March 2011

Corporate Office Properties Trust

Disclosure

This presentation contains forward-looking information based upon the

Company’s current best judgement and expectations. Actual results could
vary from those presented herein. The risks and uncertainties associated
with the forward-looking information include the strength of the commercial
office real estate market in which the Company operates, competitive market
conditions, general economic growth, interest rates and capital market
conditions. The Company undertakes no obligations to publicly update or
revise any forward-looking statements, whether as a result of new
information, future events, or otherwise. For further information, please
refer to the Company’s filings with the Securities and Exchange Commission.

Defined terms for Non-GAAP measures used throughout may be found in

the Disclosure. In addition, a Reconciliation of Non-GAAP measures to the
most comparable GAAP measures is included in the Disclosure.

2
Disclosure

Unless otherwise noted, information in this presentation represents

the Company’s wholly-owned portfolio as of or for the year ended
December 31, 2010.

3
Overview

1201 M Street SE, Maritime Plaza

Washington, DC (Acquired September 2010)
4
Overview

COPT has built its franchise around serving the specialized

requirements of our super core office customers:

 The US Government,

 Defense Information Technology (IT) contractors, and

 Data Centers serving either sector

At December 31, 2010, COPT:

 Owned 252 office properties in service (20.0 million SF)

 Was constructing or developing 21 buildings (3.0 million SF)

 Derived 59% of annualized rental revenues from office properties

occupied primarily by super core customers

 84% of our office square footage was located in the Greater

Washington/Baltimore region

5
Overview

COPT’s main objective is to maximize returns on invested capital,

which ultimately drives shareholder returns. Our daily focus is on:

 Expanding relationships with super core tenants, i.e., customers

 Delivering superior service to existing customers, including the

physical maintenance of our buildings

 Acquiring buildings and land that expand or deepen our strategic

footprint

 Adding value through strategic developments in existing or new

office parks to meet super core tenant demand

6
Overview

To achieve our main objective, COPT has:

 Created unparalleled teams of asset and property managers, design

and development managers with the specialized skills required to
handle the complex space and security-oriented needs of our super
core tenants
• COPT is one of the few REITs with over 100 employees with
appropriate government credentials to serve our customer base

 Developed projects with unique access and proximity to Government

demand drivers and/or located in growth corridors
• 179 of our 252 operating properties are proximate to
Government demand drivers*

 Acquired existing buildings and projects, both strategically and

opportunistically

 Purchased strategic land positions for future expansions

*Excludes Greater Baltimore, Suburban Maryland, and Greater Philadelphia regions.
7
Overview

Historically, COPT’s niche approach to leasing has enabled our stock

to outperform NAREIT’s office REIT index

 For the 10 years ended December 31, 2010, OFC delivered a cumulative
total return of 456%, ranking #1 among office REITs and #14 among all
equity REITs.
500%
456% COPT
400%
RMS

300%
S&P

200% Do w Jo ne s
174%

100%

15%
0% 11%
1 year 3 years 5 years 10 years
-100%

Data for the periods ended December 31, 2010, compiled by NAREIT and SNL Financial.

8
Overview

Furthermore, COPT’s diluted FFO/share* has increased 12 out of

our 13 years as a publicly-traded office REIT†

Diluted FFO / Share*

$3.00

$2.00

$1.00

$0.00
98

99

00

01

02

03

04

05

06

07

08

09

10
19

19

20

20

20

20

20

20

20

20

20

20

20
* Excluding operating property acquisition costs, gain on early extinguishment of debt and issuance costs associated with redeemed
preferred shares. The years 1998 through 2003 do not include the effect of accounting standards adopted January 1, 2009 retrospective to
prior periods.
† In October 1997, the Shidler Group contributed office properties to Royale Investments, a midwest shopping center company. In March
1998, the Company reformed as a REIT and changed its name to Corporate Office Properties Trust.

9
Overview

Because office fundamentals lag the economy, 2010 was a difficult

year

 Even in the tough operating environment in 2010, COPT:

• Delivered FFO/share that was within our guidance

• Increased our quarterly dividend by 5.1% to an annualized cash

payout of $1.65 per share. This was the 13th annual increase
in our 13 year public history

• Achieved record leasing volumes

10
Overview

The seeds of COPT’s future success are planted in the four

competitive advantages we believe we have over other office
landlords:

1. Customer relationships COPT’s Competitive Pyramid

within the US Government
and Defense IT
community

2. Strategic locations of
office parks to serve core
tenants

3. Balance sheet flexibility

4. Development capacity
and capability

11
Customers

209 Research Blvd., North Gate Business Park

Aberdeen, MD
12
Customers

COPT’s long-standing relationships with the US Government and

Defense IT contractors is our greatest competitive advantage

 We have increased our % of Annualized Office Rental Revenues

100%
concentration of annualized
rental revenues from
properties primarily occupied 65%
55% 59%
by super core tenants to 59% 55%
at year end of 2010.

 Our goal is to derive 65% of

annualized rental revenues
0%
from super core customers

08

09

10

al
Go
20

20

20
by year end 2012.

12
20
13
Customers

COPT’s super core tenant focus capitalizes on the REITs geographic

concentration in the Greater Washington/Baltimore region

 Higher renewal rates – In 2010, COPT realized an average renewal rate

of 72.1% with super core customers vs. only 50.5% for other office
tenants.

 Better pricing power – Similarly, in 2010 super core tenants renewed

at GAAP rents that were 3.4% above prior GAAP rents, whereas other
tenants averaged only a 2.5% increase.

14
Customers

38 of the 50 largest Defense Contractors, or 76%, already are COPT tenants

Top 50 Defense Contractors (COPT Tenants are highlighted in Yellow)
1 Lockheed Martin 18 Deloitte, LLP 35 Apptis, Inc.

2 Northrop Grumman Corp. 19 Verizon Communications, Inc. 36 Bechtel Corp.

3 Boeing Co. 20 Jacobs Engineering Group, Inc. 37 VSE Corp.

4 Raytheon Co. 21 United Technologies Corporation 38 Unisys Corp.

5 SAIC 22 Battelle Memorial Institute 39 General Atomics

6 General Dynamics Corp. 23 DynCorp International, LLC 40 QinetiQ North America, Inc.

7 KBR 24 URS Corp. 41 Alion Science and Technology

8 L-3 Communications Corp. 25 DRS Technologies, Inc. 42 SGT, Inc.

9 Booz Allen Hamilton 26 Rockwell Collins, Inc. 43 Combat Support Associates

10 CSC 27 Accenture 44 Stanley, Inc.

11 Dell Computer Corp. 28 Honeywell International, Inc. 45 Wyle Laboratories, Inc.

12 Hewlett-Packard Co./EDS 29 Serco, Inc. 46 AT&T

13 Harris Corp. 30 SRA International, Inc. 47 Fluor Corp.

14 ITT Corporation 31 ManTech International Corp. 48 Alliant Techsystems, Inc.

15 BAE Systems, Inc. 32 Sprint Nextel Corp. 49 Arinc

16 CACI International, Inc. 33 General Electric Co. 50 Comtech Telecommunications

17 IBM Corporation 34 Aerospace Corp.

Source: Ranked according to aggregate value of contracts recorded in 2010 [Link]

15
Customers

Top 20 tenants account for 58% of our Annualized Rental Revenues1

Tenant2 % of Portfolio Annualized Revenue Average Remaining Term3
United States of America 21.1% 6.2
Northrop Grumman Corporation 7.3% 6.6
Booz Allen Hamilton, Inc. 4.7% 4.5
Computer Sciences Corporation 4.2% 3.1
ITT Corporation 1.8% 4.1
The MITRE Corporation 1.8% 5.8
The Aerospace Corporation 1.7% 4.1
CareFirst, Inc. 1.7% 5.8
Wells Fargo & Company 1.7% 7.4
L-3 Communications Holdings, Inc. 1.7% 3.3
Integral Systems, Inc. 1.4% 9.1
Comcast Corporation 1.4% 2.8
The Boeing Company 1.3% 3.9
AT&T Corporation 1.2% 7.8
Ciena Corporation 1.1% 2.2
General Dynamics Corporation 1.0% 2.7
Unisys Corporation 0.9% 9.4
The Johns Hopkins Institutions 0.8% 5.9
Merck & Co., Inc. 0.7% 1.6
First Mariner Bank 0.7% 5.7
Total / Weighted Average 58.1% 5.5 years

1. This list represents our top twenty tenants as of December 31, 2010, exclusive of owner occupied leases, based on annualized revenue
for wholly owned office properties only.
2. Includes affiliated organizations or agencies of tenants, where applicable.
3. The weighting of the lease term was computed using Annualized Rental Revenue.
16
16
Defense/IT Niche

1550 Westbranch Drive

McLean, VA (Acquired June 2010)
17
Defense/IT Niche

COPT’s strategy revolves around our customer relationships and

the unique skill set established over 17 years of serving the
intelligence community

COPT derives 59% of its annualized rental revenue from super core
tenants

 As of December 31, 2010, COPT had 883 leases, 74 of which were

active leases with the US Government, the majority of which are
with agencies using their own leasing entities.

 Of these 74 Government leases, only 14 are administered by GSA.

18
Defense/IT Niche

Historically, OFC’s stock performance has been highly correlated to

Defense Budget “sentiment,” except during the 2007-2008 financial
crisis, when all REITs traded down significantly

OFC Closing Prices vs. Defense Spending*

$800 $60.00
Defense $
$700
OFC $50.00
Defense Spending ($B)

$600

OFC Year End Prices

$40.00
$500

$400 $30.00

$300
$20.00

$200
$10.00
$100

$0 $0.00
2002 2003 2004 2005 2006 2007 2008 2009 2010

*Source: SNL Financial and Office of Management and Budget (Obama Administration Projections) and Stifel Nicolaus estimates

19
Defense/IT Niche

COPT’s stock price has stagnated since May 2009 when talk of
Defense cuts began
Defense Spending
 The Pentagon’s total budget $750 $693
$667 5%
$658
doubled from the 9/11 $700
$650
$601
11%
-1%
$75
14% $75 $50
$145 $163 $159
terrorist attacks until 2009. $600 $527 $187
$50
$550 11%
$169
$500 $586 $598
$116 $571
$450 $76 $553 2%
$91 $549 3% 3%
$72
 Base spending levels are not $400
$350
$17 3%
1%
FY13-FY15

expected to get cut; rather

$531 s pe nding $120b
$300 $513
$480 $553 low e r than las t
$250 3% $525
they are projected to $200
$365 $377 $400 $411
$432
11%
7% -1% 6% proje ction

$328
increase modestly. $150 4%
6% 3%
$100 11% 3%
10%
$50
$-$0

FY11E

FY12E

FY13E

FY14E

FY15E
FY02

FY03

FY04

FY05

FY06

FY07

FY08

FY09
Supplemental spending for

FY10A

war efforts are expected to Co re B udget Supplem entals (A ppro ved, Requested o r B udgeted) Stifel Supplem entals Estim ate

be cut back. FY12 growth determined by final passage of FY11 

budget. President requested $549b in FY11 but 
Congress is closer to $525b. In addition, Congress 
could again trim the FY12 request (prior FY12 
projection was $566b).

Source: Office of Management and Budget (Obama Administration Projections) and Stifel Nicolaus estimates

20
Defense/IT Niche

However, much of the proposed “cuts” really are reallocations

 Secretary of Defense Robert Gates proposed a defense budget of

$553 billion for 2012, which would represent a 4% increase over 2010
spending

 $100 billion of expected savings to be garnered from legacy weapons

systems and non-critical missions and reallocated toward priority
missions
• For example, Cybersecurity is expected to grow by as much as 9%
annually over the next 5 years

21
Defense/IT Niche

The majority of COPT’s super core tenants are program contractors

whose missions are not likely to be cut and may, in some instances, be
augmented

 Under Gates’ proposed budget:

• Support contractors (who augment government staffs) are likely
to face cuts

• Program contractors are not likely to face cuts and may see
increased funding

22
Defense/IT Niche

COPT’s existing portfolio is well positioned to weather DoD cuts

Key missions identified in latest Government Demand-Drivers2

QDR1 proximate to COPT properties
Counterinsurgency Aberdeen Proving Ground
Stability Fort Belvoir
Counterterrorism ops Fort Meade/NBP
Building the security of partner Peterson Air Force Base
states Redstone Arsenal
Deterring & defeating San Antonio Military Installations
aggression in anti-access
environments
Cyberspace operations

1. QDR = Quadrennial Defense Review, the report that sets the nation’s near-term defense strategy.
2. Armed forces installations that suport these missions. COPT owns projects proximate to these and other installations.
23
Defense/IT Niche

Furthermore, Government agency relocations mandated by the 2005

BRAC are nearly complete

 BRAC agency moves were mandated by Congress to be completed by

September 15, 2011

• There is no funding or appropriations risk associated with agency

BRAC moves

• BRAC buildings are 90% complete and move-ins have started

• Ultimately, Program and Support contractors will have to follow

to keep their contracts

24
Defense/IT Niche

COPT’s portfolio features

concentrations of assets
around five BRAC
locations

25
Defense/IT Niche

Our portfolio is positioned to benefit from up to 10 million square feet

of BRAC-related demand over the next 3-5 years

 There is up to 10 million square feet of off-base contractor demand

related to BRAC agency moves from which COPT could benefit:

• 4 million SF supporting Fort Meade

• 2.5 – 3 million SF supporting Aberdeen Proving Ground

• 1 million SF supporting Fort Belvoir

• 2 million SF supporting Redstone Arsenal and the US Army

Materiel Command

26
Data Centers

11751 Meadowville Lane, Meadowville Technology Park

Richmond, VA
27
Data Centers

COPT entered the data center business in 2003/2004

 Existing intelligence community customers needed secure, high

density, blast-proof data centers

 Prior to acquiring Power Loft® @ Innovation in 2010, 1.5 million

square feet of COPT’s office portfolio contained data centers and labs
dedicated to existing super core tenants’ requirements

 COPT is an experienced designer, builder and operator 24/7 of state-

of-the-art data centers

28
Data Centers

In 2010, COPT acquired Power Loft @ Innovation for $115.5 million, a

233,000 SF state-of-the-art facility in Northern Virginia.

 Power Loft features a controlled, secured perimeter, 100,000 SF of

raised floor area, with the potential for 30 megawatts of critical load.

 Power Loft has setbacks sufficient to become ATFP compliant, a

feature many Defense/IT tenants would require.

Wholesale data centers, like Power Loft, are a natural extension of the
dedicated data centers that COPT has developed over the years for
core tenants.

29
Data Centers

COPT expects strong, sustained demand for modern, efficient data

centers, as more corporations and government agencies migrate to
Cloud computing infrastructure.

 At the end of 2010, for example, the US Government finalized plans

to consolidate small, inefficient data centers into Cloud computing
infrastructure based at off-campus, high density, high efficiency data
centers similar to those in COPT’s portfolio.

30
Core Markets

308 Sentinel Drive, The National Business Park

Annapolis Junction, MD
31
Core Markets

Many of COPT’s properties are strategically located in close proximity

to government installations
VIRGINIA
25 buildings/3.3 Million SF

Adjacent to National Geospatial Intelligence Agency

& Fort Belvoir - Patriot Ridge

Near US Government Facility in Chantilly –

Westfields Corporate Center
Near Dahlgren Naval Surface Warfare Center -
Dahlgren Technology Center

MARYLAND
194 buildings/13.5 Million SF
Connected to Fort Meade -
The National Business Park
Near Fort Meade – Arundel Preserve
At the Contractor Gate of Aberdeen Proving Ground -
HUNTSVILLE, AL*
North Gate Business Park
468 ac./4.6 million SF development potential
Adjacent to BWI Airport & US Government Facility -
Airport Square Adjacent to the Main Gate of Redstone Arsenal -
Redstone Gateway
Adjacent to PAX River Naval Air Station -
Expedition & Exploration Office Parks SAN ANTONIO, TX
8 buildings/915,000 SF COLORADO SPRINGS, CO
Near Fort Detrick - Frederick Research Park 14 buildings/1.0 Million SF
Near Lackland Air Force Base –
WASHINGTON D.C. Adjacent to Peterson Air Force Base -
Sentry Gateway
2 operating properties/362,000 SF Patriot Park
Near US Government Facility
Adjacent to Washington Navy Yard - Maritime Plaza
* Consolidated JV property
32
Core Markets

84% of COPT’s square footage is located in its core market, the

Greater Washington/Baltimore region*

Asking rents in
the Greater
Washington/
Baltimore region
were $25.83, or
11% above the
US average**

* Please see Greater Washington/Baltimore region in ‘Definitions’ at the back of this presentation.
** Data excludes St. Mary’s & King George Counties, which CBRE doesn’t track due to their small size.
33
Core Markets

Office Fundamentals for Greater Washington/Baltimore regiona

Submarket
Submarket SF Our Market Our
Region Our SF (000s) Vacancy-
(000s) Share Vacancy
Direct

1. B/W Corridor 22,223 8,433 37.9% 17.1%b 9.4%

2. Northern Virginia

Dulles South 12,532 1,454 11.6% 17.7% 11.3%

Herndon 11,879 570 4.8% 16.0% 2.9%

3. Suburban MD 30,498 695 2.3% 14.0% 12.9%

4. Greater Baltimore 12,840 2,171 16.9% 12.6%b 11.6%

(Excluding White Marsh)

a. Data as of December 31, 2010 for all office classes, compiled by CBRE, Newmark Knight Frank, Turner Commercial and Company data. Suburban
Maryland contains the submarkets of Gaithersburg, North Rockville, North Silver Spring, and Frederick. The Suburban Baltimore region contains the
submarkets of Hunt Valley, Timonium/Towson, West, & East. CBRE does not provide data on Washington DC-Capitol Riverfront and St. Mary’s & King
George Counties.
b. Vacancy with sublease
34
34
Core Markets

Employment trends in COPT’s core markets has exceeded the National

average, even during the Great Recession
Year End Unemployment Statistics*
12%
 US
■ Greater Washington/Baltimore region
10%

8%

6%
4%

2%

0%

0 5 0 6 0 7 0 8 0 9 1 0
2 0 2 0 2 0 2 0 2 0 2 0

* Data compiled by Bureau of Labor Statistics, MD and VA state websites, and COPT.

35
Balance Sheet Flexibility

3120 Fairview Park Drive

Falls Church, VA (Acquired November 2010)
36
Balance Sheet Flexibility

COPT has managed its operations so that we:

Year End Annualized Common Share Dividend
$2.00

 Have raised our annualized $1.50

dividend every year since $1.00

$0.50
our IPO in 1998
$0.00
• 5.1% increase to quarterly
payout in September 2010

97

98

99

00

01

02

03

04

05

06

07

08

09
10
19

19

19

20

20

20

20

20

20

20

20

20

20

20
• 9.4% compounded annual
increase in our dividend since Gross Proceeds from Common Stock Offerings
$300
our IPO
• 222% increase since our IPO* $250

$200

$150
 Avoided having to “re-IPO”
during the Great Recession with $100
a dilutive equity offering $50

$0
98 99 00 01 02 03 04 05 06 07 08 09 10
19 19 20 20 20 20 20 20 20 20 20 20 20
* In October 1997, the Shidler Group contributed office properties to Royale Investments, a midwest shopping center
company. In March 1998, the Company reformed as a REIT and changed its name to Corporate Office Properties Trust.
37
Balance Sheet Flexibility

Year End Leverage Levels

70%
60% 57%
50%
46%
40%
30%
20%  Debt to undepreciated book assets
■ Debt to total market capitalization
10% ▲ Debt/Gross Assets*
0%

0 6 0 7 0 8 0 9 1 0
2 0 2 0 2 0 2 0 2 0

* See ‘Definitions & Glossary’ for calculation.

38
Balance Sheet Flexibility

Year End Debt/EBITDA*

10%

8%

6%

4%
 Debt/EBITDA
■ Adjusted Debt/EBITDA
2%

0%

0 6 0 7 0 8 0 9 1 0
2 0 2 0 2 0 2 0 2 0

* See ‘Definitions & Glossary’ for calculation.

39
Balance Sheet Flexibility

Year End EBITDA Fixed Charge Coverage Ratio

3.5
3.3
3.1
2.9
2.7
2.5
2.3
2.1
1.9
1.7
1.5

0 6 0 7 0 8 0 9 1 0
2 0 2 0 2 0 2 0 2 0

40
40
Balance Sheet Flexibility

Manageable Debt Maturities as of 12-31-10a,b

$700

$591.4
$600

$500
$413.7
$396.5
$400

$300
$210.2
$200
$146.0

$100

$0
2011a 2012 b 2013 2014 2015

a. Maturities in 2011 include: $295.0 million on COPT’s $800 million Revolver which can be extended into 2012.
b. Maturities in 2012 include: $142.3 million under COPT’s $225 million Construction Revolver that was extended to 2012 in January 2011.

41
Development

6711 Columbia Gateway Drive, Columbia Gateway Business Park

Columbia, MD
42
Development

In addition to acquiring assets for strategic and opportunistic purposes,

COPT’s development capabilities have also fueled external growth.
 Roughly $325 million in
developments started & Development: Shell Completions
stabilized between 2005 – 1,200 $250
2010 average unleveraged SF (000s)
10.1% yield on cost Cost ($ millions)
1,000
$200

 Current development 800

pipeline is $504 million $150
across 17 projects ($236
600
per square foot)*
$100
400
 Current average
unleveraged yield on cost $50
200
is ± 11% on projects under
construction
0 $0
2007 2008 2009 2010 2011 2012
 Strategic land bank
necessary to meet future
demand
* Includes 10 projects ($224 million, 1.0 million square feet) under construction and 7 projects ($280 million, 1.1 million square feet) under development.
Does not include four properties under redevelopment or two properties under development in our Huntsville, AL, joint venture.

43
43
Development

“Luck is when opportunity meets preparation.”

Seneca the Younger

COPT frequently builds new properties in advance of anticipated

new demand

 Many Government agencies will only lease existing buildings (versus

build-to-suit) with operating leases, which enables them to avoid
classifying their leases in their capital budgets.
• This speeds the procurement process and our tenant occupancy.

 COPT will build “spec” where we believe it is important to be first to

market:
• The National Business Park (proven)
• Sentry Gateway (in process)
• Patriot Ridge (in process)
• North Gate Business Park (in process)

44
44
Development

Consistent with our strategy of catering to US Government and

Defense IT sectors and data centers serving them, COPT develops
properties that are proximate (or even “inside the fence”) to
Government demand drivers

We currently list the following as our office parks with the highest
growth potential:

 North Gate Business Park

 Patriot Ridge
 Redstone Gateway
 Sentry Gateway
 The National Business Park

45
45
Development

North Gate Business Park, Aberdeen, MD

 Demand Driver: Aberdeen Proving Ground; C4ISR

 3 buildings to support contractors serving C4ISR (~8,200 jobs)

• The first building (77,192 SF) is 100% leased
• The second building (79,573 SF) is 35% leased
• The third building, second quarter 2011 completion (127,300 SF) is 0%
leased

 Contractor demand for space: 2.5 to 3 million SF (estimated)

46
46
C4ISR – Aberdeen Proving Grounds

The C4ISR Complex @ APG New Team C4ISR Buildings

The US Army Research

US Army Medical Research
Development & Engineering
Institute of Chemical Defense
Command
47
North Gate – Aberdeen, MD

48
 North Gate – Preliminary Site Plan

206
Un  Rese
d
Con er arch B
stru lv d
ctio .
n

49
49
Development

Patriot Ridge, Springfield, VA

 Demand Driver: Fort Belvoir; NGA

• Fort Belvoir is the beneficiary of the largest BRAC gain of any military
installation in the US
• The NGA is opening its new HQ (8,500 people) in 2011

 COPT owns 15 acres adjacent to Fort Belvoir

 Development started on the 1st of 5 buildings (up to 978,000 SF)

• 240,000 SF
• Leasing proposals exceed initial square footage

50
50
Patriot Ridge

51
Patriot Ridge

52
National Geospatial Intelligence Agency

53
Development

Redstone Gateway, Huntsville, AL*

 Demand Drivers: Redstone Arsenal; home to NASA- George C. Marshall

Space Flight Center, US Army Aviation and Missile Command, major
components of the Defense Intelligence Agency plus more commands &
agencies moving to Redstone Arsenal due to BRAC

 Development capacity of ~4.6 million SF to support BRAC workforce gain

of ~4,700 DOD directed positions & ~15,000 indirect & induced jobs
• 4.4 million SF of office space to include 1.2 million SF of secured office
space
• 200,000 SF of retail/amenity space

 2 buildings under development totaling 235,000 SF

 Redstone Gateway is “the next NBP”

* Owned in a consolidated joint venture.

54
54
Redstone Arsenal

Upon completion of the BRAC relocations, Redstone Arsenal becomes

the epicenter of all research, development, procurement, logistics &
sustainment required to support the modern warfighter on today’s
battlefield by becoming the home of the US Army Materiel Command
(AMC)
 Major Army command responsible for total life-cycle management of the
logistics to support the Army & other joint programs
 Directs one of the largest budgets in the Army
 Facility under construction, close to completion

Other commands & agencies moving to Redstone Arsenal due to

BRAC:
 US Army Space & Missile Defense Command (SMDC) (HQ relocated)
 US Army Security Assistance Command (USASAC) (HQ relocated)
 2nd Recruiting Brigade (facility completed & occupied)
 2nd Medical Recruiting Battalion (facility completed & occupied)
 Missile Defense Agency (MDA) (facility completed)
 Redstone Test Center (RTC) (facility completed)

55
55
Redstone Arsenal

Approximately 38,000 acres; located in the center of the Tennessee

Valley in northern Alabama

Total current on base working population of over 30,000

 Projected 2011 Redstone workforce, according to Redstone Arsenal
Garrison Command officials includes:
• 13 general officers, including one 4-star general
• 121 senior executive service members (2nd highest in the country)
• 1,000 active soldiers
• 17,000 government contractor workers
• 18,800 government civilian workers

Redstone Arsenal is completing nearly $440 million of military

construction in support of the 2005 BRAC relocations that by law
must be in place by September 2011

56
56
Redstone Arsenal

U.S. Army Aviation and Missile U.S. Space & Missile Defense U.S. Army Security Assistance Missile Defense Agency
Command (AMCOM) Command (SMDC) Command (USASAC) (MDA)

Marshall Space Flight Center

PEO – Missiles and Space (MSFC)

PEO - Aviation Bureau of Alcohol Tobacco &

Firearms (ATF)

Aviation & Missile Research,

Development & Engineering Federal Bureau of Investigation
Center (AMRDEC) (FBI)

Army Materiel Command

(AMC) DIA – Missile & Space Intelligence
Center

Redstone Test Center U.S. Army Garrison Redstone Logistics Support Activity (LOGSA)
(RTC) Arsenal (USAG)

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Redstone Gateway
City of Huntsville

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Redstone Gateway
Phase I Square Footage # of Buildings
Office 1,843,000 13
Secured Office 518,000 2
Education 113,000 3
Retail/Restaurant 164,000 13
Hotel 300 Rooms 2

Phase II Square Footage # of Buildings

Office 778,000 7
R&D Office 127,000 2
Secured Office 835,000 5

Phase III Square Footage # of Buildings

Office 864,000 6
R&D Office 107,000 2

TOTALS 5,349,000 55

Building 1 
Under Development

North

Unless otherwise noted, renderings shown are representative buildings that COPT has developed in other locations and don’t necessarily
reflect the architectural style of this project.

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Development

Sentry Gateway, San Antonio, TX

 Demand Drivers: Lackland Air Force Base; a US Government facility

 6 operating properties (792,000 SF)

 1 building under construction (95,000 SF)

 2 buildings under development (219,000 SF)

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COPT in San Antonio

RANDOLPH AFB

FORT SAM HOUSTON

SENTRY GATEWAY

LACKLAND AFB

BROOKS AFB

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Sentry Gateway

100 Sentry Gateway

200
100

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Development

The National Business Park, Annapolis Junction, MD

 Demand Driver: Fort Meade

 24 operating properties (2.8 million SF)

 4 buildings under construction (496,000 SF) to support the move of:

• Defense Information Systems Agency (DISA) from Northern Virginia to
Fort Meade (5,600 federal employees)
• The stand up of Cyber Command at Fort Meade (1,100 federal
employees)
• Contractors who support DISA and Cyber Command (15,000 private
sector employees)

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The National Business Park

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NBP North – Master Plan

Under Construction:
410 NBP (110,000 SF)
430 NBP (110,000 SF)

420 NBP

P
410 NB

P
430 NB

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 March 2011

Thank You
Appendices

I. COPT’s Sustainable Building (available upon request)

II. Definitions & Glossary

III. Reconciliations

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II. Definitions & Glossary

Acquisition costs – transaction costs expensed in connection with executed or anticipated acquisitions of
operating properties.

Adjusted Debt/EBITDA – debt adjusted to subtract construction in progress as of period end divided by
EBITDA for the three month period, multiplied by four.

BRAC – Base Realignment and Closure Commission of the United States Congress. The Congress established the
2005 BRAC Commission to ensure the integrity of the base closure and realignment process. The Commission
provided an objective, non-partisan, and independent review and analysis of the list of military installation
recommendations issued by the Department of Defense (DoD) on May 13, 2005. The Commission's mission is to
assess whether the DoD recommendations substantially deviated from the Congressional criteria used to
evaluate each military base. While giving priority to the criteria of military value, the Commission will also take
into account the human impact of the base closures and will consider the possible economic, environmental, and
other effects on the surrounding communities.

Cloud computing infrastructure – per Wikipedia, Cloud computing is computation, software, data access, and
storage services that do not require end-user knowledge of the physical location and configuration of the system
that delivers the services. Parallels to this concept can be drawn with the electricity grid where end-users
consume power resources without any necessary understanding of the component devices in the grid required to
provide the service.

Customer – how COPT generally refers to its tenants.

 Super core customer – office tenants in the United States Government and defense information technology (“defense IT”)
sectors.

Debt/EBITDA – debt divided by EBITDA for the three month period, multiplied by four.

Development profit or yield – calculated as cash NOI divided by the estimated total investment, before the
impact of cumulative real estate impairment losses.

EBITDA – net income adjusted for the effects of interest expense, depreciation and amortization and income
taxes.

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II. Definitions & Glossary
Fixed charges – sum of (1) interest expense on continuing and discontinued operations (excluding amortization
of deferred financing costs and amortization of the discount on Exchangeable Senior Notes, net of amounts
capitalized), (2) dividends on preferred shares and (3) distributions on preferred units in the Operating
Partnership not owned by us.
Funds from Operation (“FFO”) – defined as net income computed using GAAP, excluding gains on sales of
previously depreciated operating properties, plus real estate-related depreciation and amortization.
Basic FFO available to common share and common unit holders – FFO adjusted to subtract (1) preferred share
dividends, (2) FFO attributable to noncontrolling interests through ownership of preferred units in the Operating
Partnership or interests in other consolidated entities not owned by us, (3) Basic FFO allocable to restricted shares
and (4) issuance costs associated with redeemed preferred shares.
Diluted FFO available to common share and common unit holders – 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.
 FFO per share – (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 and that conversion or exchange would have been dilutive.

 GAAP – accounting principles generally accepted in the United States.

Greater Washington/Baltimore Region – includes counties that comprise the Baltimore/Washington Corridor,
Northern Virginia, Greater Baltimore, Suburban Maryland, St. Mary’s & King George Counties, and the
Washington, DC-Capitol Riverfront. As of December 31, 2010, 219 of COPT’s wholly-owned properties, were
located within this defined region. Please refer to page 26 of COPT’s Supplemental Information package dated
December 31, 2010 for additional detail.
Gross Asset Value – when used to calculate COPT's Debt/Gross asset ratio, is calculated as follows: multiply the
most recent quarter's cash NOI by four, then divide by a cap rate (currently 7.0%); plus the cost of properties
acquired in the current quarter and prior two quarters; plus the GAAP book value of assets under construction,
development, and land (with certain limitations); less any JV partners' interests provided that non-controlling
interests do not exceed 15% of the total value. Note, in 2005 and 2006, COPT employed an 8.5% cap rate rather
than the current 7.0% cap rate.
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II. Definitions & Glossary

GSA – United States General Services Administration. In July 1949, President Harry Truman established the GSA
to streamline the administrative work of the federal government. The GSA’s acquisition solutions supplies
federal purchasers with cost-effective high-quality products and services from commercial vendors. GSA
provides workplaces for federal employees, and oversees the preservation of historic federal properties. Its
policies covering travel, property and management practices promote efficient government operations.
Market capitalization – sum of (1) carrying value of debt on our consolidated balance sheet, (2) liquidation value
of preferred shares and preferred units in our operating partnership and (3) the product of the closing price of
our common shares on the NYSE and the sum of (a) common shares outstanding and (b) common units
outstanding.
Net operating income (NOI) – rental revenues, including tenant recoveries, less property operating expenses.
Portfolio – as of December 31, 2010, COPT’s portfolio of class-A office buildings consisted of the following:
Wholly-Owned Consolidated JV Consolidated Unconsolidated JV Total
Portfolio Portfolio* Portfolio*
Operating properties
# Properties 252 4 256 16 272
Square feet 19,990,288 441,797 20,432,085 670,999 21,103,084
% Leased 89.5% 62.7% 88.9% 74.3% 88.5%

Under Construction
# Properties 10 -- 10 -- 10
Square feet 1,040,748 -- 1,040,748 -- 1,040,748
% Leased 32.0% -- 32.0% -- 32.0%

Under Redevelopment
# Properties 4 -- 4 -- 4
Square feet 873,293 -- 873,293 -- 873,293
% Leased 18.8% -- 18.8% -- 18.8%

Under Development
# Properties 7 2 9 -- 9
Square feet 1,091,360 235,000 1,326.360 -- 1,326,360
% Leased 0% 0% 0% -- 0%

Total
# Properties 273 6 279 16 295
Square feet 22,995,689 676,797 23,672,486 670,999 24,343,485
% Leased 80.0% 40.9% 78.8% 74.3% 78.7%

*Number of properties and square feet are not pro rated for partner’s share. Instead they are presented as if COPT owned 100%
of the consolidated and unconsolidated joint venture properties.
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II. Definitions & Glossary

Redevelopment – properties previously in operations on which activities to substantially renovate such

properties are underway.

Stabilization – generally defined as properties that are at least 85% occupied.

Under construction – properties on which vertical construction activities are underway.

Under Development – Properties which work associated with one or more of the following tasks is underway on
a regular basis: pursuing entitlements, planning, design and engineering, bidding, permitting and
premarketing/preleasing. Typically, these projects, as categorized in the Company’s Supplemental Information
package, are targeted to begin construction in 12 months or less.

Undepreciated book value of real estate assets – total properties, net presented on our consolidated balance
sheet excluding the effect of accumulated depreciation incurred to date on such properties.

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III. Reconciliations

(Dollars and shares in thousands, except per share data) Years ended December 31,
1998* 1999* 2000* 2001* 2002* 2003* 2004 2005 2006 2007 2008 2009 2010

Numerator for diluted EPS $ 8,952 $ 14,788 $ 11,332 $ 13,573 $ 13,711 $ 7,650 $ 18,911 $ 24,416 $ 28,618 $ 15,616 $ 37,135 $ 39,217 $ 25,587
Add: Income allocable to noncontrolling interests-common units in the Operating Partnership - 3,449 6,322 6,592 5,800 6,712 5,659 5,889 7,097 3,203 6,519 4,495 2,116
Add: Real estate-related depreciation and amortization 6,238 11,987 16,887 20,558 30,832 36,681 51,371 62,850 78,631 106,260 102,772 109,386 123,243
Add: Depreciation and amortization on unconsolidated real estate entities - - - 144 165 295 106 182 910 666 648 640 631
Add: Numerator for diluted EPS allocable to restricted shares - - - - - - - - 449 517 728 1,010 1,071
Less: Depreciation and amortization allocable to noncontrolling interests in other consolidated entities - - - - - - (86) (114) (163) (188) (270) (493) (1,402)
Less: Basic and diluted FFO allocable to restricted shares - - - - - - (317) (311) (733) (876) (1,310) (1,629) (1,524)
Less: Gain on sales of previously depreciated operating properties, net of income taxes - (1,140) (107) (416) (268) (2,897) (95) (4,422) (17,644) (3,827) (2,630) - (1,077)
Add: Convertible preferred share dividends 327 1,353 677 - - 544 - - - - - - -
Add: Preferred unit distributions - 61 2,240 2,287 2,287 1,049 - - - - - - -
Add: Expense on dilutive share-based compensation - - - - 327 10 - - - - - - -
Add: Repurchase of preferred units in excess of recorded book value - - - - - 11,224 - - - - - - -
Add: Cumulative effect of accounting change - - - 263 - - - - - - - - -
Numerator for diluted FFO per share $ 15,517 $ 30,498 $ 37,351 $ 43,001 $ 52,854 $ 61,268 $ 75,549 $ 88,490 $ 97,165 $ 121,371 $ 143,592 $ 152,626 $ 148,645

Denominator for diluted EPS 19,237 22,574 19,213 21,623 24,547 28,021 34,982 38,997 43,031 47,518 48,820 56,407 59,944
Weighted average common units - 4,883 9,652 9,437 9,282 8,932 8,726 8,702 8,511 8,296 8,107 5,717 4,608
Assumed conversion of weighted average convertible preferred shares 449 1,845 918 - - 1,197 - - - - - - -
Assumed conversion of weighted average convertible preferred units - 70 2,371 2,421 2,421 1,101 - - - - - - -
Dilutive effect of share-based compensation awards - - - - 384 43 - - - - - - -
Denominator for diluted FFO per share 19,686 29,372 32,154 33,481 36,634 39,294 43,708 47,699 51,542 55,814 56,927 62,124 64,552

Diluted EPS $ 0.47 $ 0.66 $ 0.59 $ 0.63 $ 0.56 $ 0.27 $ 0.54 $ 0.63 $ 0.67 $ 0.33 $ 0.76 $ 0.70 $ 0.43
Diluted FFO per share $ 0.79 $ 1.04 $ 1.16 $ 1.28 $ 1.44 $ 1.56 $ 1.73 $ 1.86 $ 1.89 $ 2.17 $ 2.52 $ 2.46 $ 2.30

Diluted FFO per share as adjusted for operating property acquisition costs, gain on early extinguishment of debt and redemption of preferred shares
Diluted FFO $ 75,549 $ 97,165 $ 143,592 $ 152,626 $ 148,645
Gain on early extinguishment of debt - - (8,101) - -
Gain on early extinguishment of debt allocable to restricted shares - - 75 - -
Operating property acquisition costs - - - 1,967 3,424
Issuance costs associated with redeemed preferred shares 1,813 3,896 - - -
Diluted FFO as adjusted $ 77,362 $ 101,061 $ 135,566 $ 154,593 $ 152,069
Denominator for diluted FFO per share as adjusted 43,708 51,542 56,927 62,124 64,552
Diluted FFO per share as adjusted $ 1.77 $ 1.96 $ 2.38 $ 2.49 $ 2.36

* The years ended December 31, 1998 through 2003 do not include the effect of accounting standards adopted January 1, 2009 retrospective to prior periods.

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III. Reconciliations

(Dollars in thousands)
For the Years Ended December 31,
2010 2009 2008 2007 2006
Reconciliation of GAAP net income to earnings before interest, income taxes,
depreciation and amortization ("EBITDA")
Net income $ 45,504 $ 61,299 $ 61,316 $ 35,942 $ 55,988
Interest expense on continuing and discontinued operations 102,128 82,420 86,921 90,020 76,440
Total income tax expense 119 196 779 1,684 887
Depreciation and amortization 125,819 111,811 104,968 108,181 80,547
EBITDA $ 273,570 $ 255,726 $ 253,984 $ 235,827 $ 213,862

Reconciliation of interest expense from continuing operations to the denominator

for EBITDA fixed charge coverage
Interest expense from continuing operations $ 101,865 $ 82,187 $ 86,368 $ 88,070 $ 73,396
Interest expense from discontinued operations 263 233 553 1,950 3,044
Less: Amortization of deferred financing costs (5,871) (4,214) (3,843) (3,385) (2,645)
Less: Amortization of discount on Exchangeable Senior Notes, - - - - -
net of amounts capitalized (5,314) (2,955) (3,225) (3,062) (1,039)
Preferred share dividends 16,102 16,102 16,102 16,068 15,404
Preferred unit distributions 660 660 660 660 660
Denominator for EBITDA fixed charge coverage $ 107,705 $ 92,013 $ 96,615 $ 100,301 $ 88,820

EBITDA fixed charge coverage ratio 2.54x 2.78x 2.63x 2.35x 2.41x

As of December 31,
2010 2009 2008 2007 2006
Total Debt $ 2,323,681 $ 2,053,841 $ 1,856,751 $ 1,809,610 $ 1,478,460
Liquidation value of preferred shares/units 225,133 225,133 225,133 225,133 198,550
Market value of common shares/units 2,493,134 2,322,672 1,832,729 1,749,290 2,591,988
Total Market Capitalization $ 5,041,948 $ 4,601,646 $ 3,914,613 $ 3,784,033 $ 4,268,998

Total Assets or Denominator for Debt to Total Assets $ 3,844,517 $ 3,380,022 $ 3,114,239 $ 2,932,364 $ 2,419,329
Accumulated depreciation 503,032 422,612 343,110 288,747 219,846
Intangible assets on real estate acquisitions, net 113,735 100,671 91,848 108,661 87,325
Assets other than assets included in properties, net (399,062) (350,122) (335,773) (327,528) (307,812)
Denominator for Debt to Undepreciated Book Value of Real Estate Assets $ 4,062,222 $ 3,553,183 $ 3,213,424 $ 3,002,244 $ 2,418,688

Debt to Total Market Capitalization 46.1% 44.6% 47.4% 47.8% 34.6%

Debt to Undepreciated Book Value of Real Estate Assets 57.2% 57.8% 57.8% 60.3% 61.1%

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