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Sep 30, 2021
COPT Q3 2021 Earnings Report
Reported strong third-quarter results, raised midpoint of full-year guidance, and demonstrated solid leasing activity.
Key Takeaways
COPT reported a strong third quarter, driven by demand for its Defense/IT Locations. The company raised its full-year guidance for FFO per share, as adjusted for comparability, to $2.27, representing 7.1% growth over 2020.
Diluted EPS was $0.24 for the quarter, and FFO per share, as adjusted for comparability, was $0.57, exceeding the high end of guidance by 1 cent.
Same-property cash NOI increased by 4.8% in the quarter, leading to an increased midpoint of same-property cash NOI guidance for the year.
The core portfolio was 93.5% occupied and 94.8% leased.
Active developments totaling 1.8 million square feet are 94% leased.
Forward Guidance
Management is increasing its full-year guidance for EPS and FFOPS, per Nareit and as adjusted for comparability.
Positive Outlook
- Full-year EPS guidance increased to a range of $0.76-$0.78.
- Full-year FFOPS, per Nareit, guidance increased to a range of $1.74-$1.76.
- Full-year FFOPS, as adjusted for comparability, guidance increased to a range of $2.26-$2.28.
- Strong leasing activity with 1.0 million square feet leased in the quarter.
- Development pipeline consists of 13 properties totaling 1.8 million square feet that are 94% leased.
Challenges Ahead
- Lowering prior guidance ranges for EPS and FFOPS (per Nareit and as adjusted for comparability) for the fourth quarter from $0.21-$0.23 and $0.56-$0.58, respectively, to $0.20-$0.22 and $0.55-$0.57, respectively, to account for the expected timing of repair and maintenance projects.
- Cash rents on renewed space decreased 0.6% for the quarter.
- Cash rents on renewed space decreased 0.3% for the nine months ended September 30, 2021.
Historical Earnings Impact
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