Corporate Office Properties Trust OFC – COPT – has acquired a 368,200 square feet building in Baltimore, MD. The acquisition, valued at $63.5 million, comes as part of the company’s plan to expand its portfolio of urban, in-fill properties.
Reflecting positive sentiments, the stock reached a 52-week high of $30.84 on Mar 20. The stock closed at $30.75, which marked an increase of 2.84%.
Currently 95% leased, the newly acquired 24-story building is positioned at 250 West Pratt Street. We believe that this addition of an in-fill building in the Baltimore submarket, which enjoys a solid transportation network and amenities as well, would help the company generate decent cash flows, going forward.
According to media sources, this high-rise building is supposed to house Danish jewelry maker Pandora Jewelry. Pandora would soon move its employees and its Americas headquarters to the building.
Notably, COPT generated 77% of its annualized revenues from its strategic tenant niche properties and 23% from its regional office properties as of Dec 31, 2014. This office real estate investment trust (“REIT”) focuses on office and data center properties that are mainly placed in big office parks positioned near knowledge-based government demand drivers as well as in submarkets in the Greater Washington, DC/Baltimore area. The company had 173 office properties in its kitty, spanning 16.8 million rentable square feet, as of Dec 31, 2014.
COPT has been a steady performer with the company beating the Zacks Consensus Estimate in three out of the trailing four quarters. The company posted an average earnings surprise of 2.14% over the past four quarters.
COPT currently carries a Zacks Rank #2 (Buy). Investors interested in the REIT industry may also consider stocks like CareTrust REIT, Inc. CTRE, CoreSite Realty Corporation COR and Kilroy Realty Corp. KRC. All these stocks sport a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Be the first to comment