COLUMBIA, Md.--(BUSINESS WIRE)--
Corporate Office Properties Trust (COPT) (OFC), announces it executed leases for over one million square feet during the second quarter of 2013. Of the total, nearly 600,000 square feet were new leases, including over 460,000 square feet of new leases for properties under construction before or during the second quarter of 2013. As a result, the Company’s construction pipeline, which was 62% pre-leased at March 31, 2013, was 74% leased at June 30, 2013.
Included in the development leasing total were leases with two strategic tenants for approximately 395,000 square feet in buildings currently under construction in Northern Virginia. Both buildings are now 100% leased, with anticipated move-in dates during the first quarter of 2014 and the first half of 2015.
|For the Quarter ended June 30, 2013||Leased|
|Development and Redevelopment Space||461,000|
|Other New Leases||133,000|
|Total New Leases||594,000|
|Total square feet of office leasing in 2Q13||1,045,000|
“We are pleased to see development leasing outpacing our forecast for the year,” stated Roger A. Waesche, Jr., President & Chief Executive Officer of COPT. “We believe that four consecutive quarters of better than expected demand for new development space illustrates how some of our strategic customers are regaining the confidence to make longer term space commitments,” he stated.
COPT is an office REIT that focuses primarily on serving the specialized requirements of U.S. Government agencies and defense contractors, most of whom are engaged in defense information technology and national security-related activities. 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 March 31, 2013, the Company’s consolidated portfolio consisted of 210 office properties totaling 19.1 million rentable square feet. COPT is an S&P MidCap 400 company.
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.
- Investment & Company Information