February 10, 2011 by staff
Redstone Arsenal, Corporate Office Properties Trust (Coptic) (NYSE: ECB | PowerRating) announced today its financial and operating results for the fourth quarter and year ended December 31, 2010. Excluding costs related to the purchase of properties operating funds from operations (FFO) per diluted share for the fourth quarter and full year 2010, respectively, and were 0.70 and 2.36 and.
“The team COPT reached 4.3 million square feet of leasing, the highest volume in company history, despite the challenges posed by the economy in general. We believe that this surge of credit- Lease will continue in 2011, “said Randall M. Griffin, CEO of Office Properties Trust Company. “In 2010, COPT team enhanced the ability of our portfolio to meet the needs of our U.S. government and defense information technology tenants through strategic acquisitions, dispositions and development starts”, “he added.
2010 Full Year Highlights:
Diluted earnings per share were 0.43 and the year ended December 31, 2010, as compared to $ 0.70 for 2009, a decrease of 39%. FFO per diluted share for 2010, excluding operating costs of acquiring property, and was 2.36, down 5% compared to 2009-year results. Including acquisition costs, FFO per diluted share and was 2.30 for 2010 compared to 2.46 and for 2009. Diluted funds from operations adjusted (diluted AFFO) attributable to ordinary shareholders and holders of ordinary shares and 112.7 million was established in 2010, compared with 119.8 million and for 2009, down 6%. Diluted FFO ratio of 70% payment, excluding the effect of the operating costs of property acquisition and a ratio of 94% diluted AFFO payment for the year. Even ownership of desktop operating cash net income (NOI) decreased 1% for the year, excluding lease termination fees of crude. Including lease termination fees crude same office property cash NOI decreased 2% for the year. Volume leases 4.3 million square feet, a record label, and 1.1 million square feet more than the year previous best in 2008. Renewed 2.5 million square feet, equivalent to a renewal rate of 68%. Commissioned 816,000 square feet in nine development properties. These properties were leased to 77% by year-end. Construction began on 732,000 square meters, all focused on the U.S. government and defense computer. 317 million and acquired strategic assets of high quality (and 202 million for the office and $ 115 million dollars for a large data center). Increase in quarterly cash dividend by 5.1% in common in September 2010.
For the fourth quarter ended December 31, 2010 – EPS has been and 0.18 for the quarter ended December 31, 2010, as compared to $ 0.08 for 2009, an increase of 125%. Excluding $ 470,000 (or 0.01 per share & diluted) of acquisition costs, FFO for the fourth quarter ended December 31, 2010 totaled $ 52.7 million, or 0.70 euro per share and diluted. Fourth quarter 2010 represent an increase of 27% on a per share basis of the $ 0.55 per diluted share, or 39.1 million $ FFO for the fourth quarter of 2009. Including acquisition costs, FFO per diluted share for the fourth quarter of 2010 was and 0.69 versus 0.52 and reported in the fourth quarter of 2009.
For the year ended December 31, 2010 – EPS was 0.43 and the year ended December 31, 2010, as compared to $ 0.70 for 2009, a decrease of 39%. FFO for the full year 2010, excluding and 3.4 million (or 0.06 per share and diluted &) of acquisition costs, and was 171.7 million, or 2.36 per share and diluted. FFO per diluted share in 2010 represented a decrease of 5% from the $ 2.49 per diluted share, 173.3 million from $ FFO reported in 2009. Including acquisition costs, FFO per diluted share for 2010 was 2.30 and from 2.46 per diluted share for fiscal 2009.
Ministry Summary – On December 31, 2010, a full portfolio of the Company of 252 office properties totaling 20 million square feet. The weighted average remaining lease portfolio was 4.9 years and the average rental rate (including tenant reimbursements) was and 25.56 per square foot. Full portfolio of the Company was 88.2% and 89.5% occupied leased from December 31, 2010.
Even Performance Office – The Company’s portfolio it position for the year ended December 31, 2010 represents 85% of rentable square feet of its consolidated portfolio and consists of 230 properties. For the year ended December 31, 2010, even the League office property cash NOI decreased 1% excluding lease termination fees of crude compared to 2009. Including lease termination fees crude same office property cash NOI decreased 2% for the year compared to 2009.
Leasing – For the quarter ended December 31, 2010, 1.1 million square feet was renewed equivalent to a renewal rate of 84% to an average cost of committed and 8.13 square foot. Total rent on renewed space increased 3.3% on a linear basis, as measured from the straight-line rent in effect before the renewal date and decreased by 4.6% on a cash basis. For space and renewed retenanted 1.5 million square feet, total straight line rent increased 3.7% and total rent on a cash basis declined 4.5%. The average cost was incurred for the space has been renewed and retenanted and 14.02 per square foot.
For the year, 2.5 million square feet was renewed equivalent to a renewal rate of 68% in an average cost of capital of 7.84 per square foot. Total rent on renewed space increased 3.3% on a linear basis, as measured from the straight-line rent in effect before the renewal date and decreased by 4.8% on a cash basis. For the year, 3.2 million square feet was renewed and retenanted. Total rent online right space retenanted renewed and increased by 2.3% and total rent on a cash basis fell 5.6%. The average cost was incurred for the space has been renewed and retenanted and 11.72 per square foot. The Company recorded lease termination costs of $ 3.4 million, net of amortization of rents and leases related straight line above and below the market for the year ended December 31, 2010, compared to 4.6 million and for year-end December 31, 2009.
Developments – At December 31, 2010, the Company had 3.2 million square feet under construction, development and redevelopment of a total estimated cost of $ 698,500,000.
The land controlled company to December 31, 2010 2252 acres that can support up to 21.8 million square feet of development.
During the year the Company entered into two new sub-markets by:
End of the training of LW Redstone Company, LLC, and a joint venture created to develop Redstone Gateway, a parcel of 468 acres adjacent to land Redstone Arsenal in Huntsville, Alabama. The government owns the land and the United States under a long-term lease to the joint venture through enhanced use lease program. The joint venture will work closely with Redstone Arsenal to create a business park that will total approximately 4.6 million square feet of office space and shops when completed, of which 4.4 million square feet office space. In addition, the business park will include hotel and other amenities. The company is the managing partner of the joint venture with a controlling interest and responsibility for the development, leasing and management of office space at Redstone Gateway. Development and construction of the bridge Redstone should take place over a period of 15 to 20 years. The acquisition of 15 acres and the development potential of up to 978,000 square feet in Northern Virginia submarket of Springfield. This project, known as Patriot Ridge is adjacent to the value of 2.4 million square feet National Geospatial Intelligence Agency (NGA) is currently under construction at Fort Belvoir, the beneficiary of BRAC the largest increase of any military installation in the country.
Acquisitions – In 2010, the Company completed the following acquisitions totaling 317 million U.S. dollars:
152,000 square feet and $ 40 million, located at 1550 Parkway Westbranch in McLean, Virginia. The building is 100% leased to The MITRE Corporation. 233,000 square foot data center known as the Wholesale Power Loft @ Innovation in Manassas, Virginia, and 115.5 million. The hull of the data center was completed in early 2010 and the property was 17% leased, long term, on the date of acquisition of two tenants who have a combined critical initial charge of 3 megawatts of human expansion of up to 5 megawatts combined. The Company plans to eventually complete the development remains an initial stabilization of 18 megawatts, with additional development costs estimated during the acquisition of AT $ 166 million. At full load critique of property should be up to 30 megawatts. 362,000 square feet in two buildings of Class a office known as the Maritime Plaza I and II in the Capitol Riverfront submarket of Washington, DC, for about 119 million. As part of the acquisition, we assumed a loan and 70.1 million loans with a fixed interest rate of 5.35% maturing in March 2014. The buildings are subject to leases that expire in 2099 and 2100. The buildings are leased to 100% with over 50% of the space leased to tenants ‘investment grade’ in the niche targeted by the Company, such as Computer Sciences Corporation, General Dynamics and SAIC. 183,000 square feet, shell-complete, and office building for $ 43 million, located at 3120 Fairview Park Drive Falls Church, Virginia.
Provisions – During the year, the Company sold two properties in Dayton, New Jersey totaling 201,000 square feet and 20.9 million and recognized a gain of $ 780,000. The Company also sold a parcel of land adjacent to and 3 million and recognized a gain of 2.5 million.
Financing operations and capital:
The company has concluded the following significant transactions during the year:
On 7 April 2010, the Company issued 240 million and the aggregate principal amount of 4.25% maturing in 2030 traded. The notes have a settlement option under which the exchange notes may, under certain circumstances, be exchanged for money and cons of our common shares at an initial conversion rate (subject to change) of 20.7658 shares in 1000 and principal amount of notes (equivalent to an exchange price of 48.16 per common share, a premium of 20% over the closing price on the NYSE on the date of transaction pricing). As of April 20, 2015, the Company may redeem the Notes in cash, in whole or in part, on each of April 15, 2015, 15 April 2020 and April 15, 2025, or in the case of a change in “fundamental” as defined under the bill. The Company used the proceeds for general corporate purposes, including repayment of borrowings under its revolving credit facility, unsecured. On November 5, 2010, the Company issued 7,500,000 shares common stock at a tender price of 34.25 per share for net proceeds of 245.8 million after underwriting discounts but before offering expenses. The Company used the proceeds to repay the Company unsecured revolving credit facility and for general corporate purposes. In 2010, the Company increased its revolving credit facility and $ 200 million, from 600 million and $ 800 million.
Balance sheet and financial flexibility:
On December 31, 2010, the Company had a total market capitalization of 5 billion to 2.3 billion and outstanding debt, which equates to a ratio of 46% of the market debt to total capital invested. In addition, the Company’s weighted average interest rate was 4.9% for the quarter ended December 31 December 2010, the Company had 78% of the total debt subject to fixed interest rates from December 31, 2010.
For 2010, the Company’s EBITDA coverage ratio of interest expense was 3.01x and the ratio of EBITDA fixed charge coverage was 2.54x. Accounting work in progress, the adjusted debt of the Company to EBITDA was 6.08x of December 31, 2010.
Reconciliations of non-GAAP and GAAP measures most directly comparable are included in the tables following the text of this press release.
For 2010, the performance of the Company’s total shareholder was essentially flat, behind the office sector and Morgan Stanley NAREIT REIT Index (RMS). However, for the three years ended December 31, 2010, the Company has achieved the second highest return among all REITs total office. In addition, 456% of the Company the total return for the last ten years has ranked first among all REIT office and fourteenth among all REIT equity, according to figures compiled by NAREIT of December 31, 2010.
Please use the link below to pre-register and view important information about this conference call. Pre-registration is not mandatory but is recommended as it will provide you immediate entry into the call and facilitate the prompt start of the conference. Pre-registration only takes a few seconds and you can pre-register at any time, including up to and after call start time. To register, please click the link below: https: / / www.theconferencingservice.com/prereg/key.process? Key=PRQDHQKKG
You can also pre-register in the Investor Relations section of the Company’s website at www.copt.com. Alternatively, an operator may place you in the call by calling the number listed above at least 5 to 10 minutes before the call begins. A replay of this call will be available beginning Thursday, February 10th at 14:00 Eastern time on Thursday, February 24 at midnight Eastern Time. To access the replay within the U.S., please call 888-286-8010 and use access code 71577427. To access the replay outside the U.S., please call 617-801-6888 and use access code 71577427.
The conference call will also be available via live webcast in the Investor Relations section of the Company’s website at www.copt.com. A replay of the conference call will be immediately available via webcast in the Investor Relations section of the website of the Company.
Please refer to our Form 8-K or our website (www.copt.com) for definitions of certain terms used in this press release. Reconciliations of non-GAAP measure most directly comparable GAAP measures are included in the attached tables.
Corporate Office Properties Trust (COPT) (NYSE: BCE) is an office specializing in real estate investment trust (REIT) which focuses mainly on relationships with strategic customers and specialized tenant requirements in the United States government and Defense information technology sectors and data centers to service sectors such. The Company acquires, develops, manages and leases office buildings and data centers that are generally concentrated in large office parks primarily located adjacent to drivers of demand from government and / or growth markets that we believe have the growth opportunities. On December 31, 2010, the Company owned 271 office properties totaling 21.1 million rentable square feet, which includes 20 properties totaling 1.1 million square feet held through joint ventures. The company’s portfolio consists primarily of technically sophisticated buildings in visually appealing settings that are environmentally friendly, sustainable and meet specific customer requirements. COPT is an S & P MidCap 400 companies and more information can be found at www.copt.com.
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, which are based on the Company’s expectations, estimates and projections about future events and financial trends affecting the company. The forward-looking statements can be identified by the use of words such as “may,” “will,” “should,” “may,” “believe,” “anticipate,” “expect,” “estimate,” ” plan “or other comparable terminology. The forward-looking statements are subject to risks and uncertainties, 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 described in the forward-looking statements.
Important factors that could affect these expectations, estimates, and projections and include, but are not limited to:
General economic and business, which, inter alia, on the request Property Office and rents, tenant creditworthiness, interest rates and the availability of funding, adverse changes in real estate markets, including including, among others, increased competition with other companies; ability of the Company to borrow on favorable terms, the risk of real estate acquisition and development, including, among others, risks that development projects do can be completed on schedule, that tenants may not take occupancy or pay rent or that development or operating costs may be higher than expected, risks of investing through joint venture structures including the risk that the partners of joint venture company can not fulfill their financial obligations as investors or may take actions that are inconsistent with the objectives of the Company, changes in our plans or views of economic conditions or the failure to obtain development rights, whether that could lead to the recognition of impairment losses, our ability to satisfy and operate effectively under federal income tax rules relating to investment trusts real estate partnerships, governmental actions and initiatives and environmental requirements.
The Company assumes no obligation to update or supplement forward-looking statements. For more information, please see the documents filed by the Company 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, 2009.
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