COLUMBIA, MD-Corporate Office Properties Trust reported a loss for its third quarter 2012. Its diluted loss per share was 39 cents for the quarter, compared to earnings per share of 3 cents the same quarter the previous year. Impairment losses of $55.8 million associated with the REIT's non-strategic operating properties were part of the reason for the drop in earnings this quarter. COPT also posted a 53 cent diluted funds from operations per share, for a 2% in increase over the same period last year. COPT has embarked on a strategic reallocation plan in part to deleverage its balance sheet and in part to reposition its portfolio.

In a prepared statement, CEO Roger A. Waesche, Jr., said the REIT was ahead of schedule on leasing, on selling non-strategic assets and in its deleveraging. "We remain focused on completing the strategic initiatives currently in progress to position the company for future growth," he added.

COPT reported that, as of the end of the third quarter, its portfolio consisted of 206 operating office properties totalling 18.6 million square feet. The portfolio was 88.1% occupied and 89.9% leased, up 70 and 60 basis points, respectively, from June 30, 2012 levels. COPT also leased a total of 608,000 square feet during the quarter, including 259,000 square feet of development and first generation leasing.

The REIT has an active development pipeline, with eight office properties under construction and three additional properties placed under construction in early October. The total projected cost of these 11 properties, which total 1.3 million square feet, is $307.9 million. Of that amount, $162.4 million has already been incurred. COPT also has two properties under redevelopment for an anticipated total cost of $56.3 million, of which $31.1 million had been spent.