Compliance Systems Corporation (OPI) Tops Q4 EPS by $1.56

Compliance Systems Corporation (NASDAQ: OPI) reported Q4 EPS of $1.35, $1.56 better than the analyst estimate of ($0.21). Revenue for the quarter came in at $160.18 million versus the consensus estimate of $160.4 million.

• Since January 1, 2019, Have Sold Approximately $1.0 Billion of Assets, Including 61 Properties for $869.9 Million and all of its RMR Inc. Shares for $104.7 Million
• Fourth Quarter Net Income Available for Common Shareholders of $65.0 Million, or $1.35 Per Share
• Fourth Quarter Normalized FFO Available for Common Shareholders of $66.4 Million, or $1.38 Per Share
• Completed 779,000 Square Feet of Leasing in the Fourth Quarter and 2,934,000 Square Feet in 2019 for a 4.2% Roll-Up in Rents

“Heading into 2019, OPI set expectations that we would sell approximately $750 million of assets to reduce our leverage to a targeted net debt to adjusted EBITDAre range, and we have exceeded these goals. Since January 1, 2019, we generated asset sales proceeds of approximately $1.0 billion, including $869.9 million in aggregate proceeds from property sales and net proceeds of $104.7 million from the sale of our 2.8 million shares of The RMR Group Inc. As a result, we have reduced leverage to below the low end of our targeted range and are well positioned to acquire properties in 2020 in conjunction with our capital recycling program.

In the fourth quarter, we also continued our strong leasing momentum, entering new and renewal leases for 779,000 square feet at a slight roll-up in rent and an average lease term of more than seven years. Total leasing for the year covered more than 2.9 million square feet with occupancy increasing 140 basis points on a year over year comparison to 92.4%. As a result, occupancy was higher at the end of the year than we expected going into 2019.

We look forward to continuing to execute on our business plan in 2020, with a focus now on capital recycling and disciplined acquisitions to shape our portfolio and potentially growing our cash available for distribution to shareholders.”

For earnings history and earnings-related data on Compliance Systems Corporation (OPI) click here.

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