COPT Completes Sale of 15 Colorado Springs Buildings

  COPT Completes Sale of 15 Colorado Springs Buildings

Business Wire

COLUMBIA, Md. -- December 13, 2013

Corporate Office Properties Trust (“COPT” or the “Company”) (NYSE: OFC)
announced that it completed the disposition of 15 operating properties
previously held-for-sale in Colorado Springs, Co in a transaction valued at
$134 million, for net proceeds of $131 million. The 15 properties sold are
listed in the table below:

                                                             
                                                               
Property Address              Square Feet   Property Address       Square Feet
                                                             
565 Space Center Drive        86,837        10807 New Allegiance   145,498
                                            Drive
655 Space Center Drive        103,968       12515 Academy Ridge    61,372
                                            View
985 Space Center Drive        104,031       9925 Federal Drive     53,744
745 Space Center Drive        51,770        9945 Federal Drive     74,005
980 Technology Court          33,207        9950 Federal Drive     66,221
1055 N. Newport Road          62,245        9960 Federal Drive     46,947
1670 N. Newport Road          67,260        9965 Federal Drive     77,583
3535 Northrop Grumman Point   130,573       TOTAL                  1,165,261
                                                             

“We are pleased to have completed our Strategic Reallocation Plan (“SRP”)
within the three-year time frame we established for ourselves and to have
executed these dispositions at exit cap rates that were within our guidance,”
stated Roger A. Waesche, Jr., COPT’s President & Chief Executive Officer.
“With our portfolio repositioning now substantially complete, we expect 2014
to be a year of transitioning our platform back to a growth mode,” he added.

With these 15 property dispositions, the Company has completed the operating
property portion of the SRP that it launched in the second quarter of 2011.
Since April 2011, the Company has disposed of $544 million of properties that
contained approximately 4.9 million square feet and realized net proceeds
(after transaction costs and repayment of property-specific debt) of
approximately $469 million. Additionally, the disposed properties represented
23.1% of COPT’s operating portfolio that existed at March 31, 2011 (the last
reporting period before the SRP was announced).

Company Information

COPT is an office REIT that focuses primarily on serving the specialized
requirements of U.S. Government agencies and defense contractors, most of
which are engaged in defense information technology and national
security-related activities. As of September 30, 2013, COPT derived 64% of its
annualized revenue from its strategic tenant niche properties and 21% from its
regional office properties. The Company generally acquires, develops, manages
and leases office and data center properties concentrated in large office
parks primarily located near knowledge-based government demand drivers and/or
in targeted markets or submarkets in the Greater Washington, DC/Baltimore
region. As of September 30, 2013, the Company’s consolidated portfolio
consisted of 210 office properties totaling 19.2  million rentable square
feet. COPT is an S&P MidCap 400 company.

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 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;
  *the Company’s ability to sell properties included in its Strategic
    Reallocation Plan;
  *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, 2012.

Contact:

Corporate Office Properties Trust
Stephanie Krewson, 443-285-5453
stephanie.krewson@copt.com
or
Michelle Layne, 443-285-5452
michelle.layne@copt.com
 
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