NYSE:OFC

Stock Analysis Report

Corporate Office Properties Trust

Executive Summary

COPT is a REIT that owns, manages, leases, develops and selectively acquires office and data center properties.


Snowflake Analysis

Undervalued with proven track record and pays a dividend.


Similar Companies

Share Price & News

How has Corporate Office Properties Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: OFC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.9%

OFC

-0.07%

US REITs

-1.1%

US Market


1 Year Return

12.7%

OFC

16.0%

US REITs

17.9%

US Market

Return vs Industry: OFC underperformed the US REITs industry which returned 16% over the past year.

Return vs Market: OFC underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

OFCIndustryMarket
7 Day-1.9%-0.07%-1.1%
30 Day-1.2%3.6%1.4%
90 Day3.5%7.8%6.9%
1 Year17.2%12.7%20.7%16.0%20.3%17.9%
3 Year-2.1%-12.9%37.9%20.6%47.8%38.3%
5 Year23.3%0.8%60.3%27.3%71.9%53.0%

Price Volatility Vs. Market

How volatile is Corporate Office Properties Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Corporate Office Properties Trust undervalued compared to its fair value and its price relative to the market?

42.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OFC ($29.63) is trading below our estimate of fair value ($51.43)

Significantly Below Fair Value: OFC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OFC is good value based on its PE Ratio (17.2x) compared to the REITs industry average (37.2x).

PE vs Market: OFC is good value based on its PE Ratio (17.2x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

PEG Ratio: OFC's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: OFC is good value based on its PB Ratio (2x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

How is Corporate Office Properties Trust forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-16.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OFC's earnings are forecast to decline over the next 3 years (-16.4% per year).

Earnings vs Market: OFC's earnings are forecast to decline over the next 3 years (-16.4% per year).

High Growth Earnings: OFC's earnings are forecast to decline over the next 3 years.

Revenue vs Market: OFC's revenue (3.1% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: OFC's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: OFC's Return on Equity is forecast to be low in 3 years time (6.1%).


Next Steps

Past Performance

How has Corporate Office Properties Trust performed over the past 5 years?

17.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OFC has a large one-off gain of $104.9M impacting its December 31 2019 financial results.

Growing Profit Margin: OFC's current net profit margins (29.7%) are higher than last year (12.4%).


Past Earnings Growth Analysis

Earnings Trend: OFC's earnings have grown by 17.2% per year over the past 5 years.

Accelerating Growth: OFC's earnings growth over the past year (165.9%) exceeds its 5-year average (17.2% per year).

Earnings vs Industry: OFC earnings growth over the past year (165.9%) exceeded the REITs industry 7.6%.


Return on Equity

High ROE: OFC's Return on Equity (11.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Corporate Office Properties Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: OFC has a high level of physical assets or inventory.

Debt Coverage by Assets: OFC's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

Asset Level: OFC's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if OFC has a sufficient allowance for bad loans.

Low Risk Liabilities: OFC reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if OFC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: OFC has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if OFC has an appropriate level of bad loans.


Next Steps

Dividend

What is Corporate Office Properties Trust's current dividend yield, its reliability and sustainability?

3.71%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%1.4%markettop25%3.7%industryaverage3.5%forecastin3Years4.0%

Current dividend yield vs market & industry

Notable Dividend: OFC's dividend (3.71%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: OFC's dividend (3.71%) is low compared to the top 25% of dividend payers in the US market (3.73%).


Stability and Growth of Payments

Stable Dividend: OFC's dividends per share have been stable in the past 10 years.

Growing Dividend: OFC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.7%), OFC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OFC's dividends in 3 years are forecast to be thoroughly covered by earnings (0.5% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.4yrs

Average management tenure


CEO

Steve Budorick (59yo)

3.8yrs

Tenure

US$3,533,047

Compensation

Mr. Stephen E. Budorick, also known as Steve, has been the Chief Executive Officer and President at Corporate Office Properties Trust since May 12, 2016. Mr. Budorick was elected Trustee at the firm in May ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD3.53M) is about average for companies of similar size in the US market ($USD4.87M).

Compensation vs Earnings: Steve's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Budorick
President3.8yrsUS$3.53m0.13% $4.3m
Anthony Mifsud
Executive VP & CFO5yrsUS$1.49m0.047% $1.6m
Paul Adkins
Executive VP & COO3.3yrsUS$1.65m0.033% $1.1m
Gregory Thor
Chief Accounting Officer11.6yrsno datano data
Stephanie Krewson-Kelly
Vice President of Investor Relations0yrsno datano data
David Finch
VP, General Counsel & Secretary9.1yrsno datano data
S. Williams
Senior Vice President of Business Development7.4yrsno datano data
Holly Edington
Senior Vice President of Human Resources0yrsno datano data
Catherine Ward
Senior Vice President of Asset Management & Leasing16.1yrsno datano data
Dean Lopez
Senior Vice President of Development & Construction0yrsno datano data

7.4yrs

Average Tenure

57yo

Average Age

Experienced Management: OFC's management team is seasoned and experienced (7.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Budorick
President3.8yrsUS$3.53m0.13% $4.3m
C. Pickett
6.3yrsUS$198.10k0.015% $504.3k
Philip Hawkins
6.1yrsUS$196.10k0.0050% $166.3k
Thomas Brady
Chairman of the Board6.8yrsUS$241.10k0.012% $405.1k
David Jacobstein
10.5yrsUS$202.60k0.0055% $184.1k
Steven Kesler
21.4yrsUS$185.10k0.031% $1.0m
Robert Denton
20.8yrsUS$204.10kno data
Lisa Trimberger
2.3yrsUS$179.10k0.015% $490.9k

6.5yrs

Average Tenure

64.5yo

Average Age

Experienced Board: OFC's board of directors are considered experienced (6.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: OFC insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7%.


Top Shareholders

Company Information

Corporate Office Properties Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Corporate Office Properties Trust
  • Ticker: OFC
  • Exchange: NYSE
  • Founded: 1988
  • Industry: Office REITs
  • Sector: Real Estate
  • Implied Market Cap: US$3.353b
  • Market Cap: US$3.309b
  • Shares outstanding: 113.17m
  • Website: https://www.copt.com

Number of Employees


Location

  • Corporate Office Properties Trust
  • 6711 Columbia Gateway Drive
  • Suite 300
  • Columbia
  • Maryland
  • 21046
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OFCNYSE (New York Stock Exchange)YesCommon SharesUSUSDDec 1991
WX7DB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1991

Biography

COPT is a REIT that owns, manages, leases, develops and selectively acquires office and data center properties. The majority of its portfolio is in locations that support the United States Government and its contractors, most of whom are engaged in national security, defense and information technology (“IT”) related activities servicing what it believes are growing, durable, priority missions (“Defense/IT Locations”). The Company also owns a portfolio of office properties located in select urban/urban-like submarkets in the Greater Washington, DC/Baltimore region with durable Class-A office fundamentals and characteristics (“Regional Office Properties”). As of December 31, 2019, the Company derived 88% of its core portfolio annualized rental revenue from Defense/IT Locations and 12% from its Regional Office Properties. As of the same date and including 15 buildings owned through unconsolidated joint ventures, COPT’s core portfolio of 168 office and data center shell properties encompassed 19.0 million square feet and was 94.6% leased; the Company also owned one wholesale data center with a critical load of 19.25 megawatts that was 76.9% leased. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:31
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.