COPT Declares Second Quarter 2017 Dividends; Calls to Redeem 7.375% Series L Cumulative Preferred Shares

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COLUMBIA, Md.--(BUSINESS WIRE)-- The Board of Trustees of Corporate Office Properties Trust (“COPT” or the “Company”) (NYSE: OFC) declared a quarterly dividend of $0.275 per Common Share of beneficial interest for the second quarter of 2017, payable on July 17, 2017, to shareholders of record on June 30, 2017.

Call to Redeem 7.375% Series L Cumulative Preferred Shares

The Board of Trustees called to redeem all 6.9 million shares of the Company’s 7.375% Series L Cumulative Preferred Shares (the “Series L Preferred Shares”) (NYSE: OFCPrL), at a price of $25.3687 per Series L Preferred Share, which includes accrued and unpaid dividends up to but not including the date of redemption (the “Series L Redemption Price”).

The redemption date for the Series L Preferred Shares will be June 27, 2017 (the “Redemption Date”). From and after the Redemption Date, dividends on the Series L Preferred Shares shall cease to accrue and holders of the Series L Preferred Shares will have no rights as such holders other than the right to receive the Series L Redemption Price, without interest, upon surrender of the Series L Preferred Shares.

The Notice of Redemption and related materials will be mailed to holders of record of the Series L Preferred Shares. Wells Fargo Shareowner Services is acting as the redemption agent. Requests for additional copies of the materials should be directed to COPT’s Investor Relations Department at ir@copt.com.

The Company’s full year and second quarter 2017 guidance for diluted earnings per share (“EPS”) and diluted FFO per share (“FFOPS”), as defined by NAREIT, already assumes the $7.0 million write-off of the original issuance costs associated with the Series L Preferred Shares. Accordingly, there is no change to the Company’s existing guidance resulting from this redemption.

Company Information

COPT is an office REIT that owns, manages, develops and selectively acquires office and data center properties 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 priority missions (“Defense/IT Locations”). We also own a portfolio of office properties located in select urban/urban-like submarkets within our regional footprint with durable Class-A office fundamentals and characteristics (“Regional Office Properties”). As of March 31, 2017, we derived 87% of core portfolio annualized revenue from Defense/IT Locations and 13% from our Regional Office Properties. As of March 31, 2017, and including six buildings that are owned through an unconsolidated joint venture, our core portfolio of 152 office properties, encompassed 16.3 million square feet and was 94.2% leased. As of the same date, we also owned one wholesale data center with a critical load of 19.25 megawatts.

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. Accordingly, 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.

Important factors that may affect these expectations, estimates, and projections include, but are not limited to:

  • general economic and business conditions, which will, among other things, affect office property and data center demand and rents, tenant creditworthiness, interest rates, financing availability and property values;
  • adverse changes in the real estate markets including, among other things, increased competition with other companies;
  • governmental actions and initiatives, including risks associated with the impact of a prolonged government shutdown or budgetary reductions or impasses, such as a reduction in rental revenues, non-renewal of leases, and/or a curtailment of demand for additional space by the Company's strategic customers;
  • the Company’s ability to borrow on favorable terms;
  • risks of real estate acquisition and development activities, including, among other things, risks that development projects may not be completed on schedule, that tenants may not take occupancy or pay rent or that development or operating costs may be greater than anticipated;
  • risks of investing through joint venture structures, including risks that the Company’s joint venture partners may not fulfill their financial obligations as investors or may take actions that are inconsistent with the Company’s objectives;
  • changes in the Company’s plans for properties or views of market economic conditions or failure to obtain development rights, either of which could result in recognition of significant impairment losses;
  • the Company’s ability to satisfy and operate effectively under Federal income tax rules relating to real estate investment trusts and partnerships;
  • the Company's ability to achieve projected results;
  • the dilutive effects of issuing additional common shares; and
  • environmental requirements.

The Company undertakes no obligation to update or supplement any forward-looking statements. For further information, please refer to the Company’s filings with the Securities and Exchange Commission, particularly the section entitled “Risk Factors” in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2016.

Corporate Office Properties Trust
IR Contacts:
Stephanie Krewson-Kelly, 443-285-5453
stephanie.kelly@copt.com
or
Michelle Layne, 443-285-5452
michelle.layne@copt.com

Source: Corporate Office Properties Trust

Released May 11, 2017