This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Corporate Office Properties Trust CEO Discusses Q1 2012 Results - Earnings Call Transcript

Compounding this uncertainty is the increasing likelihood that the fiscal 2013 defense budget will not be passed before the November elections. Ultimately we expect to see our markets benefit by continued growth in support of cyber and priority programs as well as the remaining contractor tail following the recent government BRAC moves.

In the meantime we will keep working hard for every deal in each of our markets. The good news is that everything we hear regarding potential budget cuts to defense in fiscal 2013 indicates the primary affected areas will be large weapon systems and force structure. Program cuts to intelligence activities are expected to be minimal by comparison and we believe cyber initiatives will grow.

We expect the agencies that have moved to locations near our parks as a result of BRAC to create a trail of contractors that will follow them through to 2014. While the defense pie is likely to modestly shrink in 2013 our tenants portion is likely to grow.

Additional a potential slowdown in DOD building acquisitions and construction or mil con ultimately may lead to additional leasing demand by the government. Our piece of dispositions through the Strategic Reallocation Plan or SRP we launched in April 2011 is in line with our expectation. First quarter sales totaled $63 million gross and $61 million after closing cost. These sales were comprised of 7 stabilized operating properties at a weighted average cap rate of 7.4% for net proceeds of $23 million. These buildings contained 63 leases and were 80% leased.

We also sold two non-revenue producing building at Century Gateway and San Antonio in Candlewood and Hanover, Maryland and some land in San Antonio for net proceeds of $38 million. Since announcing the $562 million SRP we have executed $139 million or property sales which is approximately 25% of the overall plan. The sales included $100 million of operating properties at an average exit cap rate of 7.8% with the balance comprised of non-operating property.

Read the rest of this transcript for free on

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $95.18 1.64%
FB $117.43 -0.96%
GOOG $692.36 -0.84%
TSLA $232.32 -3.92%
YHOO $36.01 -1.42%


Chart of I:DJI
DOW 17,750.91 -140.25 -0.78%
S&P 500 2,063.37 -18.06 -0.87%
NASDAQ 4,763.2240 -54.37 -1.13%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs