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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

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FORM 8-K

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CURRENT REPORT

Pursuant to Section 13 or 15(d) of
the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) July 26, 2001

CORPORATE OFFICE PROPERTIES TRUST
(Exact name of registrant as specified in its charter)

Maryland		0-20047		23-2947217
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification Number)

8815 Centre Park Drive, Suite 400
Columbia, Maryland 21045
(Address of principal executive offices)

(410) 730-9092
(Registrant's telephone number, including area code)

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Item 7. Financial Statements and Exhibits

    The information contained in the attached exhibit is unaudited and should be read in conjunction with the Registrant's annual and quarterly reports filed with the Securities and Exchange Commission.

Exhibit Number		Description
99.1		Supplemental information dated June 30, 2001 for Corporate Office Properties Trust.

Item 9. Regulation FD Disclosure

    In connection with its release of earnings on July 25, 2001, the Registrant is making available certain additional information pertaining to its properties and operations as of and for the period ended June 30, 2001. This information is filed herewith as Exhibit 99.1 and is incorporated herein by reference.

SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: July 26, 2001

		CORPORATE OFFICE PROPERTIES TRUST
		By:	/s/ RANDALL M. GRIFFIN    Name: Randall M. Griffin Title: President and Chief Operating Officer
		By:	/s/ ROGER A. WAESCHE, JR.    Name: Roger A. Waesche, Jr. Title: Chief Financial Officer

2

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Supplemental Information
(Unaudited)

June 30, 2001

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Corporate Office Properties Trust
Index to Supplemental Information (Unaudited)
June 30, 2001

			Page
Highlights and Discussion
	Reporting Period Highlights—Second Quarter 2001		1
	Subsequent Events		2
Financial Statements
	Quarterly Selected Financial Summary Data		3
	Quarterly Consolidated Balance Sheets		4
	Quarterly Consolidated Statements of Operations and Funds From Operations (FFO)		5
	Quarterly Consolidated Statements of Operations and FFO per Diluted Share		6
	Quarterly Consolidated Statements of Operations and FFO as a Percentage of Total Revenues		7
Selected Financial Analyses
	Quarterly Equity Analysis		8
	Quarterly Valuation Analysis		9
	Quarterly Debt Analysis		10
	Quarterly Operating Ratios		11
	Quarterly Dividend Analysis		12
	Investor Composition and Analyst Coverage		13
	Debt Maturity Schedule—June 30, 2001		14
Portfolio Summary
	Property Summary by Region—June 30, 2001		15
	Property Occupancy Rates by Region by Quarter		18
	Top Twenty Office Tenants as of June 30, 2001		19
	Total Rental Revenue and Net Operating Income by Geographic Region by Quarter		20
	Same Office Property Cash and GAAP Net Operating Income by Quarter		21
	Office Lease Expiration Analysis by Year		22
	Year to Date and Quarterly Office Renewal Analysis		23
	Acquisition and Disposition Summary as of June 30, 2001		25
	Development Summary as of June 30, 2001		26

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To Members of the Investment Community:

    We prepared this supplemental information package to provide you with additional detail on our properties and operations. The information in this package is unaudited, filed with the Securities and Exchange Commission and should be read in conjunction with our quarterly and annual reports. If you have any questions or comments, please contact Ms. Sara L. Grootwassink, Vice President, Finance and Investor Relations at (410) 992-7324 or sara.grootwassink@copt.com.

Reporting Period Highlights—Second Quarter 2001

Financial Results

•

Reported FFO—diluted of $10,560,000 or $.32 per share/unit for the second quarter of 2001 as compared to $9,250,000 or $.29 per share/unit for the comparable 2000 period, representing an increase of 10.3% per share/unit. FFO—diluted increased $1,310,000, or 14.2%, over the comparable 2000 period.



•

Reported AFFO—diluted of $8,591,000 or $.26 per share/unit for the second quarter of 2001 as compared to $7,634,000 or $.24 per share/unit for the comparable 2000 period, representing an increase of 8.3% per share/unit.



•

For the six months ended June 30, 2001, reported FFO—diluted of $20,723,000 or $.63 per share/unit as compared to $18,150,000 or $.56 per share/unit for the same six month period in 2000, representing an increase of 12.5% per share/unit. Similarly, reported AFFO—diluted of $16,948,000 or $.51 per share/unit for the same six month period as compared to $15,063,000 or $.47 per share/unit, representing an increase of 8.5% per share/unit.



•

Our diluted FFO payout ratio improved to 62.4% for the second quarter of 2001 as compared to 66.0% for the comparable 2000 period. For the six months ended June 30, 2001, the diluted FFO payout ratio was 63.4% as compared to 67.4% for the comparable period in 2000.

Financing and Capital Transactions

•

In April 2001, we issued 1,150,000 Series E cumulative redeemable preferred shares with a liquidation value of $25.00 per share, raising $28,750,000 in gross proceeds. These Series E preferred shares have a 10.25% coupon and can be redeemed at par at our option subsequent to July 15, 2006. Net proceeds were primarily used to pay down our Deutsche Bank revolving credit facility.



•

We closed on three permanent loans for $73.8 million with a blended fixed interest rate of 7.13% and an average term of 7.4 years. The net proceeds were utilized to repay existing debt. Additionally, our $50.0 million line of credit with Prudential Securities Corp. expired in June and we repaid the outstanding balance of $29.1 million.



•

Our debt to market capitalization is 54.5% and our debt to undepreciated book value of real estate assets is 57.1% as of June 30, 2001. We achieved an EBITDA interest coverage ratio of 2.64x and an EBITDA fixed charge coverage ratio of 2.06x for this quarter.

Operations

•

We renewed 76.9% of our office leases (based upon square footage) with an average capital cost of $5.58 per square foot during the 2^ndquarter. We realized increases in base and total rents on a straight-line basis of 26.2% and 21.0%, respectively, as measured from the GAAP straight-line rent in effect preceding the renewal date. Base and total rent on a cash basis increased 21.0% and 16.6%, respectively, on this renewed and retenanted space.

1

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•

Overall occupancy was 96.9% as of June 30, 2001. Occupancy rates approximated 98.0% in the Baltimore/Washington Corridor, which represents 63.4% of our office square footage and 65.1% of our total office revenues for the 2^nd quarter of 2001. We were 97.6% leased as of June 30, 2001.



•

Weighted average lease term of our office portfolio is 4.5 years as of June 30, 2001, with an average contractual rental rate (including tenant reimbursements for operating costs) of $17.61 per square foot.

Acquisition / Disposition

•

On May 14, 2001, we acquired two operating properties totaling 110,675 square feet and a 30,855 square foot redevelopment property. The two operating properties are 100% leased, primarily to State Farm Mutual, General Physics Corp. and Arbitron. Our market concentration improves to over 30% in the Columbia Gateway Business Park through our portfolio of 8 operating properties comprising 557,000 square feet.



•

On June 18, 2001, we sold 19 Commerce, a 65,277 square foot building and development opportunity located in Cranbury, New Jersey, for $11,525,000.

Development

•

In May 2001, we delivered a 43,785 square foot property located in Montpelier Research Park, Columbia, Maryland. This property is 100% leased to Johns Hopkins University and was developed through a joint venture arrangement in which we hold an 80% interest.



•

During June, we signed a ten-year lease for 29,741 square feet with Titan Systems Corporation in 201 NBP, currently under construction. This building is now 77.1% pre-leased.

Subsequent Events

•

On July 2, 2001 we paid $6.9 million to acquire the remaining 60% interest in a joint venture which owned 5 properties totaling 314,594 square feet in the BWI Airport submarket. We now directly own these 5 properties.

Note: This supplemental information contains "forward looking" statements, as defined in the Private Securities Litigation Reform Act of 1995, that are based on the Company's current expectations, estimates and projections about future events and financial trends affecting the financial condition of the business. Statements that are not historical facts, including statements about the Company's beliefs and expectations, are forward-looking statements. These statements are not guarantees of future performance, events or results and involve potential risks and uncertainties. Accordingly, actual results may differ materially. 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.

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Quarterly Selected Financial Summary Data

(Dollars in thousands)

		2001						2000
		June 30			March 31			December 31			September 30			June 30
Total Revenues from Real Estate Operations		$	28,711		$	28,851		$	27,609		$	27,656		$	26,417
Net Operating Income from Real Estate Operations			20,153			20,385			19,469			19,606			18,980
EBITDA			20,471			19,490			19,298			18,559			17,772
Net Income before Preferred Dividends			5,081			3,726			4,087			3,685			3,712
Preferred Dividends			(1,613	)		(881	)		(782	)		(781	)		(1,119	)
Net Income Available to Common Shareholders		$	3,468		$	2,845		$	3,305		$	2,904		$	2,593
Funds From Operations (FFO)—Diluted		$	10,560		$	10,102		$	9,804		$	9,550		$	9,250
FFO per diluted share		$	0.32		$	0.31		$	0.31		$	0.30		$	0.29
Adjusted FFO—Diluted(A)		$	8,591		$	8,296		$	8,228		$	6,691		$	7,634
Adjusted FFO per diluted share		$	0.26		$	0.25		$	0.26		$	0.23		$	0.24
Payout Ratios:
FFO—Diluted(B)			62.43	%		64.87	%		65.67	%		67.42	%		66.02	%
AFFO—Diluted(C)			76.73	%		78.99	%		78.25	%		87.68	%		80.00	%
Total Dividends/Distributions		$	8,069		$	7,334		$	7,220		$	7,220		$	6,888

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(A)

For the quarter ended September 30, 2000, the Series C convertible preferred units were anti-dilutive for AFFO calculations. Thus, in computing AFFO, the quarterly dividend of $572 was included in the numerator and the related 2,421 of Series C convertible preferred units (as if already converted into common shares) were excluded from the denominator.

(B)

Computed by dividing total dividends/distributions (except for dividends on Series B and Series E Cumulative Redeemable Preferred Shares which are subtracted to calculate FFO) by FFO diluted.

(C)

Computed by dividing total dividends/distributions (except for dividends on Series B and Series E Cumulative Redeemable Preferred Shares which are subtracted to calculate AFFO) by AFFO diluted. In addition, for the quarter ended September 30, 2000, the quarterly Series C preferred unit dividend of $572 was excluded from the numerator.

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Quarterly Consolidated Balance Sheets

(Dollars in thousands except per share data)

				2001						2000
				June 30			March 31			December 31			September 30			June 30
Assets
Investment in real estate:
	Land—operational			$	142,461		$	140,620		$	140,018		$	136,723		$	141,646
	Land—development				24,488			24,683			19,069			21,888			15,888
	Construction in progress				30,066			22,228			17,489			21,579			20,300
	Buildings and improvements				624,635			615,586			604,666			585,067			575,531
	Investment in and advances to real estate joint ventures				12,009			6,877			3,616			8,606			—
	Less: accumulated depreciation				(41,659	)		(37,652	)		(33,271	)		(29,460	)		(25,490	)
		Net investment in real estate			792,000			772,342			751,587			744,403			727,875
	Cash and cash equivalents				2,962			3,806			4,981			3,259			630
	Restricted cash				9,633			4,468			2,703			2,007			2,903
	Accounts receivable, net				4,855			5,519			3,245			3,571			3,386
	Investment in and advances to other unconsolidated entities				2,041			2,159			6,124			4,074			4,095
	Deferred rent receivable				9,804			9,335			8,644			7,882			6,010
	Deferred charges, net				16,357			15,550			12,905			12,667			10,953
	Prepaid and other assets				9,383			6,726			4,501			6,836			4,197
	Furniture, fixtures and equipment, net of accumulated depreciation				1,772			1,807			147			166			185
		Total assets		$	848,807		$	821,712		$	794,837		$	784,865		$	760,234
Liabilities and beneficiaries' equity
Liabilities:
	Mortgage loans payable			$	475,999		$	478,913		$	474,349		$	465,696		$	436,679
	Accounts payable and accrued expenses				13,361			10,889			10,227			6,435			11,245
	Rents received in advance and security deposits				4,023			4,236			3,883			5,351			4,277
	Dividends/distributions payable				7,918			7,203			7,090			7,090			6,757
	Fair value of derivatives				2,232			1,993			—			—			—
	Other liabilities				10,637			10,243			—			—			—
		Total liabilities			514,170			513,477			495,549			484,572			458,958
Minority interests:
	Preferred Units in the Operating Partnership				24,367			24,367			24,367			24,367			24,367
	Common Units in the Operating Partnership				78,900			80,467			81,069			81,402			78,720
	Other consolidated partnership				224			166			124			115			109
		Total minority interests			103,491			105,000			105,560			105,884			103,196
Commitments and contingencies											—			—			—
Beneficiaries' equity:
	Preferred Shares ($0.01 par value; 5,000,000 authorized);
		1,025,000 designated as Series A Convertible Preferred Shares of beneficial interest (1 share issued as of June 30, 2001)			—			—			—			—			10
		1,725,000 designated as Series B Cumulative Redeemable Preferred Shares of beneficial interest (1,250,000 shares issued as of June 30, 2001)			13			13			12			12			12
		544,000 designated as Series D Cumulative Redeemable Preferred Shares of beneficial interest (544,000 shares issued as of June 30, 2001)			5			5			—			—			—
		1,150,000 designated as Series E Cumulative Redeemable Preferred Shares of beneficial interest (1,150,000 shares issued as of June 30, 2001)			11			—			—			—			—
	Common Shares of beneficial interest ($0.01 par value; 45,000,000 authorized, 20,692,663 shares issued as of June 30, 2001)				208			207			206			206			187
	Treasury Shares, at cost (166,600 shares as of June 30, 2001)				(1,415	)		(1,415	)		(1,415	)		(1,415	)		(1,415	)
Additional paid-in capital					249,617			221,682			209,388			209,384			211,978
Accumulated deficit					(12,776	)		(12,222	)		(11,064	)		(10,379	)		(9,293	)
Value of unearned restricted Common Share grants					(3,042	)		(3,042	)		(3,399	)		(3,399	)		(3,399	)
Accumulated comprehensive loss					(1,475	)		(1,993	)		—			—			—
	Total beneficiaries' equity				231,146			203,235			193,728			194,409			198,080
	Total beneficiaries' equity and minority interests				334,637			308,235			299,288			300,293			301,276
	Total liabilities and beneficiaries' equity			$	848,807		$	821,712		$	794,837		$	784,865		$	760,234

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Note:

Prior to January 1, 2001, other unconsolidated entities include Corporate Office Services, Inc. (COS); Corporate Office Management, Inc. (COMI); Corporate Development Services, LLC (CDS); MediTract, LLC; Corporate Management Services, LLC (CMS); Corporate Realty Management, LLC (CRM); and Martin G. Knott and Associates, LLC (MGK). Subsequent to January 1, 2001, other unconsolidated entities consist solely of Meditract, LLC and Paragon Smart Technologies, LLC.

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Quarterly Consolidated Statements of Operations and Funds From Operations (FFO)

(Dollars and units in thousands)

				2001						2000
				June 30			March 31			December 31			September 30			June 30
Revenues
	Rental revenue			$	25,960		$	25,619		$	24,269		$	23,980		$	23,154
	Tenant recoveries and other revenue				2,751			3,232			3,340			3,676			3,263
		Total Revenues from Real Estate Operations			28,711			28,851			27,609			27,656			26,417
Expenses
	Property operating				3,492			3,448			3,220			3,596			3,049
	Repairs and maintenance				3,595			3,518			3,491			3,018			3,065
	Real estate taxes				1,471			1,500			1,429			1,436			1,323
		Total Property Expenses from Real Estate Operations			8,558			8,466			8,140			8,050			7,437
Net Operating Income from Real Estate Operations					20,153			20,385			19,469			19,606			18,980
	General and administrative				(1,329	)		(1,446	)		(1,040	)		(1,319	)		(1,160	)
	Equity in income of unconsol. real estate joint ventures				124			30			—			—			—
	Earnings from service companies				143			(329	)		—			—			—
	Income from real estate services				1,380			850			1,067			383			—
	Equity in (loss) income of other unconsolidated entities				—			—			(198	)		(111	)		(48	)
EBITDA					20,471			19,490			19,298			18,559			17,772
	Interest expense				(7,762	)		(8,194	)		(8,266	)		(7,850	)		(7,404	)
	Series B & E Preferred Share dividends				(1,477	)		(781	)		(782	)		(781	)		(780	)
	Amortization of deferred financing costs				(546	)		(383	)		(416	)		(349	)		(311	)
	Income tax (expense) benefit				(44	)		122			—			—			—
	Income on options assumed to be converted				—			(61	)		—			—			—
	Depreciation on unconsolidated real estate entities				70			(4	)		(4	)		(3	)		(3	)
	Minority interestholders' share of operations				(58	)		4			(9	)		(6	)		(4	)
	Depreciation of corporate FF&E				(94	)		(91	)		(17	)		(20	)		(20	)
Funds From Operations (FFO)—Diluted					10,560			10,102			9,804			9,550			9,250
	Depreciation and other amortization				(4,863	)		(4,809	)		(4,485	)		(4,275	)		(4,287	)
	Gain on property sales				416			—			50			—			57
	Loss on early extinguishment of debt				(99	)		(106	)		(2	)		(109	)		(42	)
	Cumulative effect adjustment for accounting change				—			(263	)		—			—			—
	Income on options assumed to be converted				—			61			—			—			—
	Depreciation on unconsolidated real estate entities				(70	)		4			4			3			3
	Minority interestholders' share of operations				58			(4	)		9			6			4
	Series B & E Preferred Share dividends				1,477			781			782			781			780
Income Before Minority Interests and Preferred Share dividends					7,479			5,766			6,162			5,956			5,765
Minority Interests:
	Preferred Units in Operating Partnership				(572	)		(572	)		(572	)		(572	)		(548	)
	Common Units in Operating Partnership				(1,768	)		(1,472	)		(1,494	)		(1,693	)		(1,501	)
	Other consolidated partnership				(58	)		4			(9	)		(6	)		(4	)
Preferred Share dividends					(1,613	)		(881	)		(782	)		(781	)		(1,119	)
Net Income Available to Common Shareholders				$	3,468		$	2,845		$	3,305		$	2,904		$	2,593
Funds From Operations (FFO)—Diluted				$	10,560		$	10,102		$	9,804		$	9,550		$	9,250
	Preferred Units in Operating Partnership(1)				—			—			—			(572	)		—
	Straight line rents				(816	)		(690	)		(800	)		(1,872	)		(693	)
	Non-incremental capital expenditures				(1,153	)		(1,116	)		(776	)		(415	)		(923	)
Adjusted Funds from Operations—Diluted				$	8,591		$	8,296		$	8,228		$	6,691		$	7,634
	Preferred dividends/distributions(2)				2,185			1,453			1,353			1,353			1,668
	Common dividends/distributions				5,884			5,881			5,867			5,867			5,220
Total Dividends/Distributions				$	8,069		$	7,334		$	7,220		$	7,220		$	6,888

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(1)

For the quarter ended September 30, 2000, the Series C convertible preferred units were anti-dilutive for AFFO calculations. Thus, in computing AFFO, the quarterly dividend of $572 was included in the numerator and the related 2,421 of Series C convertible preferred units (as if already converted into common shares) were excluded from the denominator.

(2)

Includes Series B and E Cumulative Redeemable Preferred Share dividends deducted for FFO/AFFO computations.

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Quarterly Consolidated Statements of Operations and FFO per Diluted Share

(Shares in thousands)

				2001						2000
				June 30			March 31			December 31			September 30			June 30
Revenues
	Rental revenue			$	0.78		$	0.78		$	0.76		$	0.75		$	0.71
	Tenant recoveries and other revenue				0.08			0.10			0.10			0.11			0.10
		Total Revenues from Real Estate Operations			0.86			0.88			0.86			0.86			0.82
Expenses
	Property operating				0.10			0.10			0.10			0.11			0.09
	Repairs and maintenance				0.11			0.11			0.11			0.09			0.09
	Real estate taxes				0.04			0.05			0.04			0.04			0.04
		Total Property Expenses from Real Estate Operations			0.26			0.26			0.25			0.25			0.23
Net Operating Income from Real Estate Operations					0.60			0.62			0.61			0.61			0.59
	General and administrative				(0.04	)		(0.04	)		(0.03	)		(0.04	)		(0.04	)
	Equity in income of unconsol. real estate joint ventures				0.00			0.00			—			—			—
	Earnings from service companies				0.00			(0.01	)		—			—			—
	Income from real estate services				0.04			0.03			0.03			0.01			—
	Equity in (loss) income of other unconsolidated entities				—			—			(0.01	)		(0.00	)		(0.00	)
EBITDA					0.61			0.59			0.60			0.58			0.55
	Interest expense				(0.23	)		(0.25	)		(0.26	)		(0.25	)		(0.23	)
	Series B & E Preferred Share dividends				(0.04	)		(0.02	)		(0.02	)		(0.02	)		(0.02	)
	Amortization of deferred financing costs				(0.02	)		(0.01	)		(0.01	)		(0.01	)		(0.01	)
	Income tax (expense) benefit				(0.00	)		0.00			—			—			—
	Income on options assumed to be converted				—			(0.00	)		—			—			—
	Depreciation on unconsolidated real estate entities				0.00			(0.00	)		(0.00	)		(0.00	)		(0.00	)
	Minority interestholders' share of operations				(0.00	)		0.00			(0.00	)		(0.00	)		(0.00	)
	Depreciation of corporate FF&E				(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
Funds From Operations (FFO)—Diluted					0.32			0.31			0.31			0.30			0.29
	Depreciation and other amortization				(0.15	)		(0.15	)		(0.14	)		(0.13	)		(0.13	)
	Gain on property sales				0.01			—			0.00			—			0.00
	Loss on early extinguishment of debt				(0.00	)		(0.00	)		(0.00	)		(0.00	)		(0.00	)
	Cumulative effect adjustment for accounting change				—			(0.01	)		—			—			—
	Income on options assumed to be converted				—			0.00			—			—			—
	Depreciation on unconsolidated real estate entities				(0.00	)		0.00			0.00			0.00			0.00
	Minority interestholders' share of operations				0.00			(0.00	)		0.00			0.00			0.00
	Series B & E Preferred Share dividends				0.04			0.02			0.02			0.02			0.02
Income Before Minority Interests and Preferred Share dividends					0.22			0.18			0.19			0.19			0.18
Minority Interests:
	Preferred Units in Operating Partnership				(0.02	)		(0.02	)		(0.02	)		(0.02	)		(0.02	)
	Common Units in Operating Partnership				(0.05	)		(0.04	)		(0.05	)		(0.05	)		(0.05	)
	Other consolidated partnership				(0.00	)		0.00			(0.00	)		(0.00	)		(0.00	)
Preferred Share dividends					(0.05	)		(0.03	)		(0.02	)		(0.02	)		(0.03	)
Net Income Available to Common Shareholders				$	0.10		$	0.09		$	0.10		$	0.09		$	0.08
Funds From Operations (FFO)—Diluted				$	0.32		$	0.31		$	0.31		$	0.30		$	0.29
	Preferred Units in Operating Partnership				—			—			—			(0.02	)		—
	Straight line rents				(0.02	)		(0.02	)		(0.02	)		(0.06	)		(0.02	)
	Non-incremental capital expenditures				(0.03	)		(0.03	)		(0.02	)		(0.01	)		(0.03	)
	Adjusted Funds from Operations—Diluted			$	0.26		$	0.25		$	0.26		$	0.23		$	0.24
For FFO Computations:
Weighted Average Converted Preferred Shares/Units					3,618			3,299			2,421			2,421			4,642
Weighted Average Common Shares/Units Outstanding					29,746			29,643			29,611			29,561			27,750
Weighted Average Diluted Shares Outstanding					33,364			32,942			32,032			31,982			32,393
For AFFO Computations:
Weighted Average Converted Preferred Shares/Units					3,618			3,299			2,421			—			4,642
Weighted Average Common Shares/Units Outstanding					29,746			29,643			29,611			29,561			27,750
Weighted Average Diluted Shares Outstanding					33,364			32,942			32,032			29,561			32,393

6

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Quarterly Consolidated Statements of Operations and FFO as a Percentage of Total Revenues

				2001				2000
				June 30		March 31		December 31		September 30		June 30
Revenues
	Rental revenue			90	%	89	%	88	%	87	%	88	%
	Tenant recoveries and other revenue			10	%	11	%	12	%	13	%	12	%
		Total Revenues from Real Estate Operations		100	%	100	%	100	%	100	%	100	%
Expenses
	Property operating			12	%	12	%	12	%	13	%	12	%
	Repairs and maintenance			13	%	12	%	13	%	11	%	12	%
	Real estate taxes			5	%	5	%	5	%	5	%	5	%
		Total Property Expenses from Real Estate Operations		30	%	29	%	29	%	29	%	28	%
Net Operating Income from Real Estate Operations				70	%	71	%	71	%	71	%	72	%
	General and administrative			(5	)%	(5	)%	(4	)%	(5	)%	(4	)%
	Equity in income of unconsol. real estate joint ventures			0	%	0	%	0	%	0	%	0	%
	Earnings from service companies			0	%	(1	)%	0	%	0	%	0	%
	Income from real estate services			5	%	3	%	4	%	1	%	0	%
	Equity in (loss) income of other unconsolidated entities			0	%	0	%	(1	)%	(0	)%	(0	)%
EBITDA				71	%	68	%	70	%	67	%	67	%
	Interest expense			(27	)%	(28	)%	(30	)%	(28	)%	(28	)%
	Series B & E Preferred Share dividends			(5	)%	(3	)%	(3	)%	(3	)%	(3	)%
	Amortization of deferred financing costs			(2	)%	(1	)%	(2	)%	(1	)%	(1	)%
	Income tax (expense) benefit			(0	)%	0	%	0	%	0	%	0	%
	Income on options assumed to be converted			0	%	(0	)%	0	%	0	%	0	%
	Depreciation on unconsolidated real estate entities			0	%	(0	)%	(0	)%	(0	)%	(0	)%
	Minority interestholders' share of operations			(0	)%	0	%	(0	)%	(0	)%	(0	)%
	Depreciation of corporate FF&E			(0	)%	(0	)%	(0	)%	(0	)%	(0	)%
Funds From Operations (FFO)—Diluted				37	%	35	%	36	%	35	%	35	%
	Depreciation and other amortization			(17	)%	(17	)%	(16	)%	(15	)%	(16	)%
	Gain on property sales			1	%	0	%	0	%	0	%	0	%
	Loss on early extinguishment of debt			(0	)%	(0	)%	(0	)%	(0	)%	(0	)%
	Cumulative effect adjustment for accounting change			0	%	(1	)%	0	%	0	%	0	%
	Income on options assumed to be converted			0	%	0	%	0	%	0	%	0	%
	Depreciation on unconsolidated real estate entities			(0	)%	0	%	0	%	0	%	0	%
	Minority interestholders' share of operations			0	%	(0	)%	0	%	0	%	0	%
	Series B & E Preferred Share dividends			5	%	3	%	3	%	3	%	3	%
Income Before Minority Interests and Preferred Share dividends				26	%	20	%	22	%	22	%	22	%
Minority Interests:
	Preferred Units in Operating Partnership			(2	)%	(2	)%	(2	)%	(2	)%	(2	)%
	Common Units in Operating Partnership			(6	)%	(5	)%	(5	)%	(6	)%	(6	)%
	Other consolidated partnership			(0	)%	0	%	(0	)%	(0	)%	(0	)%
Preferred Share dividends				(6	)%	(3	)%	(3	)%	(3	)%	(4	)%
Net Income Available to Common Shareholders				12	%	10	%	12	%	11	%	10	%
Funds From Operations (FFO)—Diluted				37	%	35	%	36	%	35	%	35	%
	Preferred Units in Operating Partnership			0	%	0	%	0	%	(2	)%	0	%
	Straight line rents			(3	)%	(2	)%	(3	)%	(7	)%	(3	)%
	Non-incremental capital expenditures			(4	)%	(4	)%	(3	)%	(2	)%	(3	)%
Adjusted Funds from Operations—Diluted				30	%	29	%	30	%	24	%	29	%

7

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Quarterly Equity Analysis

(Amounts in thousands, except per share data, share prices and ratios)

			2001						2000
			June 30			March 31			December 31			September 30			June 30
Common Equity—End of Quarter
	Common Shares(1)			20,526			20,429			20,409			20,407			18,544
	Common Units			9,307			9,388			9,388			9,388			9,388
	Total			29,833			29,817			29,797			29,795			27,932
Convertible Preferred Equity—End of Quarter
	Convertible Series A Preferred Shares Outstanding(2)			0			0			0			0			984
	Conversion Ratio			1.8748			1.8748			1.8748			1.8748			1.8748
	Common Shares Issued Assuming Conversion			0			0			0			0			1,845
	Preferred Share Liquidation Preference		$	25.00		$	25.00		$	25.00		$	25.00		$	25.00
	Convertible Series D Preferred Shares Outstanding(3)			544			544			n/a			n/a			n/a
	Conversion Ratio			2.2000			2.2000			n/a			n/a			n/a
	Common Shares Issued Assuming Conversion			1,197			1,197			n/a			n/a			n/a
	Preferred Share Liquidation Preference		$	25.00		$	25.00			n/a			n/a			n/a
	Convertible Series C Preferred Units Outstanding(4)			1,017			1,017			1,017			1,017			975
	Conversion Ratio			2.3810			2.3810			2.3810			2.3810			2.3810
	Common Units Issued Assuming Conversion			2,421			2,421			2,421			2,421			2,321
	Preferred Share Liquidation Preference		$	25.00		$	25.00		$	25.00		$	25.00		$	25.00
Perpetual Preferred Equity—End of Quarter
	Redeemable Series B Shares Outstanding			1,250			1,250			1,250			1,250			1,250
	Preferred Share Liquidation Preference		$	25.00		$	25.00		$	25.00		$	25.00		$	25.00
	Redeemable Series E Shares Outstanding(5)			1,150			n/a			n/a			n/a			n/a
	Preferred Share Liquidation Preference		$	25.00			n/a			n/a			n/a			n/a
Weighted Average Shares:
	Weighted Average Common Shares Outstanding			20,077			19,982			19,947			19,934			18,014
	Weighted Average Preferred Shares Outstanding Assuming Conversion			1,197			878			—			—			1,845
	Weighted Average Dilutive Options			334			273			276			239			180
	Weighted Average Dilutive Warrants(4)			—			—			—			—			476
	Weighted Average Common Units			9,335			9,388			9,388			9,388			9,556
	Weighted Average Preferred Units Assuming Conversion			2,421			2,421			2,421			2,421			2,321
Weighted Avg. Shares/Units Outstanding Assuming Conversion of Preferred Shares/Units				33,364			32,942			32,032			31,982			32,393
Common Shares Trading Volume
	Average Daily Volume (Shares)			24			21			13			20			22
	Average Daily Volume (Dollars in thousands)		$	237.66		$	198.00		$	122.20		$	188.38		$	187.74
	As a Percentage of Common Shares			0.1	%		0.1	%		0.1	%		0.1	%		0.1	%
Common Share Price Range
	Quarterly High		$	10.60		$	9.98		$	10.00		$	10.13		$	9.25
	Quarterly Low		$	9.36		$	9.03		$	8.94		$	8.75		$	8.00
	Quarterly Average		$	10.10		$	9.59		$	9.63		$	9.39		$	8.72
	End of Quarter		$	10.00		$	9.51		$	9.94		$	9.94		$	9.19
Capitalization
	Liquidation Value of Preferred Shares/Units		$	99,017		$	70,267		$	56,667		$	56,667		$	80,224
	Market Value of Common Shares/Units			298,330			283,560			296,106			296,088			256,625
	Total Equity Market Capitalization		$	397,347		$	353,826		$	352,773		$	352,754		$	336,850
	Total Debt		$	475,999		$	478,913		$	474,349		$	465,696		$	436,679
	Total Market Capitalization		$	873,346		$	832,739		$	827,122		$	818,450		$	773,529
Debt to Total Market Capitalization				54.5	%		57.5	%		57.3	%		56.9	%		56.5	%
Debt to Undepreciated Book Value of Real Estate Assets				57.1	%		59.1	%		60.4	%		60.0	%		58.0	%

---

(1)

Net of 166,600 treasury shares as of June 30, 2001.

(2)

On September 28, 2000, all Convertible Series A preferred shares except for 1 share were converted into common shares.

(3)

We issued 544,000 Convertible Series D preferred shares on January 25, 2001.

(4)

Eliminated a warrant to acquire a maximum of 476,200 common units in exchange for the issuance of 42,000 Series C convertible preferred units in July 2000.

(5)

We issued 1,150,000 Cumulative Redeemable Series E preferred shares on April 6, 2001.

8

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Quarterly Valuation Analysis

(Dollars in thousands except per share data and ratios)

		2001						2000
		June 30			March 31			December 31			September 30			June 30
PRICING MULTIPLES
NOI Multiple (Market value of Common Equity + Avg. Preferred Share/Units+ Avg. Total Debt) / Ann. NOI			10.82x			10.17x			10.54x			10.25x			10.10x
EBITDA Multiple (Market value of Common Equity + Avg. Preferred Share/Units + Avg. Total Debt) / Ann. EBITDA			10.66x			10.64x			10.63x			10.83x			10.79x
FFO Multiple (Quarter End Common Share Price / Ann. FFO—diluted)			7.90x			7.75x			8.12x			8.32x			8.04x
AFFO Multiple (Quarter End Common Share Price / Ann. AFFO—diluted)			9.71x			9.44x			9.67x			10.98x			9.75x
NOI Yield (Ann. NOI / (Market value of Common Equity + Avg. Preferred Share/Units + Avg. Debt))			9.24	%		9.83	%		9.49	%		9.76	%		9.90	%
EBITDA Yield (Ann. EBITDA / (Market value of Common Equity + Avg. Preferred Share/Units + Avg. Debt))			9.38	%		9.40	%		9.41	%		9.24	%		9.27	%
FFO Yield (Ann. FFO / Quarter End Common Share Price)			12.66	%		12.90	%		12.32	%		12.02	%		12.43	%
AFFO Yield (Ann. AFFO / Quarter End Common Share Price)			10.30	%		10.59	%		10.34	%		9.11	%		10.26	%
Total Market Capitalization Per Square Foot ((Market Value of Common Stock + Preferred Share/Units + Total Debt) / GLA)(1)		$	129.22		$	124.70		$	127.79		$	128.86		$	121.76
RETURNS
Yield on Real Estate Owned—NOI (Ann. NOI / Avg. Adjusted Gross Real Estate Investment)(2)			10.54	%		10.85	%		10.58	%		10.86	%		10.86	%
Yield on Real Estate Owned—EBITDA (Ann. EBITDA / Avg. Adjusted Gross Real Estate Investment)(2)			10.71	%		10.37	%		10.49	%		10.28	%		10.17	%
Return on Book Value of Average Equity & Minority Interest (Ann. EBTDA / Avg. Equity & Minority Interest)			15.82	%		14.87	%		14.72	%		14.24	%		13.69	%

---

(1)

Excludes square footage of assets under development, under construction or held in a joint venture.

(2)

Excludes land-development, construction in progress and investment in development real estate joint ventures as these assets are not yet income generating.

9

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Quarterly Debt Analysis

(Dollars in thousands)

			2001						2000
			June 30			March 31			December 31			September 30			June 30
Debt Outstanding
	Mortgage Loans		$	409,670		$	356,872		$	329,955		$	338,063		$	313,325
	Construction Loans			13,099			18,950			33,058			25,586			38,669
	Revolving Credit Facility			—			29,091			29,091			4,761			—
	Secured Revolving Credit Facility			53,230			74,000			82,245			97,285			84,685
			$	475,999		$	478,913		$	474,349		$	465,695		$	436,679
Average Outstanding Balance
	Mortgage Loans		$	377,222		$	344,023		$	325,971		$	319,745		$	318,249
	Construction Loans			10,436			26,967			28,277			37,700			34,145
	Revolving Credit Facility			28,445			29,091			22,545			2,381			—
	Secured Revolving Credit Facility			59,123			75,507			90,910			91,239			77,794
			$	475,226		$	475,588		$	467,703		$	451,065		$	430,188
Interest Rate Structure
	Fixed		$	305,431		$	240,501		$	201,715		$	305,614		$	277,575
	Variable			—			13,412			147,634			60,081			109,104
	Variable Subject to Interest Rate Protection(1—4)			170,568			225,000			125,000			100,000			50,000
			$	475,999		$	478,913		$	474,349		$	465,695		$	436,679
	% of Fixed Rate Loans(A)			64.17	%		50.22	%		42.52	%		65.63	%		63.56	%
	% of Variable Rate Loans			35.83	%		49.78	%		57.48	%		34.37	%		36.44	%
				100.00	%		100.00	%		100.00	%		100.00	%		100.00	%
(A) Excludes interest rate protection agreements.
Average Interests Rates
	Mortgage & Construction Loans			7.31	%		7.44	%		7.84	%		7.62	%		7.52	%
	Revolving Credit Facility			6.71	%		7.31	%		8.17	%		8.12	%		n/a
	Secured Revolving Credit Facility			6.93	%		7.85	%		8.38	%		8.33	%		8.11	%
	Total Weighted Average			7.22	%		7.50	%		7.96	%		7.64	%		7.58	%
Debt Ratios
Debt to Total Market Capitalization				54.5	%		57.5	%		57.3	%		56.9	%		56.5	%
Debt to Undepreciated Book Value of Real Estate Assets				57.1	%		59.1	%		60.4	%		60.0	%		58.0	%
Coverage Ratios (excluding capitalized interest)
Interest Coverage—NOI (NOI / Interest)				2.60	x		2.49	x		2.36	x		2.50	x		2.56	x
Interest Coverage—EBITDA (EBITDA / Interest)				2.64	x		2.38	x		2.33	x		2.36	x		2.40	x
Interest Coverage—EBITDA—YTD (EBITDA / Interest—Year-to-date)				2.50	x		2.38	x		2.38	x		2.40	x		2.42	x
Debt Service Coverage—NOI (NOI / (Interest + Principal Amortization))				2.28	x		2.23	x		2.09	x		2.23	x		2.32	x
Debt Service Coverage—EBITDA (EBITDA / (Interest + Principal Amortization))				2.32	x		2.13	x		2.07	x		2.11	x		2.17	x
Fixed Charge Coverage—NOI (NOI / (Interest + Preferred Distribution))				2.03	x		2.11	x		2.02	x		2.13	x		2.09	x
Fixed Charge Coverage—EBITDA (EBITDA / (Interest + Preferred Distribution))				2.06	x		2.02	x		2.01	x		2.02	x		1.96	x

---

(1)

We purchased a $50 million 2-year cap on LIBOR at a rate of 7.7% which expires May 31, 2002.

(2)

We purchased a $50 million 1-year cap on LIBOR at a rate of 7.0% which expires October 13, 2001.

(3)

We purchased a $25 million 1-year cap on LIBOR at a rate of 7.0% which expires October 13, 2001.

(4)

We executed a $100 million notional amount swap exchanging 30-day floating LIBOR for LIBOR of 5.76% over a two-year period which expires January 2, 2003.

10

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Quarterly Operating Ratios

(Dollars in thousands except per share data and ratios)

			2001						2000
			June 30			March 31			December 31			September 30			June 30
OPERATING RATIOS
NOI as a % of Real Estate Revenues
	(NOI / (Rental Revenue + Oper. Expense Reimb.))			70.19	%		70.66	%		70.52	%		70.89	%		71.85	%
EBITDA as a % of Real Estate Revenues
	(EBITDA / (Rental Revenue + Oper. Expense Reimb.))			71.30	%		67.55	%		69.90	%		67.11	%		67.27	%
G&A as a % of Real Estate Revenues
	(G&A / (Rental Revenue + Oper. Expense Reimb.))			4.63	%		5.01	%		3.77	%		4.77	%		4.39	%
G&A as a % of EBITDA
	(G&A / EBITDA)			6.49	%		7.42	%		5.39	%		7.11	%		6.53	%
	Quarter end occupancy for operating portfolio			96.92	%		96.95	%		97.03	%		97.33	%		96.66	%
	Quarter end % leased for operating portfolio			97.60	%		98.39	%		98.17	%		98.30	%		98.40	%
	Non-Incremental Capital Expenditures		$	1,153		$	1,116		$	776		$	415		$	923
	Non-Incremental Capital Expenditures per average square feet		$	0.36		$	0.34		$	0.12		$	0.07		$	0.15
	Non-Incremental Capital Expenditures per Diluted Share		$	0.03		$	0.03		$	0.02		$	0.01		$	0.03
	Non-Incremental Capital Expenditures as a % of NOI			5.72	%		5.47	%		3.99	%		2.12	%		4.86	%

11

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Quarterly Dividend Analysis

			2001						2000
			June 30			March 31			December 31			September 30			June 30
Common Share Dividends
	Dividends per share/unit		$	0.20		$	0.20		$	0.20		$	0.20		$	0.19
	Increase over prior quarter			0.0	%		0.0	%		0.0	%		5.3	%		0.0	%
	Increase over prior year			5.3	%		5.3	%		5.3	%		5.3	%		5.6	%
Common Dividend Payout Ratios
	Payout—FFO—Diluted ((Dividend + Distributions)/FFO)			62.4	%		64.9	%		65.7	%		67.4	%		66.0	%
	Payout—AFFO—Diluted (Dividend /FAD)			76.7	%		79.0	%		78.3	%		87.7	%		80.0	%
	Dividend Coverage—FFO—Diluted (FFO /dividends)			1.60x			1.54x			1.52x			1.48x			1.51x
	Dividend Coverage—AFFO—Diluted (AFFO /dividends)			1.30x			1.27x			1.28x			1.14x			1.25x
Common Dividend Yields
	Dividend Yield			8.00	%		8.41	%		8.05	%		8.05	%		8.27	%
Series C Preferred Unit Distributions
	Preferred Unit Distributions Per Share		$	0.5625		$	0.5625		$	0.5625		$	0.5625		$	0.5625
	Preferred Unit Distributions Yield			9.00	%		9.00	%		9.00	%		9.00	%		9.00	%
	Quarter End Liquidation Preference		$	25.00		$	25.00		$	25.00		$	25.00		$	25.00
Series A Preferred Share Dividends
	Preferred Share Dividends Per Share		$	0.34375		$	0.34375		$	0.34375		$	0.34375		$	0.34375
	Preferred Share Dividend Yield			5.50	%		5.50	%		5.50	%		5.50	%		5.50	%
	Quarter End Liquidation Preference		$	25.00		$	25.00		$	25.00		$	25.00		$	25.00
Series B Preferred Share Dividends
	Preferred Share Dividends Per Share		$	0.6250		$	0.6250		$	0.6250		$	0.6250		$	0.6250
	Preferred Share Dividend Yield			10.00	%		10.00	%		10.00	%		10.00	%		10.00	%
	Quarter End Liquidation Preference		$	25.00		$	25.00		$	25.00		$	25.00		$	25.00
Series D Preferred Share Dividends(1)
	Preferred Share Dividends Per Share		$	0.2500		$	0.2500			n/a			n/a			n/a
	Preferred Share Dividend Yield			4.00	%		4.00	%		n/a			n/a			n/a
	Quarter End Liquidation Preference		$	25.00		$	25.00			n/a			n/a			n/a
Series E Preferred Share Dividends(2)
	Preferred Share Dividends Per Share		$	0.6406			n/a			n/a			n/a			n/a
	Preferred Share Dividend Yield			10.25	%		n/a			n/a			n/a			n/a
	Quarter End Liquidation Preference		$	25.00			n/a			n/a			n/a			n/a

---

(1)

We issued 544,000 of Series D Convertible Preferred Shares on January 25, 2001. Dividend was prorated based upon the number of days outstanding from date of issuance through quarter end. Prorated dividend was $.1833 per share.

(2)

We issued 1,150,000 of Series E Cumulative Redeemable Preferred Shares on April 6, 2001. Dividend was prorated based upon the number of days outstanding from date of issuance through quarter end. Prorated dividend was $.6050 per share.

12

---

Investor Composition and Analyst Coverage
(as of June 30, 2001)

SHAREHOLDER CLASSIFICATION		Common Shares		Common Units		As if Converted Preferred Shares / Units		Total		Fully Diluted Ownership % of Total
Constellation Real Estate, Inc.		8,876,171		—		2		8,876,173		26.54	%
Insiders		1,123,628		7,837,937		—		8,961,565		26.79	%
Institutional Ownership		3,456,876		—		—		3,456,876		10.33	%
Other / Retail		7,069,388		1,469,080		3,617,472		12,155,940		36.34	%
		20,526,063		9,307,017		3,617,474		33,450,554		100.00	%

RESEARCH COVERAGE		June 30, 2001		March 31, 2001		December 31, 2000		September 30, 2000		June 30, 2000
A. G. Edwards		x		x		x		x
Credit Suisse First Boston		x		x		x		x		x
Deutsche Banc Alex. Brown		x		x		x
Ferris, Baker Watts, Incorporated		x		x
Janney Montgomery Scott		x		x		x		x		x
Johnston, Lemon										x
Legg Mason Wood Walker, Inc.		x		x		x		x		x
McDonald Investments		x		x		x		x		x
Prudential Securities Incorporated								x		x
Tucker Anthony Cleary Gull										x

Source: Institutional ownership was obtained from filed Forms 13(f) as of March 31, 2001 per Vickers Stock Research Corporation.

13

---

Debt Maturity Schedule—June 30, 2001
(Dollars in thousands)

			Mortgages						Construction Loans(1)
Year of Maturity			Monthly Amortization			Due on Maturity			Monthly Amortization			Due on Maturity(2)			Term Credit Facility(3)			$125,000 Secured Revolving Credit Facility			Total Scheduled Payments
	2001			2,519			—			—			2,000			—			—			4,519
	2002			5,530			—			158			—			90,954			—			96,642
	2003			5,676			12,719			181			5,780			—			—			24,356
	2004			5,800			25,762			—			4,980			—			53,230			89,772
	2005			5,848			16,368			—			—			—			—			22,216
	2006			5,661			59,975			—			—			—			—			65,636
	2007			4,669			6,142			—			—			—			—			10,811
	2008			3,062			142,879			—			—			—			—			145,941
	2009			273			15,833			—			—			—			—			16,106
			$	39,038		$	279,678		$	339		$	12,760		$	90,954		$	53,230		$	475,999

---

Notes:

(1)

The construction loan balances as of June 30 represent the outstanding balances as of that date.

(2)

We have the right to extend construction loans of $6,018 and $5,081, for a one-year period subject to certain conditions, upon maturity in 2002 and 2003, respectively. The above table reflects the maturities in 2003 and 2004, respectively, as if the loans had been extended.

(3)

The Term Credit Facility was extended through October 13, 2001. We have the right to extend for another one-year period, subject to certain conditions. This loan has been presented as maturing in October 2002 in the above table.

We have obtained interest rate protection agreements as follows:

$50 million cap on thirty-day LIBOR at 7.7% expiring in May 2002.
$50 million cap on thirty-day LIBOR at 7.0% expiring in October 2001.
$25 million cap on thirty-day LIBOR at 7.0% expiring in October 2001.
$100 million notional amount swap of thirty-day LIBOR at 5.76% expiring in January 2003.

14

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Property Summary by Region—June 30, 2001

			Operating Property Count		Owned or Joint Venture (JV)		Submarket		State		Year Built or Renovated		Single Story (S) or Multi-story (M)		Rentable Square Feet		Anticipated Rentable Square Feet Development
Office Properties
Baltimore /Washington Corridor
131 National Business Parkway			1		Owned		BWI Airport		MD		1990		M		68,906
132 National Business Parkway			2		Owned		BWI Airport		MD		2000		M		117,568
133 National Business Parkway			3		Owned		BWI Airport		MD		1997		M		88,666
134 National Business Parkway			4		Owned		BWI Airport		MD		1999		M		93,482
135 National Business Parkway			5		Owned		BWI Airport		MD		1998		M		86,863
141 National Business Parkway			6		Owned		BWI Airport		MD		1990		M		86,964
2721 Phoenix Road (221 NBP)			7		Owned		BWI Airport		MD		2000		M		117,890
2701 Phoenix Road (201 NBP)					JV		BWI Airport		MD				M				118,000
2711 Phoenix Road (211 NBP)					JV		BWI Airport		MD				M				150,000
1099 Winterson Road			8		Owned		BWI Airport		MD		1988		M		70,938
1190 Winterson Road			9		Owned		BWI Airport		MD		1987		M		68,567
1199 Winterson Road			10		Owned		BWI Airport		MD		1988		M		96,636
1201 Winterson Road			11		Owned		BWI Airport		MD		1985		M		67,903
1331 Ashton Road			12		Owned		BWI Airport		MD		1989		S		29,936
1334 Ashton Road			13		Owned		BWI Airport		MD		1989		S		37,565
1340 Ashton Road			14		Owned		BWI Airport		MD		1989		S		46,400
1341 Ashton Road			15		Owned		BWI Airport		MD		1989		S		15,841
1343 Ashton Road			16		Owned		BWI Airport		MD		1989		S		9,962
1344 Ashton Road			17		Owned		BWI Airport		MD		1989		M		16,865
1350 Dorsey Road			18		Owned		BWI Airport		MD		1989		S		19,992
2730 Hercules Road			19		Owned		BWI Airport		MD		1990		M		240,336
7240 Parkway Drive			20		Owned		BWI Airport		MD		1985		M		73,500
7318 Parkway Drive			21		Owned		BWI Airport		MD		1984		S		59,204
7321 Parkway Drive			22		Owned		BWI Airport		MD		1984		S		39,822
7467 Ridge Road			23		Owned		BWI Airport		MD		1990		M		73,756
800 International Drive			24		Owned		BWI Airport		MD		1988		S		50,979
849 International Drive			25		Owned		BWI Airport		MD		1988		M		68,186
881 Elkridge Landing Road			26		Owned		BWI Airport		MD		1986		M		73,572
891 Elkridge Landing Road			27		JV		BWI Airport		MD		2001		M		56,489
900 Elkridge Landing Road			28		Owned		BWI Airport		MD		1982		M		97,139
900 International Drive			29		Owned		BWI Airport		MD		1986		S		57,140
901 Elkridge Landing Road			30		JV		BWI Airport		MD		2001		M		56,847
911 Elkridge Landing Road			31		Owned		BWI Airport		MD		1985		M		68,296
920 Elkridge Landing Road			32		JV		BWI Airport		MD		2001		M		96,566
921 Elkridge Landing Road			33		Owned		BWI Airport		MD		1983		M		54,057
930 International Drive			34		Owned		BWI Airport		MD		1986		S		57,140
938 Elkridge Landing Road			35		JV		BWI Airport		MD		2001		M		52,988
939 Elkridge Landing Road			36		Owned		BWI Airport		MD		1983		M		53,031
940 Elkridge Landing Road			37		JV		BWI Airport		MD		2001		M		51,704
999 Corporate Boulevard			38		Owned		BWI Airport		MD		2000		M		67,351
1302 Concourse Drive			39		Owned		BWI Airport		MD		1996		M		84,607
1304 Concourse Drive					Owned		BWI Airport		MD				M				100,000
1306 Concourse Drive			40		Owned		BWI Airport		MD		1990		M		114,046
1615 and 1629 Thames Street			41		Owned		Baltimore City		MD		1989		M		103,683
9690 Deereco Road			42		Owned		North Baltimore County		MD		1988		M		133,737
375 West Padonia Road			43		Owned		North Baltimore County		MD		1986		M		100,804
9140 Route 108			44		Owned		Howard County Perimeter		MD		1974/1985		S		150,000

15

---

6700 Alexander Bell Drive

45

Owned

Howard County Perimeter

MD

1988

M

75,635

6708 Alexander Bell Drive

46

Owned

Howard County Perimeter

MD

1988

M

35,040

6716 Alexander Bell Drive

47

Owned

Howard County Perimeter

MD

1990

M

52,002

6724 Alexander Bell Drive

Owned

Howard County Perimeter

MD

30,855

6740 Alexander Bell Drive

48

Owned

Howard County Perimeter

MD

1992

M

61,878

6750 Alexander Bell Drive

49

Owned

Howard County Perimeter

MD

2001

M

78,460

6760 Alexander Bell Drive

50

Owned

Howard County Perimeter

MD

1991

M

37,248

6940 Columbia Gateway Drive

51

Owned

Howard County Perimeter

MD

1999

M

108,737

6950 Columbia Gateway Drive

52

Owned

Howard County Perimeter

MD

1998

M

107,778

6731 Columbia Gateway Drive

Owned

Howard County Perimeter

MD

M

122,889

Montpelier Research Phase I

53

JV

Howard County Perimeter

MD

2001

S

43,785

Robert Fulton Drive—Phase I

JV

Howard County Perimeter

MD

M

144,350

7200 Riverwood Drive

54

Owned

Howard County Perimeter

MD

1986

S

160,000

8815 Centre Park Drive

55

Owned

Howard County Perimeter

MD

1987

M

53,782

14502 Greenview Drive

56

Owned

Laurel

MD

1988

M

71,873

14504 Greenview Drive

57

Owned

Laurel

MD

1985

M

69,194

4260 Forbes Boulevard

JV

Lanham

MD

54,692

6009-6011 Oxon Hill Road

58

Owned

Southern Prince George's County

MD

1990

M

181,768

Total Baltimore / Washington Corridor:

4,413,104

720,786

Greater Philadelphia

751 Jolly Road

1

Owned

Blue Bell

PA

1966/1991

M

112,958

753 Jolly Road

2

Owned

Blue Bell

PA

1960/1992-94

M

419,472

760 Jolly Road

3

Owned

Blue Bell

PA

1974/1994

M

208,854

785 Jolly Road

4

Owned

Blue Bell

PA

1970/1996

M

219,065

Total Greater Philadelphia:

960,349

—

Greater Harrisburg

2601 Market Place

1

Owned

East Shore

PA

1989

M

67,743

2605 Interstate Drive

2

Owned

East Shore

PA

1990

M

84,404

6375 Flank Drive

3

Owned

East Shore

PA

2000

S

19,783

6385 Flank Drive

4

Owned

East Shore

PA

1995

S

32,800

75 Shannon Road

5

Owned

East Shore

PA

1999

S

20,887

85 Shannon Road

6

Owned

East Shore

PA

1999

S

12,863

95 Shannon Road

7

Owned

East Shore

PA

1999

S

21,976

6340 Flank Drive

8

Owned

East Shore

PA

1988

S

68,200

6345 Flank Drive

9

Owned

East Shore

PA

1989

S

69,443

6360 Flank Drive

10

Owned

East Shore

PA

1988

S

46,500

6380 Flank Drive

11

Owned

East Shore

PA

1991

S

32,000

6400 Flank Drive

12

Owned

East Shore

PA

1992

S

52,439

6405 Flank Drive

13

Owned

East Shore

PA

1991

S

32,000

5035 Ritter Road

14

Owned

West Shore

PA

1988

S

56,556

5070 Ritter Road—Building A

15

Owned

West Shore

PA

1989

S

32,309

5070 Ritter Road—Building B

16

Owned

West Shore

PA

1989

S

28,000

Total Greater Harrisburg:

677,903

—

16

---

Northern/Central New Jersey

101 Interchange Plaza

1

Owned

Exit 8A—Cranbury

NJ

1985

M

43,621

104 Interchange Plaza

2

Owned

Exit 8A—Cranbury

NJ

1990

M

47,677

2 Centre Drive

3

Owned

Exit 8A—Cranbury

NJ

1989

S

16,132

429 Ridge Road

4

Owned

Exit 8A—Cranbury

NJ

1966/1996

M

142,385

431 Ridge Road

5

Owned

Exit 8A—Cranbury

NJ

1958/1998

S

170,000

437 Ridge Road

6

Owned

Exit 8A—Cranbury

NJ

1962/1996

S

30,000

47 Commerce

7

Owned

Exit 8A—Cranbury

NJ

1992/1998

S

41,398

7 Centre Drive

8

Owned

Exit 8A—Cranbury

NJ

1989

S

19,466

8 Centre Drive

9

Owned

Exit 8A—Cranbury

NJ

1986

S

16,199

68 Culver Road

10

Owned

Exit 8A—Cranbury

NJ

2000

M

57,280

4301 Route 1

11

Owned

Monmouth Junction

NJ

1986

M

61,300

695 Route 46

12

Owned

Wayne

NJ

1990

M

157,394

710 Route 46

13

Owned

Wayne

NJ

1985

M

102,002

—

Total Northern / Central New Jersey:

904,854

—

TOTAL OFFICE PROPERTIES

91

6,956,210

720,786

Retail Properties

114 National Business Parkway

Owned

BWI Airport

MD

S

—

10,000

# of Operating Buildings:

0

TOTAL RETAIL PROPERTIES

—

10,000

TOTAL PORTFOLIO

91

# of Operating Buildings:

0

6,956,210

730,786

17

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Property Occupancy Rates by Region by Quarter

		Office
		Greater Philadelphia		Baltimore/ Washington Corridor		Northern/ Central New Jersey		Greater Harrisburg		Total Office		Retail		Total Portfolio
June 30, 2001
Number of Buildings		4		58		13		16		91		—		91
Rentable Square Feet		960,349		4,413,104		904,854		677,903		6,956,210		—		6,956,210
Percent Occupied		100.00	%	97.96	%	94.19	%	89.41	%	96.92	%	0	%	96.92	%
March 31, 2001
Number of Buildings		4		55		14		16		89		—		89
Rentable Square Feet		960,349		4,258,610		970,048		677,458		6,866,465		—		6,866,465
Percent Occupied		100.00	%	97.76	%	94.03	%	91.75	%	96.95	%	0	%	96.95	%
December 31, 2000
Number of Buildings		4		49		14		16		83		—		83
Rentable Square Feet		960,349		3,864,766		970,048		677,468		6,472,631		—		6,472,631
Percent Occupied		100.00	%	97.84	%	93.07	%	93.86	%	97.03	%	0	%	97.03	%
September 30, 2000
Number of Buildings		4		47		15		15		81		1		82
Rentable Square Feet		960,349		3,594,058		990,385		657,685		6,202,477		149,191		6,351,668
Percent Occupied		100.00	%	97.79	%	96.08	%	92.82	%	97.33	%	97.04	%	97.33	%
June 30, 2000
Number of Buildings		4		47		15		15		81		1		82
Rentable Square Feet		960,349		3,595,118		990,808		657,685		6,203,960		149,191		6,353,151
Percent Occupied		100.00	%	97.38	%	92.15	%	94.47	%	96.64	%	97.41	%	96.66	%

18

---

Top Twenty Office Tenants as of June 30, 2001

(Dollars and Square Feet in thousands)

Tenant				Number of Leases		Total Occupied Square Feet		Percentage of Total Occupied Square Feet		Total Rental Revenue(1)			Percentage of Total Rental Revenue		Weighted Average Remaining Lease Term(2)
United States of America		(3	)	19		960		14.2	%	$	17,098		14.8	%	4.7
AT&T Local Services		(4	),(5)	6		415		6.2	%		8,380		7.2	%	7.3
Unisys		(6	)	3		741		11.0	%		7,297		6.3	%	8.0
Ciena Corporation				5		298		4.4	%		3,806		3.3	%	3.9
Magellan Behavioral Health, Inc.				2		151		2.2	%		3,259		2.8	%	2.6
Booz Allen Hamilton				3		128		1.9	%		2,440		2.1	%	2.5
Johns Hopkins University		(4	)	4		124		1.8	%		2,432		2.1	%	5.1
General Dynamics Government Corp.				2		102		1.5	%		2,370		2.1	%	9.1
Merck & Co., Inc.		(6	)	1		219		3.2	%		2,193		1.9	%	8.0
Bookham Technology, Inc.				1		150		2.2	%		1,870		1.6	%	6.6
Commonwealth of Pennsylvania		(4	)	8		150		2.2	%		1,861		1.6	%	2.1
Sun Microsystems, Inc.				2		61		0.9	%		1,403		1.2	%	4.5
Credit Management Solutions, Inc.				1		71		1.1	%		1,381		1.2	%	7.4
Deutsche Banc Alex. Brown				1		84		1.3	%		1,338		1.2	%	2.9
Mentor Technologies				1		59		0.9	%		1,307		1.1	%	1.8
Ameritrade Holding Corporation				1		62		0.9	%		1,304		1.1	%	9.0
Raytheon E-Systems		(4	)	3		65		1.0	%		1,189		1.0	%	2.0
Computer Sciences Corporation				1		55		0.8	%		1,174		1.0	%	0.8
RAG American Coal Holding				1		48		0.7	%		1,093		1.0	%	8.9
Aerotek, Inc.				3		67		1.0	%		1,089		1.0	%	1.3
Subtotal Top 20 Office Tenants				68		4,010		59.4	%		64,284		55.6	%	5.4
All remaining tenants				358		2,732		40.6	%		51,381		44.4	%	3.3
Total/Weighted Average				426		6,742		100.0	%	$	115,665		100.0	%	4.5

---

(1)

Total Rental Revenue is the monthly contractual base rent as of June 30, 2001 multiplied by 12 plus the estimated annualized expense reimbursements under existing office leases.

(2)

The weighting of the lease term was computed using Total Rental Revenue.

(3)

Many of our government leases are subject to early termination provisions which are customary to government leases. The weighted average remaining lease term was computed assuming no exercise of such early termination rights.

(4)

Includes affiliated organizations or agencies.

(5)

AT&T Local Services subleases 173,072 square feet under 2 leases which expire March 30, 2002. Effective April 1, 2002, this same 173,072 square feet will become directly leased by AT&T Local Services with expiration dates ranging from 2006 and 2009. The above weighted average lease term reflects the expiration date of these direct leases.

(6)

Merck & Co., Inc. subleases 219,065 rentable square feet from Unisys' 960,349 leased rentable square feet.

19

---

Total Rental Revenue by Geographic Region by Quarter(1)
(Dollars in thousands)

			2001						2000
			June 30			March 31			December 31			September 30			June 30
Office Properties:
Greater Philadelphia			$	2,506		$	2,506		$	2,506		$	2,506		$	2,506
Baltimore/Washington Corridor				18,654			18,573			17,224			17,197			16,297
Northern/Central New Jersey				4,998			4,922			5,311			5,326			4,969
Greater Harrisburg				2,483			2,789			2,271			2,228			2,275
	Total Office Properties			28,641			28,790			27,312			27,257			26,047
Retail Properties:
	Total Retail Properties			—			—			72			261			279
Total Regional Rental Revenue			$	28,641		$	28,790		$	27,384		$	27,518		$	26,326

---

(1)

Rental revenue represents GAAP revenue including operating expense reimbursements, straight line rent adjustments and tenant services income.

Net Operating Income by Geographic Region by Quarter
(Dollars in thousands)

				2001						2000
				June 30			March 31			December 31			September 30			June 30
Office Properties:
Greater Philadelphia				$	2,469		$	2,486		$	2,481		$	2,482		$	2,482
Baltimore/Washington Corridor					12,704			12,614			11,571			11,664			11,528
Northern/Central New Jersey					3,173			3,028			3,418			3,458			3,014
Greater Harrisburg					1,736			2,195			1,718			1,683			1,645
	Total Office Properties				20,082			20,323			19,188			19,287			18,669
Retail Properties:
	Total Retail Properties				—			—			55			179			222
		Total Regional NOI		$	20,082		$	20,323		$	19,243		$	19,466		$	18,891
Other income / expenses, net					71			62			226			140			89
		Total NOI		$	20,153		$	20,385		$	19,469		$	19,606		$	18,980

20

---

Same Office Property Cash Net Operating Income by Quarter (1)
(Dollars in thousands)

			2001						2000
			June 30			March 31			December 31			September 30			June 30
Office Properties:(2)
Greater Philadelphia			$	2,364		$	2,363		$	2,363		$	2,361		$	2,317
Baltimore/Washington Corridor				10,456			10,357			10,321			10,030			10,327
Northern/Central New Jersey				2,566			2,446			2,614			2,578			2,192
Greater Harrisburg				1,606			1,690			1,592			1,654			1,565
	Total Office Properties		$	16,992		$	16,856		$	16,890		$	16,623		$	16,401

Same Office Property GAAP Net Operating Income by Quarter(1)
(Dollars in thousands)

			2001						2000
			June 30			March 31			December 31			September 30			June 30
Office Properties:(2)
Greater Philadelphia			$	2,497		$	2,497		$	2,497		$	2,495		$	2,497
Baltimore/Washington Corridor				10,683			10,628			10,544			10,523			10,710
Northern/Central New Jersey				2,645			2,521			2,769			2,634			2,244
Greater Harrisburg				1,634			1,722			1,629			1,691			1,613
	Total Office Properties		$	17,459		$	17,368		$	17,439		$	17,343		$	17,064

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(1)

Net operating income for same office properties has been presented on a GAAP basis and a modified cash basis which removes the effect of straight-line rents from the GAAP net operating income.

(2)

Same office properties include buildings owned for a minimum of five reporting quarters.

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Office Lease Expiration
Analysis by Year

Year of Lease Expiration(1)		Number of Leases Expiring		Square Footage of Leases Expiring		Percentage of Total Occupied Square Feet		Total Rental Revenue of Expiring Leases(2)			Percentage of Total Rental Revenue Expiring		Total Rental Revenue of Expiring Leases per Occupied Square Foot
								($000s)
2001		37		281,808		4.2	%	$	5,042		4.4	%	$	17.89
2002		92		1,029,331		15.3	%		17,621		15.2	%		17.12
2003		89		775,724		11.5	%		14,618		12.6	%		18.84
2004		62		693,029		10.3	%		13,118		11.3	%		18.93
2005		63		702,217		10.4	%		13,611		11.8	%		19.38
2006		40		520,808		7.7	%		9,553		8.3	%		18.34
2007		10		393,924		5.8	%		6,246		5.4	%		15.86
2008		10		706,309		10.5	%		12,574		10.9	%		17.80
2009		13		1,223,320		18.1	%		14,387		12.4	%		11.76
2010		9		389,475		5.8	%		8,273		7.2	%		21.24
2011		1		26,051		0.4	%		622		0.5	%		23.88
Total/Weighted Average		426		6,741,996		100.0%		$	115,665		100.0%		$	17.61

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NOTE: As of June 30, 2001, the weighted average lease term is 4.5 years.

(1)

Many of our government leases are subject to certain early termination provisions which are customary to government leases. The year of lease expiration was computed assuming no exercise of such early termination rights.

(2)

Total Rental Revenue is the monthly contractual base rent as of June 30, 2001 multiplied by 12 plus the estimated annualized expense reimbursements under existing office leases.

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Year to Date Office Renewal Analysis

			Greater Philadelphia			Baltimore/ Washington Corridor			Northern/ Central New Jersey			Greater Harrisburg			Total Office
For Six Months Ended June 30, 2001:
	Expiring Square Feet			—			254,755			24,188			49,325			328,268
	Vacated Square Feet			—			18,137			6,050			33,026			57,213
	Renewed Square Feet			—			236,618			18,138			16,299			271,055
	Retention Rate (% based upon square feet)			0.00	%		92.88	%		74.99	%		33.04	%		82.57	%
Renewal & Retenanted Space:
	Increase in Base Rent—Straight-line			0.00	%		24.01	%		36.52	%		1.74	%		23.84	%
	Increase in Total Rent—Straight-line			0.00	%		20.00	%		31.32	%		2.37	%		19.95	%
	Increase in Base Rent—Cash			0.00	%		17.67	%		32.91	%		(5.35	)%		17.74	%
	Increase in Total Rent—Cash			0.00	%		14.37	%		28.04	%		(3.84	)%		14.52	%
	Average Capital Cost per Square Foot		$	—		$	5.30		$	13.53		$	5.30		$	6.07

Quarterly Office Renewal Analysis

			Greater Philadelphia			Baltimore/ Washington Corridor			Northern/ Central New Jersey			Greater Harrisburg			Total Office
Quarter Ended June 30, 2001:
	Expiring Square Feet			—			174,078			22,678			45,325			242,081
	Vacated Square Feet			—			16,922			6,050			33,026			55,998
	Renewed Square Feet			—			157,156			16,628			12,299			186,083
	Retention Rate (% based upon square feet)			0.00	%		90.28	%		73.32	%		27.14	%		76.87	%
Renewal & Retenanted Space:
	Increase in Base Rent—Straight-line			0.00	%		24.86	%		38.02	%		13.69	%		26.15	%
	Increase in Total Rent—Straight-line			0.00	%		19.76	%		32.98	%		10.21	%		21.02	%
	Increase in Base Rent—Cash			0.00	%		19.81	%		34.23	%		4.57	%		21.00	%
	Increase in Total Rent—Cash			0.00	%		15.52	%		29.50	%		2.37	%		16.63	%
	Average Capital Cost per Square Foot		$	—		$	3.87		$	14.05		$	6.50		$	5.58
Quarter Ended March 31, 2001:
	Expiring Square Feet			—			80,677			1,510			4,000			86,187
	Vacated Square Feet			—			1,215			—			—			1,215
	Renewed Square Feet			—			79,462			1,510			4,000			84,972
	Retention Rate (% based upon square feet)			0.00	%		98.49	%		100.00	%		100.00	%		98.59	%
Renewal & Retenanted Space:
	Increase in Base Rent—Straight-line			0.00	%		23.01	%		2.78	%		(28.63	)%		20.44	%
	Increase in Total Rent—Straight-line			0.00	%		20.31	%		2.03	%		(18.63	)%		18.20	%
	Increase in Base Rent—Cash			0.00	%		15.15	%		2.78	%		(30.74	)%		12.95	%
	Increase in Total Rent—Cash			0.00	%		12.84	%		2.03	%		(20.55	)%		11.12	%
	Average Capital Cost per Square Foot		$	—		$	7.20		$	0.42		$	1.70		$	6.88
Quarter Ended December 31, 2000:
	Expiring Square Feet			—			75,372			3,174			6,623			85,169
	Vacated Square Feet			—			29,132			—			—			29,132
	Renewed Square Feet			—			46,240			3,174			6,623			56,037
	Retention Rate (% based upon square feet)			0.00	%		61.35	%		100.00	%		100.00	%		65.80	%
Renewal & Retenanted Space:
	Increase in Base Rent—Straight-line			0.00	%		24.55	%		21.47	%		(17.49	)%		17.74	%
	Increase in Total Rent—Straight-line			0.00	%		15.08	%		11.19	%		(9.98	)%		10.57	%
	Increase in Base Rent—Cash			0.00	%		18.45	%		20.00	%		(18.85	)%		13.19	%
	Increase in Total Rent—Cash			0.00	%		9.73	%		10.01	%		(11.15	)%		6.66	%
	Average Capital Cost per Square Foot		$	—		$	10.27		$	17.92		$	1.10		$	9.72

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Quarter Ended September 30, 2000:
	Expiring Square Feet			—			186,061			116,771			6,757			309,589
	Vacated Square Feet			—			50,043			40,094			6,757			96,894
	Renewed Square Feet			—			136,018			76,677			—			212,695
	Retention Rate (% based upon square feet)			0.00	%		73.10	%		65.66	%		0.00	%		68.70	%
Renewal & Retenanted Space:
	Increase in Base Rent—Straight-line			0.00	%		6.31	%		32.53	%		0.00	%		14.75	%
	Increase in Total Rent—Straight-line			0.00	%		4.24	%		20.06	%		0.00	%		9.74	%
	Increase in Base Rent—Cash			0.00	%		3.45	%		13.01	%		0.00	%		6.52	%
	Increase in Total Rent—Cash			0.00	%		1.44	%		2.97	%		0.00	%		1.97	%
	Average Capital Cost per Square Foot		$	—		$	5.32		$	27.35		$	—		$	12.57
Quarter Ended June 30, 2000:
	Expiring Square Feet			—			71,275			10,322			23,483			105,080
	Vacated Square Feet			—			34,644			—			3,920			38,564
	Renewed Square Feet			—			36,631			10,322			19,563			66,516
	Retention Rate (% based upon square feet)			0.00	%		51.39	%		100.00	%		83.31	%		63.30	%
Renewal & Retenanted Space:
	Increase in Base Rent—Straight-line			0.00	%		18.79	%		15.87	%		4.15	%		17.03	%
	Increase in Total Rent—Straight-line			0.00	%		14.10	%		4.75	%		3.69	%		11.05	%
	Increase in Base Rent—Cash			0.00	%		13.92	%		14.87	%		0.78	%		13.14	%
	Increase in Total Rent—Cash			0.00	%		9.43	%		3.42	%		0.38	%		7.33	%
	Average Capital Cost per Square Foot		$	—		$	7.40		$	19.95		$	4.58		$	9.85

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Acquisition Summary as of June 30, 2001
(Dollars in Thousands)

			Submarket		Acquisition Date		Square Feet		Occupied Sq. Ft. at Acquisition		Occupancy Percentage at Acquisition		June 30, 2001 Occupancy Percentage		Investment(1)
Wholly Owned Portfolio:(2)
6700 Alexander Bell Drive			Howard County Perimeter		5/14/2001		75,635		75,635		100.0%		100.0%		$	8,762
6708 Alexander Bell Drive			Howard County Perimeter		5/14/2001		35,040		35,040		100.0%		100.0%			4,478
	Total						110,675		110,675		100.0%		100.0%		$	13,240
Joint Venture Portfolio:(3)
920 Elkridge Landing Road			BWI Airport		3/21/2001		96,566		96,566		100.0%		100.0%		$	10,939
938 Elkridge Landing Road			BWI Airport		3/21/2001		52,988		52,988		100.0%		100.0%			5,941
940 Elkridge Landing Road			BWI Airport		3/21/2001		51,704		51,704		100.0%		100.0%			4,904
891 Elkridge Landing Road			BWI Airport		3/21/2001		56,489		56,489		100.0%		89.0%			6,129
901 Elkridge Landing Road			BWI Airport		3/21/2001		56,847		50,155		88.2%		88.2%			5,705
	Total						314,594		307,902		97.9%		95.9%		$	33,618

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(1)

Initial investment recorded by property as of June 30, 2001 for asset purchase.

(2)

In conjunction with these operating properties, we also purchased a 30,855 square foot property to be redeveloped.

(3)

We held a 40% ownership interest in these office properties through a joint venture agreement during the quarter. As of July 2, 2001, we acquired the remaining 60% ownership interest for $6.9 million.

NOTE:

COPT classifies its acquisitions by type—entity, portfolio or individual acquisitions. Entity acquisitions are defined as mergers of significant portfolios of $100 + million with strong management organizations and a regional presence.

Disposition Summary as of June 30, 2001
(Dollars in Thousands)

		Submarket		Disposition Date		Square Feet		Gross Sales Proceeds			Debt Assumption or Repayment			Cash Proceeds After Debt Repayment
Individual Property:
19 Commerce		Cranbury, NJ		6/18/2001		65,277		$	11,525		$	7,000		$	4,525

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Development Summary as of June 30, 2001
(Dollars in Thousands except per square foot data)

Property and Location					Submarket		Owned or Joint Venture (JV)		Rentable Square Feet		Percentage Pre-Leased or Committed		Anticipated Cost per Rentable Square Foot			Anticipated Cost			Cost to date			Anticipated Stabilization/ Delivery
Under Construction
	2701 Phoenix Road (201 NBP) Annapolis Junction, MD		(1	)	BWI Airport		JV		118,000		77.11	%	$	155		$	18,313		$	13,604		September 2001
	1304 Concourse Drive Linthicum, MD		(2	)	BWI Airport		Owned		100,000		0.00	%		166			16,572			11,866		October 2001
	Robert Fulton Drive—Phase IA Columbia, Maryland		(3	)	Howard County Perimeter		JV		115,850		0.00	%		116			13,406			6,239		October 2001
	114 National Business Parkway Annapolis Junction, MD				BWI Airport		Owned		10,000		100.00	%		164			1,644			656		December 2001
	6731 Columbia Gateway Drive Columbia, Maryland		(4	)	Howard County Perimeter		Owned		122,889		0.00	%		176			21,613			13,574		December 2001
	6724 Alexander Bell Drive Columbia, Maryland		(5	)	Howard County Perimeter		Owned		30,855		0.00	%		157			4,835			2,378		March 2002
	2711 Phoenix Road (211 NBP) Annapolis Junction, MD		(6	)	BWI Airport		JV		150,000		100.00	%		174			26,135			8,941		March 2002
	4260 Forbes Boulevard—Phase I Laurel, Maryland		(7	)	Lanham		JV		54,692		43.08	%		92			5,027			4,640		April 2002
	Total Under Construction:								702,286		39.09	%	$	153		$	107,545		$	61,898
Under Development
	Robert Fulton Drive—Phase IB Columbia, Maryland		(3	)	Howard County Perimeter		JV		28,500		0.00	%		116			3,298			771		December 2002
	Total Under Development:								28,500		0.00	%	$	116		$	3,298		$	771
	TOTAL/AVERAGE								730,786		37.57	%	$	152		$	110,843		$	62,669

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(1)

On September 29, 2000, we contributed this development asset into a joint venture. The joint venture obtained a $13,725 construction loan in October 2000 and $4,436 is outstanding as of June 30, 2001.

(2)

We obtained a $11,800 construction loan and $6,018 is outstanding as of June 30, 2001.

(3)

We participate in the development of this asset through a joint venture arrangement. The joint venture has obtained a $14,000 construction loan (to fund Phase IA and Phase IB) and has borrowed $2,965 as of June 30, 2001.

(4)

We obtained a $15,750 construction loan and $5,081 is outstanding as of June 30, 2001.

(5)

We purchased this property in May 2001 and are redeveloping.

(6)

On December 15, 2000, we contributed this development asset into a joint venture. The joint venture has obtained a $20,550 construction loan. No draws have been made as of June 30, 2001.

(7)

We participate in the development of this asset through a joint venture arrangement. The joint venture has obtained a $9,026 construction loan (to fund Phase I and II) and has borrowed $3,125 as of June 30, 2001.

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QuickLinks

FORM 8-K
SIGNATURES
Corporate Office Properties Trust Index to Supplemental Information (Unaudited) June 30, 2001
Quarterly Selected Financial Summary Data (Dollars in thousands)
Quarterly Consolidated Balance Sheets (Dollars in thousands except per share data)
Quarterly Consolidated Statements of Operations and Funds From Operations (FFO) (Dollars and units in thousands)
Quarterly Consolidated Statements of Operations and FFO per Diluted Share (Shares in thousands)
Quarterly Equity Analysis (Amounts in thousands, except per share data, share prices and ratios)
Quarterly Valuation Analysis (Dollars in thousands except per share data and ratios)
Quarterly Debt Analysis (Dollars in thousands)
Quarterly Operating Ratios
Quarterly Dividend Analysis
Investor Composition and Analyst Coverage (as of June 30, 2001)
Property Summary by Region—June 30, 2001
Property Occupancy Rates by Region by Quarter
Top Twenty Office Tenants as of June 30, 2001 (Dollars and Square Feet in thousands)
Total Rental Revenue by Geographic Region by Quarter(1) (Dollars in thousands)
Net Operating Income by Geographic Region by Quarter (Dollars in thousands)
Same Office Property Cash Net Operating Income by Quarter (1) (Dollars in thousands)
Same Office Property GAAP Net Operating Income by Quarter(1) (Dollars in thousands)
Office Lease Expiration Analysis by Year
Acquisition Summary as of June 30, 2001 (Dollars in Thousands)
Disposition Summary as of June 30, 2001 (Dollars in Thousands)
Development Summary as of June 30, 2001 (Dollars in Thousands)