COPT Increases Quarterly Dividend by 3.6%

Rhea-AI Summary

Corporate Office Properties Trust (NYSE: OFC) has declared a quarterly dividend of $0.285 per share for Q1 2023, marking a 3.6% increase from the previous $0.275 dividend. This dividend, amounting to an annualized $1.14 per share, is payable on April 17, 2023, to shareholders of record as of March 31, 2023. The Company emphasizes this increase as a result of a decade-long strategy focused on generating stable cash flows through its investments in Defense/IT properties, which account for 91% of its core portfolio revenue. From 2018 to 2022, FFO per share grew at a CAGR of 4.1%, underscoring the company's robust financial health.

Positive

• Quarterly dividend increased by 3.6%, from $0.275 to $0.285 per share.
• The annualized dividend now stands at $1.14 per share.
• 91% of rental revenue comes from Defense/IT properties, indicating strong focus and market position.
• FFO per share increased at a CAGR of 4.1% from 2018 to 2022, showing consistent financial growth.

Negative

• None.

COLUMBIA, Md.--(BUSINESS WIRE)-- Corporate Office Properties Trust (NYSE: OFC) (“COPT” or the “Company”) announced today that its Board of Trustees declared a regular quarterly dividend of $0.285 per common share for the first quarter ending March 31, 2023. This represents an increase of 3.6%, or $0.01 per share, over the most recent quarterly dividend of $0.275. The first quarter 2023 dividend represents an annualized amount of $1.14 per share and is payable on April 17, 2023, to shareholders of record on March 31, 2023.

Stephen E. Budorick, COPT’s President & Chief Executive Officer, commented, “This dividend increase is the culmination of over a decade of work to reposition our Company to produce durable cash flows and predictable growth, by deeply concentrating our investments into properties that support National Defense. From 2012 to 2022, we invested nearly $250 million, on average annually, primarily into Defense/IT property developments. Today, 91% of our core portfolio annualized rental revenue comes from our Defense/IT properties.

Between 2018 to 2022, FFO per share increased at a compound annual growth rate of 4.1%. We recently announced that we expect to fund our annual development investment from internal cash flows going forward. This dividend increase, our first in over a decade, is supported by the strong growth in FFO and AFFO, allowing us to increase our dividend distribution to shareholders, while continuing to fund accretive development activities in National Defense properties on a leverage neutral basis.”

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 the Company believes are growing, durable, priority missions (“Defense/IT Locations”). The Company also owns a portfolio of office properties located in select urban submarkets in the Greater Washington, DC/Baltimore region with durable Class-A office fundamentals and characteristics (“Regional Office Properties”). As of December 31, 2022, the Company derived 91% of its core portfolio annualized rental revenue from Defense/IT Locations and 9% from its Regional Office Properties. As of the same date and including 21 properties owned through unconsolidated joint ventures, COPT’s core portfolio of 192 properties encompassed 22.8 million square feet and was 95.3% 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, 2021.

Source: Corporate Office Properties Trust

View source version on businesswire.com: https://www.businesswire.com/news/home/20230222005989/en/

IR Contacts:

Venkat Kommineni, CFA

443-285-5587

venkat.kommineni@copt.com

Michelle Layne

443-285-5452

michelle.layne@copt.com

Source: Corporate Office Properties Trust

FAQ

What is the latest dividend amount for OFC?

The latest dividend amount for Corporate Office Properties Trust (OFC) is $0.285 per share.

When is the dividend payable for OFC?

The dividend for OFC is payable on April 17, 2023.

What is the record date for OFC's dividend?

The record date for OFC's dividend is March 31, 2023.

How much of OFC's revenue comes from Defense/IT properties?

91% of OFC's core portfolio annualized rental revenue comes from Defense/IT properties.

What growth rate has OFC reported for FFO per share?

OFC has reported a compound annual growth rate (CAGR) of 4.1% for FFO per share from 2018 to 2022.