SPRINGFIELD, VA—Corporate Office PropertiesTrust posted strong third quarter performance forshareholders—activity that is expected to continue as long-standingtrends in which the REIT has invested continue to play out. Oneexample: COPT expects to see leasing activity step up atPatriot Ridge, according to comments made byStephen E. Budorick, EVP and COO of COPT duringthe earnings call.

|

During the first quarter COPT saw an increase in showing afterthe Bipartisan Budget Act was passed, he said.

|

"That's translated into some pretty significant awards out ofvarious agencies around Fort Belvoir" totaling about $8 billion."We have multiple groups now looking at planning, waiting for theactual task orders to be awarded under that new wave of contractsthat got awarded. So we're feeling in another quarter or two thatwe should be in a position to start booking leases at PatriotRidge."

|

COPT began developing Patriot Ridge in 2010. It was a newsubmarket for the REIT and the 15-acre project, which hasdevelopment potential of between 800,000 and 980,000 square feet,is adjacent to the new National Geospatial Intelligence Agencyheadquarters at Fort Belvoir.

|

Fort Belvoir, of course, has been the beneficiary of the largestBRAC gain of any military installation in the country.

|

HGA is providing master planning, architecturaldesign and engineering services for Patriot Ridge. The three-phaseproject includes Phase I, a 244,000-square-foot, 8-story Class Aoffice building and 1,300-space parking facility. Phase II willconsist of a 240,000-square-foot, eight-story Class A officebuilding designed to comply with AT/FP low level blast criteria;and Phase III will be twin 8-story Class A office building totaling240,000 square feet.

|

In 2011 COPT announced that an unidentified tenant is taking103,000 square feet at the first building under construction.

|

In general COPT was full of good news for shareholders. Itsthird quarter FFO per share of 48 cents was on the high end of itsguidance range. Also, as CEO Roger Waesche notedQ3 quarter results were 9% higher than the 44 cents it reported inthe second quarter, "evidencing that our quarterly FFO per sharedid indeed bottom in the second quarter and is now rebuilding."

|

COPT's overall portfolio is 91.5% occupied and 93% leased.

Want to continue reading?
Become a Free ALM Digital Reader.

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.