NEW YORK, June 08, 2021 (GLOBE NEWSWIRE) -- Corporate Office Properties Trust (COPT) (NYSE: OFC) is an equity REIT whose portfolio of office and data center properties, totaling 21 million square feet, was 95% leased as of March 31, 2021. Classified by Nareit as an “office REIT,” COPT’s focus on providing real estate solutions to the U.S. government and its contractors, most of whom are engaged in national security, defense, and information technology-related activities (COPT’s Defense/IT Locations), is unique in the REIT industry.
These Defense/IT Locations are adjacent to defense installations that execute high-tech and research-oriented defense missions encompassing intelligence, surveillance, and reconnaissance (ISR), research and development (R&D) for unmanned drones, missile defense, space, and cybersecurity. Accordingly, COPT’s business is not correlated with the broader economy or traditional office fundamentals, and the company strongly outperformed other office REITs during the COVID-19 pandemic. In fact, the company exceeded its elevated guidance in 2020 and grew its FFO (funds from operations) per share, as adjusted for comparability, by 4.4% relative to 2019 results.
Based on a strong first quarter, COPT has already increased its outlook for 2021 and expects to grow FFO per share, adjusted for comparability, by 3–6% this year. When combined with COPT’s secure, annualized dividend yield of 4%, COPT’s growth outlook implies a 7–10% total return for shareholders. Moreover, management believes the company is on track to generate 3–5% FFO per share growth for a sustained time period. Underpinning this expectation is the healthy defense spending environment in the United States, which continues to drive strong demand for COPT’s locations.
Advisor Access spoke at length with Corporate Office Properties’ President and CEO, Steve Budorick, about the REIT’s business model and growth strategy.
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