COPT's management team July 29 reported a 7% increase in dilutedFFO to $34.2 million and 61 cents in the quarter ending June30, upfrom $31.8 million and 57 cents per share in the same quarter lastyear. COPT's results contrast with those of other office REITs,like Los Angeles-based Maguire Properties and Toronto-basedBrookfield Properties Trust [see related story on this page ofGlobeSt.com]. Maguire reported a loss of 110.6 million for thelatest quarter, and Brookfield reported a sharp slide in FFO.

The story behind COPT's numbers is the stability and reliabilityof government tenants, according to Baird analysts Christopher R.Lucas, Avi Lerner and David S. Nebinski. They say, in part, thatCOPT is prospering in these uncertain times because it is the"landlord of choice for the federal government and its contractors"for certain markets.

While occupancy is sliding and sublease space is growing ingeneral in US office markets, the Baird analysts point out COPT'soccupancy rates for its 19.1-million-sf portfolio rose in thelatest quarter, increasing about half a percentage point to 93.4%.The REIT's two largest submarkets are the Baltimore/WashingtonCorridor and suburban Baltimore, where occupancies, respectively,grew more than half a percentage point and 1.7% for the latestquarter.