Corporate Office Properties Trust (OFC) Tops Q4 EPS by 19c, Revenues Beat; Offers Q1 & FY20 EPS Guidance Below Consensus

Corporate Office Properties Trust (NYSE: OFC) reported Q4 EPS of $0.38, $0.19 better than the analyst estimate of $0.19. Revenue for the quarter came in at $157.79 million versus the consensus estimate of $130.7 million.

4th Quarter Financial Results:

• Diluted earnings per share (“EPS”) was $0.38 for the quarter ended December 31, 2019 as compared to $0.16 for the fourth quarter of 2018.
• Diluted funds from operations per share (“FFOPS”), as calculated in accordance with Nareit’s definition, of $0.49 for the fourth quarter of 2019 equaled fourth quarter 2018 results.
• FFOPS, as adjusted for comparability, was $0.50 for the fourth quarter of 2019, equal to fourth quarter 2018 results.

Management Comments

Stephen E. Budorick, COPT’s President & Chief Executive Officer, commented, “Fourth quarter and full year FFO per share met the mid-points of our updated guidance ranges, and strong demand throughout our Defense/IT Locations translated into record leasing for new developments, strong vacancy leasing, and near-record leasing with the U.S. Government. Our 2.2 million square feet of development leasing exceeded our prior annual record set in 2012 by 1 million square feet, and we executed 586,000 square feet of development and vacancy leasing with the U.S. Government, our second-best year ever.” He continued, “We believe that this strong leasing achievement, combined with the $357 million of equity raised and the 1.2 million square feet of 100% leased developments placed into service during 2019, position our Company to deliver 1.5%-3.5% FFO per share growth in 2020, and robust FFO growth in 2021.”

GUIDANCE:

Corporate Office Properties Trust sees Q1 2020 EPS of $0.12-$0.14, versus the consensus of $0.19.

Corporate Office Properties Trust sees FY2020 EPS of $0.66-$0.70, versus the consensus of $0.78.

“Last year’s record achievement in development leasing and strong vacancy leasing, combined with the $357 million of equity we raised, position our Company to deliver solid FFOPS growth of 1.5%−3.5% in 2020,” stated Stephen E. Budorick, COPT’s President & Chief Executive Officer. “The incremental EBITDA from 1.4 million square feet of highly leased development projects we will place into service during the year reduces the equity required to maintain conservative leverage levels and invest $325−$375 million into development. These projects will increase our core portfolio square footage by 7% and should translate into robust growth in 2021.”

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

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