted FFO per share - as adjusted for comparability | $ | 0.56 |  |  | $ | 0.56 |  |  | $ | 0.54 |  |  | $ | 0.51 |  |  | $ | 0.51 |  |  |  |  |

8

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

| Three Months Ended |  |
| 3/31/21 |  | 12/31/20 |  | 9/30/20 |  | 6/30/20 |  | 3/31/20 |  |  |  |
Diluted FFO available to common share and common unit holders, as adjusted for comparability | $ | 64,454 |  |  | $ | 64,188 |  |  | $ | 61,485 |  |  | $ | 57,817 |  |  | $ | 57,866 |  |  |  |  |
Straight line rent adjustments and lease incentive amortization | (3,357) |  |  | 3,438 |  |  | (1,009) |  |  | 2,523 |  |  | (852) |  |  |  |  |
Amortization of intangibles and other assets included in NOI | 40 |  |  | 24 |  |  | (39) |  |  | (73) |  |  | (74) |  |  |  |  |
Share-based compensation, net of amounts capitalized | 1,904 |  |  | 1,751 |  |  | 1,727 |  |  | 1,638 |  |  | 1,389 |  |  |  |  |
Amortization of deferred financing costs | 793 |  |  | 664 |  |  | 658 |  |  | 642 |  |  | 575 |  |  |  |  |
Amortization of net debt discounts, net of amounts capitalized | 542 |  |  | 504 |  |  | 453 |  |  | 390 |  |  | 386 |  |  |  |  |
Replacement capital expenditures (1) | (12,230) |  |  | (13,973) |  |  | (13,085) |  |  | (16,132) |  |  | (17,754) |  |  |  |  |
Other diluted AFFO adjustments associated with real estate JVs (2) | 241 |  |  | 196 |  |  | 150 |  |  | (115) |  |  | (41) |  |  |  |  |
Diluted AFFO available to common share and common unit holders (“diluted AFFO”) | $ | 52,387 |  |  | $ | 56,792 |  |  | $ | 50,340 |  |  | $ | 46,690 |  |  | $ | 41,495 |  |  |  |  |
Replacement capital expenditures (1) |  |  |  |  |  |  |  |  |  |  |  |  |
Tenant improvements and incentives | $ | 7,139 |  |  | $ | 9,165 |  |  | $ | 6,950 |  |  | $ | 8,870 |  |  | $ | 11,357 |  |  |  |  |
Building improvements | 3,628 |  |  | 7,523 |  |  | 10,400 |  |  | 13,662 |  |  | 2,475 |  |  |  |  |
Leasing costs | 1,129 |  |  | 1,514 |  |  | 1,934 |  |  | 2,222 |  |  | 2,762 |  |  |  |  |
Net additions to (exclusions from) tenant improvements and incentives | 2,900 |  |  | (370) |  |  | (943) |  |  | 329 |  |  | 2,026 |  |  |  |  |
Excluded building improvements and leasing costs | (2,566) |  |  | (3,859) |  |  | (5,256) |  |  | (8,951) |  |  | (866) |  |  |  |  |
Replacement capital expenditures | $ | 12,230 |  |  | $ | 13,973 |  |  | $ | 13,085 |  |  | $ | 16,132 |  |  | $ | 17,754 |  |  |  |  |

(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 30 and COPT’s share of unconsolidated real estate joint ventures reported on page 31.
9

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

| Three Months Ended |  |
| 3/31/21 |  | 12/31/20 |  | 9/30/20 |  | 6/30/20 |  | 3/31/20 |  |  |  |
Net (loss) income | $ | (6,079) |  |  | $ | 83,549 |  |  | $ | (31,342) |  |  | $ | 25,121 |  |  | $ | 25,550 |  |  |  |  |
Interest expense | 17,519 |  |  | 17,148 |  |  | 17,152 |  |  | 16,797 |  |  | 16,840 |  |  |  |  |
Income tax expense | 32 |  |  | 258 |  |  | 16 |  |  | 30 |  |  | 49 |  |  |  |  |
Real estate-related depreciation and amortization | 37,321 |  |  | 36,653 |  |  | 35,332 |  |  | 33,612 |  |  | 32,596 |  |  |  |  |
Other depreciation and amortization | 555 |  |  | 513 |  |  | 457 |  |  | 448 |  |  | 419 |  |  |  |  |
Impairment losses on real estate | — |  |  | — |  |  | 1,530 |  |  | — |  |  | — |  |  |  |  |
Gain on sales of real estate | 490 |  |  | (30,204) |  |  | — |  |  | — |  |  | (5) |  |  |  |  |
Gain on sale of investment in unconsolidated real estate JV | — |  |  | (29,416) |  |  | — |  |  | — |  |  | — |  |  |  |  |
Adjustments from unconsolidated real estate JVs | 693 |  |  | 1,306 |  |  | 1,274 |  |  | 1,270 |  |  | 1,270 |  |  |  |  |
EBITDAre | 50,531 |  |  | 79,807 |  |  | 24,419 |  |  | 77,278 |  |  | 76,719 |  |  |  |  |
Loss on early extinguishment of debt | 33,166 |  |  | 4,069 |  |  | 3,237 |  |  | — |  |  | — |  |  |  |  |
Loss on interest rate derivatives | — |  |  | — |  |  | 53,196 |  |  | — |  |  | — |  |  |  |  |
Net (gain) loss on other investments | — |  |  | (1,218) |  |  | 250 |  |  | 2 |  |  | — |  |  |  |  |
Credit loss (recoveries) expense | (907) |  |  | (772) |  |  | (1,465) |  |  | 615 |  |  | 689 |  |  |  |  |
Business development expenses | 548 |  |  | 412 |  |  | 414 |  |  | 678 |  |  | 538 |  |  |  |  |
Demolition costs on redevelopment and nonrecurring improvements | — |  |  | — |  |  | 11 |  |  | 9 |  |  | 43 |  |  |  |  |
Adjusted EBITDA | 83,338 |  |  | 82,298 |  |  | 80,062 |  |  | 78,582 |  |  | 77,989 |  |  |  |  |
Proforma NOI adjustment for property changes within period | 166 |  |  | 1,459 |  |  | 1,631 |  |  | 959 |  |  | 734 |  |  |  |  |
Change in collectability of deferred rental revenue | 124 |  |  | 678 |  |  | 224 |  |  | 1,007 |  |  | — |  |  |  |  |
In-place adjusted EBITDA | $ | 83,628 |  |  | $ | 84,435 |  |  | $ | 81,917 |  |  | $ | 80,548 |  |  | $ | 78,723 |  |  |  |  |

10

Corporate Office Properties Trust
Office and Data Center Shell Properties by Segment (1) - 3/31/21
(square feet in thousands)

|  | # of Properties |  | Operational Square Feet |  | % Occupied |  | % Leased
Core Portfolio: (2) |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |
Fort Meade/Baltimore Washington (“BW”) Corridor: |  |  |  |  |  |  |  |
National Business Park |  | 31 |  |  | 3,821 |  |  | 90.5% |  | 92.7%
Howard County |  | 35 |  |  | 2,858 |  |  | 89.3% |  | 92.6%
Other |  | 23 |  |  | 1,678 |  |  | 91.8% |  | 92.2%
Total Fort Meade/BW Corridor |  | 89 |  |  | 8,357 |  |  | 90.4% |  | 92.5%
Northern Virginia (“NoVA”) Defense/IT |  | 13 |  |  | 1,992 |  |  | 87.6% |  | 87.8%
Lackland AFB (San Antonio, Texas) |  | 7 |  |  | 953 |  |  | 100.0% |  | 100.0%
Navy Support |  | 21 |  |  | 1,242 |  |  | 96.9% |  | 96.9%
Redstone Arsenal (Huntsville, Alabama) |  | 16 |  |  | 1,500 |  |  | 99.6% |  | 99.6%
Data Center Shells: |  |  |  |  |  |  |  |
Consolidated Properties |  | 9 |  |  | 1,990 |  |  | 100.0% |  | 100.0%
Unconsolidated JV Properties (3) |  | 17 |  |  | 2,749 |  |  | 100.0% |  | 100.0%
Total Defense/IT Locations |  | 172 |  |  | 18,783 |  |  | 94.2% |  | 95.1%
Regional Office |  | 8 |  |  | 2,066 |  |  | 92.9% |  | 92.9%
Core Portfolio |  | 180 |  |  | 20,849 |  |  | 94.0% |  | 94.9%
Other Properties |  | 2 |  |  | 157 |  |  | 68.4% |  | 68.4%
Total Portfolio |  | 182 |  |  | 21,006 |  |  | 93.8% |  | 94.7%
Consolidated Portfolio |  | 165 |  |  | 18,257 |  |  | 92.9% |  | 93.9%

(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 31 for additional disclosure regarding our unconsolidated real estate JVs.
11

Corporate Office Properties Trust
NOI from Real Estate Operations and Occupancy by Property Grouping - 3/31/21
(dollars and square feet in thousands)

|  | As of Period End |  |  |  |
|  | # of Office and Data Center Shell Properties |  | Operational Square Feet |  | % Occupied (1) |  | % Leased (1) |  | Annualized Rental Revenue (2) |  | % of Total Annualized Rental Revenue (2) |  | NOI from Real Estate Operations
Property Grouping |  |  |  |  |  |  |  | Three Months Ended |  |
Core Portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Same Properties: (3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated properties |  | 150 |  |  | 16,174 |  |  | 92.4% |  | 93.5% |  | $ | 499,156 |  |  | 91.1 | % |  | $ | 75,006 |  |  |
Unconsolidated real estate JV |  | 9 |  |  | 1,471 |  |  | 100.0% |  | 100.0% |  | 2,147 |  |  | 0.4 | % |  | 499 |  |  |
Total Same Properties in Core Portfolio |  | 159 |  |  | 17,645 |  |  | 93.0% |  | 94.0% |  | 501,303 |  |  | 91.5 | % |  | 75,505 |  |  |
Properties Placed in Service (4) |  | 13 |  |  | 1,926 |  |  | 99.5% |  | 99.6% |  | 42,274 |  |  | 7.7 | % |  | 9,229 |  |  |
Other unconsolidated JV properties (5) |  | 8 |  |  | 1,278 |  |  | 100.0% |  | 100.0% |  | 1,723 |  |  | 0.3 | % |  | 418 |  |  |
Wholesale Data Center and Other |  | N/A |  | N/A |  | N/A |  | N/A |  | N/A |  | N/A |  | 3,627 |  |  |
Total Core Portfolio |  | 180 |  |  | 20,849 |  |  | 94.0% |  | 94.9% |  | 545,300 |  |  | 99.5 | % |  | 88,779 |  |  |
Other Properties (Same Properties) (3) |  | 2 |  |  | 157 |  |  | 68.4% |  | 68.4% |  | 2,626 |  |  | 0.5 | % |  | 328 |  |  |
Total Portfolio |  | 182 |  |  | 21,006 |  |  | 93.8% |  | 94.7% |  | $ | 547,926 |  |  | 100.0 | % |  | $ | 89,107 |  |  |
Consolidated Portfolio |  | 165 |  |  | 18,257 |  |  | 92.9% |  | 93.9% |  | $ | 544,055 |  |  | 99.3 | % |  | $ | 88,190 |  |  |
|  | As of Period End |  |  |  |
|  | # of Office and Data Center Shell Properties |  | Operational Square Feet |  | % Occupied (1) |  | % Leased (1) |  | Annualized Rental Revenue (2) |  | % of Core Annualized Rental Revenue (2) |  | NOI from Real Estate Operations
Property Grouping |  |  |  |  |  |  |  | Three Months Ended |  |
Core Portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated properties |  | 155 |  |  | 16,034 |  |  | 93.2% |  | 94.3% |  | $ | 473,625 |  |  | 86.9 | % |  | $ | 75,160 |  |  |
Unconsolidated real estate JVs |  | 17 |  |  | 2,749 |  |  | 100.0% |  | 100.0% |  | 3,870 |  |  | 0.7 | % |  | 917 |  |  |
Total Defense/IT Locations |  | 172 |  |  | 18,783 |  |  | 94.2% |  | 95.1% |  | 477,495 |  |  | 87.6 | % |  | 76,077 |  |  |
Regional Office |  | 8 |  |  | 2,066 |  |  | 92.9% |  | 92.9% |  | 67,805 |  |  | 12.4 | % |  | 9,013 |  |  |
Wholesale Data Center and Other |  | N/A |  | N/A |  | N/A |  | N/A |  | N/A |  | N/A |  | 3,689 |  |  |
Total Core Portfolio |  | 180 |  |  | 20,849 |  |  | 94.0% |  | 94.9% |  | $ | 545,300 |  |  | 100.0 | % |  | $ | 88,779 |  |  |

(1)Percentages calculated based on operational square feet.
(2)Excludes Annualized Rental Revenue from our wholesale data center, DC-6, of $24.8 million as of 3/31/21. With regard to properties owned through unconsolidated real estate joint ventures, we include the portion of Annualized Rental Revenue allocable to COPT’s ownership interest.
(3)Includes office and data center shell properties stably owned and 100% operational since at least 1/1/20.
(4)Newly developed or redeveloped properties placed in service that were not fully operational by 1/1/20.
(5)Includes properties in an unconsolidated real estate JV formed in 2020.
12

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

| Three Months Ended |  |
| 3/31/21 |  | 12/31/20 |  | 9/30/20 |  | 6/30/20 |  | 3/31/20 |  |  |  |
Consolidated real estate revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |  |  |  |  |  |
Fort Meade/BW Corridor | $ | 66,446 |  |  | $ | 63,733 |  |  | $ | 63,328 |  |  | $ | 62,698 |  |  | $ | 64,438 |  |  |  |  |
NoVA Defense/IT | 15,211 |  |  | 14,993 |  |  | 14,699 |  |  | 14,447 |  |  | 13,678 |  |  |  |  |
Lackland Air Force Base | 12,555 |  |  | 13,047 |  |  | 12,602 |  |  | 13,257 |  |  | 12,076 |  |  |  |  |
Navy Support | 8,398 |  |  | 8,403 |  |  | 8,006 |  |  | 8,119 |  |  | 8,341 |  |  |  |  |
Redstone Arsenal | 8,253 |  |  | 7,113 |  |  | 6,079 |  |  | 4,647 |  |  | 4,676 |  |  |  |  |
Data Center Shells-Consolidated | 8,787 |  |  | 8,491 |  |  | 7,995 |  |  | 7,076 |  |  | 5,577 |  |  |  |  |
Total Defense/IT Locations | 119,650 |  |  | 115,780 |  |  | 112,709 |  |  | 110,244 |  |  | 108,786 |  |  |  |  |
Regional Office | 16,677 |  |  | 15,092 |  |  | 14,913 |  |  | 15,162 |  |  | 15,460 |  |  |  |  |
Wholesale Data Center | 8,090 |  |  | 8,093 |  |  | 6,068 |  |  | 6,455 |  |  | 7,172 |  |  |  |  |
Other | 747 |  |  | 663 |  |  | 753 |  |  | 677 |  |  | 698 |  |  |  |  |
Consolidated real estate revenues | $ | 145,164 |  |  | $ | 139,628 |  |  | $ | 134,443 |  |  | $ | 132,538 |  |  | $ | 132,116 |  |  |  |  |
NOI |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |  |  |  |  |  |
Fort Meade/BW Corridor | $ | 41,775 |  |  | $ | 42,319 |  |  | $ | 41,791 |  |  | $ | 41,839 |  |  | $ | 43,216 |  |  |  |  |
NoVA Defense/IT | 9,335 |  |  | 9,437 |  |  | 9,454 |  |  | 9,112 |  |  | 8,493 |  |  |  |  |
Lackland Air Force Base | 5,681 |  |  | 5,688 |  |  | 5,486 |  |  | 5,472 |  |  | 5,281 |  |  |  |  |
Navy Support | 4,965 |  |  | 5,248 |  |  | 4,962 |  |  | 4,948 |  |  | 5,056 |  |  |  |  |
Redstone Arsenal | 5,699 |  |  | 4,482 |  |  | 4,050 |  |  | 3,035 |  |  | 2,829 |  |  |  |  |
Data Center Shells: |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated properties | 7,705 |  |  | 7,603 |  |  | 7,134 |  |  | 6,287 |  |  | 4,920 |  |  |  |  |
COPT’s share of unconsolidated real estate JVs | 917 |  |  | 1,761 |  |  | 1,752 |  |  | 1,725 |  |  | 1,713 |  |  |  |  |
Total Defense/IT Locations | 76,077 |  |  | 76,538 |  |  | 74,629 |  |  | 72,418 |  |  | 71,508 |  |  |  |  |
Regional Office | 9,013 |  |  | 8,155 |  |  | 7,131 |  |  | 8,274 |  |  | 7,923 |  |  |  |  |
Wholesale Data Center | 3,669 |  |  | 4,260 |  |  | 2,426 |  |  | 2,992 |  |  | 3,939 |  |  |  |  |
Other | 348 |  |  | 351 |  |  | 457 |  |  | 375 |  |  | 460 |  |  |  |  |
NOI from real estate operations | $ | 89,107 |  |  | $ | 89,304 |  |  | $ | 84,643 |  |  | $ | 84,059 |  |  | $ | 83,830 |  |  |  |  |

13

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

| Three Months Ended |  |
| 3/31/21 |  | 12/31/20 |  | 9/30/20 |  | 6/30/20 |  | 3/31/20 |  |  |  |
Cash NOI |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |  |  |  |  |  |
Fort Meade/BW Corridor | $ | 39,666 |  |  | $ | 42,430 |  |  | $ | 41,365 |  |  | $ | 41,968 |  |  | $ | 42,170 |  |  |  |  |
NoVA Defense/IT | 9,222 |  |  | 9,519 |  |  | 9,410 |  |  | 9,610 |  |  | 9,118 |  |  |  |  |
Lackland Air Force Base | 5,999 |  |  | 6,006 |  |  | 5,929 |  |  | 5,903 |  |  | 5,701 |  |  |  |  |
Navy Support | 4,965 |  |  | 5,376 |  |  | 5,130 |  |  | 5,248 |  |  | 5,146 |  |  |  |  |
Redstone Arsenal | 4,706 |  |  | 4,383 |  |  | 2,848 |  |  | 2,580 |  |  | 2,494 |  |  |  |  |
Data Center Shells: |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated properties | 6,505 |  |  | 6,588 |  |  | 6,234 |  |  | 5,505 |  |  | 4,316 |  |  |  |  |
COPT’s share of unconsolidated real estate JVs | 816 |  |  | 1,668 |  |  | 1,655 |  |  | 1,641 |  |  | 1,633 |  |  |  |  |
Total Defense/IT Locations | 71,879 |  |  | 75,970 |  |  | 72,571 |  |  | 72,455 |  |  | 70,578 |  |  |  |  |
Regional Office | 7,448 |  |  | 8,156 |  |  | 7,045 |  |  | 8,078 |  |  | 7,479 |  |  |  |  |
Wholesale Data Center | 3,760 |  |  | 4,320 |  |  | 2,480 |  |  | 3,005 |  |  | 3,848 |  |  |  |  |
Other | 363 |  |  | 356 |  |  | 438 |  |  | 358 |  |  | 457 |  |  |  |  |
Cash NOI from real estate operations | 83,450 |  |  | 88,802 |  |  | 82,534 |  |  | 83,896 |  |  | 82,362 |  |  |  |  |
Straight line rent adjustments and lease incentive amortization | 4,006 |  |  | (3,104) |  |  | 1,016 |  |  | (2,360) |  |  | 909 |  |  |  |  |
Amortization of acquired above- and below-market rents | 99 |  |  | 99 |  |  | 98 |  |  | 97 |  |  | 96 |  |  |  |  |
Amortization of intangibles and other assets to property operating expenses | (139) |  |  | (122) |  |  | (60) |  |  | (22) |  |  | (23) |  |  |  |  |
Lease termination fees, net | 1,362 |  |  | 141 |  |  | 455 |  |  | 199 |  |  | 37 |  |  |  |  |
Tenant funded landlord assets and lease incentives | 228 |  |  | 3,395 |  |  | 504 |  |  | 2,164 |  |  | 369 |  |  |  |  |
Cash NOI adjustments in unconsolidated real estate JVs | 101 |  |  | 93 |  |  | 96 |  |  | 85 |  |  | 80 |  |  |  |  |
NOI from real estate operations | $ | 89,107 |  |  | $ | 89,304 |  |  | $ | 84,643 |  |  | $ | 84,059 |  |  | $ | 83,830 |  |  |  |  |

14

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

| # of Properties |  | Operational Square Feet |  | Three Months Ended |  |
|  |  | 3/31/21 |  | 12/31/20 |  | 9/30/20 |  | 6/30/20 |  | 3/31/20 |  |  |  |
Core Portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fort Meade/BW Corridor | 87 |  |  | 8,195 |  |  | 90.3 | % |  | 91.2 | % |  | 90.8 | % |  | 91.2 | % |  | 92.3 | % |  |  |  |
NoVA Defense/IT | 13 |  |  | 1,992 |  |  | 87.8 | % |  | 88.4 | % |  | 88.4 | % |  | 87.0 | % |  | 83.9 | % |  |  |  |
Lackland Air Force Base | 7 |  |  | 953 |  |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  |  |  |
Navy Support | 21 |  |  | 1,242 |  |  | 96.8 | % |  | 96.9 | % |  | 94.6 | % |  | 94.0 | % |  | 93.6 | % |  |  |  |
Redstone Arsenal | 10 |  |  | 806 |  |  | 99.2 | % |  | 99.1 | % |  | 99.7 | % |  | 99.7 | % |  | 99.5 | % |  |  |  |
Data Center Shells: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated properties | 5 |  |  | 1,027 |  |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  |  |  |
Unconsolidated JV properties | 9 |  |  | 1,471 |  |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  |  |  |
Total Defense/IT Locations | 152 |  |  | 15,686 |  |  | 93.1 | % |  | 93.6 | % |  | 93.3 | % |  | 93.3 | % |  | 93.4 | % |  |  |  |
Regional Office | 7 |  |  | 1,959 |  |  | 92.0 | % |  | 92.1 | % |  | 92.1 | % |  | 92.0 | % |  | 90.6 | % |  |  |  |
Core Portfolio Same Properties | 159 |  |  | 17,645 |  |  | 92.9 | % |  | 93.4 | % |  | 93.2 | % |  | 93.1 | % |  | 93.1 | % |  |  |  |
Other Same Properties | 2 |  |  | 157 |  |  | 68.4 | % |  | 68.4 | % |  | 68.4 | % |  | 65.8 | % |  | 67.4 | % |  |  |  |
Total Same Properties | 161 |  |  | 17,802 |  |  | 92.7 | % |  | 93.2 | % |  | 92.9 | % |  | 92.9 | % |  | 92.8 | % |  |  |  |
Same Properties (1) Period End Occupancy Rates by Segment (square feet in thousands)
| # of Properties |  | Operational Square Feet |  |  |  |
|  |  | 3/31/21 |  | 12/31/20 |  | 9/30/20 |  | 6/30/20 |  | 3/31/20 |  |  |  |
Core Portfolio: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Fort Meade/BW Corridor | 87 |  |  | 8,195 |  |  | 90.3 | % |  | 91.0 | % |  | 90.9 | % |  | 91.0 | % |  | 92.4 | % |  |  |  |
NoVA Defense/IT | 13 |  |  | 1,992 |  |  | 87.6 | % |  | 88.1 | % |  | 88.5 | % |  | 87.0 | % |  | 85.5 | % |  |  |  |
Lackland Air Force Base | 7 |  |  | 953 |  |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  |  |  |
Navy Support | 21 |  |  | 1,242 |  |  | 96.9 | % |  | 97.2 | % |  | 95.6 | % |  | 93.9 | % |  | 94.0 | % |  |  |  |
Redstone Arsenal | 10 |  |  | 806 |  |  | 99.2 | % |  | 98.9 | % |  | 99.2 | % |  | 99.7 | % |  | 99.7 | % |  |  |  |
Data Center Shells: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated properties | 5 |  |  | 1,027 |  |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  |  |  |
Unconsolidated JV properties | 9 |  |  | 1,471 |  |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  | 100.0 | % |  |  |  |
Total Defense/IT Locations | 152 |  |  | 15,686 |  |  | 93.1 | % |  | 93.5 | % |  | 93.4 | % |  | 93.2 | % |  | 93.7 | % |  |  |  |
Regional Office | 7 |  |  | 1,959 |  |  | 92.5 | % |  | 92.1 | % |  | 92.3 | % |  | 92.0 | % |  | 91.4 | % |  |  |  |
Core Portfolio Same Properties | 159 |  |  | 17,645 |  |  | 93.0 | % |  | 93.3 | % |  | 93.3 | % |  | 93.0 | % |  | 93.4 | % |  |  |  |
Other Same Properties | 2 |  |  | 157 |  |  | 68.4 | % |  | 68.4 | % |  | 68.4 | % |  | 68.4 | % |  | 64.6 | % |  |  |  |
Total Same Properties | 161 |  |  | 17,802 |  |  | 92.8 | % |  | 93.1 | % |  | 93.0 | % |  | 92.8 | % |  | 93.2 | % |  |  |  |

(1)Includes office and data center shell properties stably owned and 100% operational since at least 1/1/20.
15

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

| Three Months Ended |  |
| 3/31/21 |  | 12/31/20 |  | 9/30/20 |  | 6/30/20 |  | 3/31/20 |  |  |  |
Same Properties real estate revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |  |  |  |  |  |
Fort Meade/BW Corridor | $ | 65,278 |  |  | $ | 62,912 |  |  | $ | 62,694 |  |  | $ | 62,075 |  |  | $ | 63,798 |  |  |  |  |
NoVA Defense/IT | 15,127 |  |  | 14,993 |  |  | 14,698 |  |  | 14,447 |  |  | 13,678 |  |  |  |  |
Lackland Air Force Base | 12,555 |  |  | 13,047 |  |  | 12,603 |  |  | 13,257 |  |  | 12,076 |  |  |  |  |
Navy Support | 8,398 |  |  | 8,403 |  |  | 8,007 |  |  | 8,119 |  |  | 8,340 |  |  |  |  |
Redstone Arsenal | 4,555 |  |  | 4,487 |  |  | 4,449 |  |  | 4,405 |  |  | 4,676 |  |  |  |  |
Data Center Shells-Consolidated | 4,182 |  |  | 4,273 |  |  | 4,021 |  |  | 4,143 |  |  | 3,919 |  |  |  |  |
Total Defense/IT Locations | 110,095 |  |  | 108,115 |  |  | 106,472 |  |  | 106,446 |  |  | 106,487 |  |  |  |  |
Regional Office | 14,995 |  |  | 14,829 |  |  | 14,913 |  |  | 15,162 |  |  | 15,460 |  |  |  |  |
Other Properties | 665 |  |  | 663 |  |  | 753 |  |  | 676 |  |  | 698 |  |  |  |  |
Same Properties real estate revenues | $ | 125,755 |  |  | $ | 123,607 |  |  | $ | 122,138 |  |  | $ | 122,284 |  |  | $ | 122,645 |  |  |  |  |
Same Properties NOI |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |  |  |  |  |  |
Fort Meade/BW Corridor | $ | 40,975 |  |  | $ | 41,756 |  |  | $ | 41,369 |  |  | $ | 41,412 |  |  | $ | 42,791 |  |  |  |  |
NoVA Defense/IT | 9,251 |  |  | 9,436 |  |  | 9,454 |  |  | 9,112 |  |  | 8,494 |  |  |  |  |
Lackland Air Force Base | 5,682 |  |  | 5,688 |  |  | 5,486 |  |  | 5,472 |  |  | 5,281 |  |  |  |  |
Navy Support | 4,965 |  |  | 5,248 |  |  | 4,961 |  |  | 4,949 |  |  | 5,056 |  |  |  |  |
Redstone Arsenal | 2,912 |  |  | 2,684 |  |  | 2,743 |  |  | 2,835 |  |  | 2,829 |  |  |  |  |
Data Center Shells: |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated properties | 3,530 |  |  | 3,581 |  |  | 3,491 |  |  | 3,521 |  |  | 3,415 |  |  |  |  |
COPT’s share of unconsolidated real estate JV | 499 |  |  | 506 |  |  | 504 |  |  | 506 |  |  | 505 |  |  |  |  |
Total Defense/IT Locations | 67,814 |  |  | 68,899 |  |  | 68,008 |  |  | 67,807 |  |  | 68,371 |  |  |  |  |
Regional Office | 7,715 |  |  | 7,892 |  |  | 7,131 |  |  | 8,274 |  |  | 7,923 |  |  |  |  |
Other Properties | 304 |  |  | 351 |  |  | 456 |  |  | 375 |  |  | 461 |  |  |  |  |
Same Properties NOI | $ | 75,833 |  |  | $ | 77,142 |  |  | $ | 75,595 |  |  | $ | 76,456 |  |  | $ | 76,755 |  |  |  |  |

16

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

| Three Months Ended |  |
| 3/31/21 |  | 12/31/20 |  | 9/30/20 |  | 6/30/20 |  | 3/31/20 |  |  |  |
Same Properties cash NOI |  |  |  |  |  |  |  |  |  |  |  |  |
Defense/IT Locations: |  |  |  |  |  |  |  |  |  |  |  |  |
Fort Meade/BW Corridor | $ | 39,192 |  |  | $ | 42,068 |  |  | $ | 40,991 |  |  | $ | 41,668 |  |  | $ | 42,241 |  |  |  |  |
NoVA Defense/IT | 9,138 |  |  | 9,519 |  |  | 9,410 |  |  | 9,610 |  |  | 9,118 |  |  |  |  |
Lackland Air Force Base | 5,999 |  |  | 6,005 |  |  | 5,929 |  |  | 5,904 |  |  | 5,701 |  |  |  |  |
Navy Support | 4,965 |  |  | 5,376 |  |  | 5,130 |  |  | 5,248 |  |  | 5,146 |  |  |  |  |
Redstone Arsenal | 2,957 |  |  | 2,790 |  |  | 2,628 |  |  | 2,609 |  |  | 2,494 |  |  |  |  |
Data Center Shells: |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated properties | 3,142 |  |  | 3,155 |  |  | 3,050 |  |  | 3,060 |  |  | 2,952 |  |  |  |  |
COPT’s share of unconsolidated real estate JV | 456 |  |  | 460 |  |  | 456 |  |  | 456 |  |  | 453 |  |  |  |  |
Total Defense/IT Locations | 65,849 |  |  | 69,373 |  |  | 67,594 |  |  | 68,555 |  |  | 68,105 |  |  |  |  |
Regional Office | 7,832 |  |  | 8,157 |  |  | 7,045 |  |  | 8,078 |  |  | 7,479 |  |  |  |  |
Other Properties | 319 |  |  | 356 |  |  | 438 |  |  | 358 |  |  | 457 |  |  |  |  |
Same Properties cash NOI | 74,000 |  |  | 77,886 |  |  | 75,077 |  |  | 76,991 |  |  | 76,041 |  |  |  |  |
Straight line rent adjustments and lease incentive amortization | 151 |  |  | (1,278) |  |  | (401) |  |  | (838) |  |  | 182 |  |  |  |  |
Amortization of acquired above- and below-market rents | 99 |  |  | 99 |  |  | 98 |  |  | 97 |  |  | 96 |  |  |  |  |
Amortization of intangibles and other assets to property operating expenses | — |  |  | — |  |  | (23) |  |  | (23) |  |  | (23) |  |  |  |  |
Lease termination fees, net | 1,362 |  |  | 141 |  |  | 454 |  |  | 200 |  |  | 38 |  |  |  |  |
Tenant funded landlord assets and lease incentives | 179 |  |  | 249 |  |  | 342 |  |  | (20) |  |  | 368 |  |  |  |  |
Cash NOI adjustments in unconsolidated real estate JV | 42 |  |  | 45 |  |  | 48 |  |  | 49 |  |  | 53 |  |  |  |  |
Same Properties NOI | $ | 75,833 |  |  | $ | 77,142 |  |  | $ | 75,595 |  |  | $ | 76,456 |  |  | $ | 76,755 |  |  |  |  |
Percentage change in total Same Properties cash NOI (1) | (2.7 | %) |  |  |  |  |  |  |  |  |  |  |  |
Percentage change in Defense/IT Locations Same Properties cash NOI (1) | (3.3 | %) |  |  |  |  |  |  |  |  |  |  |  |

(1)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 3/31/21
(square feet in thousands)

| Defense/IT Locations |  |  |  |  |  |  |  |
| Ft Meade/BW Corridor |  | NoVA Defense/IT |  |  |  | Navy Support |  | Redstone Arsenal |  |  |  | Total Defense/IT Locations |  | Regional Office |  |  |  | Total |  |  |  |
Renewed Space |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Leased Square Feet | 63 |  |  | — |  |  |  |  | 81 |  |  | 10 |  |  |  |  | 154 |  |  | — |  |  |  |  | 154 |  |  |  |  |
Expiring Square Feet | 149 |  |  | — |  |  |  |  | 92 |  |  | 10 |  |  |  |  | 251 |  |  | 46 |  |  |  |  | 297 |  |  |  |  |
Vacating Square Feet | 87 |  |  | — |  |  |  |  | 10 |  |  | — |  |  |  |  | 97 |  |  | 46 |  |  |  |  | 143 |  |  |  |  |
Retention Rate (% based upon square feet) | 42.0 | % |  | — | % |  |  |  | 88.6 | % |  | 100.0 | % |  |  |  | 61.3 | % |  | — | % |  |  |  | 51.8 | % |  |  |  |
Statistics for Completed Leasing: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Per Annum Average Committed Cost per Square Foot (2) | $ | 3.39 |  |  | $ | — |  |  |  |  | $ | 0.92 |  |  | $ | 1.06 |  |  |  |  | $ | 1.93 |  |  | $ | — |  |  |  |  | $ | 1.93 |  |  |  |  |
Weighted Average Lease Term in Years | 4.1 |  |  | — |  |  |  |  | 2.6 |  |  | 1.0 |  |  |  |  | 3.1 |  |  | — |  |  |  |  | 3.1 |  |  |  |  |
Average Rent Per Square Foot |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Renewal Average Rent | $ | 32.96 |  |  | $ | — |  |  |  |  | $ | 20.67 |  |  | $ | 27.32 |  |  |  |  | $ | 26.11 |  |  | $ | — |  |  |  |  | $ | 26.11 |  |  |  |  |
Expiring Average Rent | $ | 31.32 |  |  | $ | — |  |  |  |  | $ | 20.15 |  |  | $ | 22.96 |  |  |  |  | $ | 24.88 |  |  | $ | — |  |  |  |  | $ | 24.88 |  |  |  |  |
Change in Average Rent | 5.2 | % |  | — | % |  |  |  | 2.6 | % |  | 19.0 | % |  |  |  | 4.9 | % |  | — | % |  |  |  | 4.9 | % |  |  |  |
Cash Rent Per Square Foot |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Renewal Cash Rent | $ | 31.81 |  |  | $ | — |  |  |  |  | $ | 20.50 |  |  | $ | 27.32 |  |  |  |  | $ | 25.56 |  |  | $ | — |  |  |  |  | $ | 25.56 |  |  |  |  |
Expiring Cash Rent | $ | 32.95 |  |  | $ | — |  |  |  |  | $ | 20.81 |  |  | $ | 26.55 |  |  |  |  | $ | 26.13 |  |  | $ | — |  |  |  |  | $ | 26.13 |  |  |  |  |
Change in Cash Rent | (3.5) | % |  | — | % |  |  |  | (1.5) | % |  | 2.9 | % |  |  |  | (2.2) | % |  | — | % |  |  |  | (2.2) | % |  |  |  |
Average Escalations Per Year | 2.5 | % |  | — | % |  |  |  | 2.8 | % |  | — | % |  |  |  | 2.6 | % |  | — | % |  |  |  | 2.6 | % |  |  |  |
New Leases |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Development and Redevelopment Space |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Leased Square Feet | — |  |  | — |  |  |  |  | — |  |  | 11 |  |  |  |  | 11 |  |  | — |  |  |  |  | 11 |  |  |  |  |
Statistics for Completed Leasing: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Per Annum Average Committed Cost per Square Foot (2) | $ | — |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | 13.33 |  |  |  |  | $ | 13.33 |  |  | $ | — |  |  |  |  | $ | 13.33 |  |  |  |  |
Weighted Average Lease Term in Years | — |  |  | — |  |  |  |  | — |  |  | 5.5 |  |  |  |  | 5.5 |  |  | — |  |  |  |  | 5.5 |  |  |  |  |
Average Rent Per Square Foot | $ | — |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | 26.37 |  |  |  |  | $ | 26.37 |  |  | $ | — |  |  |  |  | $ | 26.37 |  |  |  |  |
Cash Rent Per Square Foot | $ | — |  |  | $ | — |  |  |  |  | $ | — |  |  | $ | 27.25 |  |  |  |  | $ | 27.25 |  |  | $ | — |  |  |  |  | $ | 27.25 |  |  |  |  |
Vacant Space (3) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Leased Square Feet | 82 |  |  | 8 |  |  |  |  | 3 |  |  | — |  |  |  |  | 93 |  |  | — |  |  |  |  | 93 |  |  |  |  |
Statistics for Completed Leasing: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Per Annum Average Committed Cost per Square Foot (2) | $ | 6.92 |  |  | $ | 5.96 |  |  |  |  | $ | 2.50 |  |  | $ | — |  |  |  |  | $ | 6.69 |  |  | $ | — |  |  |  |  | $ | 6.69 |  |  |  |  |
Weighted Average Lease Term in Years | 8.8 |  |  | 6.0 |  |  |  |  | 6.6 |  |  | — |  |  |  |  | 8.5 |  |  | — |  |  |  |  | 8.5 |  |  |  |  |
Average Rent Per Square Foot | $ | 25.69 |  |  | $ | 36.37 |  |  |  |  | $ | 33.40 |  |  | $ | — |  |  |  |  | $ | 26.90 |  |  | $ | — |  |  |  |  | $ | 26.90 |  |  |  |  |
Cash Rent Per Square Foot | $ | 27.55 |  |  | $ | 34.69 |  |  |  |  | $ | 44.00 |  |  | $ | — |  |  |  |  | $ | 28.72 |  |  | $ | — |  |  |  |  | $ | 28.72 |  |  |  |  |
Total Square Feet Leased | 145 |  |  | 8 |  |  |  |  | 84 |  |  | 21 |  |  |  |  | 258 |  |  | — |  |  |  |  | 258 |  |  |  |  |
Average Escalations Per Year | 2.4 | % |  | 2.9 | % |  |  |  | 2.8 | % |  | 2.5 | % |  |  |  | 2.5 | % |  | — | % |  |  |  | 2.5 | % |  |  |  |
Average Escalations Excl. Data Center Shells |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2.5 | % |  |  |  |

(1)Activity is exclusive of owner occupied space, leases with less than a one-year term and expirations associated with space removed from service. Weighted average lease term is based on the lease term defined in the lease assuming no exercise of early termination rights. Committed costs for leasing are reported above in the period of lease execution. Actual capital expenditures for leasing are reported on page 9 in the period such costs are incurred.
(2)Committed costs include tenant improvements and leasing commissions and exclude free rent concessions.
(3)Vacant space includes acquired first generation space, vacated second generation space and leases executed on developed and redeveloped space previously placed in service.
18

Corporate Office Properties Trust
Lease Expiration Analysis as of 3/31/21 (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) |  | % of Core/Total Annualized Rental Revenue Expiring (3)(4) |  | Annualized Rental Revenue of Expiring Leases per Occupied Sq. Foot (3) |  |  |  |  |  |  |  |  |  |  |
Core Portfolio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ft Meade/BW Corridor |  | 592 |  |  | $ | 19,431 |  |  | 3.6 | % |  | $ | 31.29 |  |  |  |  |  |  |  |  |  |  |  |
NoVA Defense/IT |  | 69 |  |  | 2,168 |  |  | 0.4 | % |  | 31.48 |  |  |  |  |  |  |  |  |  |  |  |
Lackland Air Force Base |  | 250 |  |  | 11,836 |  |  | 2.2 | % |  | 47.34 |  |  |  |  |  |  |  |  |  |  |  |
Navy Support |  | 145 |  |  | 5,000 |  |  | 0.9 | % |  | 34.37 |  |  |  |  |  |  |  |  |  |  |  |
Redstone Arsenal |  | 4 |  |  | 105 |  |  | — | % |  | 24.97 |  |  |  |  |  |  |  |  |  |  |  |
Regional Office |  | 76 |  |  | 2,577 |  |  | 0.5 | % |  | 33.97 |  |  |  |  |  |  |  |  |  |  |  |
2021 |  | 1,136 |  |  | 41,117 |  |  | 7.5 | % |  | 35.28 |  |  |  |  |  |  |  |  |  |  |  |
Ft Meade/BW Corridor |  | 1,116 |  |  | 39,417 |  |  | 7.2 | % |  | 35.31 |  |  |  |  |  |  |  |  |  |  |  |
NoVA Defense/IT |  | 135 |  |  | 4,731 |  |  | 0.9 | % |  | 34.95 |  |  |  |  |  |  |  |  |  |  |  |
Navy Support |  | 272 |  |  | 6,854 |  |  | 1.3 | % |  | 25.16 |  |  |  |  |  |  |  |  |  |  |  |
Redstone Arsenal |  | 403 |  |  | 9,111 |  |  | 1.7 | % |  | 22.62 |  |  |  |  |  |  |  |  |  |  |  |
Regional Office |  | 531 |  |  | 17,632 |  |  | 3.2 | % |  | 33.10 |  |  |  |  |  |  |  |  |  |  |  |
2022 |  | 2,457 |  |  | 77,744 |  |  | 14.3 | % |  | 31.61 |  |  |  |  |  |  |  |  |  |  |  |
Ft Meade/BW Corridor |  | 1,296 |  |  | 47,463 |  |  | 8.7 | % |  | 36.60 |  |  |  |  |  |  |  |  |  |  |  |
NoVA Defense/IT |  | 177 |  |  | 5,913 |  |  | 1.1 | % |  | 33.29 |  |  |  |  |  |  |  |  |  |  |  |
Navy Support |  | 215 |  |  | 6,205 |  |  | 1.1 | % |  | 28.91 |  |  |  |  |  |  |  |  |  |  |  |
Redstone Arsenal |  | 14 |  |  | 336 |  |  | 0.1 | % |  | 24.15 |  |  |  |  |  |  |  |  |  |  |  |
Regional Office |  | 143 |  |  | 4,328 |  |  | 0.8 | % |  | 30.21 |  |  |  |  |  |  |  |  |  |  |  |
2023 |  | 1,845 |  |  | 64,245 |  |  | 11.8 | % |  | 34.80 |  |  |  |  |  |  |  |  |  |  |  |
Ft Meade/BW Corridor |  | 1,192 |  |  | 43,822 |  |  | 8.0 | % |  | 36.58 |  |  |  |  |  |  |  |  |  |  |  |
NoVA Defense/IT |  | 406 |  |  | 14,212 |  |  | 2.6 | % |  | 35.01 |  |  |  |  |  |  |  |  |  |  |  |
Navy Support |  | 273 |  |  | 5,922 |  |  | 1.1 | % |  | 21.70 |  |  |  |  |  |  |  |  |  |  |  |
Redstone Arsenal |  | 75 |  |  | 1,840 |  |  | 0.3 | % |  | 24.40 |  |  |  |  |  |  |  |  |  |  |  |
Data Center Shells-Unconsolidated JV Properties |  | 546 |  |  | 661 |  |  | 0.1 | % |  | 12.11 |  |  |  |  |  |  |  |  |  |  |  |
Regional Office |  | 77 |  |  | 2,370 |  |  | 0.4 | % |  | 30.27 |  |  |  |  |  |  |  |  |  |  |  |
2024 |  | 2,569 |  |  | 68,827 |  |  | 12.6 | % |  | 33.01 |  |  |  |  |  |  |  |  |  |  |  |
Ft Meade/BW Corridor |  | 1,441 |  |  | 49,484 |  |  | 9.1 | % |  | 34.27 |  |  |  |  |  |  |  |  |  |  |  |
NoVA Defense/IT |  | 250 |  |  | 10,151 |  |  | 1.9 | % |  | 40.65 |  |  |  |  |  |  |  |  |  |  |  |
Lackland Air Force Base |  | 703 |  |  | 39,198 |  |  | 7.2 | % |  | 55.78 |  |  |  |  |  |  |  |  |  |  |  |
Navy Support |  | 51 |  |  | 1,199 |  |  | 0.2 | % |  | 23.39 |  |  |  |  |  |  |  |  |  |  |  |
Redstone Arsenal |  | 253 |  |  | 5,265 |  |  | 1.0 | % |  | 20.68 |  |  |  |  |  |  |  |  |  |  |  |
Data Center Shells-Unconsolidated JV Properties |  | 121 |  |  | 156 |  |  | — | % |  | 12.93 |  |  |  |  |  |  |  |  |  |  |  |
Regional Office |  | 110 |  |  | 4,052 |  |  | 0.7 | % |  | 36.76 |  |  |  |  |  |  |  |  |  |  |  |
2025 |  | 2,929 |  |  | 109,505 |  |  | 20.1 | % |  | 38.78 |  |  |  |  |  |  |  |  |  |  |  |
Thereafter |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Consolidated Properties |  | 6,586 |  |  | 180,809 |  |  | 33.3 | % |  | 26.93 |  |  |  |  |  |  |  |  |  |  |  |
Unconsolidated JV Properties |  | 2,083 |  |  | 3,053 |  |  | 0.6 | % |  | 14.66 |  |  |  |  |  |  |  |  |  |  |  |
Core Portfolio |  | 19,605 |  |  | $ | 545,300 |  |  | 100.0 | % |  | $ | 31.54 |  |  |  |  |  |  |  |  |  |  |  |

19

Segment of Lease and Year of Expiration (2) |  | Square Footage of Leases Expiring |  | Annualized Rental Revenue of Expiring Leases (3) |  | % of Core/Total Annualized Rental Revenue Expiring (3)(4) |  | Annualized Rental Revenue of Expiring Leases per Occupied Sq. Foot (3) |  |  |  |  |  |  |  |  |  |  |
Core Portfolio |  | 19,605 |  |  | $ | 545,300 |  |  | 99.5 | % |  | $ | 31.54 |  |  |  |  |  |  |  |  |  |  |  |
Other Properties |  | 108 |  |  | 2,626 |  |  | 0.5 | % |  | 24.39 |  |  |  |  |  |  |  |  |  |  |  |
Total Portfolio |  | 19,713 |  |  | $ | 547,926 |  |  | 100.0 | % |  | $ | 31.50 |  |  |  |  |  |  |  |  |  |  |  |
Consolidated Portfolio |  | 16,964 |  |  | $ | 544,055 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unconsolidated JV Properties |  | 2,749 |  |  | $ | 3,870 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |

Note: As of 3/31/21, the weighted average lease term was 5.4 years for the core portfolio, 5.3 years for the total portfolio and 5.2 years for the consolidated portfolio.
Wholesale Data Center

Year of Expiration |  |  |  |  | Critical Load (MW) |  | Annualized Rental Revenue of Expiring Leases (3)
2021 (5) |  |  |  |  | 11.40 |  |  | $ | 14,939 |
2022 |  |  |  |  | 1.27 |  |  | 2,560 |
2023 |  |  |  |  | 0.92 |  |  | 1,742 |
2024 |  |  |  |  | — |  |  | 10 |
2025 |  |  |  |  | 3.10 |  |  | 5,297 |
Thereafter |  |  |  |  | — |  |  | 289 |
|  |  |  |  | 16.69 |  |  | $ | 24,837 |

(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 3/31/21 of 185,000 for the core portfolio. 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 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 lease term determined in accordance with GAAP.
(3)Total Annualized Rental Revenue is the monthly contractual base rent as of 3/31/21 (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 unconsolidated real estate joint ventures 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.
(5)An 11.25MW lease that expired in August 2020 remains in place until renewed by both parties or terminated by either party.
20

Corporate Office Properties Trust
2021 Core Portfolio Quarterly Lease Expiration Analysis as of 3/31/21 (1)
(dollars and square feet in thousands, except per square foot amounts)
Office and Data Center Shells

Segment of Lease and Quarter of Expiration (2) |  | Square Footage of Leases Expiring |  | Annualized Rental Revenue of Expiring Leases (3) |  | % of Core Annualized Rental Revenue Expiring (3)(4) |  | Annualized Rental Revenue of Expiring Leases per Occupied Sq. Foot |  |  |  |  |  |  |  |  |  |  |
Core Portfolio |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Ft Meade/BW Corridor |  | 242 |  |  | $ | 7,727 |  |  | 1.4 | % |  | $ | 31.92 |  |  |  |  |  |  |  |  |  |  |  |
NoVA Defense/IT |  | 16 |  |  | 575 |  |  | 0.1 | % |  | 35.67 |  |  |  |  |  |  |  |  |  |  |  |
Lackland Air Force Base |  | 250 |  |  | 11,836 |  |  | 2.2 | % |  | 47.34 |  |  |  |  |  |  |  |  |  |  |  |
Navy Support |  | 12 |  |  | 354 |  |  | 0.1 | % |  | 29.56 |  |  |  |  |  |  |  |  |  |  |  |
Regional Office |  | 26 |  |  | 820 |  |  | 0.2 | % |  | 31.06 |  |  |  |  |  |  |  |  |  |  |  |
Q2 2021 |  | 546 |  |  | 21,312 |  |  | 4.0 | % |  | 37.08 |  |  |  |  |  |  |  |  |  |  |  |
Ft Meade/BW Corridor |  | 149 |  |  | 4,986 |  |  | 0.9 | % |  | 33.22 |  |  |  |  |  |  |  |  |  |  |  |
NoVA Defense/IT |  | 14 |  |  | 356 |  |  | 0.1 | % |  | 25.70 |  |  |  |  |  |  |  |  |  |  |  |
Navy Support |  | 20 |  |  | 503 |  |  | 0.1 | % |  | 25.54 |  |  |  |  |  |  |  |  |  |  |  |
Redstone Arsenal |  | 4 |  |  | 105 |  |  | — | % |  | 24.97 |  |  |  |  |  |  |  |  |  |  |  |
Regional Office |  | 15 |  |  | 503 |  |  | 0.1 | % |  | 33.83 |  |  |  |  |  |  |  |  |  |  |  |
Q3 2021 |  | 202 |  |  | 6,453 |  |  | 1.2 | % |  | 31.83 |  |  |  |  |  |  |  |  |  |  |  |
Ft Meade/BW Corridor |  | 201 |  |  | 6,718 |  |  | 1.2 | % |  | 33.48 |  |  |  |  |  |  |  |  |  |  |  |
NoVA Defense/IT |  | 39 |  |  | 1,237 |  |  | 0.2 | % |  | 31.81 |  |  |  |  |  |  |  |  |  |  |  |
Navy Support |  | 114 |  |  | 4,143 |  |  | 0.8 | % |  | 36.40 |  |  |  |  |  |  |  |  |  |  |  |
Regional Office |  | 34 |  |  | 1,254 |  |  | 0.2 | % |  | 36.26 |  |  |  |  |  |  |  |  |  |  |  |
Q4 2021 |  | 388 |  |  | 13,352 |  |  | 2.4 | % |  | 34.41 |  |  |  |  |  |  |  |  |  |  |  |
|  | 1,136 |  |  | $ | 41,117 |  |  | 7.5 | % |  | $ | 35.28 |  |  |  |  |  |  |  |  |  |  |  |

(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 3/31/21.
(2)A number of our leases are subject to certain early termination provisions. The period of lease expiration is based on the lease term determined in accordance with GAAP.
(3)Total Annualized Rental Revenue is the monthly contractual base rent as of 3/31/21 (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.
21

Corporate Office Properties Trust
Top 20 Tenants as of 3/31/21 (1)
(dollars and square feet in thousands)

Tenant |  |  |  | Total Annualized Rental Revenue (2) |  | % of Total Annualized Rental Revenue (2) |  | Occupied Square Feet in Office and Data Center Shells |  | Weighted Average Remaining Lease Term in Office and Data Center Shells (3)
United States Government | (4) |  |  | $ | 193,849 |  |  | 33.8 | % |  | 4,691 |  |  | 4.1 |
Fortune 100 Company |  |  |  | 51,669 |  |  | 9.0 | % |  | 4,769 |  |  | 9.2 |
General Dynamics Corporation |  |  |  | 32,909 |  |  | 5.7 | % |  | 752 |  |  | 2.7 |
The Boeing Company |  |  |  | 17,327 |  |  | 3.0 | % |  | 610 |  |  | 1.3 |
CACI International Inc |  |  |  | 13,525 |  |  | 2.4 | % |  | 354 |  |  | 4.0 |
CareFirst Inc. |  |  |  | 11,409 |  |  | 2.0 | % |  | 312 |  |  | 1.9 |
Booz Allen Hamilton, Inc. |  |  |  | 11,013 |  |  | 1.9 | % |  | 297 |  |  | 3.1 |
Peraton Corp. |  |  |  | 9,070 |  |  | 1.6 | % |  | 268 |  |  | 5.5 |
Northrop Grumman Corporation |  |  |  | 8,027 |  |  | 1.4 | % |  | 284 |  |  | 2.7 |
Well Fargo & Company |  |  |  | 7,055 |  |  | 1.2 | % |  | 172 |  |  | 6.9 |
AT&T Corporation |  |  |  | 6,263 |  |  | 1.1 | % |  | 321 |  |  | 8.5 |
Miles and Stockbridge, PC |  |  |  | 6,064 |  |  | 1.1 | % |  | 160 |  |  | 6.5 |
Yulista Holding, LLC |  |  |  | 5,948 |  |  | 1.0 | % |  | 366 |  |  | 8.7 |
Morrison & Foerster, LLP |  |  |  | 5,925 |  |  | 1.0 | % |  | 102 |  |  | 16.0 |
Raytheon Technologies Corporation |  |  |  | 5,731 |  |  | 1.0 | % |  | 157 |  |  | 2.3 |
University of Maryland |  |  |  | 5,486 |  |  | 1.0 | % |  | 169 |  |  | 7.1 |
Transamerica Life Insurance Company |  |  |  | 5,296 |  |  | 0.9 | % |  | 140 |  |  | 0.8 |
Jacobs Engineering Group Inc. |  |  |  | 5,229 |  |  | 0.9 | % |  | 165 |  |  | 4.8 |
Science Applications International Corp. |  |  |  | 5,202 |  |  | 0.9 | % |  | 134 |  |  | 1.3 |
Mantech International Corp. |  |  |  | 4,838 |  |  | 0.8 | % |  | 165 |  |  | 3.5 |
Subtotal Top 20 Tenants |  |  |  | 411,835 |  |  | 71.7 | % |  | 14,388 |  |  | 5.8 |
All remaining tenants |  |  |  | 160,928 |  |  | 28.3 | % |  | 5,325 |  |  | 4.0 |
Total/Weighted Average |  |  |  | $ | 572,763 |  |  | 100.0 | % |  | 19,713 |  |  | 5.3 |

(1)Includes Annualized Rental Revenue (“ARR”) in our portfolio of operating office and data center shells and our wholesale data center. For properties owned through unconsolidated real estate joint ventures, includes COPT’s share of those properties’ ARR of $3.9 million (see page 31 for additional information).
(2)Total ARR is the monthly contractual base rent as of 3/31/21, 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 lease term 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 3/31/21, $5.6 million of our ARR was through the General Services Administration (GSA), representing 2.9% of our ARR from the United States Government and 1.0% of our total ARR.
22

Corporate Office Properties Trust
Summary of Development Projects as of 3/31/21 (1)
(dollars and square feet in thousands)

|  |  | Total Rentable Square Feet | % Leased as of 3/31/21 | as of 3/31/21 (2) | Actual or Anticipated Shell Completion Date | Anticipated Operational Date (3)
Anticipated Total Cost | Cost to Date | Cost to Date Placed in Service
Property and Segment | Location
Fort Meade/BW Corridor: |  |  |  |  |  |  |  |  |
4600 River Road (4) | College Park, Maryland |  | 102 |  | 54% | $ | 30,927 |  | $ | 24,420 |  | $ | 16,536 |  | 4Q 20 | 4Q 21
610 Guardian Way | Annapolis Junction, Maryland |  | 107 |  | 100% | 64,000 |  | 24,303 |  | — |  | 4Q 21 | 4Q 21
Subtotal / Average |  |  | 209 |  | 78% | 94,927 |  | 48,723 |  | 16,536 |  |  |
NoVA Defense/IT: |  |  |  |  |  |  |  |  |
NoVA Office C | Chantilly, Virginia |  | 348 |  | 100% | 106,219 |  | 67,217 |  | 2,794 |  | 4Q 21 | 4Q 21
Lackland Air Force Base: |  |  |  |  |  |  |  |  |
Project EL | San Antonio, Texas |  | 107 |  | 100% | 51,500 |  | 28,144 |  | — |  | 3Q 21 | 3Q 21
Navy Support: |  |  |  |  |  |  |  |  |
Expedition VII | St. Mary’s County, Maryland |  | 30 |  | 60% | 8,189 |  | 1,764 |  | — |  | 4Q 21 | 4Q 22
Redstone Arsenal: |  |  |  |  |  |  |
6000 Redstone Gateway (5) | Huntsville, Alabama |  | 42 |  | 100% | 9,796 |  | 8,790 |  | 7,759 |  | 4Q 20 | 3Q 21
8000 Rideout Road | Huntsville, Alabama |  | 100 |  | 20% | 26,991 |  | 17,005 |  | — |  | 2Q 21 | 2Q 22
Subtotal / Average |  |  | 142 |  | 44% | 36,787 |  | 25,795 |  | 7,759 |  |  |
Data Center Shells: |  |  |  |  |  |  |  |  |
PS A | Northern Virginia |  | 227 |  | 100% | 65,600 |  | 5,598 |  | — |  | 2Q 23 | 2Q 23
PS B | Northern Virginia |  | 193 |  | 100% | 55,000 |  | 4,533 |  | — |  | 1Q 24 | 1Q 24
Subtotal / Average |  |  | 420 |  | 100% | 120,600 |  | 10,131 |  | — |  |  |
Regional Office: |  |  |  |  |  |  |  |  |
2100 L Street (6) | Washington, D.C. |  | 190 |  | 56% | 177,000 |  | 158,420 |  | 121,279 |  | 2Q 20 | 2Q 21
Total Under Development |  |  | 1,446 |  | 85% | $ | 595,222 |  | $ | 340,194 |  | $ | 148,368 |  |  |

(1)Includes properties under, or contractually committed for, development as of 3/31/21.
(2)Cost includes land, development, 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 development, 55,000 square feet were operational as of 3/31/21.
(5)Although classified as under development, 32,000 square feet were operational as of 3/31/21.
(6)Although classified as under development, 107,000 square feet were operational as of 3/31/21.
23

Corporate Office Properties Trust
Development and Redevelopment Placed in Service as of 3/31/21
(square feet in thousands)

|  | Total Property |  |  | Square Feet Placed in Service | Space Placed in Service % Leased as of 3/31/21
| Property Segment | % Leased as of 3/31/21 | Rentable Square Feet |  |  | 2021
Property and Location | 1st Quarter |  |  |  |
7100 Redstone Gateway Huntsville, Alabama | Redstone Arsenal | 100% | 46 |  |  |  | 46 |  |  |  |  |  | 100%

24

Corporate Office Properties Trust
Summary of Land Owned/Controlled as of 3/31/21 (1)
(in thousands)

Location | Acres |  | Estimated Developable Square Feet |  | Carrying Amount
Land owned/controlled for future development |  |  |  |  |
Defense/IT Locations: |  |  |  |  |
Fort Meade/BW Corridor: |  |  |  |  |
National Business Park | 175 |  | 1,999 |  |  |
Howard County | 19 |  | 290 |  |  |
Other | 126 |  | 1,338 |  |  |
Total Fort Meade/BW Corridor | 320 |  | 3,627 |  |  |
NoVA Defense/IT | 29 |  | 1,133 |  |  |
Lackland AFB | 19 |  |  | 410 |  |  |
Navy Support | 38 |  |  | 64 |  |  |
Redstone Arsenal (2) | 355 |  | 3,125 |  |  |
Data Center Shells | 53 |  | 1,180 |  |  |
Total Defense/IT Locations | 814 |  | 9,539 |  |  |
Regional Office | 10 |  | 900 |  |  |
Total land owned/controlled for future development | 824 |  | 10,439 |  | $ | 281,835 |
Other land owned/controlled | 43 |  | 638 |  |  | 3,431 |
Land held, net | 867 |  | 11,077 |  |  | $ | 285,266 |

(1)This land inventory schedule includes properties under ground lease to us and excludes all properties listed as development as detailed on page 23. 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 30). 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.
25

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

|  | Wtd. Avg. Maturity (Years) (1)(2) |  | Stated Rate |  | Effective Rate (3)(4) |  | Gross Debt Balance at 3/31/21
Debt |  |  |  |  |  |
Secured debt |  | 2.8 |  |  | 3.27 | % |  | 3.35 | % |  | $ | 260,632 |
Unsecured debt |  | 5.1 |  |  | 2.86 | % |  | 3.24 | % |  | 1,970,972 |
Total Consolidated Debt | 4.8 |  |  | 2.91 | % |  | 3.25 | % |  | $ | 2,231,604 |
Fixed rate debt (4) |  | 5.7 |  |  | 3.38 | % |  | 3.45 | % |  | $ | 1,994,582 |
Variable rate debt |  | 1.8 |  |  | 1.38 | % |  | 1.61 | % |  | 237,022 |
Total Consolidated Debt |  |  |  |  |  |  |  | $ | 2,231,604 |
Common Equity |  |  |  |  |  |  |  |
Common Shares |  |  |  |  |  |  |  | 112,327 |
Common Units (5) |  |  |  |  |  |  |  | 1,425 |
Total Common Shares and Units |  |  |  |  |  | 113,752 |
Closing Common Share Price on 3/31/21 |  |  |  | $ | 26.33 |
Equity Market Capitalization |  |  |  | $ | 2,995,090 |
Total Market Capitalization |  |  |  | $ | 5,226,694 |

(1)Calculated assuming exercise of early extension options on our Revolving Credit Facility.
(2)We redeemed $270.0 million in unsecured senior notes on their 4/12/21 maturity date using borrowings under our Revolving Credit Facility. The weighted average maturity of our unsecured debt was 5.5 years and total consolidated debt was 5.2 years as of 3/31/21 including these notes in the calculation using the maturity date of our Revolving Credit Facility, assuming exercise of early extension options.
(3)Excludes the effect of deferred financing cost amortization.
(4)Includes the effect of interest rate swaps with notional amounts of $284.2 million that hedge the risk of changes in interest rates on variable rate debt.
(5)Excludes unvested share-based compensation awards subject to market conditions.

| Investment Grade Ratings & Outlook |  | Latest Affirmation
| Fitch |  | BBB- | Stable |  | 3/3/21
| Moody’s |  | Baa3 | Stable |  | 3/3/21
| Standard & Poor’s | BBB- | Stable |  | 3/3/21

26

Corporate Office Properties Trust
Summary of Outstanding Debt as of 3/31/21
(dollars in thousands)

Unsecured Debt | Stated Rate |  | Amount Outstanding | Maturity Date |  |  | Secured Debt | Stated Rate |  | Amount Outstanding | Balloon Payment Due Upon Maturity | Maturity Date |
Revolving Credit Facility | L + 1.10% |  | $ | — |  | Mar-23 | (1)(2) |  | 7740 Milestone Parkway | 3.96% |  | $ | 16,784 |  | $ | 15,902 |  | Feb-23 |
Senior Unsecured Notes |  |  |  |  |  |  | 100 & 30 Light Street | 4.32% |  | 50,183 |  | 47,676 |  | Jun-23 |
3.60% due 2023 | 3.60% |  | 165,576 |  | Apr-21 | (3) |  | LW Redstone: |  |  |  |  |  |
5.25% due 2024 | 5.25% |  | 104,385 |  | Apr-21 | (3) |  | 1000, 1200 & 1100 Redstone |  |  |  |  |  |
5.00% due 2025 | 5.00% |  | 300,000 |  | Jul-25 |  |  | Gateway (4) | 4.47% | (5) | 31,499 |  | 27,649 |  | Jun-24 |
2.25% due 2026 | 2.25% |  | 400,000 |  | Mar-26 |  |  | 4000 & 4100 Market Street and |  |  |  |  |  |
2.75% due 2031 | 2.75% |  | 600,000 |  | Apr-31 |  |  | 8800 Redstone Gateway (2)(4) | L + 1.55% |  | 23,000 |  | 22,100 |  | Mar-25 | (6)
Subtotal - Senior Unsecured Notes | 3.31% |  | $ | 1,569,961 |  |  |  |  | M Square: |  |  |  |  |  |
|  |  |  |  |  |  | 5825 & 5850 University Research |  |  |  |  |  |
Unsecured Bank Term Loans |  |  |  |  |  |  | Court (4) | 3.82% |  | 40,944 |  | 35,603 |  | Jun-26 |
2022 Maturity | L + 1.00% |  | $ | 400,000 |  | Dec-22 | (2) |  | 5801 University Research Court (2)(5) | L + 1.45% |  | 11,200 |  | 10,020 |  | Aug-26 |
Other Unsecured Debt | 0.00% |  | 1,011 |  | May-26 |  |  | 2100 L Street (2)(4) | L + 2.35% |  | 87,022 |  | 87,022 |  | Sept-22 | (7)
Total Unsecured Debt | 2.86% |  | $ | 1,970,972 |  |  |  |  | Total Secured Debt | 3.27% |  | $ | 260,632 |  |  |  |
Debt Summary |  |  |  |  |  |  |  |  |  |  |  |  |
Total Unsecured Debt | 2.86% |  | $ | 1,970,972 |  |  |  |  |  |  |  |  |  |  |
Total Secured Debt | 3.27% |  | 260,632 |  |  |  |  |  |  |  |  |  |  |
Consolidated Debt | 2.91% |  | $ | 2,231,604 |  |  |  |  |  |  |  |  |  |  |
Net discounts and deferred financing costs |  |  | (23,701) |  |  |  |  |  |  |  |  |  |  |
Debt, per balance sheet |  |  | $ | 2,207,903 |  |  |  |  |  |  |  |  |  |  |
Consolidated Debt |  |  | $ | 2,231,604 |  |  |  |  |  |  |  |  |  |  |
COPT’s share of unconsolidated JV gross debt |  | 26,250 |  |  |  |  |  |  |  |  |  |  |
Gross debt |  |  | $ | 2,257,854 |  |  |  |  |  |  |  |  |  |  |

(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. On 4/12/21, we redeemed $270.0 million in unsecured senior notes using borrowings under our Revolving Credit Facility.
(2)Pre-payable anytime without penalty.
(3)We redeemed these notes effective 4/12/21.
(4)These properties are owned through consolidated joint ventures.
(5)Represents the weighted average rate of three loans on the properties.
(6)The loan maturity may be extended for two one-year periods, provided certain conditions are met.
(7)The loan maturity may be extended by one year, provided certain conditions are met.
27

Corporate Office Properties Trust
Summary of Outstanding Debt as of 3/31/21 (continued)
(1)Of the $273.0 million in maturities for the remainder of 2021, $270.0 million represents unsecured senior notes that we redeemed on 4/12/21 using borrowings under our Revolving Credit Facility.
(2)Includes the effect of $284.2 million in interest rate swaps that hedge the risk of changes in interest rates on variable rate debt.
28

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

|  |  | As of and for Three Months Ended 3/31/21 |  |  |  | As of and for Three Months Ended 3/31/21
Senior Note Covenants (1) | Required |  | 2.25% and 2.75% Notes |  | Other Notes |  | Line of Credit & Term Loan Covenants (1) | Required |
Total Debt / Total Assets | < 60% |  | 41.4% |  | 42.0% |  | Total Debt / Total Assets | < 60% |  | 39.4%
Secured Debt / Total Assets | < 40% |  | 4.8% |  | 5.4% |  | Secured Debt / Total Assets | < 40% |  | 4.6%
Debt Service Coverage | > 1.5x |  | 4.4x |  | 4.5x |  | Adjusted EBITDA / Fixed Charges | > 1.5x |  | 4.2x
Unencumbered Assets / Unsecured Debt | > 150% |  | 244.1% |  | 244.1% |  | Unsecured Debt / Unencumbered Assets | < 60% |  | 38.9%
|  |  |  |  |  |  | Unencumbered Adjusted NOI / Unsecured Interest Expense | > 1.75x |  | 4.7x
Debt Ratios |  | Page Refer. |  |  |  | Unencumbered Portfolio Analysis |  |  |
Gross debt |  |  | 27 |  | $ | 2,257,854 |  |  | # of unencumbered properties | 155 |
Adjusted book |  | 34 |  | $ | 5,450,919 |  |  | % of total portfolio | 85 | %
Net debt / adjusted book ratio |  |  |  | 40.8 | % |  | Unencumbered square feet in-service |  | 16,923 |
Net debt plus pref. equity / adj. book ratio |  |  |  | 40.8 | % |  | % of total portfolio |  | 81 | %
Net debt |  |  | 34 |  | $ | 2,221,513 |  |  | NOI from unencumbered real estate operations |  | $ | 80,629 |
Net debt plus preferred equity |  |  | 34 |  | $ | 2,221,513 |  |  | % of total NOI from real estate operations |  | 90 | %
Net debt adj. for fully-leased dev. plus pref. equity |  | 34 |  | $ | 2,093,481 |  |  | Adjusted EBITDA from unencumbered real estate operations |  | $ | 75,270 |
In-place adjusted EBITDA |  | 10 |  | $ | 83,628 |  |  | % of total adjusted EBITDA from real estate operations |  | 90 | %
Net debt / in-place adjusted EBITDA ratio | 6.6 | x |  | Unencumbered adjusted book |  | $ | 4,850,711 |
Net debt plus pref. equity / in-place adj. EBITDA ratio | 6.6 | x |  | % of total adjusted book |  | 89 | %
Net debt adj. for fully-leased development plus pref. equity / in-place adj. EBITDA ratio | 6.3 | x |  |  |  |  |  |
Denominator for debt service coverage |  | 33 |  | $ | 17,380 |  |  |  |  |  |  |
Denominator for fixed charge coverage |  | 33 |  | $ | 19,185 |  |  |  |  |
Adjusted EBITDA |  | 10 |  | $ | 83,338 |  |  |  |  |
Adjusted EBITDA debt service coverage ratio |  |  | 4.8 | x |  |  |  |
Adjusted EBITDA fixed charge coverage ratio |  |  | 4.3 | x |  |  |  |  |  |

(1)The covenants are calculated as defined in the applicable agreements, and the calculations differ between those agreements.
29

Corporate Office Properties Trust
Consolidated Real Estate Joint Ventures as of 3/31/21
(dollars and square feet in thousands)

Operating Properties | Operational Square Feet | % Occupied | % Leased | NOI for the Three Months Ended 3/31/21 (1) |  | Total Assets (2) | Venture Level Debt | COPT Nominal Ownership % |  |  |
Suburban Maryland: |  |  |  |  |  |  |  |  |  |  |
M Square Associates, LLC (4 properties) | 368 |  | 98.0% | 98.0% | $ | 1,753 |  |  | $ | 87,949 |  | $ | 52,144 |  | 50% |  |  |
Huntsville, Alabama: |  |  |  |  |  |  |  |  |  |  |
LW Redstone Company, LLC (15 properties) | 1,363 |  | 100.0% | 100.0% | 5,260 |  |  | 294,165 |  | 54,499 |  | 85% | (3) |  |
Washington, D.C.: |  |  |  |  |  |  |  |  |  |  |
Stevens Place (1 property) | 107 |  | 100.0% | 100.0% | 1,298 |  |  | 109,355 |  | 54,450 |  | 95% |  |  |
Total/Average | 1,838 |  | 99.6% | 99.6% | $ | 8,311 |  |  | $ | 491,469 |  | $ | 161,093 |  |  |  |  |

Non-operating Properties | Estimated Developable Square Feet |  |  | Total Assets (2) | Venture Level Debt | COPT Nominal Ownership % |
Suburban Maryland: |  |  |  |  |  |  |
M Square Research Park | 395 |  |  |  | $ | 13,562 |  | $ | — |  | 50% |
Huntsville, Alabama: |  |  |  |  |  |  |
Redstone Gateway (4) | 3,235 |  |  |  | 124,412 |  | — |  | 85% | (3)
Washington, D.C.: |  |  |  |  |  |  |
Stevens Place | 83 |  |  |  | 52,230 |  | 32,572 |  | 95% |
Total | 3,713 |  |  |  | $ | 190,204 |  | $ | 32,572 |  |  |

(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)Our partner receives a priority return of 13.5% on its $9.0 million in contributed equity, plus certain fees for leasing and development, and we expect to receive the remainder of distributions from the JV.
(4)Total assets include $67.9 million in amortized cost basis pertaining to amounts due from the City of Huntsville (including accrued interest) in connection with infrastructure costs funded by the joint venture.
30

Corporate Office Properties Trust
Unconsolidated Real Estate Joint Ventures as of 3/31/21
(dollars and square feet in thousands)

Joint venture information (1) |  | BREIT-COPT |  | B RE COPT |  |  |  |  |  |  |  |  |  |  |  |  |
COPT ownership % |  | 10% |  | 10% |  |  |  |  |  |  |  |  |  |  |  |  |
COPT’s investment |  | $ | 13,094 |  |  | $ | 15,840 |  |  |  |  |  |  |  |  |  |  |  |  |  |
# of Properties |  | 9 |  |  | 8 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Square Feet |  | 1,471 |  |  | 1,278 |  |  |  |  |  |  |  |  |  |  |  |  |  |
% Occupied |  | 100 | % |  | 100 | % |  |  |  |  |  |  |  |  |  |  |  |  |
COPT’s share of ARR |  | $ | 2,147 |  |  | $ | 1,723 |  |  |  |  |  |  |  |  |  |  |  |  |  |
Balance sheet information (1) |  | BREIT-COPT |  | B RE COPT |  | Total |  | COPT’s Share (2) |  |  |  |  |  |  |  |  |
Operating properties, net |  | $ | 307,720 |  |  | $ | 271,952 |  |  | $ | 579,672 |  |  | $ | 57,967 |  |  |  |  |  |  |  |  |  |
Total assets |  | $ | 338,285 |  |  | $ | 300,660 |  |  | $ | 638,945 |  |  | $ | 63,895 |  |  |  |  |  |  |  |  |  |
Debt |  | $ | 200,959 |  |  | $ | 60,707 |  |  | $ | 261,666 |  |  | $ | 26,167 |  |  |  |  |  |  |  |  |  |
Total liabilities |  | $ | 207,346 |  |  | $ | 68,681 |  |  | $ | 276,027 |  |  | $ | 27,603 |  |  |  |  |  |  |  |  |  |
| Three Months Ended 3/31/21 |  |
Operating information (1) |  | BREIT-COPT |  | B RE COPT |  | Total |  | COPT’s Share (2) |  |  |  |  |  |  |  |  |
Revenue |  | $ | 6,017 |  |  | $ | 5,058 |  |  | $ | 11,075 |  |  | $ | 1,107 |  |  |  |  |  |  |  |  |  |
Operating expenses |  | (1,030) |  |  | (876) |  |  | (1,906) |  |  | (190) |  |  |  |  |  |  |  |  |  |
NOI and EBITDA |  | 4,987 |  |  | 4,182 |  |  | 9,169 |  |  | 917 |  |  |  |  |  |  |  |  |  |
Interest expense |  | (1,842) |  |  | (549) |  |  | (2,391) |  |  | (239) |  |  |  |  |  |  |  |  |  |
Depreciation and amortization |  | (2,520) |  |  | (2,481) |  |  | (5,001) |  |  | (454) |  |  |  |  |  |  |  |  |  |
Net income |  | $ | 625 |  |  | $ | 1,152 |  |  | $ | 1,777 |  |  | $ | 224 |  |  |  |  |  |  |  |  |  |
NOI (per above) |  | $ | 4,987 |  |  | $ | 4,182 |  |  | $ | 9,169 |  |  | $ | 917 |  |  |  |  |  |  |  |  |  |
Straight line rent adjustments |  | (284) |  |  | (249) |  |  | (533) |  |  | (53) |  |  |  |  |  |  |  |  |  |
Amortization of acquired above- and below-market rents |  | (142) |  |  | (334) |  |  | (476) |  |  | (48) |  |  |  |  |  |  |  |  |  |
Cash NOI |  | $ | 4,561 |  |  | $ | 3,599 |  |  | $ | 8,160 |  |  | $ | 816 |  |  |  |  |  |  |  |  |  |

(1)Refer to the section entitled “Definitions” for joint venture names.
(2)Represents the portion allocable to our ownership interest.
31

Corporate Office Properties Trust
Supplementary Reconciliations of Non-GAAP Measures
(in thousands)

| Three Months Ended |  |
| 3/31/21 |  | 12/31/20 |  | 9/30/20 |  | 6/30/20 |  | 3/31/20 |  |  |  |
NOI from real estate operations (1) |  |  |  |  |  |  |  |  |  |  |  |  |
Real estate revenues | $ | 145,164 |  |  | $ | 139,628 |  |  | $ | 134,443 |  |  | $ | 132,538 |  |  | $ | 132,116 |  |  |  |  |
Property operating expenses | (56,974) |  |  | (52,085) |  |  | (51,552) |  |  | (50,204) |  |  | (49,999) |  |  |  |  |
COPT’s share of NOI in unconsolidated real estate JVs (2) | 917 |  |  | 1,761 |  |  | 1,752 |  |  | 1,725 |  |  | 1,713 |  |  |  |  |
NOI from real estate operations | 89,107 |  |  | 89,304 |  |  | 84,643 |  |  | 84,059 |  |  | 83,830 |  |  |  |  |
General and administrative expenses | (6,062) |  |  | (7,897) |  |  | (5,558) |  |  | (6,511) |  |  | (5,303) |  |  |  |  |
Leasing expenses | (2,344) |  |  | (1,993) |  |  | (1,909) |  |  | (1,647) |  |  | (2,183) |  |  |  |  |
Business development expenses and land carry costs | (1,094) |  |  | (999) |  |  | (1,094) |  |  | (1,262) |  |  | (1,118) |  |  |  |  |
NOI from construction contracts and other service operations | 765 |  |  | 837 |  |  | 1,103 |  |  | 525 |  |  | 560 |  |  |  |  |
Equity in loss of unconsolidated non-real estate entities | (2) |  |  | (2) |  |  | (1) |  |  | (1) |  |  | (2) |  |  |  |  |
Interest and other income | 1,865 |  |  | 3,341 |  |  | 1,746 |  |  | 2,282 |  |  | 1,205 |  |  |  |  |
Credit loss recoveries (expense) (3) | 907 |  |  | 772 |  |  | 1,465 |  |  | (615) |  |  | (689) |  |  |  |  |
Loss on early extinguishment of debt | (33,166) |  |  | (4,069) |  |  | (3,237) |  |  | — |  |  | — |  |  |  |  |
Loss on interest rate derivatives | — |  |  | — |  |  | (53,196) |  |  | — |  |  | — |  |  |  |  |
Interest expense | (17,519) |  |  | (17,148) |  |  | (17,152) |  |  | (16,797) |  |  | (16,840) |  |  |  |  |
COPT’s share of interest expense of unconsolidated real estate JVs (2) | (239) |  |  | (432) |  |  | (455) |  |  | (452) |  |  | (452) |  |  |  |  |
Income tax expense | (32) |  |  | (258) |  |  | (16) |  |  | (30) |  |  | (49) |  |  |  |  |
FFO - per Nareit (1) | $ | 32,186 |  |  | $ | 61,456 |  |  | $ | 6,339 |  |  | $ | 59,551 |  |  | $ | 58,959 |  |  |  |  |
Real estate revenues |  |  |  |  |  |  |  |  |  |  |  |  |
Lease revenue |  |  |  |  |  |  |  |  |  |  |  |  |
Fixed contractual payments | $ | 112,425 |  |  | $ | 110,748 |  |  | $ | 106,743 |  |  | $ | 103,993 |  |  | $ | 104,109 |  |  |  |  |
Variable lease payments (4) | 32,199 |  |  | 28,345 |  |  | 27,132 |  |  | 28,154 |  |  | 26,903 |  |  |  |  |
Lease revenue | 144,624 |  |  | 139,093 |  |  | 133,875 |  |  | 132,147 |  |  | 131,012 |  |  |  |  |
Other property revenue | 540 |  |  | 535 |  |  | 568 |  |  | 391 |  |  | 1,104 |  |  |  |  |
Real estate revenues | $ | 145,164 |  |  | $ | 139,628 |  |  | $ | 134,443 |  |  | $ | 132,538 |  |  | $ | 132,116 |  |  |  |  |
Provision for credit losses (recoveries) on billed lease revenue | $ | — |  |  | $ | 41 |  |  | $ | 212 |  |  | $ | 358 |  |  | $ | (355) |  |  |  |  |

(1)Refer to section entitled “Definitions” for a definition of this measure.
(2)See page 31 for a schedule of the related components.
(3)Excludes credit losses on lease revenue, which are included in lease revenue.
(4)Represents primarily lease revenue associated with property operating expense reimbursements from tenants.
32

Corporate Office Properties Trust
Supplementary Reconciliations of Non-GAAP Measures (continued)
(in thousands)

| Three Months Ended |  |
| 3/31/21 |  | 12/31/20 |  | 9/30/20 |  | 6/30/20 |  | 3/31/20 |  |  |  |
Total interest expense | $ | 17,519 |  |  | $ | 17,148 |  |  | $ | 17,152 |  |  | $ | 16,797 |  |  | $ | 16,840 |  |  |  |  |
Less: Amortization of deferred financing costs | (793) |  |  | (664) |  |  | (658) |  |  | (642) |  |  | (575) |  |  |  |  |
Less: Amortization of net debt discounts, net of amounts capitalized | (542) |  |  | (504) |  |  | (453) |  |  | (390) |  |  | (386) |  |  |  |  |
COPT’s share of interest expense of unconsolidated real estate JVs, excluding deferred financing costs | 234 |  |  | 422 |  |  | 444 |  |  | 442 |  |  | 441 |  |  |  |  |
Denominator for interest coverage | 16,418 |  |  | 16,402 |  |  | 16,485 |  |  | 16,207 |  |  | 16,320 |  |  |  |  |
Scheduled principal amortization | 962 |  |  | 1,048 |  |  | 1,033 |  |  | 1,023 |  |  | 1,021 |  |  |  |  |
Denominator for debt service coverage | 17,380 |  |  | 17,450 |  |  | 17,518 |  |  | 17,230 |  |  | 17,341 |  |  |  |  |
Capitalized interest | 1,805 |  |  | 2,620 |  |  | 2,908 |  |  | 3,174 |  |  | 3,358 |  |  |  |  |
Preferred unit distributions | — |  |  | 69 |  |  | 77 |  |  | 77 |  |  | 77 |  |  |  |  |
Denominator for fixed charge coverage | $ | 19,185 |  |  | $ | 20,139 |  |  | $ | 20,503 |  |  | $ | 20,481 |  |  | $ | 20,776 |  |  |  |  |
Common share dividends - unrestricted shares and deferred shares | $ | 30,805 |  |  | $ | 30,764 |  |  | $ | 30,763 |  |  | $ | 30,761 |  |  | $ | 30,754 |  |  |  |  |
Common share dividends - restricted shares and deferred shares | 97 |  |  | 94 |  |  | 80 |  |  | 94 |  |  | 84 |  |  |  |  |
Common unit distributions - unrestricted units | 347 |  |  | 341 |  |  | 341 |  |  | 341 |  |  | 339 |  |  |  |  |
Common unit distributions - restricted units | 51 |  |  | 31 |  |  | 25 |  |  | 25 |  |  | 25 |  |  |  |  |
Preferred unit distributions | — |  |  | 69 |  |  | 77 |  |  | 77 |  |  | 77 |  |  |  |  |
Total dividends/distributions | $ | 31,300 |  |  | $ | 31,299 |  |  | $ | 31,286 |  |  | $ | 31,298 |  |  | $ | 31,279 |  |  |  |  |
Common share dividends - unrestricted shares and deferred shares | $ | 30,805 |  |  | $ | 30,764 |  |  | $ | 30,763 |  |  | $ | 30,761 |  |  | $ | 30,754 |  |  |  |  |
Common unit distributions - unrestricted units | 347 |  |  | 341 |  |  | 341 |  |  | 341 |  |  | 339 |  |  |  |  |
Distributions on dilutive preferred units | — |  |  | 69 |  |  | — |  |  | 77 |  |  | — |  |  |  |  |
Dividends and distributions for diluted FFO payout ratio | 31,152 |  |  | 31,174 |  |  | 31,104 |  |  | 31,179 |  |  | 31,093 |  |  |  |  |
Distributions on dilutive preferred units | — |  |  | — |  |  | 77 |  |  | — |  |  | 77 |  |  |  |  |
Dividends and distributions for other payout ratios | $ | 31,152 |  |  | $ | 31,174 |  |  | $ | 31,181 |  |  | $ | 31,179 |  |  | $ | 31,170 |  |  |  |  |

33

Corporate Office Properties Trust
Supplementary Reconciliations of Non-GAAP Measures (continued)
(in thousands)

| 3/31/21 |  | 12/31/20 |  | 9/30/20 |  | 6/30/20 |  | 3/31/20
Total assets | $ | 4,112,948 |  |  | $ | 4,077,023 |  |  | $ | 4,120,189 |  |  | $ | 4,011,325 |  |  | $ | 4,054,457 |
Accumulated depreciation | 1,157,059 |  |  | 1,124,253 |  |  | 1,095,441 |  |  | 1,065,094 |  |  | 1,035,703 |
Accumulated amort. of real estate intangibles and deferred leasing costs | 217,811 |  |  | 217,124 |  |  | 215,651 |  |  | 216,267 |  |  | 214,693 |
COPT’s share of liabilities of unconsolidated real estate JVs | 27,603 |  |  | 26,710 |  |  | 50,957 |  |  | 50,984 |  |  | 50,966 |
COPT’s share of accumulated depreciation and amortization of unconsolidated real estate JVs | 2,043 |  |  | 1,489 |  |  | 10,640 |  |  | 9,815 |  |  | 8,990 |
Less: Property - operating lease liabilities | (30,176) |  |  | (30,746) |  |  | (26,382) |  |  | (20,796) |  |  | (17,365) |
Less: Property - finance lease liabilities | (28) |  |  | (28) |  |  | (28) |  |  | (688) |  |  | (702) |
Less: Cash and cash equivalents | (36,139) |  |  | (18,369) |  |  | (11,458) |  |  | (21,596) |  |  | (159,061) |
Less: COPT’s share of cash of unconsolidated real estate JVs | (202) |  |  | (152) |  |  | (538) |  |  | (627) |  |  | (593) |
Adjusted book | $ | 5,450,919 |  |  | $ | 5,397,304 |  |  | $ | 5,454,472 |  |  | $ | 5,309,778 |  |  | $ | 5,187,088 |
Gross debt (page 27) | $ | 2,257,854 |  |  | $ | 2,127,715 |  |  | $ | 2,247,523 |  |  | $ | 2,073,351 |  |  | $ | 2,139,130 |
Less: Cash and cash equivalents | (36,139) |  |  | (18,369) |  |  | (11,458) |  |  | (21,596) |  |  | (159,061) |
Less: COPT’s share of cash of unconsolidated real estate JVs | (202) |  |  | (152) |  |  | (538) |  |  | (627) |  |  | (593) |
Net debt | $ | 2,221,513 |  |  | $ | 2,109,194 |  |  | $ | 2,235,527 |  |  | $ | 2,051,128 |  |  | $ | 1,979,476 |
Preferred equity | — |  |  | — |  |  | 8,800 |  |  | 8,800 |  |  | 8,800 |
Net debt plus preferred equity | $ | 2,221,513 |  |  | $ | 2,109,194 |  |  | $ | 2,244,327 |  |  | $ | 2,059,928 |  |  | $ | 1,988,276 |
Costs incurred on fully-leased development properties | (128,032) |  |  | (114,532) |  |  | (149,201) |  |  | (152,557) |  |  | (161,134) |
Net debt adjusted for fully-leased development plus preferred equity | $ | 2,093,481 |  |  | $ | 1,994,662 |  |  | $ | 2,095,126 |  |  | $ | 1,907,371 |  |  | $ | 1,827,142 |

34

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, net of lease liabilities associated with property right-of-use assets, and 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 ventures (“JVs”) 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 JVs 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, gain on sales and impairment losses of real estate and investments in unconsolidated real estate JVs, gain or loss on early extinguishment of debt, loss on interest rate derivatives, net gain or loss on other investments, credit loss expense or recoveries, operating property acquisition costs, income taxes, business development expenses, demolition costs on redevelopment and nonrecurring improvements, executive transition costs and certain other expenses that we believe are not closely correlated with our operating performance. Adjusted EBITDA also includes adjustments to net income for the effects of the items noted above pertaining to unconsolidated real estate JVs that were 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 this non-GAAP measure.
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 share-based compensation awards 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 this non-GAAP measure.
35

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 intangibles and other assets included in FFO and NOI, 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 unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. 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 NOI from real estate operations, our segment performance measure, is the most directly comparable GAAP measure to this non-GAAP measure.
COPT’s share of NOI from unconsolidated real estate JVs
Represents the net of revenues and property operating expenses of real estate operations owned through unconsolidated JVs that are 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 unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. 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 this non-GAAP measure.
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 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 this non-GAAP measure.
36

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; 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; accounting charges for original issuance costs associated with redeemed preferred shares; allocations of FFO to holders of noncontrolling interests resulting from capital events; and certain other expenses that we believe are not closely correlated with our operating performance. Diluted FFO, as adjusted for comparability also includes adjustments to Diluted FFO for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. 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 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 this non-GAAP measure.
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 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 to this non-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, gains on sales and impairment losses of real estate and investments in unconsolidated real estate JVs, and income taxes. EBITDAre also includes adjustments to net income for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. 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 this non-GAAP measure.
37

Corporate Office Properties Trust
Definitions
Funds from operations (“FFO” or “FFO per Nareit”)
Defined as net income computed using GAAP, excluding gains on sales and impairment losses of real estate and investments in unconsolidated real estate JVs (net of associated income tax) and real estate-related depreciation and amortization. FFO also includes adjustments to net income for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. 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 on sales and impairment losses of real estate (net of associated income tax) and 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 this non-GAAP measure.
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 unconsolidated real estate JVs that were allocable to our ownership interest in the JVs.
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 disposed or removed from service; (2) the addition of pro forma adjustments to NOI for (a) properties acquired, placed in service or expanded upon 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; and (3) certain adjustments to deferred rental revenue associated with changes in our assessment of collectability that we believe are not closely correlated with our operating performance. The measure also includes adjustments to Adjusted EBITDA for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. 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 this non-GAAP measure.
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 unconsolidated real estate JVs that were allocable to our ownership interest in the JVs.
Net debt plus preferred equity
Defined as Net debt plus the total liquidation preference of outstanding preferred equity.
Net debt adjusted for fully-leased development plus preferred equity
Defined as Net debt less costs incurred on properties under development that were 100% leased plus the total liquidation preference of 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, Net debt plus preferred equity to in-place adjusted EBITDA ratio and Net debt adjusted for fully-leased development plus preferred equity to in-place adjusted EBITDA ratio
Defined as Net debt, Net debt plus preferred equity or Net debt adjusted for fully-leased development (defined above) plus preferred equity divided by in-place adjusted EBITDA (defined above) for the three month period that is annualized by multiplying by four.
38

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 unconsolidated real estate JVs that are allocable to COPT’s ownership interest in the JVs. 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.
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 dividends on unrestricted common shares and distributions to holders of interests in the Operating Partnership (excluding unvested share-based compensation awards) 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.
39

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 (“ARR”) — 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 unconsolidated real estate JVs, 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.
B RE COPT — B RE COPT DC JV II LLC, a real estate JV formed in 2020.
BREIT-COPT — BREIT COPT DC JV LLC, a real estate JV formed in 2019.
Development Properties — Properties under, or contractually committed for, development.
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-developed or redeveloped space that has never been occupied.
Operational Space — The portion of a property in operations (excludes portion under development 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.
Same Properties — Operating office and data center shell properties stably owned and 100% operational since at least 1/1/20.
Second Generation Space — Space leased that has been previously occupied.
Total Portfolio — Operating properties, including ones owned through unconsolidated real estate JVs.
40

| 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 First Quarter 2021 Results; Raises Midpoint of Full Year Guidance
by 3-Cents, Implying 4.7% Growth
Stronger Outlook for Same-Property Cash NOI and
Interest Savings from Senior Notes Refinancing Boost 2021 Expectations
_______________________________________________________________
EPS of ($0.06) Exceeded High End of Guidance by 1-Cent;
FFO per Share, as Adjusted for Comparability, of $0.56 was at the High End of Guidance
Raising Same-Property Cash NOI Guidance for the Year by 100 Basis Points, to (1%)-1%
Same-Property Cash NOI Declined 2.7% in the Quarter, Consistent with Guidance
Core Portfolio 94.0% Occupied & 94.9% Leased
46,000 SF of 100% Leased Development Placed into Service
1.4 Million SF of Active Developments are 85% Leased
_______________________________________________________________
Solid Leasing Activity; Raising Tenant Retention Forecast
Total Leasing of 258,000 SF in the Quarter; Over 660,000 SF of New and Renewal Leasing Achieved in April
Total Leasing Through April Exceeds 920,000 SF
1Q Tenant Retention of 52% was In-Line with Internal Forecast
88% Retention Rate in April and Revised Forecast Drive Increased Full-Year Guidance of 70%-75%
1Q GAAP Rents on Renewals Increased 4.9%; Cash Rents Rolled Down 2.2% with Average Escalations of 2.6%
_______________________________________________________________
COLUMBIA, MD (BUSINESS WIRE) April 29, 2021 - Corporate Office Properties Trust (“COPT” or the “Company”) (NYSE: OFC) announced financial and operating results for the first quarter ended March 31, 2021.
Management Comments
Stephen E. Budorick, COPT’s President & Chief Executive Officer, commented, “We are off to a strong start in 2021. Due to our unique investment strategy of concentrating assets around U.S. defense installations executing priority missions in support of national security, and the extremely high credit quality of our tenants, our operations continue to be fundamentally unaffected by pandemic-related externalities. First quarter leasing results were in-line
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with our internal forecast, and we are off to a blistering start in the second quarter, completing over 660,000 square feet of new and renewal leasing, and achieving an 88% renewal rate. Based on leasing achieved in April and the transactions in negotiation, we are increasing our full-year tenant retention guidance from the prior range of 65%-75% to a new range of 70%-75%. With roughly 900,000 square feet of development transactions in advanced negotiations, we also remain on-track to meet or exceed previously established guidance of leasing 1 million square feet in developments this year.”
He continued, “The exceptional execution of our March bond offering and solid operations drove first quarter FFO per share, as adjusted for comparability, to the high-end of guidance and the interest savings will continue to benefit the remainder of the year. Additionally, our improved leasing outlook is driving higher expectations for same-property results. Accordingly, we are increasing the midpoint of our updated full-year guidance for FFO per share, as adjusted for comparability, from $2.19 to a new midpoint of $2.22, which would represent 4.7% growth over 2020 results.”
Financial Highlights
1 st Quarter Financial Results:
•Diluted (loss) earnings per share (“EPS”) was ($0.06) for the quarter ended March 31, 2021 as compared to $0.21 for the first quarter of 2020.
•Diluted funds from operations per share (“FFOPS”), as calculated in accordance with Nareit’s definition, was $0.27 for the first quarter of 2021 as compared to $0.41 for first quarter 2020 results.
•FFOPS, as adjusted for comparability, was $0.56 for the first quarter of 2021 as compared to $0.51 for the first quarter of 2020.
Operating Performance Highlights
Operating Portfolio Summary:
•At March 31, 2021, the Company’s core portfolio of 180 operating office and data center shell properties was 94.0% occupied and 94.9% leased.
•During the quarter, the Company placed into service 46,000 square feet that were 100% leased.
Same-Property Performance:
•At March 31, 2021, COPT’s same-property portfolio of 161 buildings was 92.8% occupied and 93.8% leased.
•For the quarter ended March 31, 2021, the Company’s same-property cash NOI decreased 2.7% over the prior year’s comparable period.
Leasing:
•Total Square Feet Leased: For the quarter ended March 31, 2021, the Company leased 258,000 total square feet, including 154,000 square feet of renewals, 11,000 square feet in development projects, and 93,000 square feet of new leases on vacant space.
•Renewal Rates: During the quarter ended March 31, 2021, the Company renewed 51.8% of total expiring square feet.
•Rent Spreads & Average Escalations on Renewing Leases: For the quarter ended March 31, 2021, cash rents on renewed space decreased 2.2% and GAAP rents on renewed space increased 4.9%. For the same period, annual escalations on renewing leases averaged 2.6%.
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•Lease Terms: In the first quarter of 2021, lease terms averaged 3.1 years on renewing leases, 5.5 years on development leasing, and 8.5 years on new leasing of vacant space.
Investment Activity Highlights
•Development Pipeline: At March 31, 2021, the Company’s development pipeline consisted of 10 properties totaling 1.4 million square feet that were 85% leased. These projects have a total estimated cost of $595.2 million, of which $340.2 million has been incurred.
Balance Sheet and Capital Transaction Highlights
•In March, the Company issued $600 million of 2.75% senior unsecured notes due 2031. This issuance enabled the Company to complete tender offers for, and subsequent redemptions of, its $350 million of 3.6% senior unsecured notes due 2023 and $250 million of 5.25% senior unsecured notes due 2024. The tender offers were completed effective March 11, 2021, and the redemptions of the remaining notes were completed on April 12, 2021.
•At March 31, 2021, the Company’s net debt to adjusted book ratio was 40.8% and its net debt to in-place adjusted EBITDA ratio was 6.6x. As of the same date, net debt adjusted for fully-leased development plus preferred equity to in-place adjusted EBITDA ratio was 6.3x. For the quarter ended March 31, 2021, the Company’s adjusted EBITDA fixed charge coverage ratio was 4.3x.
•At March 31, 2021, and including the effect of interest rate swaps, the Company’s weighted average effective interest rate on its consolidated debt portfolio was 3.25% with a weighted average maturity of 4.8 years; additionally, 89.4% of the Company’s debt was subject to fixed interest rates.
Associated Supplemental Presentation
Prior to the call, the Company will post a slide presentation to accompany management’s prepared remarks for its first quarter 2021 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/
2021 Guidance
Management is increasing its full-year guidance for EPS and FFOPS, per Nareit and as adjusted for comparability from the prior range of $0.25-$0.31, $1.65-$1.71, and $2.16-$2.22, respectively, to new ranges of $0.28-$0.34, $1.68-$1.74, and $2.19-$2.25, respectively. Management is establishing second quarter guidance for EPS and FFOPS per Nareit, and FFOPS, as adjusted for comparability at ($0.02)-$0.00, $0.33-$0.35, and $0.55-$0.57, respectively. Reconciliations of projected EPS to projected FFOPS, in accordance with Nareit and as adjusted for comparability are as follows:

Reconciliation of EPS to FFOPS, per Nareit, and As Adjusted for Comparability |  | Quarter ending |  | Year ending
| June 30, 2021 |  | December 31, 2021
|  | Low |  | High |  | Low |  | High
EPS |  | $ | (0.02) |  |  | $ | — |  |  | $ | 0.28 |  |  | $ | 0.34 |
Real estate-related depreciation and amortization |  | 0.35 |  |  | 0.35 |  |  | 1.40 |  |  | 1.40 |
FFOPS, Nareit definition |  | 0.33 |  |  | 0.35 |  |  | 1.68 |  |  | 1.74 |
Loss on early extinguishment of debt |  | 0.22 |  |  | 0.22 |  |  | 0.51 |  |  | 0.51 |
FFOPS, as adjusted for comparability |  | $ | 0.55 |  |  | $ | 0.57 |  |  | $ | 2.19 |  |  | $ | 2.25 |

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Conference Call Information
Management will discuss first quarter 2021 results on its conference call tomorrow at 12:00 p.m. Eastern Time, details of which are listed below:
Conference Call Date: Friday, April 30, 2021
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: 8353839
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, April 30, through 3:00 p.m. Eastern Time on Friday, May 14. 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 8353839.
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.
About COPT
COPT is a REIT that owns, manages, leases, develops and selectively acquires office and data center properties. The majority of its 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 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 March 31, 2021, the Company derived 88% of its core portfolio annualized rental revenue from Defense/IT Locations and 12% from its Regional Office Properties. As of the same date and including 17 properties owned through unconsolidated joint ventures, COPT’s core portfolio of 180 office and data center shell properties encompassed 20.8 million square feet and was 94.9% leased; the Company also owned one wholesale data center with a critical load of 19.25 megawatts that was 86.7% leased.
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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 and the Company undertakes no obligation to update or supplement any forward-looking statements.
The areas of risk that may affect these expectations, estimates and projections include, but are not limited to, those risks described in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.
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Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(dollars and shares in thousands, except per share data)

| For the Three Months Ended March 31, |  |
| 2021 |  | 2020 |  |  |  |
Revenues |  |  |  |  |  |  |
Revenues from real estate operations | $ | 145,164 |  |  | $ | 132,116 |  |  |  |  |
Construction contract and other service revenues | 16,558 |  |  | 13,681 |  |  |  |  |
Total revenues | 161,722 |  |  | 145,797 |  |  |  |  |
Operating expenses |  |  |  |  |  |  |
Property operating expenses | 56,974 |  |  | 49,999 |  |  |  |  |
Depreciation and amortization associated with real estate operations | 37,321 |  |  | 32,596 |  |  |  |  |
Construction contract and other service expenses | 15,793 |  |  | 13,121 |  |  |  |  |
General and administrative expenses | 6,062 |  |  | 5,303 |  |  |  |  |
Leasing expenses | 2,344 |  |  | 2,183 |  |  |  |  |
Business development expenses and land carry costs | 1,094 |  |  | 1,118 |  |  |  |  |
Total operating expenses | 119,588 |  |  | 104,320 |  |  |  |  |
Interest expense | (17,519) |  |  | (16,840) |  |  |  |  |
Interest and other income | 1,865 |  |  | 1,205 |  |  |  |  |
Credit loss recoveries (expense) | 907 |  |  | (689) |  |  |  |  |
Gain on sales of real estate | (490) |  |  | 5 |  |  |  |  |
Loss on early extinguishment of debt | (33,166) |  |  | — |  |  |  |  |
(Loss) income before equity in income of unconsolidated entities and income taxes | (6,269) |  |  | 25,158 |  |  |  |  |
Equity in income of unconsolidated entities | 222 |  |  | 441 |  |  |  |  |
Income tax expense | (32) |  |  | (49) |  |  |  |  |
Net (loss) income | (6,079) |  |  | 25,550 |  |  |  |  |
Net loss (income) attributable to noncontrolling interests: |  |  |  |  |  |  |
Common units in the Operating Partnership (“OP”) | 85 |  |  | (287) |  |  |  |  |
Preferred units in the OP | — |  |  | (77) |  |  |  |  |
Other consolidated entities | (675) |  |  | (1,132) |  |  |  |  |
Net (loss) income attributable to COPT common shareholders | $ | (6,669) |  |  | $ | 24,054 |  |  |  |  |
Earnings per share (“EPS”) computation: |  |  |  |  |  |  |
Numerator for diluted EPS: |  |  |  |  |  |  |
Net (loss) income attributable to COPT common shareholders | $ | (6,669) |  |  | $ | 24,054 |  |  |  |  |
Amount allocable to share-based compensation awards | (170) |  |  | (97) |  |  |  |  |
Numerator for diluted EPS | $ | (6,839) |  |  | $ | 23,957 |  |  |  |  |
Denominator: |  |  |  |  |  |  |
Weighted average common shares - basic | 111,888 |  |  | 111,724 |  |  |  |  |
Dilutive effect of share-based compensation awards | — |  |  | 239 |  |  |  |  |
Weighted average common shares - diluted | 111,888 |  |  | 111,963 |  |  |  |  |
Diluted EPS | $ | (0.06) |  |  | $ | 0.21 |  |  |  |  |

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

| For the Three Months Ended March 31, |  |
| 2021 |  | 2020 |  |  |  |
Net (loss) income | $ | (6,079) |  |  | $ | 25,550 |  |  |  |  |
Real estate-related depreciation and amortization | 37,321 |  |  | 32,596 |  |  |  |  |
Gain on sales of real estate | 490 |  |  | (5) |  |  |  |  |
Depreciation and amortization on unconsolidated real estate JVs | 454 |  |  | 818 |  |  |  |  |
Funds from operations (“FFO”) | 32,186 |  |  | 58,959 |  |  |  |  |
FFO allocable to other noncontrolling interests | (1,027) |  |  | (12,015) |  |  |  |  |
Basic FFO allocable to share-based compensation awards | (162) |  |  | (193) |  |  |  |  |
Noncontrolling interests - preferred units in the OP | — |  |  | (77) |  |  |  |  |
Basic FFO available to common share and common unit holders (“Basic FFO”) | 30,997 |  |  | 46,674 |  |  |  |  |
Redeemable noncontrolling interests | — |  |  | 32 |  |  |  |  |
Diluted FFO available to common share and common unit holders (“Diluted FFO”) | 30,997 |  |  | 46,706 |  |  |  |  |
Loss on early extinguishment of debt | 33,166 |  |  | — |  |  |  |  |
Diluted FFO comparability adjustments for redeemable noncontrolling interests | 458 |  |  | — |  |  |  |  |
Diluted FFO comparability adjustments allocable to share-based compensation awards | (167) |  |  | (50) |  |  |  |  |
Demolition costs on redevelopment and nonrecurring improvements | — |  |  | 43 |  |  |  |  |
Dilutive preferred units in the OP | — |  |  | 77 |  |  |  |  |
FFO allocation to other noncontrolling interests resulting from capital event | — |  |  | 11,090 |  |  |  |  |
Diluted FFO available to common share and common unit holders, as adjusted for comparability | 64,454 |  |  | 57,866 |  |  |  |  |
Straight line rent adjustments and lease incentive amortization | (3,357) |  |  | (852) |  |  |  |  |
Amortization of intangibles included in net operating income | 40 |  |  | (74) |  |  |  |  |
Share-based compensation, net of amounts capitalized | 1,904 |  |  | 1,389 |  |  |  |  |
Amortization of deferred financing costs | 793 |  |  | 575 |  |  |  |  |
Amortization of net debt discounts, net of amounts capitalized | 542 |  |  | 386 |  |  |  |  |
Replacement capital expenditures | (12,230) |  |  | (17,754) |  |  |  |  |
Other diluted AFFO adjustments associated with real estate JVs | 241 |  |  | (41) |  |  |  |  |
Diluted adjusted funds from operations available to common share and common unit holders (“Diluted AFFO”) | $ | 52,387 |  |  | $ | 41,495 |  |  |  |  |
Diluted FFO per share | $ | 0.27 |  |  | $ | 0.41 |  |  |  |  |
Diluted FFO per share, as adjusted for comparability | $ | 0.56 |  |  | $ | 0.51 |  |  |  |  |
Dividends/distributions per common share/unit | $ | 0.275 |  |  | $ | 0.275 |  |  |  |  |

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

| March 31, 2021 |  | December 31, 2020
Balance Sheet Data |  |  |
Properties, net of accumulated depreciation | $ | 3,579,254 |  |  | $ | 3,562,549 |
Total assets | 4,112,948 |  |  | 4,077,023 |
Debt, per balance sheet | 2,207,903 |  |  | 2,086,918 |
Total liabilities | 2,430,231 |  |  | 2,357,881 |
Redeemable noncontrolling interests | 25,925 |  |  | 25,430 |
Equity | 1,656,792 |  |  | 1,693,712 |
Net debt to adjusted book | 40.8 | % |  | 39.1 | %
Core Portfolio Data (as of period end) (1) |  |  |
Number of operating properties | 180 |  |  | 179 |
Total operational square feet (in thousands) | 20,849 |  |  | 20,802 |
% Occupied | 94.0 | % |  | 94.3 | %
% Leased | 94.9 | % |  | 95.0 | %

| For the Three Months Ended March 31, |  |
2021 |  | 2020 |  |  |  |
Payout ratios |  |  |  |  |  |  |
Diluted FFO | 100.5 | % |  | 66.6 | % |  |  |  |
Diluted FFO, as adjusted for comparability | 48.3 | % |  | 53.9 | % |  |  |  |
Diluted AFFO | 59.5 | % |  | 75.1 | % |  |  |  |
Adjusted EBITDA fixed charge coverage ratio | 4.3 | x |  | 3.8 | x |  |  |  |
Net debt plus preferred equity to in-place adjusted EBITDA ratio (2) | 6.6 | x |  | 6.3 | x |  |  |  |
Net debt adj. for fully-leased development plus pref. equity to in-place adj. EBITDA ratio (3) | 6.3 | x |  | 5.8 | x |  |  |  |
Reconciliation of denominators for per share measures |  |  |  |  |  |
Denominator for diluted EPS | 111,888 |  |  | 111,963 |  |  |  |  |
Weighted average common units | 1,246 |  |  | 1,226 |  |  |  |  |
Anti-dilutive EPS effect of share-based compensation awards | 261 |  |  | — |  |  |  |  |
Redeemable noncontrolling interests | — |  |  | 110 |  |  |  |  |
Denominator for diluted FFO per share | 113,395 |  |  | 113,299 |  |  |  |  |
Redeemable noncontrolling interests | 940 |  |  | — |  |  |  |  |
Dilutive convertible preferred units | — |  |  | 176 |  |  |  |  |
Denominator for diluted FFO per share, as adjusted for comparability | 114,335 |  |  | 113,475 |  |  |  |  |

(1)Represents Defense/IT Locations and Regional Office properties.
(2)Represents net debt plus the total liquidation preference of preferred equity as of period end divided by in-place adjusted EBITDA for the period, as annualized (i.e. three month periods are multiplied by four).
(3)Represents net debt less costs incurred on properties under development that were 100% leased as of period end plus the total liquidation preference of preferred equity divided by in-place adjusted EBITDA for the period, as annualized (i.e. three month periods are multiplied by four).
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Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(in thousands)

| For the Three Months Ended March 31, |  |
| 2021 |  | 2020 |  |  |  |
Reconciliation of common share dividends to dividends and distributions for payout ratios |  |  |  |  |  |  |
Common share dividends - unrestricted shares and deferred shares | $ | 30,805 |  |  | $ | 30,754 |  |  |  |  |
Common unit distributions - unrestricted units | 347 |  |  | 339 |  |  |  |  |
Dividends and distributions for diluted FFO payout ratio | 31,152 |  |  | 31,093 |  |  |  |  |
Distributions on dilutive preferred units | — |  |  | 77 |  |  |  |  |
Dividends and distributions for other payout ratios | $ | 31,152 |  |  | $ | 31,170 |  |  |  |  |
Reconciliation of GAAP net (loss) income to earnings before interest, income taxes, depreciation and amortization for real estate (“EBITDAre”), adjusted EBITDA and in-place adjusted EBITDA |  |  |  |  |  |  |
Net (loss) income | $ | (6,079) |  |  | $ | 25,550 |  |  |  |  |
Interest expense | 17,519 |  |  | 16,840 |  |  |  |  |
Income tax expense | 32 |  |  | 49 |  |  |  |  |
Real estate-related depreciation and amortization | 37,321 |  |  | 32,596 |  |  |  |  |
Other depreciation and amortization | 555 |  |  | 419 |  |  |  |  |
Gain on sales of real estate | 490 |  |  | (5) |  |  |  |  |
Adjustments from unconsolidated real estate JVs | 693 |  |  | 1,270 |  |  |  |  |
EBITDAre | 50,531 |  |  | 76,719 |  |  |  |  |
Loss on early extinguishment of debt | 33,166 |  |  | — |  |  |  |  |
Credit loss (recoveries) expense | (907) |  |  | 689 |  |  |  |  |
Business development expenses | 548 |  |  | 538 |  |  |  |  |
Demolition costs on redevelopment and nonrecurring improvements | — |  |  | 43 |  |  |  |  |
Adjusted EBITDA | 83,338 |  |  | 77,989 |  |  |  |  |
Proforma net operating income adjustment for property changes within period | 166 |  |  | 734 |  |  |  |  |
Change in collectability of deferred rental revenue | 124 |  |  | — |  |  |  |  |
In-place adjusted EBITDA | $ | 83,628 |  |  | $ | 78,723 |  |  |  |  |
Reconciliation of interest expense to the denominators for fixed charge coverage-Adjusted EBITDA |  |  |  |  |  |  |
Interest expense | $ | 17,519 |  |  | $ | 16,840 |  |  |  |  |
Less: Amortization of deferred financing costs | (793) |  |  | (575) |  |  |  |  |
Less: Amortization of net debt discounts, net of amounts capitalized | (542) |  |  | (386) |  |  |  |  |
COPT’s share of interest expense of unconsolidated real estate JVs, excluding deferred financing costs | 234 |  |  | 441 |  |  |  |  |
Scheduled principal amortization | 962 |  |  | 1,021 |  |  |  |  |
Capitalized interest | 1,805 |  |  | 3,358 |  |  |  |  |
Preferred unit distributions | — |  |  | 77 |  |  |  |  |
Denominator for fixed charge coverage-Adjusted EBITDA | $ | 19,185 |  |  | $ | 20,776 |  |  |  |  |

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

|  |  | For the Three Months Ended March 31,
|  |  |  |  | 2021 |  | 2020
Reconciliations of tenant improvements and incentives, building improvements and leasing costs for operating properties to replacement capital expenditures |  |  |  |  |  |  |
Tenant improvements and incentives |  |  |  |  | $ | 7,139 |  |  | $ | 11,357 |
Building improvements |  |  |  |  | 3,628 |  |  | 2,475 |
Leasing costs |  |  |  |  | 1,129 |  |  | 2,762 |
Net additions to tenant improvements and incentives |  |  |  |  | 2,900 |  |  | 2,026 |
Excluded building improvements and leasing costs |  |  |  |  | (2,566) |  |  | (866) |
Replacement capital expenditures |  |  |  |  | $ | 12,230 |  |  | $ | 17,754 |
Same Properties cash NOI |  |  |  |  | $ | 74,000 |  |  | $ | 76,041 |
Straight line rent adjustments and lease incentive amortization |  |  |  |  | 151 |  |  | 182 |
Amortization of acquired above- and below-market rents |  |  |  |  | 99 |  |  | 96 |
Amortization of intangibles and other assets to property operating expenses |  |  |  |  | — |  |  | (23) |
Lease termination fees, net |  |  |  |  | 1,362 |  |  | 38 |
Tenant funded landlord assets and lease incentives |  |  |  |  | 179 |  |  | 368 |
Cash NOI adjustments in unconsolidated real estate JV |  |  |  |  | 42 |  |  | 53 |
Same Properties NOI |  |  |  |  | $ | 75,833 |  |  | $ | 76,755 |

|  | March 31, 2021 |  | December 31, 2020
Reconciliation of total assets to adjusted book |  |  |  |
Total assets |  | $ | 4,112,948 |  |  | $ | 4,077,023 |
Accumulated depreciation |  | 1,157,059 |  |  | 1,124,253 |
Accumulated amortization of real estate intangibles and deferred leasing costs |  | 217,811 |  |  | 217,124 |
COPT’s share of liabilities of unconsolidated real estate JVs |  | 27,603 |  |  | 26,710 |
COPT’s share of accumulated depreciation and amortization of unconsolidated real estate JVs |  | 2,043 |  |  | 1,489 |
Less: Property - operating lease liabilities |  | (30,176) |  |  | (30,746) |
Less: Property - finance lease liabilities |  | (28) |  |  | (28) |
Less: Cash and cash equivalents |  | (36,139) |  |  | (18,369) |
Less: COPT’s share of cash of unconsolidated real estate JVs |  | (202) |  |  | (152) |
Adjusted book |  | $ | 5,450,919 |  |  | $ | 5,397,304 |
Reconciliation of debt outstanding to net debt and net debt adjusted for fully-leased development plus preferred equity |  |  |  |
Debt outstanding (excluding net debt discounts and deferred financing costs) |  | $ | 2,257,854 |  |  | 2,127,715 |
Less: Cash and cash equivalents |  | (36,139) |  |  | (18,369) |
Less: COPT’s share of cash of unconsolidated real estate JVs |  | (202) |  |  | (152) |
Net debt |  | $ | 2,221,513 |  |  | $ | 2,109,194 |
Costs incurred on fully-leased development properties |  | (128,032) |  |  | (114,532) |
Net debt adjusted for fully-leased development plus preferred equity |  | $ | 2,093,481 |  |  | $ | 1,994,662 |

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