COPT Executes Three Development Leases Totaling 460,000 SF

Rhea-AI Summary

Corporate Office Properties Trust (NYSE: OFC) has signed three leases totaling 460,000 square feet, including long-term commitments with a Fortune 500 company for two build-to-suit developments in Northern Virginia and a 39,000 square feet lease with the U.S. Government in Huntsville, AL. These transactions help the company fulfill its 2020 objective of leasing one million square feet. The management believes there is strong demand for its properties and anticipates continued success in 2021, supported by a 2.0 million square feet development leasing pipeline.

Positive

• Completed three leases totaling 460,000 square feet.
• Secured long-term leases with a Fortune 500 company in Northern Virginia.
• Achieved one million square feet of development leasing in 2020.
• 100% leased facility in Huntsville, AL.
• Management anticipates strong demand in 2021, supported by a 2.0 million square feet leasing pipeline.

Negative

• None.

Corporate Office Properties Trust (“COPT” or the “Company”) (NYSE: OFC) recently executed three leases totaling 460,000 square feet. In Northern Virginia, the Company completed long-term leases with a Fortune 500 company for two build-to-suit developments totaling 420,000 square feet on land the Company owns. Additionally, in Huntsville, AL, the Company leased 39,000 square feet to the U.S. Government at 100 Secured Gateway, which is now 100% leased.

With these transactions, management has achieved its goal of completing one million square feet of development leasing in 2020. Based on the 2.0 million square feet of opportunities in its Development Leasing Pipeline, COPT’s management expects to experience continued strong demand for its locations in 2021.

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 September 30, 2020, 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 15 properties owned through unconsolidated joint ventures, COPT’s core portfolio of 174 office and data center shell properties encompassed 20.2 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, 2019 and subsequent Quarterly Reports on Form 10-Q.

Source: Corporate Office Properties Trust

View source version on businesswire.com: https://www.businesswire.com/news/home/20210104005148/en/

FAQ

What recent leases did Corporate Office Properties Trust (OFC) sign?

COPT signed three leases totaling 460,000 square feet, including with a Fortune 500 company in Northern Virginia and the U.S. Government in Huntsville, AL.

What is the significance of the recent leasing agreements for OFC?

These leases help COPT achieve its goal of one million square feet of development leasing for 2020 and indicate strong market demand.

When will Corporate Office Properties Trust expect to see continued demand?

COPT expects continued strong demand for its locations in 2021, supported by a 2.0 million square feet development leasing pipeline.

How much square footage has COPT leased in its recent transactions?

COPT has recently leased a total of 460,000 square feet.

What percentage of COPT's portfolio is derived from Defense/IT locations?

As of September 30, 2020, 88% of COPT's core portfolio annualized rental revenue is derived from Defense/IT locations.