XML 34 R20.htm IDEA: XBRL DOCUMENT
v3.25.1

Information by Business Segment | 3 Months Ended
--- | ---
Mar. 31, 2025
Segment Reporting [Abstract] |
Information by Business Segment | Information by Business Segment We have the following reportable segments: Defense/IT Portfolio; and Other. We also report on Defense/IT Portfolio sub-segments, which include the following: Fort George G. Meade and the Baltimore/Washington Corridor (“Fort Meade/BW Corridor”); Northern Virginia Defense/IT Locations (“NoVA Defense/IT”); Lackland Air Force Base (in San Antonio, Texas); locations serving the U.S. Navy (“Navy Support”), which included properties proximate to the Washington Navy Yard, the Naval Air Station Patuxent River in Maryland and the Naval Surface Warfare Center Dahlgren Division in Virginia; Redstone Arsenal (in Huntsville, Alabama); and data center shells (properties leased to tenants to be operated as data centers in which the tenants fund the costs for the power, fiber connectivity and data center infrastructure). In the first quarter of 2025, we retrospectively reclassified two properties to our Fort Meade/BW Corridor sub-segment from our Other segment. We measure the performance of our segments through the measure we define as net operating income from real estate operations (“NOI from real estate operations”), which includes real estate revenues and other segment items, which is comprised of: property operating expenses; and the net of revenues and property operating expenses of real estate operations owned through unconsolidated real estate joint ventures (“UJV” or “UJVs”) that is allocable to our ownership interest (“UJV NOI allocable to COPT Defense”). Property operating expenses represent costs associated with operating our properties, including property taxes, ground rents, utilities, property management, insurance, repairs and exterior and interior maintenance, as well as associated labor and indirect costs. Our chief operating decision maker uses budget to actual comparisons of operating expense information on a consolidated basis and for our Same Property pool (defined as our properties stably owned and 100% operational throughout both the current and prior year) to manage expenses associated with operating our properties. Amounts reported for segment assets represent long-lived assets associated with consolidated operating properties (including the carrying value of properties, right-of-use assets, net of related lease liabilities, intangible assets, deferred leasing costs, deferred rents receivable and lease incentives) and the carrying value of investments in UJVs owning operating properties, net of deficit investment balances reported in “other liabilities” on our consolidated balance sheets (which were included in our data center shells sub-segment and totaled $35.1 million and $37.6 million as of March 31, 2025 and 2024, respectively). Amounts reported as additions to long-lived assets represent additions to existing consolidated operating properties, excluding transfers from non-operating properties, which we report separately. The table below reports segment financial information for our reportable segments (in thousands):
| Defense/IT Portfolio |  |  |  |  |  |
| Fort Meade/BW Corridor |  | NoVA Defense/IT |  | Lackland Air Force Base |  | Navy Support |  | Redstone Arsenal |  | Data Center Shells |  | Total Defense/IT Portfolio |  |  |  | Other |  | Total
Three Months Ended March 31, 2025 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues from real estate operations | $ | 84,608 |  |  | $ | 23,162 |  |  | $ | 16,410 |  |  | $ | 7,960 |  |  | $ | 16,422 |  |  | $ | 10,865 |  |  | $ | 159,427 |  |  |  |  | $ | 18,170 |  |  | $ | 177,597 |
Other segment items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Property operating expenses | (31,930) |  |  | (10,089) |  |  | (8,999) |  |  | (4,166) |  |  | (6,294) |  |  | (1,853) |  |  | (63,331) |  |  |  |  | (8,709) |  |  | (72,040) |
UJV NOI allocable to COPT Defense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,889 |  |  | 1,889 |  |  |  |  | — |  |  | 1,889 |
Total other segment items | (31,930) |  |  | (10,089) |  |  | (8,999) |  |  | (4,166) |  |  | (6,294) |  |  | 36 |  |  | (61,442) |  |  |  |  | (8,709) |  |  | (70,151) |
NOI from real estate operations | $ | 52,678 |  |  | $ | 13,073 |  |  | $ | 7,411 |  |  | $ | 3,794 |  |  | $ | 10,128 |  |  | $ | 10,901 |  |  | $ | 97,985 |  |  |  |  | $ | 9,461 |  |  | $ | 107,446 |
Additions to long-lived assets | $ | 8,093 |  |  | $ | 2,556 |  |  | $ | 119 |  |  | $ | 3,666 |  |  | $ | 3,248 |  |  | $ | — |  |  | $ | 17,682 |  |  |  |  | $ | 1,733 |  |  | $ | 19,415 |
Transfers from non-operating properties | $ | 1,337 |  |  | $ | 18 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,266 |  |  | $ | 3,941 |  |  | $ | 9,562 |  |  |  |  | $ | 2,774 |  |  | $ | 12,336 |
Segment assets at March 31, 2025 | $ | 1,441,470 |  |  | $ | 492,384 |  |  | $ | 197,349 |  |  | $ | 163,951 |  |  | $ | 601,935 |  |  | $ | 490,998 |  |  | $ | 3,388,087 |  |  |  |  | $ | 314,871 |  |  | $ | 3,702,958 |
Three Months Ended March 31, 2024 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenues from real estate operations | $ | 78,836 |  |  | $ | 21,426 |  |  | $ | 16,411 |  |  | $ | 8,226 |  |  | $ | 16,808 |  |  | $ | 8,457 |  |  | $ | 150,164 |  |  |  |  | $ | 16,499 |  |  | $ | 166,663 |
Other segment items: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Property operating expenses | (28,377) |  |  | (9,262) |  |  | (8,688) |  |  | (3,626) |  |  | (5,792) |  |  | (943) |  |  | (56,688) |  |  |  |  | (10,058) |  |  | (66,746) |
UJV NOI allocable to COPT Defense | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | 1,740 |  |  | 1,740 |  |  |  |  | — |  |  | 1,740 |
Total other segment items | (28,377) |  |  | (9,262) |  |  | (8,688) |  |  | (3,626) |  |  | (5,792) |  |  | 797 |  |  | (54,948) |  |  |  |  | (10,058) |  |  | (65,006) |
NOI from real estate operations | $ | 50,459 |  |  | $ | 12,164 |  |  | $ | 7,723 |  |  | $ | 4,600 |  |  | $ | 11,016 |  |  | $ | 9,254 |  |  | $ | 95,216 |  |  |  |  | $ | 6,441 |  |  | $ | 101,657 |
Additions to long-lived assets | $ | 26,553 |  |  | $ | 4,491 |  |  | $ | — |  |  | $ | 598 |  |  | $ | 672 |  |  | $ | — |  |  | $ | 32,314 |  |  |  |  | $ | 4,577 |  |  | $ | 36,891 |
Transfers from non-operating properties | $ | 1,575 |  |  | $ | 993 |  |  | $ | 9 |  |  | $ | — |  |  | $ | 32,884 |  |  | $ | 3,075 |  |  | $ | 38,536 |  |  |  |  | $ | 9 |  |  | $ | 38,545 |
Segment assets at March 31, 2024 | $ | 1,462,065 |  |  | $ | 489,544 |  |  | $ | 187,232 |  |  | $ | 161,210 |  |  | $ | 584,790 |  |  | $ | 431,212 |  |  | $ | 3,316,053 |  |  |  |  | $ | 309,177 |  |  | $ | 3,625,230 |
The following table reconciles our segment revenues to total revenues as reported on our consolidated statements of operations (in thousands):
| For the Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
Segment revenues from real estate operations | $ | 177,597 |  |  | $ | 166,663 |  |  |  |  |
Construction contract and other service revenues | 10,259 |  |  | 26,603 |  |  |  |  |
Total revenues | $ | 187,856 |  |  | $ | 193,266 |  |  |  |  |
The following table reconciles UJV NOI allocable to COPT Defense to equity in income of unconsolidated entities as reported on our consolidated statements of operations (in thousands):
| For the Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
UJV NOI allocable to COPT Defense | $ | 1,889 |  |  | $ | 1,740 |  |  |  |  |
Less: Income from UJV allocable to COPT Defense attributable to depreciation and amortization expense and interest expense | (1,518) |  |  | (1,671) |  |  |  |  |
Equity in income of unconsolidated entities | $ | 371 |  |  | $ | 69 |  |  |  |  |
As previously discussed, we provide real estate services such as property management, development and construction services primarily for our properties but also for third parties. The primary manner in which we evaluate the operating performance of our service activities is through a measure we define as net operating income from service operations (“NOI from service operations”), which is based on the net of revenues and expenses from these activities. Construction contract and other service revenues and expenses consist primarily of subcontracted costs that are reimbursed to us by the customer along with a management fee. The operating margins from these activities are small relative to the revenue. We believe NOI from service operations is a useful measure in assessing both our level of activity and our profitability in conducting such operations. The table below sets forth the computation of our NOI from service operations (in thousands):
| For the Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
Construction contract and other service revenues | $ | 10,259 |  |  | $ | 26,603 |  |  |  |  |
Construction contract and other service expenses | (9,705) |  |  | (26,007) |  |  |  |  |
NOI from service operations | $ | 554 |  |  | $ | 596 |  |  |  |  |
The following table reconciles our NOI from real estate operations for reportable segments and NOI from service operations to net income as reported on our consolidated statements of operations (in thousands):
| For the Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
NOI from real estate operations | $ | 107,446 |  |  | $ | 101,657 |  |  |  |  |
NOI from service operations | 554 |  |  | 596 |  |  |  |  |
Depreciation and other amortization associated with real estate operations | (39,359) |  |  | (38,351) |  |  |  |  |
General, administrative, leasing and other expenses | (12,156) |  |  | (11,747) |  |  |  |  |
Interest expense | (20,504) |  |  | (20,767) |  |  |  |  |
Interest and other income, net | 1,568 |  |  | 4,122 |  |  |  |  |
Gain on sales of real estate | 300 |  |  | — |  |  |  |  |
Equity in income of unconsolidated entities | 371 |  |  | 69 |  |  |  |  |
UJV NOI allocable to COPT Defense included in equity in income of unconsolidated entities | (1,889) |  |  | (1,740) |  |  |  |  |
Income tax expense | (103) |  |  | (168) |  |  |  |  |
Net income | $ | 36,228 |  |  | $ | 33,671 |  |  |  |  |
The following table reconciles our segment assets to our consolidated total assets (in thousands):
|  | March 31, 2025 |  | March 31, 2024
Segment assets |  | $ | 3,702,958 |  |  | $ | 3,625,230 |
Operating properties lease liabilities included in segment assets |  | 48,600 |  |  | 33,550 |
Investment in UJV deficit balance included in segment assets |  | 3,895 |  |  | 2,982 |
Non-operating property assets |  | 300,241 |  |  | 245,828 |
Other assets |  | 194,617 |  |  | 325,305 |
Total consolidated assets |  | $ | 4,250,311 |  |  | $ | 4,232,895 |
The accounting policies of the segments are the same as those used to prepare our consolidated financial statements. In the segment reporting presented above, we did not allocate interest expense, depreciation and amortization, gain on sales of real estate and equity in income of unconsolidated entities not included in NOI to our real estate segments since they are not included in the measure of segment profit reviewed by management. We also did not allocate general, administrative, leasing and other expenses, interest and other income, net, income taxes and noncontrolling interests because these items represent general corporate or non-operating property items not attributable to segments.

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 270 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482964/270-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (ee) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 6: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 8: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 9: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 10: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 11: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-34 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-15 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-42 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-40 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/280/tableOfContent Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26 Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration