COPT Sells $75 Million Of Assets In First Quarter Of 2012

Corporate Office Properties Trust (COPT) (NYSE: OFC), an office real estate investment trust (REIT) that focuses primarily on serving the specialized requirements of U.S. Government and Defense Information Technology tenants, announced that during the quarter ended March 31, 2012, it sold seven stabilized properties, two vacant properties and a land parcel for net proceeds of approximately $61 million. The stabilized buildings contained an aggregate of 219,000 square feet and were 80% occupied (63 leases) at the time of sale.
         

 
  Details of the 1Q12 Asset Sales:    
 
Square Feet
Address Submarket (000s)
8114 Sandpiper Circle White Marsh, MD 46
8615 Ridgely's Choice Drive White Marsh, MD 38
7939 Honeygo Boulevard White Marsh, MD 28
8133 Perry Hall Boulevard White Marsh, MD 28
7923 Honeygo Boulevard White Marsh, MD 23
222, 224 Schilling Circle Hunt Valley, MD 56
Total Stabilized Properties Sold 219
 
1101 Sentry Gateway San Antonio, TX 95
Candlewood Drive Hanover, MD 356
Total Vacant Properties Sold 451
 
Total Properties Sold 670
           

Since announcing its Strategic Reallocation Plan (SRP) in April 2011, COPT has sold a total of $139 million of properties and adjacent land containing approximately 1.2 million of operational square feet, realizing net proceeds of $130.6 million. The properties sold through March 31, 2012 represent 17.8% of COPT’s total leases in place at March 31, 2011 (the last reporting period before the SRP was announced), but only 5.4% of consolidated operating square feet at that time.

“We continue to execute on the sale of non-strategic assets with the objective of improving our overall portfolio quality and shedding assets that are more management-intensive, due to their smaller average tenant size. We are also improving our balance sheet flexibility, as we have realized significant net proceeds to date since initiating the SRP, $38 million of which was received in the first quarter from non-revenue generating properties,” stated Roger A. Waesche, Jr., President and Chief Executive Officer of COPT.

During the quarter ended March 31, 2012, COPT also sold its remaining shares of The KEYW Holding Corporation (Nasdaq: KEYW) for approximately $14 million, net of selling costs.
 

Conference Call to Discuss First Quarter 2012 Results
 
Earnings Release Date: Thursday, April 26, 2012 at 8:00 a.m. Eastern Time
 
Conference Call Date: Thursday, April 26, 2012
 
Time: 11:00 a.m. Eastern Time
 
Telephone Number: (within the U.S.) 888-679-8035
 
Telephone Number: (outside the U.S.) 617-213-4848
 
Passcode: 35166438
 

Please use the following link to pre-register and view important information about this conference call. Pre-registering is not mandatory but is recommended as it will provide you immediate entry into the call and will facilitate the timely start of the conference. Pre-registration only takes a few moments and you may pre-register at anytime, including up to and after the call start time. To pre-register, please click on the below link: https://www.theconferencingservice.com/prereg/key.process?key=PJAUAWVD7

You may also pre-register in the Investor Relations section of the Company’s website at www.copt.com. Alternatively, you may be placed into the call by an operator by calling the number provided above at least 5 to 10 minutes before the start of the call. A replay of this call will be available beginning Thursday, April 26 at 3:00 p.m. Eastern Time through Thursday, May 10 at midnight Eastern Time. To access the replay within the United States, please call 888-286-8010 and use passcode 94646315. To access the replay outside the United States, please call 617-801-6888 and use passcode 94646315.

The conference calls will also be available via live webcast in the Investor Relations section of the Company’s website at www.copt.com. A replay of the conference calls will be immediately available via webcast in the Investor Relations section of the Company’s website.

Company Information

COPT is an office REIT that focuses primarily on strategic customer relationships and specialized tenant requirements in the U.S. Government and Defense Information Technology sectors and Data Centers serving such sectors. The Company acquires, develops, manages and leases office and data center properties that are typically concentrated in large office parks primarily located adjacent to government demand drivers and/or in strong markets that we believe possess growth opportunities. As of December 31, 2011, the Company’s consolidated portfolio consisted of 238 office properties totaling 20.5 million rentable square feet. The Company’s portfolio primarily consists of technically sophisticated buildings in visually appealing settings that are environmentally sensitive, sustainable and meet unique customer requirements. COPT is an S&P MidCap 400 company and more information can be found at www.copt.com.

Forward-Looking Information:

This press release may contain “forward-looking” statements, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the 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. Forward-looking statements can be identified by the use of words such as “may,” “will,” “should,” “could,” “believe,” “anticipate,” “expect,” “estimate,” “plan” or other comparable terminology. Forward-looking statements are inherently subject to risks and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate. Accordingly, 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.

Important factors that may affect these expectations, estimates, and projections include, but are not limited to:
  • general economic and business conditions, which will, among other things, affect office property and data center demand and rents, tenant creditworthiness, interest rates and financing availability;
  • adverse changes in the real estate markets including, among other things, increased competition with other companies;
  • governmental actions and initiatives, including risks associated with the impact of a government shutdown, budgetary reductions or impasses, such as a reduction in rental revenues, non-renewal of leases, and/or a curtailment of demand for additional space by strategic tenants;
  • the Company’s ability to sell properties included in its Strategic Reallocation Plan;
  • the Company’s ability to borrow on favorable terms;
  • risks of real estate acquisition and development activities, including, among other things, risks that development projects may not be completed on schedule, that tenants may not take occupancy or pay rent or that development or operating costs may be greater than anticipated;
  • risks of investing through joint venture structures, including risks that the Company’s joint venture partners may not fulfill their financial obligations as investors or may take actions that are inconsistent with the Company’s objectives;
  • changes in the Company’s plans or views of market economic conditions or failure to obtain development rights, either of which could result in recognition of impairment losses;
  • the Company’s ability to satisfy and operate effectively under Federal income tax rules relating to real estate investment trusts and partnerships;
  • the dilutive effect of issuing additional common shares; and
  • environmental requirements.

The Company undertakes no obligation to update or supplement any forward-looking statements. For further information, please refer to the Company’s filings with the Securities and Exchange Commission, particularly the section entitled “Risk Factors” in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2011.

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