Corporate Office Properties Trust (OFC) Tops Q1 EPS by 3c, Revenues Beat; Lowers FY19 EPS Guidance Below Consensus, Q2 EPS Guidance Below Consensus

Corporate Office Properties Trust (NYSE: OFC) reported Q1 EPS of $0.19, $0.03 better than the analyst estimate of $0.16. Revenue for the quarter came in at $148.94 million versus the consensus estimate of $132.5 million.

• EPS of $0.19 Exceeds Guidance; FFO per Share of $0.50 Meets High-End of Range
• Strong Same-Property Cash NOI Growth of 4.7%
• Core Portfolio 92.8% Occupied & 93.7% Leased
• Solid Tenant Retention of 71.3%
• 181,000 SF of Development Placed into Service 100% Leased
• 1Q19 Cash Rent Spreads Anticipated; Full Year 2019 Rent Spread Guidance Maintained

Management Comments

Stephen E. Budorick, COPT’s President & Chief Executive Officer, commented, “Our first quarter results combined with our leasing successes in April represent a strong start to the year, and demonstrate the strength of demand recovery throughout our Defense/IT locations. We have achieved our full-year goal of leasing 900,000 square feet in development projects and, based on the pipeline of opportunities before us, are increasing our target to 1.4 million square feet.” He continued, “Including development starts for the four-building campus we announced today and a new building for U.S. Government use, our construction pipeline now includes 1.9 million square feet of projects that, on average are 81% leased. To fund this elevated level of development, we are increasing our disposition objective. Our patience with the DoD’s lease procurement process and our willingness to engage in long-term solutions for customers at our Defense/IT locations are starting to pay off with increased levels of development opportunities.”

GUIDANCE:

Corporate Office Properties Trust sees FY2019 EPS of $0.62-$0.66, versus the consensus of $0.75.

Corporate Office Properties Trust sees FY2019 EPS of $0.15-$0.16, versus the consensus of $0.17.

For earnings history and earnings-related data on Corporate Office Properties Trust (OFC) click here.

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