Corporate Office Properties Trust (OFC) filed Quarterly Report for the period ended 2009-09-30.
Corporate Office Properties Trust is a fully-integrated and self-managed real estate investment trust that focuses principally on the ownership management leasing acquisition and development of suburban office buildings located in select submarkets in the Mid-Atlantic region of the United States. Corporate Office Properties operates three real estate service companies: Corporate Development Services Corporate Office Services and Corporate Management Services. Corporate Office Properties Trust has a market cap of $1.93 billion; its shares were traded at around $33.19 with a P/E ratio of 12.2 and P/S ratio of 3.3. The dividend yield of Corporate Office Properties Trust stocks is 4.7%.
Highlight of Business Operations:
· issued 2.99 million common shares in an underwritten public offering made in conjunction with our inclusion in the S&P MidCap 400 Index effective April 1, 2009. The shares were issued at a public offering price of $24.35 per share for net proceeds of $72.1 million after underwriting discounts but before offering expenses.
As the tables above indicate, much of our total increase in revenues from real estate operations and property operating expenses was attributable primarily to the Property Additions. In addition, the column in each of the tables above entitled “Other Dollar Change” include the effects of approximately 500,000 square feet of vacancy at three properties in Greater Philadelphia that we expect to redevelop; we recognized a decrease in revenue of $1.3 million for the three and nine month periods and an increase in property operating expenses of approximately $500,000 for the three and nine month periods attributable to these properties.
Our interest expense included in continuing operations decreased by $1.5 million for the three month periods and $6.5 million for the nine month periods due primarily to a decrease in the weighted average interest rates of our debt from 5.1% to 4.9% for the three month periods and 5.2% to 4.8% for the nine month periods. The events in the economy have contributed towards significant reductions in interest rates on our variable rate debt. We expect interest expense in the last three months of 2009 to increase somewhat from the first nine months as a result of us having repaid a significant portion of our variable rate debt using proceeds from newly obtained fixed rate longer term debt bearing higher interest rates.
· an increase in interest income of $782,000 for the three month periods and $2.9 million for the nine month periods in connection with a mortgage loan receivable that we funded in August 2008; and
· a $969,000 gain recognized in the current periods on changes in the value of warrants to purchase additional common shares of an equity method investee. Our equity in the loss of the investee, which recognized expense in connection with the warrants, was $664,000 in the three months ended September 30, 2009 and $878,000 in the nine months ended September 30, 2009.
OFC is in the portfolios of Chris Davis of Davis Selected Advisers, Kenneth Fisher of Fisher Asset Management, LLC.
Rate This Article: |
  |