COLUMBIA, Md.--(BUSINESS WIRE)--COPT Defense Properties (“COPT Defense” or the “Company”) (NYSE: CDP) announced results for the first quarter ended March 31, 2024.
Management Comments
Stephen E. Budorick, COPT Defense’s President & Chief Executive Officer, commented, “Our Defense/IT investment strategy, which concentrates our portfolio near priority U.S. defense installations, generated strong results in the first quarter with FFO per share exceeding the midpoint of our guidance range by $0.02. Based on this outperformance and our forecast over the remainder of the year, we increased the midpoint of 2024 FFO per share guidance by $0.03 to $2.54, which implies 5% year-over-year growth.
In terms of internal growth, the strength of demand for our portfolio is evidenced by our same property cash NOI growth of 6.1% for our Total Portfolio and 7.6% for our Defense/IT Portfolio on a year-over-year basis, which led us to increase our 2024 guidance by 50 basis points at the midpoint. Our Defense/IT Portfolio was 95.6% occupied and 96.8% leased at quarter-end, while our tenant retention rate was 78%, all of which we believe compare favorably to other leading REIT sectors.
In terms of external growth, we committed $91 million of capital to new investments which includes two development projects totaling $76 million at The National Business Park and Redstone Gateway, two of our highest occupancy markets. We also acquired Franklin Center in Columbia Gateway for $15 million, which marks our first acquisition since 2015. This transaction is an excellent opportunity to acquire high quality inventory at a deeply discounted basis, and leverage our Defense/IT franchise and strong demand from defense contractors, to create significant shareholder value.
Our actual and expected performance led our Board of Trustees to approve a 3.5% increase in our quarterly dividend in February, which marks our second consecutive annual increase, following the 3.6% raise in 2023. Looking forward, we continue to anticipate compound annual FFO per share growth of roughly 4% between 2023 to 2026.”
Financial Highlights
1st Quarter Financial Results:
- Diluted earnings per share (“EPS”) was $0.29 for the quarter ended March 31, 2024 as compared to $0.70 for the quarter ended March 31, 2023.
- Diluted funds from operations per share (“FFOPS”), as calculated in accordance with Nareit’s definition and as adjusted for comparability, was $0.62 for the quarter ended March 31, 2024 compared to $0.59 for the quarter ended March 31, 2023.
Operating Performance Highlights
Operating Portfolio Summary:
- At March 31, 2024, the Company’s 24.1 million square foot Total Portfolio was 93.6% occupied and 94.9% leased, which includes the 22.0 million square foot Defense/IT Portfolio that was 95.6% occupied and 96.8% leased.
- During the quarter ended March 31, 2024, the Company placed into service $32.3 million of developments totaling 73,000 square feet that were 100% leased.
Same Property Performance:
- At March 31, 2024, the Company’s 22.2 million square foot same property portfolio was 93.5% occupied and 95.0% leased.
- The Company’s same property cash NOI increased 6.1% for the three months ended March 31, 2024 compared to the same period in 2023.
Leasing:
- Total Square Feet Leased: For the quarter ended March 31, 2024, the Company leased 721,000 square feet, including 551,000 square feet of renewals, 160,000 square feet of vacancy leasing, and 10,000 square feet in development projects.
- Tenant Retention Rates: During the quarter ended March 31, 2024, the Company renewed 78% of expiring square feet in its Total Portfolio and 82.9% in its Defense/IT Portfolio.
- Rent Spreads & Average Escalations on Renewing Leases: For the quarter ended March 31, 2024, straight-line rents on renewals increased 3.7% and cash rents on renewed space decreased 2.5%. For the same time period, annual escalations on renewing leases averaged 2.4%.
- Lease Terms: In the quarter ended March 31, 2024, lease terms averaged 4.1 years on renewing leases, 8.2 years on vacancy leasing, and 5.3 years on development projects.
Investment Activity Highlights
- Development Pipeline: The Company’s development pipeline consists of six properties totaling 959,000 square feet that were 74% leased as of March 31, 2024. These projects represent a total estimated investment of $381.4 million, of which $89.1 million has been spent.
-
Acquisition: During the quarter, the Company acquired 6841 Benjamin Franklin Center Drive, a 7-story LEED-Gold office building containing 202,000 square feet in Columbia, Maryland for $15 million.
- Please see the Company’s Franklin Center acquisition press release dated April 25, 2024 for further details and pages 8-14 of the Company’s 1Q24 Results Presentation (refer to the ‘Associated Supplemental Presentation’ section below).
Balance Sheet and Capital Transaction Highlights
- For the quarter ended March 31, 2024, the Company’s adjusted EBITDA fixed charge coverage ratio was 4.5x.
- At March 31, 2024, the Company’s net debt to in-place adjusted EBITDA ratio was 6.1x and its net debt adjusted for fully-leased development to in-place adjusted EBITDA ratio was 6.0x.
- At March 31, 2024, and including the effect of interest rate swaps, the Company’s weighted average effective interest rate on its consolidated debt portfolio was 3.3% with a weighted average maturity of 5.4 years, and 100% 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 2024 conference call; the presentation can be viewed and downloaded from the ‘Financial Info – Financial Results’ section of COPT Defense’s Investors website: https://investors.copt.com/financial-information/financial-results
2024 Guidance
Management is revising its full-year guidance for diluted EPS and diluted FFOPS, per Nareit and as adjusted for comparability, from the prior range of $1.15-$1.23, and $2.47-$2.55, respectively, to new ranges of $1.19-$1.25, and $2.51-$2.57, respectively. Management is establishing second quarter guidance for diluted EPS and diluted FFOPS per Nareit and as adjusted for comparability at $0.29-$0.31 and $0.62-$0.64, respectively. Reconciliations of projected diluted EPS to projected diluted FFOPS, in accordance with Nareit and as adjusted for comparability are as follows:
Reconciliation of Diluted EPS to FFOPS, per Nareit, and As Adjusted for Comparability |
|
Quarter Ending June 30, 2024 |
|
Year Ending December 31, 2024 |
||||||||||||
|
|
Low |
|
High |
|
Low |
|
High |
||||||||
Diluted EPS |
|
$ |
0.29 |
|
$ |
0.31 |
|
$ |
1.19 |
|
$ |
1.25 |
||||
Real estate-related depreciation and amortization |
|
|
0.33 |
|
|
|
0.33 |
|
|
|
1.32 |
|
|
|
1.32 |
|
Diluted FFOPS, Nareit definition and as adjusted for comparability |
|
$ |
0.62 |
|
|
$ |
0.64 |
|
|
$ |
2.51 |
|
|
$ |
2.57 |
|
Conference Call Information
Management will discuss first quarter 2024 results on its conference call tomorrow at 12:00 p.m. Eastern Time, details of which are listed below:
Conference Call Date: |
Friday, April 26, 2024 |
Time: |
12:00 p.m. Eastern Time |
Participants must register for the conference call at the link below to receive the dial-in number and personal pin. Registering only takes a few moments and provides direct access to the conference call without waiting for an operator. You may register at any time, including up to and after the call start time: https://register.vevent.com/register/BI45e0b73633dc499fa57ffc62af57efd2
The conference call will also be available via live webcast in the ‘News & Events – IR Calendar’ section of COPT Defense’s Investors website: https://investors.copt.com/news-events/ir-calendar
Replay Information
A replay of the conference call will be immediately available via webcast only on COPT Defense’s Investors website and will be maintained on the website for approximately 90 days after the conference call.
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 Defense
COPT Defense, an S&P MidCap 400 Company, is a self-managed REIT focused on owning, operating and developing properties in locations proximate to, or sometimes containing, key U.S. Government (“USG”) defense installations and missions (referred to as its Defense/IT Portfolio). The Company’s tenants include the USG and their defense contractors, who are primarily engaged in priority national security activities, and who generally require mission-critical and high security property enhancements. As of March 31, 2024, the Company’s Defense/IT Portfolio of 193 properties, including 24 owned through unconsolidated joint ventures, encompassed 22.0 million square feet and was 96.8% leased.
Forward-Looking Information
This press release may contain “forward-looking” statements, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that are based on the Company’s current expectations, estimates and projections about future events and financial trends affecting the Company. Forward-looking statements can be identified by the use of words such as “may,” “will,” “should,” “could,” “believe,” “anticipate,” “expect,” “estimate,” “plan” or other comparable terminology. Forward-looking statements are inherently subject to risks and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate. 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, 2023.
Source: COPT Defense Properties
COPT Defense Properties Summary Financial Data (unaudited) (in thousands) |
|||||||
|
For the Three Months Ended March 31, |
||||||
|
2024 |
|
2023 |
||||
Revenues |
|
|
|
||||
Lease revenue |
$ |
165,433 |
|
|
$ |
150,560 |
|
Other property revenue |
|
1,230 |
|
|
|
1,121 |
|
Construction contract and other service revenues |
|
26,603 |
|
|
|
15,820 |
|
Total revenues |
|
193,266 |
|
|
|
167,501 |
|
Operating expenses |
|
|
|
||||
Property operating expenses |
|
66,746 |
|
|
|
59,420 |
|
Depreciation and amortization associated with real estate operations |
|
38,351 |
|
|
|
36,995 |
|
Construction contract and other service expenses |
|
26,007 |
|
|
|
15,201 |
|
General and administrative expenses |
|
8,378 |
|
|
|
7,996 |
|
Leasing expenses |
|
2,187 |
|
|
|
1,999 |
|
Business development expenses and land carry costs |
|
1,182 |
|
|
|
495 |
|
Total operating expenses |
|
142,851 |
|
|
|
122,106 |
|
Interest expense |
|
(20,767 |
) |
|
|
(16,442 |
) |
Interest and other income, net |
|
4,122 |
|
|
|
2,256 |
|
Gain on sales of real estate |
|
— |
|
|
|
49,378 |
|
Income before equity in income (loss) of unconsolidated entities and income taxes |
|
33,770 |
|
|
|
80,587 |
|
Equity in income (loss) of unconsolidated entities |
|
69 |
|
|
|
(64 |
) |
Income tax expense |
|
(168 |
) |
|
|
(125 |
) |
Net income |
|
33,671 |
|
|
|
80,398 |
|
Net income attributable to noncontrolling interests: |
|
|
|
||||
Common units in the Operating Partnership (“OP”) |
|
(608 |
) |
|
|
(1,293 |
) |
Other consolidated entities |
|
(454 |
) |
|
|
(326 |
) |
Net income attributable to common shareholders |
$ |
32,609 |
|
|
$ |
78,779 |
|
|
|
|
|
||||
Earnings per share (“EPS”) computation: |
|
|
|
||||
Numerator for diluted EPS: |
|
|
|
||||
Net income attributable to common shareholders |
$ |
32,609 |
|
|
$ |
78,779 |
|
Amount allocable to share-based compensation awards |
|
(129 |
) |
|
|
(248 |
) |
Redeemable noncontrolling interests |
|
— |
|
|
|
(64 |
) |
Numerator for diluted EPS |
$ |
32,480 |
|
|
$ |
78,467 |
|
Denominator: |
|
|
|
||||
Weighted average common shares - basic |
|
112,231 |
|
|
|
112,127 |
|
Dilutive effect of share-based compensation awards |
|
509 |
|
|
|
410 |
|
Dilutive effect of redeemable noncontrolling interests |
|
— |
|
|
|
91 |
|
Weighted average common shares - diluted |
|
112,740 |
|
|
|
112,628 |
|
Diluted EPS |
$ |
0.29 |
|
|
$ |
0.70 |
|
COPT Defense Properties Summary Financial Data (unaudited) (in thousands, except per share data) |
|||||||
|
For the Three Months Ended March 31, |
||||||
|
2024 |
|
2023 |
||||
Net income |
$ |
33,671 |
|
|
$ |
80,398 |
|
Real estate-related depreciation and amortization |
|
38,351 |
|
|
|
36,995 |
|
Gain on sales of real estate |
|
— |
|
|
|
(49,378 |
) |
Depreciation and amortization on unconsolidated real estate JVs |
|
777 |
|
|
|
801 |
|
Funds from operations (“FFO”) |
|
72,799 |
|
|
|
68,816 |
|
FFO allocable to other noncontrolling interests |
|
(836 |
) |
|
|
(708 |
) |
Basic FFO allocable to share-based compensation awards |
|
(587 |
) |
|
|
(466 |
) |
Basic FFO available to common share and common unit holders (“Basic FFO”) |
|
71,376 |
|
|
|
67,642 |
|
Redeemable noncontrolling interests |
|
469 |
|
|
|
(30 |
) |
Diluted FFO adjustments allocable to share-based compensation awards |
|
47 |
|
|
|
39 |
|
Diluted FFO available to common share and common unit holders (“Diluted FFO”) |
|
71,892 |
|
|
|
67,651 |
|
Executive transition costs |
|
77 |
|
|
|
— |
|
Diluted FFO available to common share and common unit holders, as adjusted for comparability |
|
71,969 |
|
|
|
67,651 |
|
Straight line rent adjustments and lease incentive amortization |
|
3,473 |
|
|
|
(3,516 |
) |
Amortization of intangibles and other assets included in net operating income (“NOI”) |
|
122 |
|
|
|
(19 |
) |
Share-based compensation, net of amounts capitalized |
|
2,645 |
|
|
|
1,733 |
|
Amortization of deferred financing costs |
|
685 |
|
|
|
632 |
|
Amortization of net debt discounts, net of amounts capitalized |
|
1,014 |
|
|
|
618 |
|
Replacement capital expenditures |
|
(20,776 |
) |
|
|
(28,210 |
) |
Other |
|
137 |
|
|
|
(273 |
) |
Diluted adjusted funds from operations available to common share and common unit holders (“Diluted AFFO”) |
$ |
59,269 |
|
|
$ |
38,616 |
|
Diluted FFO per share |
$ |
0.62 |
|
|
$ |
0.59 |
|
Diluted FFO per share, as adjusted for comparability |
$ |
0.62 |
|
|
$ |
0.59 |
|
Dividends/distributions per common share/unit |
$ |
0.295 |
|
|
$ |
0.285 |
|
|
March 31,
|
|
December 31,
|
||||
Balance Sheet Data |
|
|
|
||||
Properties, net of accumulated depreciation |
$ |
3,517,878 |
|
|
$ |
3,503,678 |
|
Total assets |
$ |
4,232,895 |
|
|
$ |
4,246,966 |
|
Debt per balance sheet |
$ |
2,416,873 |
|
|
$ |
2,416,287 |
|
Total liabilities |
$ |
2,683,883 |
|
|
$ |
2,699,631 |
|
Redeemable noncontrolling interests |
$ |
22,966 |
|
|
$ |
23,580 |
|
Total equity |
$ |
1,526,046 |
|
|
$ |
1,523,755 |
|
Debt to assets |
|
57.1 |
% |
|
|
56.9 |
% |
Net debt to adjusted book |
|
40.9 |
% |
|
|
40.6 |
% |
|
|
|
|
||||
Defense/IT Portfolio Data (as of period end) |
|
|
|
||||
Number of operating properties |
|
193 |
|
|
|
190 |
|
Total operational square feet (in thousands) |
|
21,993 |
|
|
|
21,719 |
|
% Occupied |
|
95.6 |
% |
|
|
96.2 |
% |
% Leased |
|
96.8 |
% |
|
|
97.2 |
% |
|
For the Three Months Ended March 31, |
||||
2024 |
|
2023 |
|||
GAAP |
|
|
|
||
Payout ratio: |
|
|
|
||
Net income |
100.7 |
% |
|
40.6 |
% |
Debt ratios: |
|
|
|
||
Net income to interest expense ratio |
1.6x |
|
4.9x |
||
Debt to net income ratio |
17.9x |
|
6.6x |
||
Non-GAAP |
|
|
|
||
Payout ratios: |
|
|
|
||
Diluted FFO |
46.8 |
% |
|
47.9 |
% |
Diluted FFO, as adjusted for comparability |
46.7 |
% |
|
47.9 |
% |
Diluted AFFO |
56.8 |
% |
|
83.9 |
% |
Debt ratios: |
|
|
|
||
Adjusted EBITDA fixed charge coverage ratio |
4.5x |
|
5.0x |
||
Net debt to in-place adjusted EBITDA ratio |
6.1x |
|
6.2x |
||
Net debt adj. for fully-leased development to in-place adj. EBITDA ratio |
6.0x |
|
5.8x |
||
|
|
|
|
||
Reconciliation of denominators for per share measures |
|
|
|||
Denominator for diluted EPS |
112,740 |
|
|
112,628 |
|
Weighted average common units |
1,625 |
|
|
1,489 |
|
Redeemable noncontrolling interests |
947 |
|
|
— |
|
Denominator for diluted FFO per share and as adjusted for comparability |
115,312 |
|
|
114,117 |
|
COPT Defense Properties Summary Financial Data (unaudited) (in thousands) |
|||||||
|
For the Three Months Ended March 31, |
||||||
|
2024 |
|
2023 |
||||
Numerators for Payout Ratios |
|
|
|
||||
Dividends on unrestricted common and deferred shares |
$ |
33,143 |
|
|
$ |
31,989 |
|
Distributions on unrestricted common units |
|
500 |
|
|
|
430 |
|
Dividends and distributions on restricted shares and units |
|
267 |
|
|
|
215 |
|
Total dividends and distributions for GAAP payout ratio |
|
33,910 |
|
|
|
32,634 |
|
Dividends and distributions on antidilutive shares and units |
|
(266 |
) |
|
|
(216 |
) |
Dividends and distributions for non-GAAP payout ratios |
$ |
33,644 |
|
|
$ |
32,418 |
|
|
|
|
|
||||
Reconciliation of net income to earnings before interest, income taxes, depreciation and amortization for real estate (“EBITDAre”), adjusted EBITDA and in-place adjusted EBITDA |
|
|
|
||||
Net income |
$ |
33,671 |
|
|
$ |
80,398 |
|
Interest expense |
|
20,767 |
|
|
|
16,442 |
|
Income tax expense |
|
168 |
|
|
|
125 |
|
Real estate-related depreciation and amortization |
|
38,351 |
|
|
|
36,995 |
|
Other depreciation and amortization |
|
608 |
|
|
|
602 |
|
Gain on sales of real estate |
|
— |
|
|
|
(49,378 |
) |
Adjustments from unconsolidated real estate JVs |
|
1,671 |
|
|
|
1,704 |
|
EBITDAre |
|
95,236 |
|
|
|
86,888 |
|
Credit loss expense |
|
22 |
|
|
|
67 |
|
Business development expenses |
|
630 |
|
|
|
241 |
|
Executive transition costs |
|
430 |
|
|
|
247 |
|
Net gain on other investments |
|
(477 |
) |
|
|
— |
|
Adjusted EBITDA |
|
95,841 |
|
|
|
87,443 |
|
Pro forma NOI adjustment for property changes within period |
|
813 |
|
|
|
(318 |
) |
Change in collectability of deferred rental revenue |
|
— |
|
|
|
899 |
|
In-place adjusted EBITDA |
$ |
96,654 |
|
|
$ |
88,024 |
|
|
|
|
|
||||
Reconciliations of tenant improvements and incentives, building improvements and leasing costs for operating properties to replacement capital expenditures |
|
|
|
||||
Tenant improvements and incentives |
$ |
12,776 |
|
|
$ |
19,986 |
|
Building improvements |
|
4,953 |
|
|
|
2,141 |
|
Leasing costs |
|
3,590 |
|
|
|
1,750 |
|
Net additions to tenant improvements and incentives |
|
316 |
|
|
|
4,839 |
|
Excluded building improvements and leasing costs |
|
(859 |
) |
|
|
(506 |
) |
Replacement capital expenditures |
$ |
20,776 |
|
|
$ |
28,210 |
|
COPT Defense Properties Summary Financial Data (unaudited) (in thousands) |
|||||||
|
For the Three Months Ended March 31, |
||||||
|
2024 |
|
2023 |
||||
Reconciliation of interest expense to the denominator for fixed charge coverage-Adjusted EBITDA |
|
|
|
||||
Interest expense |
$ |
20,767 |
|
|
$ |
16,442 |
|
Less: Amortization of deferred financing costs |
|
(685 |
) |
|
|
(632 |
) |
Less: Amortization of net debt discounts, net of amounts capitalized |
|
(1,014 |
) |
|
|
(618 |
) |
COPT Defense’s share of interest expense of unconsolidated real estate JVs, excluding amortization of deferred financing costs and net debt premium and gain or loss on interest rate derivatives |
|
804 |
|
|
|
773 |
|
Scheduled principal amortization |
|
769 |
|
|
|
790 |
|
Capitalized interest |
|
589 |
|
|
|
770 |
|
Denominator for fixed charge coverage-Adjusted EBITDA |
$ |
21,230 |
|
|
$ |
17,525 |
|
|
|
|
|
||||
Reconciliation of net income to NOI from real estate operations, same property NOI from real estate operations and same property cash NOI from real estate operations |
|
|
|
||||
Net income |
$ |
33,671 |
|
|
$ |
80,398 |
|
Construction contract and other service revenues |
|
(26,603 |
) |
|
|
(15,820 |
) |
Depreciation and other amortization associated with real estate operations |
|
38,351 |
|
|
|
36,995 |
|
Construction contract and other service expenses |
|
26,007 |
|
|
|
15,201 |
|
General and administrative expenses |
|
8,378 |
|
|
|
7,996 |
|
Leasing expenses |
|
2,187 |
|
|
|
1,999 |
|
Business development expenses and land carry costs |
|
1,182 |
|
|
|
495 |
|
Interest expense |
|
20,767 |
|
|
|
16,442 |
|
Interest and other income, net |
|
(4,122 |
) |
|
|
(2,256 |
) |
Gain on sales of real estate |
|
— |
|
|
|
(49,378 |
) |
Equity in (income) loss of unconsolidated entities |
|
(69 |
) |
|
|
64 |
|
Unconsolidated real estate JVs NOI allocable to COPT Defense included in equity in income (loss) of unconsolidated entities |
|
1,740 |
|
|
|
1,642 |
|
Income tax expense |
|
168 |
|
|
|
125 |
|
NOI from real estate operations |
|
101,657 |
|
|
|
93,903 |
|
Non-Same Property NOI from real estate operations |
|
(6,254 |
) |
|
|
(1,180 |
) |
Same Property NOI from real estate operations |
|
95,403 |
|
|
|
92,723 |
|
Straight line rent adjustments and lease incentive amortization |
|
5,367 |
|
|
|
(3,570 |
) |
Amortization of acquired above- and below-market rents |
|
(69 |
) |
|
|
(166 |
) |
Lease termination fees, net |
|
(775 |
) |
|
|
(1,221 |
) |
Tenant funded landlord assets and lease incentives |
|
(8,190 |
) |
|
|
(1,222 |
) |
Cash NOI adjustments in unconsolidated real estate JVs |
|
(117 |
) |
|
|
(153 |
) |
Same Property Cash NOI from real estate operations |
$ |
91,619 |
|
|
$ |
86,391 |
|
COPT Defense Properties Summary Financial Data (unaudited) (in thousands) |
||||||||
|
|
March 31,
|
|
December 31,
|
||||
Reconciliation of total assets to adjusted book |
|
|
|
|
||||
Total assets |
|
$ |
4,232,895 |
|
|
$ |
4,246,966 |
|
Accumulated depreciation |
|
|
1,434,621 |
|
|
|
1,400,162 |
|
Accumulated amortization of intangibles on property acquisitions and deferred leasing costs |
|
|
225,443 |
|
|
|
228,484 |
|
COPT Defense’s share of liabilities of unconsolidated real estate JVs |
|
|
60,904 |
|
|
|
60,583 |
|
COPT Defense’s share of accumulated depreciation and amortization of unconsolidated real estate JVs |
|
|
10,364 |
|
|
|
9,528 |
|
Less: Property - operating lease liabilities |
|
|
(33,141 |
) |
|
|
(33,931 |
) |
Less: Property - finance lease liabilities |
|
|
(409 |
) |
|
|
(415 |
) |
Less: Cash and cash equivalents |
|
|
(123,144 |
) |
|
|
(167,820 |
) |
Less: COPT Defense’s share of cash of unconsolidated real estate JVs |
|
|
(1,159 |
) |
|
|
(852 |
) |
Adjusted book |
|
$ |
5,806,374 |
|
|
$ |
5,742,705 |
|
|
|
March 31,
|
|
December 31,
|
|
March 31,
|
||||||
Reconciliation of debt to net debt and net debt adjusted for fully-leased development |
|
|
|
|
|
|
||||||
Debt per balance sheet |
|
$ |
2,416,873 |
|
|
$ |
2,416,287 |
|
|
$ |
2,123,012 |
|
Net discounts and deferred financing costs |
|
|
27,358 |
|
|
|
28,713 |
|
|
|
22,250 |
|
COPT Defense’s share of unconsolidated JV gross debt |
|
|
52,819 |
|
|
|
52,613 |
|
|
|
52,226 |
|
Gross debt |
|
|
2,497,050 |
|
|
|
2,497,613 |
|
|
|
2,197,488 |
|
Less: Cash and cash equivalents |
|
|
(123,144 |
) |
|
|
(167,820 |
) |
|
|
(15,199 |
) |
Less: COPT Defense’s share of cash of unconsolidated real estate JVs |
|
|
(1,159 |
) |
|
|
(852 |
) |
|
|
(881 |
) |
Net debt |
|
|
2,372,747 |
|
|
|
2,328,941 |
|
|
|
2,181,408 |
|
Costs incurred on fully-leased development properties |
|
|
(43,034 |
) |
|
|
(53,914 |
) |
|
|
(137,309 |
) |
Net debt adjusted for fully-leased development |
|
$ |
2,329,713 |
|
|
$ |
2,275,027 |
|
|
$ |
2,044,099 |
|
