{"id":752369,"date":"2023-04-27T18:09:52","date_gmt":"2023-04-27T22:09:52","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/copt-first-quarter-2023-results-exceed-guidance\/"},"modified":"2023-04-27T18:09:52","modified_gmt":"2023-04-27T22:09:52","slug":"copt-first-quarter-2023-results-exceed-guidance","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/copt-first-quarter-2023-results-exceed-guidance\/","title":{"rendered":"COPT First Quarter 2023 Results Exceed Guidance"},"content":{"rendered":"

<\/p>\n

COPT First Quarter 2023 Results Exceed Guidance<\/b><\/p>\n

\n_______________________________________________________________<\/p>\n

EPS of $0.70 for 1Q23 and
\n
<\/b>FFO per Share, as Adjusted for Comparability, of $0.59
\n
<\/b>Exceeded High-End of Guidance<\/b><\/p>\n

Narrowed 2023 FFO per Share Guidance, Midpoint Unchanged<\/i><\/p>\n

Core Portfolio 92.9% Occupied and 95.1% Leased<\/i><\/p>\n

Same-Property Cash NOI Increased 8.3% in the Quarter
\n
<\/i>Raising Same-Property Cash NOI Guidance for the Year by 100 Basis Points, to 3%-5%<\/i><\/p>\n

1.5 million<\/i> SF of Active Developments are 92% Leased<\/i><\/p>\n

\n_______________________________________________________________<\/p>\n

Strong Leasing to Start the Year; On Track to Meet Development and Vacancy Leasing Goals<\/b><\/p>\n

Total Leasing of 788,000 SF<\/i><\/p>\n

495,000 SF of Development Leasing<\/i><\/p>\n

99,000 SF of Vacancy Leasing
\n
<\/i>On Track to Achieve Annual Goal of 400,000 SF<\/i><\/p>\n

Tenant Retention of 63.9%
\n
<\/i>Raising Tenant Retention Rate Guidance for the Year by 250 Basis Points, to 80%-85%<\/i><\/p>\n

\n_______________________________________________________________<\/p>\n

COLUMBIA, Md.–(BUSINESS WIRE<\/a>)–
\nCorporate Office Properties Trust (\u201cCOPT\u201d or the \u201cCompany\u201d) (NYSE: OFC) announced results for the first quarter ended March 31, 2023.<\/p>\n

Management Comments<\/span><\/b><\/p>\n

\nStephen E. Budorick, COPT\u2019s President & Chief Executive Officer, commented, \u201cOur Defense\/IT investment strategy, which has concentrated our portfolio near priority U.S. defense installations, continues to produce solid results, as evidenced by the 96.7% leased rate in our Defense \/ IT segment, which accounts for 90% of our core portfolio annualized rental revenue. Our first quarter results were strong as FFO per share exceeded the midpoint of our guidance range by $0.02, though given the uncertain interest rate environment, we are maintaining the midpoint of our full year guidance at $2.38 per share. Same property Cash NOI increased 8.3% year over year, which led us to increase our full year guidance by 100 basis points. We raised our full year retention rate by 250 basis points, which reflects our tenant\u2019s need to execute their missions at our strategic locations. Leasing overall is off to a great start, having already achieved roughly 70% of our full year development leasing goal, while vacancy leasing is right on track with our 400,000 square foot goal. Our investment grade rated balance sheet is well positioned to navigate the challenging capital markets environment as we have no significant debt maturities until 2026.\u201d<\/p>\n

\n\u201cIn February, we announced a 3.6% increase to our quarterly dividend, which marks our first dividend increase since 2010. This dividend increase illustrates the high level of confidence we have in our ability to grow our FFO per share, while self-funding the equity required for our expected development pipeline. The outlook for defense spending remains strong, as the FY 2024 Defense budget request calls for a 3.6% year over year increase, which follows the roughly $100 billion increase between FY21-FY23.\u201d<\/p>\n

Financial Highlights<\/span><\/b><\/p>\n

1st Quarter Financial Results:<\/b><\/p>\n