Share-Based Compensation and Other Compensation Matters (Tables)

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Reporting for share-based compensation expense

The table below sets forth our reporting for share based compensation cost (in thousands):

	For the Years Ended December 31,
	2020		2019		2018
General, administrative and leasing expenses	$	5,385	$	5,748	$	5,415
Property operating expenses	1,119		966		961
Capitalized to development activities	556		742		587
Share-based compensation cost	$	7,060	$	7,456	$	6,963

Summary of restricted share and TB-PIU transactions under the entity's share-based compensation plans

The following table summarizes restricted shares under the share-based compensation plans for 2018, 2019 and 2020:

	Shares		Weighted Average Grant Date Fair Value
Unvested as of December 31, 2017	425,626		$	30.37
Granted	219,716		25.62
Forfeited	(25,419)		30.02
Vested	(181,238)		29.49
Unvested as of December 31, 2018	438,685		28.38
Granted	195,520		26.56
Forfeited	(56,341)		29.44
Vested	(185,001)		28.01
Unvested as of December 31, 2019	392,863		27.49
Granted	166,918		25.22
Forfeited	(25,773)	(1)	27.12
Vested	(173,191)		28.14
Unvested as of December 31, 2020	360,817		$	26.16
Unvested shares as of December 31, 2020 that are expected to vest	330,605		$	26.14

(1)Includes 9,064 restricted shares previously awarded to our former Executive Vice President and Chief Operating Officer that were forfeited upon his resignation.

The following table summarizes TB-PIUs under the share-based compensation plan for 2019 and 2020:

	Number of TB-PIUs		Weighted Average Grant Date Fair Value
Unvested as of December 31, 2018	—		N/A
Granted	61,820		$	26.01
Unvested as of December 31, 2019	61,820		26.01
Granted	98,318		25.47
Forfeited	(20,622)	(1)	25.50
Vested	(25,182)		26.30
Unvested as of December 31, 2020	114,334		$	25.57
Unvested TB-PIUs as of December 31, 2020 that are expected to vest	114,334		$	25.57

(1)Represents TB-PIUs previously awarded to our former Executive Vice President and Chief Operating Officer that were forfeited upon his resignation.

Schedule of PB-PIU/PSUs Granted

We made the following grants of PB-PIUs to executives in 2019 and 2020: (dollars in thousands, except per share data):

Grant Date	Number of PB-PIUs Granted	Performance Period Commencement Date	Performance Period End Date	Grant Date Fair Value		Number of PB-PIUs Outstanding as of December 31, 2020 (1)
1/1/2019	193,682	1/1/2019	12/31/2021	$	2,415	156,104
1/1/2020	176,758	1/1/2020	12/31/2022	$	2,891	141,152

(1)Excludes 73,184 PB-PIUs previously awarded to our former Executive Vice President and Chief Operating Officer that were forfeited upon his resignation.

We made the following grants of PSUs to executives from 2016 through 2018 (dollars in thousands):

Grant Date	Number of PSUs Granted	Performance Period Commencement Date	Performance Period End Date	Grant Date Fair Value		Number of PSUs Outstanding as of December 31, 2020
3/1/2016	26,299	1/1/2016	12/31/2018	$	1,005	—
1/1/2017	39,351	1/1/2017	12/31/2019	$	1,415	—
1/1/2018	59,110	1/1/2018	12/31/2020	$	1,890	46,912	(1)

(1)Excludes 12,198 PSUs previously awarded to our former Executive Vice President and Chief Operating Officer that were forfeited upon his resignation.

Schedule of payouts for defined performance under PB-PIU/PSUs

The number of earned awards at the end of the

performance period will be determined based on the percentile rank of COPT’s total shareholder return (“TSR”) relative to a peer group of companies, as set forth in the following schedule:

Percentile Rank	Earned Awards Payout %
75th or greater	100% of PB-PIUs granted
50th (target)	50% of PB-PIUs granted
25th	25% of PB-PIUs granted
Below 25th	0% of PB-PIUs granted

The number of PSUs earned (“earned PSUs”) at the end of the performance period were determined based on the percentile rank of COPT’s TSR relative to a peer group of companies, as set forth in the following schedule:

Percentile Rank	Earned PSUs Payout %
75th or greater	200% of PSUs granted
50th (target)	100% of PSUs granted
25th	50% of PSUs granted
Below 25th	0% of PSUs granted

Schedule of assumptions used in Monte Carlo models for PB-PIUs

The grant date fair value and certain of the assumptions used in the Monte Carlo models for the PB-PIUs granted in 2019 and 2020 are set forth below:

Grant Date	Grant Date Fair Value Per PB-PIU		Baseline Common Share Value		Expected Volatility of Common Shares		Risk-free Interest Rate
1/1/2019	$	12.47	$	21.03	21.0	%	2.51	%
1/1/2020	$	16.36	$	29.38	18.0	%	1.65	%

Deferred Shares Granted

We made the following grants of deferred share awards to nonemployee members of our Board of Trustees in 2018, 2019 and 2020 (dollars in thousands, except per share data):

Year of Grant	Number of Deferred Share Awards Granted	Aggregate Grant Date Fair Value		Grant Date Fair Value Per Share
2018	13,832	$	388	$	28.08
2019	3,432	$	95	$	27.60
2020	10,679	$	253	$	23.68

Share-based compensation, common shares issued in settlement of vested deferred share awards

We issued the following common shares in settlement of deferred shares in 2018, 2019 and 2020 (dollars in thousands, except per share data):

Year of Settlement	Number of Common Shares Issued	Grant Date Fair Value Per Share		Aggregate Intrinsic Value
2018	5,515	$	29.32	$	154
2019	3,097	$	26.77	$	86
2020	—	N/A		N/A