Corporate Office Properties Trust President & CEO Stephen Budorick Interviewed by Advisor Access
SAN FRANCISCO, Nov. 12, 2019 (GLOBE NEWSWIRE) -- Corporate Office Properties Trust (COPT) (NYSE: OFC) is an office REIT headquartered in Columbia, Maryland. As of Sept. 30, 2019, COPT’s core portfolio of 167 office and data center properties encompassed 18.8 million square feet and was 94.5% leased. What differentiates COPT from other office REITs is its unique franchise of U.S. Government, information technology-oriented locations (Defense/IT Locations).
-- The healthy defense spending environment in the United States is driving strong demand for COPT’s existing space and for newly developed facilities, resulting in record volumes of leasing in 2019 -- COPT owns and controls nearly 900 acres of the most relevant land locations, which limits competing supply and can accommodate over 10 million square feet of future mission growth -- 2.6 million square feet of active development projects are 82% pre-leased and should support impressive growth in the coming quarters -- An attractive and secure quarterly dividend of $0.275/share represents a 3.7% yield and an attractive premium to the yield from 10-year U.S. Treasuries -- Investment grade-rated balance sheet supports future growth through development, and ensures dividend safety
Advisor Access spoke with Corporate Office Properties’ President and CEO, Stephen Budorick, about the trust’s business model and growth strategy.
Advisor Access: Please tell us about COPT’s business model.
Stephen Budorick: As of Sept. 30, 2019, we derived 88% of our business from Defense/IT Locations, which encompass 16.8 million square feet of office space and approximately 900 acres of strategic developable land. Our buildings and land positions are unique, as is our decades-long track record of successful execution and mutual trust with our U.S. Government customers. An important distinction is that the government locations we support are not involved with weapons manufacturing or in the training and deployment of troops; rather, the missions involve high-tech R&D and cybersecurity aspects of national defense.
AA: Does the U.S. Government lease space with you through the General Services Administration (GSA)?
SB: We have very little GSA business. Within the 4.4 million square feet the U.S. Government leases in our portfolio, less than 90,000 square feet are leased through the GSA, representing less than 0.5% of our annualized revenues…
AA: Which are COPT’s strongest Defense/IT Locations?
SB: Strongest is an interesting word, as all our locations are performing well. Our most established park is The National Business Park (NBP), which supports the missions at Fort Meade…
AA: What is COPT’s growth strategy?
SB: Our growth strategy is very straightforward and low risk. We generate reliable earnings growth from operating properties in irreplaceable locations, plus we create additional value from low-risk (highly pre-leased) developments, primarily at Defense/IT Locations…
AA: COPT recently announced its 88th consecutive quarterly dividend. What financial strategies support this remarkable consistency?
SB: One of the main reasons investors buy shares in a REIT is for dividend income. We manage our operations to ensure the safety of our dividend, regardless of what economic or capital market trends may occur…
AA: Thanks for the update and your time, Steve.
Read the complete answers to these questions and the full interview with COPT HERE.
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DISCLOSURE: COPT has paid Advisor Access a fee to distribute this email. Stephen Budorick had final approval of the content and is wholly responsible for the validity of the statements and opinions.
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