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 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”).

Snowflake

Fundamentals

Proven track record average dividend payer.


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


Market Performance


7 Day Return

2.1%

OFC

1.5%

US REITs

0.4%

US Market


1 Year Return

5.1%

OFC

19.9%

US REITs

6.9%

US Market

Return vs Industry: OFC underperformed the US REITs industry which returned 19.9% over the past year.

Return vs Market: OFC underperformed the US Market which returned 6.9% over the past year.


Shareholder returns

OFCIndustryMarket
7 Day2.1%1.5%0.4%
30 Day2.4%1.6%-1.1%
90 Day11.4%7.8%-0.5%
1 Year9.7%5.1%25.2%19.9%9.3%6.9%
3 Year21.8%8.5%36.0%18.6%45.8%36.4%
5 Year32.7%8.4%64.7%30.0%62.9%45.1%

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?

33.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: OFC ($29.71) is trading below our estimate of fair value ($44.97)

Significantly Undervalued: OFC is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: OFC is good value based on its PE Ratio (19.8x) compared to the REITs industry average (36.2x).

PE vs Market: OFC is poor value based on its PE Ratio (19.8x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

Low 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 (2x).


Next Steps

Future Growth

How is Corporate Office Properties Trust forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

-14.5%

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 (-14.5% per year).

Earnings vs Market: OFC's earnings are forecast to decline over the next 3 years (-14.5% per year).

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

Revenue vs Market: OFC's revenue (2.3% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: OFC's revenue (2.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: OFC's Return on Equity is forecast to be low in 3 years time (6.5%).


Next Steps

Past Performance

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

12.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OFC's earnings have grown by 12.3% per year over the past 5 years.

Accelerating Growth: OFC's earnings growth over the past year (145.3%) exceeds its 5-year average (12.3% per year).

Earnings vs Industry: OFC earnings growth over the past year (145.3%) exceeded the REITs industry 17.6%.


Return on Equity

High ROE: OFC's Return on Equity (9.8%) is considered low.


Return on Assets

ROA vs Industry: OFC has a higher Return on Assets than the REITs industry average last year.


Return on Capital Employed

ROCE Improving: OFC has not improved its Return on Capital Employed over the past 3 years.


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?

3.70%

Current Dividend Yield


Dividend Yield vs Market

company3.7%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years3.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: OFC's dividend (3.7%) is higher than the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: OFC's dividend (3.7%) is low compared to the top 25% of dividend payers in the US market (3.73%).

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 (54.2%), 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

What is the CEO of Corporate Office Properties Trust's salary, the management and board of directors tenure and is there insider trading?

7.1yrs

Average management tenure


CEO

Steve Budorick (59yo)

3.4yrs

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 ($USD3.53M) is about average for companies of similar size in the US market ($USD5.11M).

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


Management Age and Tenure

7.1yrs

Average Tenure

57yo

Average Age

Experienced Management: OFC's management team is seasoned and experienced (7.1 years average tenure).


Board Age and Tenure

6.4yrs

Average Tenure

64.5yo

Average Age

Experienced Board: OFC's board of directors are considered experienced (6.4 years average tenure).


Insider Trading

Insider Buying: OFC insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$72,97923 Aug 19
Gregory Thor
EntityIndividual
Shares2,507
Max PriceUS$29.11
BuyUS$9,71616 Aug 19
Steven Kesler
EntityIndividual
Role
Member of the Board of Directors
Shares360
Max PriceUS$26.99
SellUS$97,25621 May 19
David Jacobstein
EntityIndividual
Role
Member of the Board of Directors
Shares3,458
Max PriceUS$28.13
SellUS$97,54915 May 19
Robert Denton
EntityIndividual
Role
Member of the Board of Directors
Shares3,458
Max PriceUS$28.21
BuyUS$25,01202 Jan 19
Stephen Budorick
EntityIndividual
Role
Chief Executive Officer
President
Shares1,206
Max PriceUS$20.74
BuyUS$10,40031 Dec 18
Steven Kesler
EntityIndividual
Role
Member of the Board of Directors
Shares500
Max PriceUS$20.80
BuyUS$24,95126 Dec 18
Stephen Budorick
EntityIndividual
Role
Chief Executive Officer
President
Shares1,213
Max PriceUS$20.57
BuyUS$24,99818 Dec 18
Stephen Budorick
EntityIndividual
Role
Chief Executive Officer
President
Shares1,115
Max PriceUS$22.42
BuyUS$101,42017 Dec 18
Philip Hawkins
EntityIndividual
Role
Member of the Board of Directors
Shares4,500
Max PriceUS$22.54
BuyUS$46,31517 Dec 18
Lisa Trimberger
EntityIndividual
Role
Member of the Board of Directors
Shares2,000
Max PriceUS$23.16
BuyUS$24,00213 Dec 18
Stephen Budorick
EntityIndividual
Role
Chief Executive Officer
President
Shares1,035
Max PriceUS$23.19
BuyUS$23,99812 Dec 18
Stephen Budorick
EntityIndividual
Role
Chief Executive Officer
President
Shares990
Max PriceUS$24.24
BuyUS$27,43810 Dec 18
Stephen Budorick
EntityIndividual
Role
Chief Executive Officer
President
Shares1,127
Max PriceUS$24.35
BuyUS$49,97006 Dec 18
Stephen Budorick
EntityIndividual
Role
Chief Executive Officer
President
Shares2,070
Max PriceUS$24.14
BuyUS$100,18320 Nov 18
Stephen Budorick
EntityIndividual
Role
Chief Executive Officer
President
Shares4,023
Max PriceUS$24.90
BuyUS$15,69731 Oct 18
Stephen Budorick
EntityIndividual
Role
Chief Executive Officer
President
Shares610
Max PriceUS$25.73

Ownership Breakdown


Management Team

  • Paul Adkins (60yo)

    Executive VP & COO

    • Tenure: 2.9yrs
    • Compensation: US$1.65m
  • Stephanie Krewson-Kelly

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Steve Budorick (59yo)

    President

    • Tenure: 3.4yrs
    • Compensation: US$3.53m
  • Cathy Ward

    Senior Vice President of Asset Management & Leasing

    • Tenure: 15.8yrs
  • Jud Williams

    Senior Vice President of Business Development

    • Tenure: 7.1yrs
  • Greg Thor (55yo)

    Chief Accounting Officer

    • Tenure: 11.3yrs
  • Holly Edington

    Senior Vice President of Human Resources

    • Tenure: 0yrs
  • Anthony Mifsud (55yo)

    Executive VP & CFO

    • Tenure: 4.7yrs
    • Compensation: US$1.49m
  • Dean Lopez

    Senior Vice President of Development & Construction

    • Tenure: 0yrs
  • David Finch

    VP, General Counsel & Secretary

    • Tenure: 8.8yrs

Board Members

  • C. Pickett (57yo)

    • Tenure: 5.9yrs
    • Compensation: US$198.10k
  • Phil Hawkins (63yo)

    • Tenure: 5.8yrs
    • Compensation: US$196.10k
  • Tom Brady (69yo)

    Chairman of the Board

    • Tenure: 6.4yrs
    • Compensation: US$241.10k
  • David Jacobstein (73yo)

    • Tenure: 10.2yrs
    • Compensation: US$202.60k
  • Steven Kesler (67yo)

    • Tenure: 21.1yrs
    • Compensation: US$185.10k
  • Robert Denton (66yo)

    • Tenure: 20.4yrs
    • Compensation: US$204.10k
  • Steve Budorick (59yo)

    President

    • Tenure: 3.4yrs
    • Compensation: US$3.53m
  • Lisa Trimberger (58yo)

    • Tenure: 0yrs
    • Compensation: US$179.10k

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$3.342b
  • Market Cap: US$3.313b
  • Shares outstanding: 113.09m
  • 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 in locations that support the United States Government and its contractors, most of whom are e ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 23:34
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.