BALTIMORE, MD—Like most REITs, Corporate Office Properties Trust has a capital recycling program in place to keep its balance sheets in line as it improves its portfolio. Like all REITs, it seeks to improve shareholders and analysts with corporate earnings. To sum up, the locally-based REIT hit all of these high notes this week.

On Tuesday morning it announced it has agreed to acquire 100 Light St. and its 560-space structured parking garage, 30 Light St., in downtown Baltimore for $121 million.

The 37-story, 549,300-square foot building is 94% leased to such tenants as Transamerica Life Insurance, which occupies 28% of the building, Miles & Stockbridge, which has 21%, and Ober | Kaler, at 17%.

100 Light has the distinction of being the tallest building in the state of Maryland. Lexington Realty Trust is the seller.

"We are in the process of recycling proceeds from the sale of suburban properties to fund our investment in higher growth opportunities, such as 100 Light and, of course, new development projects …." says COPT president and CEO Roger A. Waesche, Jr., in a prepared statement.

The $121 million purchase price includes COPT assuming the property's $55 million mortgage loan, which has a fixed interest rate of 4.32% and matures in June 2023.

The day prior to its announcement of 100 Light St., COPT reported it had completed the sale of 1550 Westbranch Dr., in McLean, VA, for $27.75 million. The 152,200-square foot building is fully leased to The MITRE Corp. until October 2016.

COPT also reported its Q2 earnings for the second quarter. Top line takeaways from that include an increase in its full year guidance for FFO and a delivering diluted FFO that beat expectations by two cents.

"Second quarter results exceeded the high end of our guidance due to favorable NOI and the timing of our $300 million senior notes offering," Waesche said.

Instant Insights /

COPT Buys Maryland's Tallest Building; Sells Another Asset; Impresses With Earnings

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