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OFCPRLCL.PFD (Corporate Office Properties Trust) Financial Strength : 3 (As of Mar. 2025)


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What is Corporate Office Properties Trust Financial Strength?

Corporate Office Properties Trust has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

COPT Defense Properties displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Corporate Office Properties Trust's Interest Coverage for the quarter that ended in Mar. 2025 was 2.66. Corporate Office Properties Trust's debt to revenue ratio for the quarter that ended in Mar. 2025 was 3.27. As of today, Corporate Office Properties Trust's Altman Z-Score is 0.71.


Competitive Comparison of Corporate Office Properties Trust's Financial Strength

For the REIT - Office subindustry, Corporate Office Properties Trust's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Corporate Office Properties Trust's Financial Strength Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Corporate Office Properties Trust's Financial Strength distribution charts can be found below:

* The bar in red indicates where Corporate Office Properties Trust's Financial Strength falls into.


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Corporate Office Properties Trust Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Corporate Office Properties Trust's Interest Expense for the months ended in Mar. 2025 was $-20.50 Mil. Its Operating Income for the months ended in Mar. 2025 was $54.60 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was $2,365.89 Mil.

Corporate Office Properties Trust's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*54.596/-20.504
=2.66

The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. COPT Defense Properties interest coverage is 2.6, which is low.

2. Debt to revenue ratio. The lower, the better.

Corporate Office Properties Trust's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(95 + 2365.886) / 751.424
=3.27

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Corporate Office Properties Trust has a Z-score of 0.71, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.71 is in distress zone. This implies bankruptcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Corporate Office Properties Trust  (NYSE:OFCPRLCL.PFD) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Corporate Office Properties Trust has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Corporate Office Properties Trust Financial Strength Related Terms

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Corporate Office Properties Trust Business Description

Traded in Other Exchanges
Address
6711 Columbia Gateway Drive, Suite 300, Columbia, MD, USA, 21046
COPT Defense Properties is a fully-integrated and self-managed real estate investment trust (REIT) focused on owning, operating and developing properties in locations proximate to, or sometimes containing, key U.S. Government (USG) defense installations and missions. Its tenants include the USG and their defense contractors, who are engaged in priority national security activities, and who generally require mission-critical and high security property enhancements. Its properties include 195 operating properties totaling approximately 22.4 million square feet comprised of 16.5 million square feet in 164 office properties and 5.9 million square feet in 31 single-tenant data center shells.