COPT posts quarterly profit, reversing earlier 2016 losses
Corporate Office Properties Trust said Thursday it earned $23.7 million in the third quarter, a reversal from losses incurred earlier this year.
However, the Columbia-based real estate investment trust’s profit fell sharply from the $86.2 million it reported for the same period last year, driven by about $27.7 million of impairment losses. Such losses reflect a decline in an asset’s value to better reflect the future cash flow it will produce. COPT reported nearly $70 million in impairment losses in the second quarter when it reported a loss.
In the three months that ended in September, COPT earned 25 cents per share, compared to 91 cents last year.
COPT’s funds from operations per share, a closely watched metric for real estate investment trusts because it includes items such as depreciation and amortization, was 49 cents in the third quarter, down from $1.32 last year but up from the prior quarter. COPT’s shares closed unchanged at $26.04 on Friday.
Stephen E. Budorick, COPT’s president and CEO, said the firm’s performance was in line with expectations.
“Demand throughout our portfolio is steady and provides solid momentum for 2017,” he said in a statement.
The company’s biggest tenants are the U.S. government, as well as major defense contractors. It has trimmed its core portfolio, much of which is located in the Fort Meade and Baltimore-Washington corridor, to 146 properties, which are about 94 percent leased.