CORPORATE OFFICE PROPERTIES TRUST Results for 2Q 2020 July 30, - PowerPoint PPT Presentation

CORPORATE OFFICE PROPERTIES TRUST Results for 2Q 2020 July 30, 2020 The Preferred Provider of Mission Critical Real Estate Solutions

Table of Contents Results for 2Q 2020…............................Page 3 Safe Harbor I. Unless otherwise noted, information in this presentation represents the Company’s consolidated portfolio as of or for the quarter ended July 30, 2020. Factors Supporting Growth……………Page 6 II. This presentation may contain “forward - looking” statements, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Minimal Impact from COVID- 19……...Page 16 III. Securities Exchange Act of 1934, that are based on the Company’s current expectations, estimates and projections about future events and financial trends affecting the Company. These statements may include, 2020 Guidance………....………..……...Page 25 IV. without limitation, statements regarding: our belief that we are well- positioned to maintain relative normal operations through the COVID-19 crisis; our expectations as to renewal leasing, rent relief requests, Appendices……………………………...Page 29 V. development leasing and development projects; our liquidity situation; and our dividend. Forward-looking statements are inherently subject to risks and uncertainties, many of which the Company cannot predict with A. Definitions & Glossary accuracy and some of which the Company might not even anticipate. B. Reconciliations Although the Company believes that expectations, estimates and projections reflected in such forward-looking statements are based on reasonable assumptions at the time made, the Company can give no assurance that these expectations, estimates and projections will be achieved. Future events and actual results may differ materially from those discussed in the forward-looking statements and the Company undertakes no obligation to update or supplement any forward-looking statements. The areas of risk that may affect these expectations, estimates and projections include, but are not limited to, those risks described in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and Quarterly Report on Form 10-Q for the quarter ended March 31, 2020. 2

Results for 4Q & FY 2018 I. Results for 2Q 2020 I. Rendering of 100 Secured Gateway, Huntsville, AL 3

2Q 2020 Recap Strong 2Q Results; Minimal Impact from COVID-19 Shutdowns Incurred Solid Leasing Core Portfolio Minimal Impact from › 959,000 SF executed in 2Q 93.6% occupied, COVID-19 › 1.6 million SF executed 94.7% leased through 1H20 › G ranted and anticipated rent relief total <1.0% of ARR 1 › Extremely strong rent collections: April - 99.3% (100.0% net 2 ) May - 99.2% (99.9% net 2 ) Ample Liquidity June - 99.1% (99.8% net 2 ) 1.9 million SF July - 98.5% (99.3% net 2 ) ›$ 710 million of liquidity to Under Development complete the remaining $233 million of development › 84% leased commitments Annualized rental revenue (“ARR”); rent collections are as of July 29, 2020. 1. 2. ARR, net of rent accommodations. 4

2Q20 Results 2Q20 Guidance Actual $0.48 – $0.50 FFOPS* $0.51 Same-Property: ▪ Occupancy 91% – 92% 92.3% ▪ Cash NOI Growth (3%) – (1.5%) 1.7% 75.6% for 2Q 75% – 80%** Tenant Retention 81.0% YTD † -- ~ $100 mm Development Spend Development Leasing Achieved: ▪ 1Q -- -- ▪ 2Q -- 276,000 SF * FFOPS = diluted funds from operations per share, as adjusted for comparability. ** Tenant retention guidance was for the full year and as of April 30, 2020. Effective July 30, management increased this range for the full year to 80% – 85%. 5 † As of June 30, 2020.

Results for 4Q & FY 2018 I. Factors Supporting Growth II. 250 West Pratt Street Lobby Renovation, Baltimore, MD 6

Healthy DoD Spending Levels » Bi-partisan agreement for FY20 & FY21 Budgets eliminates sequestration threat (Budget Control Act of 2011 sunsets after FY21) » HASC voted in favor of FY 2021 NDAA 295-to-125; SASC voted 86-to-14 » FY 2015 –FY 2020, DoD’s Base Budget has grown at a compound annual rate of 5% DoD’s Discretionary Budget Authority (“Base Budget”)* Current dollars, in billions. Sources: Historical data through FY 2016 are pulled from Tables 1-9 and 2-1 of the National Defense Budget Estimates ("Green Books") for FY 2017 or earlier; data for FY 2017 through FY 2019 are pulled from Tables 1-2 and 2-1 of the FY 2020 Green Book; Capital Alpha Partners; COPT’s IR Department. † DoD base budget (051) numbers exclude funding for overseas contingency operations ("OCO"), Atomic Energy Defense Activiti es (053), Other Defense-Related Activities (054), and mandatory spending. * FY 2017 includes $8.25 billion of "OCO for base budget purposes." Source: CRS report on the final authorizations. ** FY 2018 includes $5.8 billion of supplemental authorizations for Missile Defense. 7 ‡ Estimated, using the 2020 DoD Appropriations Act and the 2020 Military Construction, Veterans Affairs, and Related Agenci es Appropriations Act.

Mandate to Restore & Fund U.S. Military » A 2018 Pentagon Study reported that the DoD funding deficit created by the Budget Control Act of 2011 and the multi-year failure to provide timely appropriations had eroded U.S. Military power “to a dangerous degree,” and provided the imperative to correct it Prior Spending Deficit in Base Budget (050) Source: National Defense Strategy Commission’s Providing for the Common Defense (2018): https://www.usip.org/publications/2018/11/providing-common-defense 8

Growth from Development Leasing Robust Development Leasing Pipeline bodes well for future development leasing & NOI growth Development Leasing » After record year in 2019, demand for new facilities remains strong 2,000,000 » Major lease executions to-date* include one defense 1,500,000 contractor build-to-suit and a large U.S. Government 1,000,000 lease at Redstone Gateway » Our Development Leasing 500,000 Pipeline of 2.1 million SF* supports future growth and 0 our goal of executing 1 million SF of development Actual SF Forecasted Initial Goal leasing in 2020 * As of June 30, 2020. Note: COPT’s Development Leasing Pipeline formerly was called its Shadow Development Pipeline. 9

Highly Leased Developments Drive NOI Growth » Between 2011 – 2019, Square Feet of Development Placed Into Service we placed 7.5 million SF 1,600,000 100% into service that, on average, were 90% 90% 1,400,000 leased 80% 1,200,000 » During 1H20, we placed 840,000 SF 70% PIS annually, 90% leased 642,000 SF that were 1,000,000 60% 99% leased into service 800,000 50% » During 2H20, we expect 40% to place another 600,000 ~820,000 SF that are 30% 100% leased into 400,000 20% service, contributing to 200,000 FFO growth this year, 10% and into 2021/2022 - 0% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 E SF PIS Forecasted % Leased 10

Vacancy Leasing Tempered by Shutdowns » Strong Vacancy Leasing of 143,000 SF in 1Q20 was 13% higher than 1Q19 results » 2Q20 Vacancy Leasing of 70,000 SF was light due to pandemic shutdowns affecting brokerage firms » Pace of Vacancy Leasing in 2H20 likely to be slower than previously forecasted Vacancy Leasing in COPT’s Operating Portfolio* 100% 2016 2017 2018 2019 2020 900 95% 800 90% Core Portfolio % Leased and Occupied Square Feet of Vacancy Leased (000s) 700 85% 600 80% 500 75% 400 70% 300 65% 200 60% 100 55% 0 50% Defense/IT Regional Office* % Leased % Occ * Percent occupied & leased statistics are for COPT’s core portfolio. 11

Strong Tenant Retention Tenant co- investment creates “stickiness” and supports COPT’s sector -leading tenant retention rates and low renewal CapX COPT’s Renewal Rates Since 2010 » Proven track record of strong tenant retention 100% rates, averaging: 90% » 73% between 2010−2019 80% 70% » 78% between 2016−2019 60% » In April, increased 2020 50% tenant retention guidance 40% to 75% – 80%; increasing it 30% again to new range of 20% 80% – 85% 10% » FFO & AFFO benefits of 0% high renewal rates more than offset impact of cash rent roll downs Source: Company Supplemental Reports 12

Large Leases Update Continued Strong Retention of Large Tenants* » 2020 Large Leases Actual or # 2020 Expected ▪ 1H20 renewals (1.1 million SF) Large Leases Leases SF % Renewal included 2 contractors & 1 USG ▪ USG 3 375,000 100% lease ▪ Contractors 1 157,000 100% ▪ As expected, tenant at 6721 131,000 0%** 1 Columbia Gateway Drive did not ▪ Commercial -- -- -- renew (131,000 SF) on 4/30 5 663,000 80% ▪ One floor already back-filled** Actual or » 2021 Large Leases 2021 # Expected Large Leases Leases SF % Renewal ▪ 3-building Boeing campus at ▪ USG -- -- -- Redstone Gateway expected to ▪ Contractors 4 493,000 100% renew ▪ Commercial -- -- -- ▪ Contractor at NBP also expected 4 493,000 100% to renew * Large lease is defined as 100,000 SF or more. ** A defense contractor that was subletting 6721 Columbia Gateway Drive now leases 31,000 SF directly from COPT. 13