COPT posts quar­terly profit, re­vers­ing ear­lier 2016 losses

Baltimore Sun - - MARYLAND - By Natalie Sher­man nsh­er­man@balt­sun.com

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.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.