COPT Reports Full Year 2022 Results
Corporate Office Properties Trust (“COPT” or the “Company”) (NYSE: OFC) announced results for the fourth quarter and full year ended December 31, 2022.
Management Comments
Stephen E. Budorick, COPT’s President & Chief Executive Officer, commented, “Our Defense/IT investment strategy, which has concentrated our portfolio near priority U.S. defense installations, continues to produce strong results, and has proved resilient in the face of macro-economic headwinds impacting the office sector. The 3% growth in FFO per share, as adjusted for comparability generated in 2022, exceeded our initial guidance by $0.02 per share. We executed 801,000 square feet of vacancy leasing, the highest level in 12 years. We are off to a great start in terms of development leasing, having executed over 460,000 square feet already in 2023, consisting of two data center shell build-to-suits in Northern Virginia, and one build-to-suit building at Redstone Gateway. The outlook for defense spending remains favorable. The FY23 defense base budget that passed in December represents a 7.5% year-over-year increase, and is 15% higher than that of FY21, which drove leasing results in 2022. Given the timing of the appropriation, we expect this increase to fuel demand for space in our portfolio throughout 2024.”
He continued, “From a financing standpoint, we recently closed on two new 90%/10% JVs, which will fund the equity component of our expected development needs in 2023, assuring sufficient capital to fund development on a leverage neutral basis for the foreseeable future. Our balance sheet remains strong, evidenced by our solid debt service coverage ratios, with no large debt maturities until 2026.”
Financial Highlights
4th Quarter Financial Results:
Diluted earnings per share (“EPS”) was $0.45 for the quarter ended December 31, 2022 compared to $0.12 for the quarter ended December 31, 2021. Diluted funds from operations per share (“FFOPS”), as calculated in accordance with Nareit’s definition, was $0.60 for the quarter ended December 31, 2022 compared to $0.21 for the quarter ended December 31, 2021. FFOPS, as adjusted for comparability, was $0.60 for the quarter ended December 31, 2022 compared to $0.58 for the quarter ended December 31, 2021.Full Year 2022 Financial Results:
EPS for the year ended December 31, 2022 was $1.53 as compared to $0.68 for 2021. Per Nareit’s definition, FFOPS for 2022 was $2.35 as compared to $1.40 for 2021. FFOPS, as adjusted for comparability, for 2022 was $2.36 as compared to $2.29 for 2021.Operating Performance Highlights
Operating Portfolio Summary:
At December 31, 2022, the Company’s 22.8 million square foot core portfolio was 92.8% occupied and 95.3% leased. During the quarter and the year, the Company placed into service 917,000 and 1.3 million square feet, respectively, of developments that were 99% leased at January 31, 2023.Same-Property Performance:
At December 31, 2022, the Company’s 20.0 million square foot same-property portfolio was 92.4% occupied and 95.0% leased. The Company’s same-property cash NOI decreased 0.5% and 0.9%, year-over-year for the three months and year ended December 31, 2022, respectively, compared to the same periods in 2021.Leasing:
Total Square Feet Leased: For the quarter ended December 31, 2022, the Company leased 692,000 square feet, including 519,000 square feet of renewals and 173,000 square feet of vacancy leasing. For the year ended December 31, 2022, the Company executed 3.0 million square feet of total leasing, including 1.7 million square feet of renewals, 801,000 square feet of vacancy leasing, and 476,000 square feet in development projects. Tenant Retention Rates: During the quarter and year ended December 31, 2022, the Company renewed 72.2% and 72.1%, respectively, of expiring square feet. Rent Spreads & Average Escalations on Renewing Leases: For the quarter and year ended December 31, 2022, straight-line rents on renewals increased 3.6% and 3.1%, respectively, and cash rents on renewed space increased 0.1% and decreased 2.0%, respectively. For the same time periods, annual escalations on renewing leases averaged 2.6% and 2.5%, respectively. Lease Terms: In the quarter ended December 31, 2022, lease terms averaged 3.5 years on renewing leases and 9.8 years on vacancy leasing. For the year, lease terms averaged 3.6 years on renewing leases, 7.3 years on vacancy leasing, and 13.3 years on development leasing.Investment Activity Highlights
Development Pipeline: The Company’s development pipeline consists of 10 properties totaling 1.5 million square feet that were 89% leased at January 31, 2023. These projects represent a total estimated investment of $487.5 million, of which $127.5 million has been spent.Balance Sheet and Capital Transaction Highlights
On October 26, 2022, the Company entered into a credit agreement with a group of lenders for an aggregate of $725.0 million of available borrowings including: an unsecured revolving credit facility with a lender commitment of $600.0 million that replaced its existing Revolving Credit Facility; and a $125.0 million unsecured term loan, the proceeds of which were used to pay off the remaining $100.0 million outstanding under an existing unsecured term loan and pay down a portion of its Revolving Credit Facility. On December 14, 2022, the Company sold two data center shells to a new, 90%/10% joint venture with entities affiliated with Blackstone, generating approximately $60 million of proceeds. On January 10, 2023, the Company sold an additional three data center shells to a new, 90%/10% joint venture with entities affiliated with Blackstone, generating approximately $190 million of proceeds. For the quarter ended December 31, 2022, the Company’s adjusted EBITDA fixed charge coverage ratio was 4.7x. At December 31, 2022, the Company’s net debt to in-place adjusted EBITDA ratio was 6.3x and its net debt adjusted for fully-leased development to in-place adjusted EBITDA ratio was 6.1x. At December 31, 2022, and including the effect of interest rate swaps, the Company’s weighted average effective interest rate on its consolidated debt portfolio was 3.15% with a weighted average maturity of 6.6 years; additionally, 85.1% 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 fourth quarter and full year 2022 conference call; the presentation can be viewed and downloaded from the ‘Financial Info – Financial Results’ section of COPT’s Investors website: https://investors.copt.com/financial-information/financial-results
2023 Guidance
The Company details its initial full year and first quarter guidance, with supporting assumptions, in a separate press release issued concurrently with this press release; that release can be found in the ‘News & Events – Press Releases’ section of COPT’s Investors website: https://investors.copt.com/news-events/press-releases
Conference Call Information
Management will discuss fourth quarter and full year 2022 results on its conference call tomorrow at 12:00 p.m. Eastern Time, details of which are listed below:
Conference Call Date:
Friday, February 10, 2023
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/BIc8139cc8ddaa47a4b273039144a05aea
The conference call will also be available via live webcast in the ‘News & Events – IR Calendar’ section of COPT’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’s Investors website.
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 the Company believes are growing, durable, priority missions (“Defense/IT Locations”). The Company also owns a portfolio of office properties located in select urban submarkets in the Greater Washington, DC/Baltimore region with durable Class-A office fundamentals and characteristics (“Regional Office Properties”). As of December 31, 2022, the Company derived 91% of its core portfolio annualized rental revenue from Defense/IT Locations and 9% from its Regional Office Properties. As of the same date and including 21 properties owned through unconsolidated joint ventures, COPT’s core portfolio of 192 properties encompassed 22.8 million square feet and was 95.3% 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, 2021.
Source: Corporate Office Properties Trust
Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(dollars and shares in thousands, except per share data)
For the Three Months
Ended December 31,
For the Years Ended
December 31,
2022
2021
2022
2021
Revenues
Lease revenue
$
150,022
$
141,892
$
580,169
$
553,668
Other property revenue
1,163
756
4,229
2,902
Construction contract and other service revenues
24,062
43,284
154,632
107,876
Total revenues
175,247
185,932
739,030
664,446
Operating expenses
Property operating expenses
58,470
56,459
227,430
213,377
Depreciation and amortization associated with real estate operations
36,907
34,504
141,230
137,543
Construction contract and other service expenses
23,454
42,089
149,963
104,053
General and administrative expenses
7,766
6,589
27,461
27,213
Leasing expenses
2,235
2,568
8,337
8,914
Business development expenses and land carry costs
1,157
1,088
3,193
4,647
Total operating expenses
129,989
143,297
557,614
495,747
Interest expense
(16,819
)
(16,217
)
(61,174
)
(65,398
)
Interest and other income
3,340
1,968
9,341
7,879
Credit loss recoveries (expense)
1,331
88
(271
)
1,128
Gain on sales of real estate
19,238
25,879
19,250
65,590
Loss on early extinguishment of debt
(267
)
(41,073
)
(609
)
(100,626
)
Income from continuing operations before equity in income of unconsolidated entities and income taxes
52,081
13,280
147,953
77,272
Equity in income of unconsolidated entities
229
314
1,743
1,093
Income tax expense
(223
)
(42
)
(447
)
(145
)
Income from continuing operations
52,087
13,552
149,249
78,220
Discontinued operations
—
1,413
29,573
3,358
Net Income
52,087
14,965
178,822
81,578
Net income attributable to noncontrolling interests:
Common units in the Operating Partnership (“OP”)
(775
)
(181
)
(2,603
)
(1,012
)
Other consolidated entities
(833
)
(1,076
)
(3,190
)
(4,025
)
Net income attributable to COPT common shareholders
$
50,479
$
13,708
$
173,029
$
76,541
Earnings per share (“EPS”) computation:
Numerator for diluted EPS:
Net income attributable to COPT common shareholders
$
50,479
$
13,708
$
173,029
$
76,541
Amount allocable to share-based compensation awards
(129
)
(116
)
(463
)
(417
)
Redeemable noncontrolling interests
(60
)
(46
)
(169
)
(128
)
Numerator for diluted EPS
$
50,290
$
13,546
$
172,397
$
75,996
Denominator:
Weighted average common shares - basic
112,096
111,990
112,073
111,960
Dilutive effect of share-based compensation awards
435
386
431
330
Dilutive effect of redeemable noncontrolling interests
102
124
116
128
Weighted average common shares - diluted
112,633
112,500
112,620
112,418
Diluted EPS
$
0.45
$
0.12
$
1.53
$
0.68
Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(in thousands, except per share data)
For the Three Months
Ended December 31,
For the Years Ended
December 31,
2022
2021
2022
2021
Net income
$
52,087
$
14,965
$
178,822
$
81,578
Real estate-related depreciation and amortization
36,907
36,346
141,230
147,833
Gain on sales of real estate from continuing and discontinued operations
(19,238
)
(25,879
)
(47,814
)
(65,590
)
Depreciation and amortization on unconsolidated real estate JVs
526
526
2,101
1,981
Funds from operations (“FFO”)
70,282
25,958
274,339
165,802
FFO allocable to other noncontrolling interests
(1,227
)
(1,458
)
(4,795
)
(5,483
)
Basic FFO allocable to share-based compensation awards
(360
)
(149
)
(1,433
)
(777
)
Basic FFO available to common share and common unit holders (“Basic FFO”)
68,695
24,351
268,111
159,542
Redeemable noncontrolling interests
(27
)
(13
)
(34
)
(11
)
Diluted FFO adjustments allocable to share-based compensation awards
28
6
109
32
Diluted FFO available to common share and common unit holders (“Diluted FFO”)
68,696
24,344
268,186
159,563
Loss on early extinguishment of debt
267
41,073
609
100,626
Gain on early extinguishment of debt on unconsolidated real estate JVs
(168
)
—
(168
)
—
Loss on interest rate derivatives included in interest expense
—
221
—
221
Demolition costs on redevelopment and nonrecurring improvements
—
(8
)
—
423
Executive transition costs
—
—
343
—
Diluted FFO comparability adjustments allocable to share-based compensation awards
(1
)
(172
)
(5
)
(507
)
Diluted FFO available to common share and common unit holders, as adjusted for comparability
68,794
65,458
268,965
260,326
Straight line rent adjustments and lease incentive amortization
(3,043
)
(3,835
)
(8,825
)
(10,286
)
Amortization of intangibles and other assets included in net operating income (“NOI”)
15
40
(258
)
162
Share-based compensation, net of amounts capitalized
2,247
2,018
8,700
7,979
Amortization of deferred financing costs
619
640
2,297
2,980
Amortization of net debt discounts, net of amounts capitalized
615
615
2,440
2,244
Replacement capital expenditures
(43,283
)
(32,317
)
(95,886
)
(70,973
)
Other
158
204
980
824
Diluted adjusted funds from operations available to common share and common unit holders (“Diluted AFFO”)
$
26,122
$
32,823
$
178,413
$
193,256
Diluted FFO per share
$
0.60
$
0.21
$
2.35
$
1.40
Diluted FFO per share, as adjusted for comparability
$
0.60
$
0.58
$
2.36
$
2.29
Dividends/distributions per common share/unit
$
0.275
$
0.275
$
1.10
$
1.10
Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(Dollars and shares in thousands, except per share data)
December 31,
2022
December 31,
2021
Balance Sheet Data
Properties, net of accumulated depreciation
$
3,556,398
$
3,532,944
Total assets
$
4,257,275
$
4,262,452
Debt per balance sheet
$
2,231,794
$
2,272,304
Total liabilities
$
2,509,527
$
2,578,479
Redeemable noncontrolling interests
$
26,293
$
26,898
Total equity
$
1,721,455
$
1,657,075
Debt to assets
52.4
%
53.3
%
Net debt to adjusted book
39.8
%
40.5
%
Core Portfolio Data (as of period end)
Number of operating properties
192
184
Total operational square feet (in thousands)
22,849
21,553
% Occupied
92.8
%
92.6
%
% Leased
95.3
%
94.4
%
For the Three Months
Ended December 31,
For the Years Ended
December 31,
2022
2021
2022
2021
GAAP
Payout ratio:
Net income
60.3%
209.1%
70.2%
153.4%
Debt ratios:
Net income to interest expense ratio
3.1x
0.9x
2.9x
1.2x
Debt to net income ratio
10.7x
38.0x
N/A
N/A
Non-GAAP
Payout ratios:
Diluted FFO
45.5%
128.0%
46.6%
78.1%
Diluted FFO, as adjusted for comparability
45.4%
47.6%
46.5%
47.9%
Diluted AFFO
119.7%
95.0%
70.1%
64.5%
Debt ratios:
Adjusted EBITDA fixed charge coverage ratio
4.7x
4.9x
5.1x
4.7x
Net debt to in-place adjusted EBITDA ratio
6.3x
6.7x
N/A
N/A
Pro forma net debt to in-place adjusted EBITDA ratio (1)
6.0x
6.3x
N/A
N/A
Net debt adj. for fully-leased development to in-place adj. EBITDA ratio
6.1x
6.2x
N/A
N/A
Pro forma net debt adj. for fully-leased development to in-place adj. EDITDA ratio (1)
5.7x
5.8x
N/A
N/A
Reconciliation of denominators for per share measures
Denominator for diluted EPS
112,633
112,500
112,620
112,418
Weighted average common units
1,476
1,259
1,454
1,257
Denominator for diluted FFO per share and as adjusted for comparability
114,109
113,759
114,074
113,675
(1)
Includes adjustments associated with the following transactions: 12/31/22 includes the sale on 1/10/23 of a 90% interest in three data center shell properties; and 12/31/21 includes the sale on 1/25/22 of its wholesale data center.
Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(in thousands)
For the Three Months
Ended December 31,
For the Years Ended
December 31,
2022
2021
2022
2021
Numerators for Payout Ratios
GAAP:
Common share dividends - unrestricted shares and deferred shares
$
30,844
$
30,814
$
123,367
$
123,243
Common share dividends - restricted shares and deferred shares
70
80
307
324
Common unit distributions - unrestricted units
406
346
1,623
1,387
Common unit distributions - restricted units
64
53
260
208
Total dividends and distributions for GAAP payout ratio
$
31,384
$
31,293
$
125,557
$
125,162
Non-GAAP:
Common share dividends - unrestricted shares and deferred shares
$
30,844
$
30,814
$
123,367
$
123,243
Common unit distributions - unrestricted units
406
346
1,623
1,387
Common unit distributions - dilutive restricted units
13
7
51
25
Dividends and distributions for non-GAAP payout ratios
$
31,263
$
31,167
$
125,041
$
124,655
Reconciliation of net income to earnings before interest, income taxes, depreciation and amortization for real estate (“EBITDAre”), adjusted EBITDA, in-place adjusted EBITDA and pro forma in-place adjusted EBITDA
Net income
$
52,087
$
14,965
$
178,822
$
81,578
Interest expense
16,819
16,217
61,174
65,398
Income tax expense
223
42
447
145
Real estate-related depreciation and amortization from continuing and discontinued operations
36,907
36,346
141,230
147,833
Other depreciation and amortization
602
622
2,363
2,811
Gain on sales of real estate from continuing and discontinued operations
(19,238
)
(25,879
)
(47,814
)
(65,590
)
Adjustments from unconsolidated real estate JVs
1,033
763
3,313
2,930
EBITDAre
88,433
43,076
339,535
235,105
Loss on early extinguishment of debt
267
41,073
609
100,626
Gain on early extinguishment of debt on unconsolidated real estate JVs
(168
)
—
(168
)
—
Net gain on other investments
(595
)
—
(1,159
)
(63
)
Credit loss (recoveries) expense
(1,331
)
(88
)
271
(1,128
)
Business development expenses
794
628
1,891
2,233
Demolition costs on redevelopment and nonrecurring improvements
—
(8
)
—
423
Executive transition costs
387
—
730
—
Adjusted EBITDA
87,787
84,681
$
341,709
$
337,196
Pro forma NOI adjustment for property changes within period
2,704
—
Other
—
1,578
In-place adjusted EBITDA
90,491
86,259
Pro forma NOI adjustment from subsequent event transactions
(2,903
)
(3,074
)
Pro forma in-place adjusted EBITDA
$
87,588
$
83,185
Reconciliations of tenant improvements and incentives, building improvements and leasing costs for operating properties to replacement capital expenditures
Tenant improvements and incentives
$
33,439
$
19,724
$
62,952
$
43,820
Building improvements
8,468
17,778
29,528
35,970
Leasing costs
4,389
5,863
11,480
12,736
Net (exclusions from) additions to tenant improvements and incentives
(75
)
(5,093
)
2,150
(4,704
)
Excluded building improvements and leasing costs
(2,938
)
(5,955
)
(10,224
)
(16,849
)
Replacement capital expenditures
$
43,283
$
32,317
$
95,886
$
70,973
Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(in thousands)
For the Three Months
Ended December 31,
For the Years Ended
December 31,
2022
2021
2022
2021
Reconciliation of interest expense to the denominator for fixed charge coverage-Adjusted EBITDA
Interest expense
$
16,819
$
16,217
$
61,174
$
65,398
Less: Amortization of deferred financing costs
(619
)
(640
)
(2,297
)
(2,980
)
Less: Amortization of net debt discounts, net of amounts capitalized
(615
)
(615
)
(2,440
)
(2,244
)
Less: Loss on interest rate derivatives included in interest expense
—
(221
)
—
(221
)
COPT’s share of interest expense of unconsolidated real estate JVs, excluding amortizations of deferred financing costs and net debt premium and loss on interest rate derivatives
423
237
1,123
943
Scheduled principal amortization
864
950
3,333
3,860
Capitalized interest
1,835
1,192
6,709
6,467
Denominator for fixed charge coverage-Adjusted EBITDA
$
18,707
$
17,120
$
67,602
$
71,223
Reconciliation of net income to NOI from real estate operations, same properties NOI from real estate operations and same properties cash NOI from real estate operations
Net income
$
52,087
$
14,965
$
178,822
$
81,578
Construction contract and other service revenues
(24,062
)
(43,284
)
(154,632
)
(107,876
)
Depreciation and other amortization associated with real estate operations
36,907
34,504
141,230
137,543
Construction contract and other service expenses
23,454
42,089
149,963
104,053
General and administrative expenses
7,766
6,589
27,461
27,213
Leasing expenses
2,235
2,568
8,337
8,914
Business development expenses and land carry costs
1,157
1,088
3,193
4,647
Interest expense
16,819
16,217
61,174
65,398
Interest and other income
(3,340
)
(1,968
)
(9,341
)
(7,879
)
Credit loss (recoveries) expense
(1,331
)
(88
)
271
(1,128
)
Gain on sales of real estate from continuing operations
(19,238
)
(25,879
)
(19,250
)
(65,590
)
Loss on early extinguishment of debt
267
41,073
609
100,626
Equity in income of unconsolidated entities
(229
)
(314
)
(1,743
)
(1,093
)
Unconsolidated real estate JVs NOI allocable to COPT included in equity in income of unconsolidated entities
1,095
1,079
4,327
4,029
Income tax expense
223
42
447
145
Discontinued operations
—
(1,413
)
(29,573
)
(3,358
)
Revenues from real estate operations from discontinued operations
—
8,235
1,980
30,490
Property operating expenses from discontinued operations
—
(4,980
)
(971
)
(16,842
)
NOI from real estate operations
93,810
90,523
362,304
360,870
Non-Same Properties NOI from real estate operations
(11,845
)
(9,475
)
(38,298
)
(31,598
)
Same Properties NOI from real estate operations
81,965
81,048
324,006
329,272
Straight line rent adjustments and lease incentive amortization
2,556
2,715
8,602
3,854
Amortization of acquired above- and below-market rents
(131
)
(100
)
(844
)
(396
)
Lease termination fees, net
(1,026
)
893
(2,237
)
(2,416
)
Tenant funded landlord assets and lease incentives
(895
)
(1,649
)
(5,596
)
(3,469
)
Cash NOI adjustments in unconsolidated real estate JVs
(68
)
(87
)
(301
)
(375
)
Same Properties Cash NOI from real estate operations
$
82,401
$
82,820
$
323,630
$
326,470
Corporate Office Properties Trust
Summary Financial Data
(unaudited)
(in thousands)
December 31,
2022
December 31,
2021
Reconciliation of total assets to adjusted book
Total assets
$
4,257,275
$
4,262,452
Accumulated depreciation
1,267,434
1,152,523
Accumulated depreciation included in assets held for sale
6,014
82,385
Accumulated amortization of intangibles on property acquisitions and deferred leasing costs
222,779
215,925
Accumulated amortization of intangibles on property acquisitions and deferred leasing costs included in assets held for sale
—
4,547
COPT’s share of liabilities of unconsolidated real estate JVs
52,404
27,312
COPT’s share of accumulated depreciation and amortization of unconsolidated real estate JVs
6,078
3,744
Less: Property - operating lease liabilities
(28,759
)
(29,342
)
Less: Cash and cash equivalents
(12,337
)
(13,262
)
Less: COPT’s share of cash of unconsolidated real estate JVs
(456
)
(434
)
Adjusted book
$
5,770,432
$
5,705,850
December 31,
2022
December 31,
2021
Reconciliation of debt to net debt, net debt adjusted for fully-leased development and pro forma net debt adjusted for fully-leased development
Debt per balance sheet
$
2,231,794
$
2,272,304
Net discounts and deferred financing costs
23,160
25,982
COPT’s share of unconsolidated JV gross debt
52,100
26,250
Gross debt
$
2,307,054
$
2,324,536
Less: Cash and cash equivalents
(12,337
)
(13,262
)
Less: COPT’s share of cash of unconsolidated real estate JVs
(456
)
(434
)
Net debt
$
2,294,261
$
2,310,840
Costs incurred on fully-leased development properties
(95,972
)
(162,884
)
Net debt adjusted for fully-leased development
$
2,198,289
$
2,147,956
Net debt
$
2,294,261
$
2,310,840
Pro forma debt adjustments from subsequent event transaction proceeds
(189,000
)
(216,000
)
Pro forma net debt
$
2,105,261
$
2,094,840
Costs incurred on fully-leased development properties
(95,972
)
(162,884
)
Pro forma net debt adjusted for fully-leased development
$
2,009,289
$
1,931,956
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