Corporate Office Properties Trust (“COPT” or the “Company”) (NYSE: OFC) announced that it completed the disposition of 15 operating properties previously held-for-sale in Colorado Springs, Co in a transaction valued at $134 million, for net proceeds of $131 million. The 15 properties sold are listed in the table below:
Property Address Square Feet Property Address Square Feet
565 Space Center Drive 86,837 10807 New Allegiance Drive 145,498
655 Space Center Drive 103,968 12515 Academy Ridge View 61,372
985 Space Center Drive 104,031 9925 Federal Drive 53,744
745 Space Center Drive 51,770 9945 Federal Drive 74,005
980 Technology Court 33,207 9950 Federal Drive 66,221
1055 N. Newport Road 62,245 9960 Federal Drive 46,947
1670 N. Newport Road 67,260 9965 Federal Drive 77,583
3535 Northrop Grumman Point 130,573 TOTAL 1,165,261

“We are pleased to have completed our Strategic Reallocation Plan (“SRP”) within the three-year time frame we established for ourselves and to have executed these dispositions at exit cap rates that were within our guidance,” stated Roger A. Waesche, Jr., COPT’s President & Chief Executive Officer. “With our portfolio repositioning now substantially complete, we expect 2014 to be a year of transitioning our platform back to a growth mode,” he added.

With these 15 property dispositions, the Company has completed the operating property portion of the SRP that it launched in the second quarter of 2011. Since April 2011, the Company has disposed of $544 million of properties that contained approximately 4.9 million square feet and realized net proceeds (after transaction costs and repayment of property-specific debt) of approximately $469 million. Additionally, the disposed properties represented 23.1% of COPT’s operating portfolio that existed at March 31, 2011 (the last reporting period before the SRP was announced).

Company Information

COPT is an office REIT that focuses primarily on serving the specialized requirements of U.S. Government agencies and defense contractors, most of which are engaged in defense information technology and national security-related activities. As of September 30, 2013, COPT derived 64% of its annualized revenue from its strategic tenant niche properties and 21% from its regional office properties. The Company generally acquires, develops, manages and leases office and data center properties concentrated in large office parks primarily located near knowledge-based government demand drivers and/or in targeted markets or submarkets in the Greater Washington, DC/Baltimore region. As of September 30, 2013, the Company’s consolidated portfolio consisted of 210 office properties totaling 19.2 million rentable square feet. COPT is an S&P MidCap 400 company.

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, financing availability and property values;
  • 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 or 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 the Company's strategic customers;
  • 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;
  • the Company’s ability to sell properties included in its Strategic Reallocation Plan;
  • 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 for properties or views of market economic conditions or failure to obtain development rights, either of which could result in recognition of significant 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 Company's ability to achieve projected results;
  • the dilutive effects 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, 2012.

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