COPT Executes 206,000 SF Lease with U.S. Government Behind Fence at Redstone Gateway

Rhea-AI Summary

Corporate Office Properties Trust (NYSE: OFC) has signed a 20-year lease with the U.S. Government for a 206,000 square foot facility at Redstone Gateway in Huntsville, AL. The company plans to invest approximately $60 million in construction, with the building expected to reach shell completion in Q2 2023 and a lease commencement anticipated in Q1 2024. This development adds to the growing footprint at Redstone Gateway, which will host over two million square feet dedicated to U.S. Government and defense contractor needs.

Positive

• Secured a 20-year lease with the U.S. Government, enhancing long-term revenue stability.
• Investment of approximately $60 million reflects confidence in government contracts.
• Development at Redstone Gateway increases the company's robust portfolio in defense-related real estate.

Negative

• None.

COLUMBIA, Md.--(BUSINESS WIRE)-- Corporate Office Properties Trust (“COPT” or the “Company”) (NYSE: OFC) has executed a 20-year lease with the U.S. Government for a 206,000 square foot development in the secure campus at Redstone Gateway in Huntsville, AL. The Company expects to invest approximately $60 million to construct the building, which is slated for shell completion during the second quarter of 2023, with a targeted lease commencement date in the first quarter of 2024.

“We are privileged to provide a mission critical real estate solution for another U.S. Government customer at Redstone Gateway and, having anticipated this demand in 2022, are pleasantly surprised by the accelerated commitment,” stated Stephen E. Budorick, COPT’s President & Chief Executive Officer. He continued, “Upon the completion of 300 Secured Gateway and the other 450,000 square feet currently under development, Redstone Gateway will encompass more than two million square feet of U.S. Government and defense contractor facilities supporting the missions at Redstone Arsenal.”

About COPT

COPT is a REIT that owns, manages, leases, develops and selectively acquires office and data center properties. The majority of its portfolio is in locations that support the United States Government and its contractors, most of whom are engaged in national security, defense and information technology (“IT”) related activities servicing what it believes are growing, durable, priority missions (“Defense/IT Locations”). The Company also owns a portfolio of office properties located in select urban/urban-like submarkets in the Greater Washington, DC/Baltimore region with durable Class-A office fundamentals and characteristics (“Regional Office Properties”). As of June 30, 2021, the Company derived 88% of its core portfolio annualized rental revenue from Defense/IT Locations and 12% from its Regional Office Properties. As of the same date and including 19 properties owned through unconsolidated joint ventures, COPT’s core portfolio of 181 office and data center shell properties encompassed 21.0 million square feet and was 94.6% leased; the Company also owned one wholesale data center with a critical load of 19.25 megawatts that was 86.7% leased.

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. Although the Company believes that the expectations, estimates and projections reflected in such forward-looking statements are based on reasonable assumptions at the time made, 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 and the Company undertakes no obligation to update or supplement any forward-looking statements.

The areas of risk that may affect these expectations, estimates and projections include, but are not limited to, those risks described in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2020.

Source: Corporate Office Properties Trust

View source version on businesswire.com: https://www.businesswire.com/news/home/20210920005662/en/

IR Contacts:

Stephanie Krewson-Kelly

443-285-5453

stephanie.kelly@copt.com



Michelle Layne

443-285-5452

michelle.layne@copt.com

Source: Corporate Office Properties Trust

FAQ

What is the recent lease signed by Corporate Office Properties Trust (OFC)?

Corporate Office Properties Trust signed a 20-year lease with the U.S. Government for a 206,000 square foot facility at Redstone Gateway.

How much is Corporate Office Properties Trust investing in the new facility?

The company is investing approximately $60 million to construct the new facility.

When is the lease commencement date for the new facility?

The lease commencement date is anticipated for the first quarter of 2024.

Where is the new development located?

The new development is located at Redstone Gateway in Huntsville, AL.

What is the significance of the Redstone Gateway development for Corporate Office Properties Trust?

The development will enhance COPT's portfolio focused on U.S. Government and defense needs, with over two million square feet planned at Redstone Gateway.