EX-99.2 6 a13-17070_1ex99d2.htm EX-99.2

Exhibit 99.2

 

SELECTED CONSOLIDATED FINANCIAL DATA

 

The following tables set forth summary historical consolidated financial and operating data for Corporate Office Properties, L.P. (“COPLP”), a Delaware limited partnership, and its subsidiaries. You should read the following summary historical financial data in conjunction with the consolidated historical financial statements and notes thereto of COPLP and its subsidiaries, included in Exhibit 99.3 (“Exhibit 99.3”) to COPLP’s Current Report on Form 8-K filed with the Securities and Exchange Commission on July 25, 2013 (the “July 25 8-K”), and “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” included elsewhere in this prospectus.

 

Corporate Office Properties, L.P.

 

The consolidated balance sheet data as of December 31, 2012 and 2011 and the consolidated statement of operations data for the years ended December 31, 2012, 2011 and 2010 have been derived from the historical consolidated financial statements of COPLP audited by PricewaterhouseCoopers LLP, an independent registered public accounting firm, whose report with respect thereto is included in Exhibit 99.3 The consolidated balance sheet data as of December 31, 2010, 2009 and 2008 and the consolidated statement of operations data for each of the years ended December 31, 2009 and 2008 have been derived from the unaudited historical consolidated financial statements of COPLP. The consolidated balance sheet data as of March 31, 2013 and the consolidated statement of operations data for the three months ended March 31, 2013 and 2012 have been derived from the unaudited historical consolidated financial statements of COPLP, which are included in Exhibit 99.3. and include all adjustments of a normal and recurring nature that management considers necessary for a fair presentation of such information. COPLP’s consolidated results of operations and financial condition as of and for the three months ended March 31, 2013 do not purport to be indicative of its financial condition or results of operations as of or for the year ending December 31, 2013.

 

1


 

Corporate Office Properties, L.P. and Subsidiaries

(in thousands, except per unit data and number of properties)

 

 

 

Three Months
Ended March 31,

 

Years Ended December 31,

 

 

 

2013

 

2012

 

2012

 

2011

 

2010

 

2009

 

2008

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues from real estate operations

 

$

116,735

 

$

110,661

 

$

454,171

 

$

428,496

 

$

387,559

 

$

349,463

 

$

326,223

 

Construction contract and other service revenues

 

14,262

 

21,534

 

73,836

 

84,345

 

104,675

 

343,087

 

188,385

 

Total revenues

 

130,997

 

132,195

 

528,007

 

512,841

 

492,234

 

692,550

 

514,608

 

Expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Property operating expenses

 

42,575

 

41,253

 

167,161

 

162,397

 

146,617

 

123,769

 

109,967

 

Depreciation and amortization associated with real estate operations

 

28,252

 

27,834

 

113,480

 

113,111

 

97,897

 

81,446

 

75,264

 

Construction contract and other service expenses

 

13,477

 

20,607

 

70,576

 

81,639

 

102,302

 

336,519

 

184,142

 

Impairment losses

 

1,857

 

(4,836

)

43,214

 

83,478

 

—

 

—

 

—

 

General, administrative and leasing expenses

 

7,820

 

9,569

 

31,900

 

30,308

 

28,477

 

27,853

 

28,707

 

Business development expenses and land carry costs

 

1,359

 

1,576

 

5,711

 

6,122

 

6,403

 

5,259

 

2,206

 

Total operating expenses

 

95,340

 

96,003

 

432,042

 

477,055

 

381,696

 

574,846

 

400,286

 

Operating income

 

35,657

 

36,192

 

95,965

 

35,786

 

110,538

 

117,704

 

114,322

 

Interest expense

 

(22,307

)

(24,431

)

(94,624

)

(98,222

)

(95,729

)

(76,718

)

(79,542

)

Interest and other income

 

946

 

1,217

 

7,172

 

5,603

 

9,568

 

5,164

 

2,070

 

(Loss) gain on early extinguishment of debt

 

(5,184

)

—

 

(943

)

(1,639

)

—

 

—

 

8,101

 

Loss on interest rate derivatives

 

—

 

—

 

—

 

(29,805

)

—

 

—

 

—

 

Income (loss) from continuing operations before equity in (loss) income of unconsolidated entities and income taxes

 

9,112

 

12,978

 

7,570

 

(88,277

)

24,377

 

46,150

 

44,951

 

Equity in (loss) income of unconsolidated entities

 

41

 

(89

)

(546

)

(331

)

1,376

 

(941

)

(147

)

Income tax (expense) benefit

 

(16

)

(204

)

(381

)

6,710

 

(108

)

(196

)

(201

)

Income (loss) from continuing operations

 

9,137

 

12,685

 

6,643

 

(81,898

)

25,645

 

45,013

 

44,603

 

Discontinued operations(1)

 

3,786

 

(2,450

)

13,677

 

(48,404

)

17,054

 

16,310

 

15,655

 

Income (loss) before gain on sales of real estate

 

12,923

 

10,235

 

20,320

 

(130,302

)

42,699

 

61,323

 

60,258

 

Gain on sales of real estate, net of income taxes(2)

 

2,354

 

—

 

21

 

2,732

 

2,829

 

—

 

1,090

 

Net income (loss)

 

15,277

 

10,235

 

20,341

 

(127,570

)

45,528

 

61,323

 

61,348

 

Net loss (income) attributable to noncontrolling interests

 

336

 

570

 

507

 

244

 

(61

)

66

 

(353

)

Net income (loss) attributable to COPLP

 

15,613

 

10,805

 

20,848

 

(127,326

)

45,467

 

61,389

 

60,995

 

Preferred unit distributions

 

(6,271

)

(4,190

)

(21,504

)

(16,762

)

(16,762

)

(16,762

)

(16,762

)

Issuance costs associated with redeemed preferred units(3)

 

—

 

—

 

(1,827

)

—

 

—

 

—

 

—

 

Net income (loss) attributable to COPLP common unitholders

 

$

9,342

 

$

6,615

 

$

(2,483

)

$

(144,088

)

$

28,705

 

$

44,627

 

$

44,233

 

Basic earnings per common unit(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

0.06

 

$

0.12

 

$

(0.21

)

$

(1.33

)

$

0.17

 

$

0.46

 

$

0.51

 

Net income (loss)

 

$

0.11

 

$

0.09

 

$

(0.04

)

$

(2.00

)

$

0.44

 

$

0.73

 

$

0.80

 

Diluted earnings per common unit(4)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from continuing operations

 

$

0.06

 

$

0.12

 

$

(0.21

)

$

(1.33

)

$

0.17

 

$

0.46

 

$

0.51

 

Net income (loss)

 

$

0.11

 

$

0.09

 

$

(0.04

)

$

(2.00

)

$

0.44

 

$

0.72

 

$

0.79

 

Weighted average common units outstanding—basic

 

85,290

 

75,739

 

77,689

 

72,564

 

62,553

 

59,981

 

54,573

 

Weighted average common units outstanding—diluted

 

85,342

 

75,783

 

77,689

 

72,564

 

62,886

 

60,458

 

55,261

 

 

2


 

 

 

Three Months
Ended March 31,

 

Years Ended December 31,

 

 

 

2013

 

2012

 

2012

 

2011

 

2010

 

2009

 

2008

 

Balance Sheet Data (as of period end):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total properties, net

 

$

3,189,973

 

$

3,338,291

 

$

3,163,044

 

$

3,352,975

 

$

3,445,455

 

$

3,029,900

 

$

2,778,466

 

Total assets

 

$

3,678,041

 

$

3,790,595

 

$

3,646,983

 

$

3,855,967

 

$

3,836,329

 

$

3,373,337

 

$

3,109,690

 

Debt

 

$

1,957,360

 

$

2,418,078

 

$

2,019,168

 

$

2,426,303

 

$

2,323,681

 

$

2,053,841

 

$

1,856,751

 

Total liabilities

 

$

2,127,142

 

$

2,589,799

 

$

2,200,186

 

$

2,641,160

 

$

2,512,504

 

$

2,252,051

 

$

2,026,650

 

Redeemable noncontrolling interest

 

$

10,356

 

$

9,237

 

$

10,298

 

$

8,908

 

$

9,000

 

$

—

 

$

—

 

Total equity

 

$

1,540,543

 

$

1,191,559

 

$

1,436,499

 

$

1,205,899

 

$

1,314,825

 

$

1,121,286

 

$

1,083,040

 

Other Financial Data (for the period ended):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flows provided by (used in):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

$

47,311

 

$

43,787

 

$

191,838

 

$

152,149

 

$

156,460

 

$

194,838

 

$

182,039

 

Investing activities

 

$

(60,176

)

$

7,791

 

$

13,744

 

$

(260,387

)

$

(479,167

)

$

(349,076

)

$

(290,822

)

Financing activities

 

$

25,780

 

$

(49,150

)

$

(200,547

)

$

103,695

 

$

324,547

 

$

155,725

 

$

90,920

 

Numerator for diluted EPU(4)

 

$

9,224

 

$

6,474

 

$

(2,952

)

$

(145,125

)

$

27,634

 

$

43,617

 

$

43,505

 

Cash distributions declared per common unit

 

$

0.275

 

$

0.275

 

$

1.100

 

$

1.650

 

$

1.610

 

$

1.530

 

$

1.425

 

Property Data (as of period end):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Number of properties owned(5)

 

210

 

231

 

208

 

238

 

256

 

253

 

240

 

Total rentable square feet owned(5)

 

19,128

 

20,237

 

18,831

 

20,514

 

20,432

 

19,543

 

18,559

 

 

(1)         Includes income derived from three operating properties disposed in 2008, three operating properties disposed in 2010, 23 operating properties disposed in 2011, 35 operating properties disposed in 2012 and 17 operating properties classified as held for sale at March 31, 2013.

 

(2)         Reflects gain from sales of properties and unconsolidated real estate joint ventures not associated with discontinued operations.

 

(3)         Reflects a decrease to net income available to common unitholders pertaining to the original issuance costs recognized upon the redemption of the Series G preferred units in 2012.

 

(4)         Basic and diluted earnings per common share are calculated based on amounts attributable to common unitholders of COPLP.

 

(5)         Amounts reported reflect only operating office properties.

 

3