COPT Announces the Sale of Eight Properties in White Marsh

  COPT Announces the Sale of Eight Properties in White Marsh

Business Wire

COLUMBIA, Md. -- August 14, 2014

Corporate Office Properties Trust (COPT or the Company) (NYSE:OFC) has
completed the disposition of eight operating properties previously
held-for-sale in the White Marsh submarket of Greater Baltimore, Maryland. The
properties sold in three separate transactions that had a combined value of
$28.75 million, generating net proceeds of $28.0 million. The Mercantile Road
and Campbell Boulevard buildings, respectively, were sold to a local
redeveloper and a 1031-exchange buyer; the Franklin Square properties were
purchased by an owner-occupier. Additional detail on each transaction is
summarized in the table, below.

 
                    Square                Gross            Price /       Cap
  Property Address  Feet     % Occ    Proceeds       SF          Rate
                    (000s)                ($000s)
  4969 & 4979       97       --       $ 5,900  (a)   $ 61  (a)   --
  Mercantile Road
  5020, 5022, 5024
  & 5026 Campbell   134        75.4 %       12,400         $ 93          8.4 %
  Boulevard
  9930 & 9940
  Franklin Square   72         62.5 %      10,450         $ 145         5.0 %
  Drive
                    303        48.3 %     $ 28,750         $ 95          4.3 %
                                                          
  a. Excludes $1.4 million of condemnation proceeds the Company received
  outside the sale.
  

These sales represent a strategic pruning of COPT’s office portfolio that
strengthens the overall quality and performance of the Company’s core
holdings. With these dispositions, COPT has reduced its White Marsh portfolio
to approximately 744,000 square feet that, at June 30, 2014, were 90.3% leased
to institutional quality tenants, including Johns Hopkins University and
Comcast Corporation (NASDAQ: CMCSA, CMCSK).

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 June 30, 2014, COPT derived 76% of its
annualized revenue from its strategic tenant niche properties and 24% 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 June 30, 2014, the Company’s consolidated portfolio consisted of
180 office properties totaling 16.9  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 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, 2013.

Contact:

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