Corporate Office Properties Trust took a hit in the three-month period that ended in June, as it wrote off nearly $70 million related to properties the real estate investment trust has decided to sell or not redevelop.
The Columbia-based firm, which develops and owns office buildings with primarily defense-related tenants, said Thursday it lost 54 cents per share in the second quarter, compared to profits of 13 cents per share during the same period last year. The firm's funds from operations, a measure typically used to measure REITs, also declined to 36 cents per share from 48 cents a year earlier.
Despite the loss, CEO Stephen E. Budorick said the firm remains on track to achieve its goals, pointing to solid leasing and sales, including six data centers purchased by an affiliate it formed with GI Partners, an investment firm. COPT expects sales worth $235 million before the end of September, Budorick said.
COPT reported revenue of about $146 million for the second quarter, down from $170 million a year ago, reflecting a decline in construction revenue.
Pperating expenses surged to nearly $173 million, driven by impairment losses of about $69.6 million, traced to a decision to sell additional properties, including in Aberdeen, and the Fort Meade and the Baltimore-Washington markets.
The company said the moves were due to a portfolio review in light of a "refined" investment strategy introduced by Budorick, who became CEO this spring after serving as chief operating officer.