This Day On The Street
Continue to site
ADVERTISEMENT
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 Property Trust: A Good Offense Is Owning 'Defense'

This is always a sign that something is going on within the REIT. In Corporate Office Property Trust's case it is due to a portfolio restructuring.

In April 2011, management and the Board announced a strategic reallocation plan that called for the disposition of $512 million in operating properties and $50 million in land.

Warren Buffett believes in picking an industry in which you know much more than the average investor. He calls that industry your circle of competence. His partner Charlie Munger once said that the simple way to get success in life is to play on the field that we are the best at, otherwise we would get beaten up pretty fast.

Corporate Office Property Trust has come to the same conclusion and is reorganizing its portfolio to operate within its circle of competence.

Tenant Diversity

As 60% of Corporate Office Property Trust's annualized rents are derived from office properties occupied primarily by government agencies and defense IT contractors, its tenant roster is somewhat concentrated.

It includes Northrop Grumman (NOC), Computer Sciences (CSC), Wells Fargo (WFC), Boeing (BA) and Booz Allen Hamilton (BAH). In fact, 36 of the 50 largest Defense Contractors, or 72%, already are COPT tenants:

Occupancy

Like most office REITs, Corporate Office Properties Trust's occupancy has been hard hit and slow to recover.

2 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
SYM TRADE IT LAST %CHG
OFC $26.43 0.00%
AAPL $131.39 0.00%
FB $80.48 0.00%
GOOG $542.51 0.00%
TSLA $245.62 0.00%

Markets

DOW 18,285.74 +0.34 0.00%
S&P 500 2,130.82 +4.97 0.23%
NASDAQ 5,090.7940 +19.0510 0.38%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs