COLUMBIA, MD—Columbia Office Property Trust is feeling good about its direction. "Based on leasing already executed, and the leasing momentum we are experiencing across the majority of our portfolio, we are highly confident that FFO per share will now trend higher, beginning with this third quarter," CEO Roger A. Waesche, Jr., says in a prepared statement with the release of the REIT's Q2 earnings.

For Q2, the REIT reported diluted funds from operations per share (or FFOPS) at $0.37 compared to $0.25 in the second quarter of 2013. When FFOPS was adjusted for comparability, the quarter clocked in at $0.44 compared to $0.52 for same period in 2013.

It also narrowed its previously-issued guidance for 2014 FFOPS, as adjusted for comparability, from the prior range of $1.85–$1.92, to a new range of $1.86–$1.90.

FFO is a key metric by which investors measure and compare REIT performance.

One reason for Waesche's confidence is, no doubt, the 131,600-square foot lease the REIT also announced on Friday morning. A major defense contractor is taking the space at COPT's Redstone Gateway project in Huntsville, AL. The tenant has leased 7200 Redstone Gateway, an already-developed 62,400-square foot flex building that will be connected to a new 69,200-square foot building located at 7400 Redstone Gateway on which COPT will immediately begin construction. The lease will commence during the third quarter of 2015.

Another factor likely driving the improved outlook: the REIT presumably has a buyer or buyers for eight buildings that are being held for sale, according to the earnings report. Excluding those properties, COPT's portfolio of 172 buildings were 90.0% occupied and 92.2% leased by quarter's end. The eight buildings held for sale total approximately 303,000 square feet and are 49.9% leased and 48.3% occupied.