Corporate Office Properties Trust, a Columbia-based owner and developer of office parks, lowered its third-quarter earnings expectations because of a loss on an investment in a cybersecurity firm, the company said Friday.
COPT, which specializes in government and defense-related tenants, said it expects earnings of 2 cents per share to 5 cents per share for the quarter ended Sept. 30. The company, an office real estate investment trust, had said in July that it expected a range of 19 cents per share to 22 cents per share for the third quarter. COPT also revised its funds from operations guidance to 48 cents per share to 51 cents per share, down from the previously issued range of 62 cents per share to 65 cents per share. COPT expects to release earnings on Oct. 27.
The revisions reflect the quarter-end closing price of shares of The KEYW Holding Corp., a Hanover-based cybersecurity firm that serves defense companies. COPT's earlier guidance included a potential gain of $9.9 million, or 13 cents per share, on an investment in 2.6 million shares of KEYW. That potential gain had been calculated based on KEYW's July 27 closing price of $11.31, less COPT's investment basis of $7.45 per share as of June 30. Shares of KEYW closed at $7.11 per share on Sept. 30, resulting in a per share loss to COPT. The security firm on Sept . 26 had announced it lost a systems integration contract to a competitor.