Thursday, October 4, 2012

COPT Pulling Out of Philly; Will Take $46 Million Hit

Saying the properties it owns in the greater Philadelphia region no longer meet its strategic investment criteria, Corporate Office Properties Trust approved a plan by management to shorten the holding period for the office properties and developable land it owns in the area. 

The Columbia, MD-based REIT said it has determined that the carrying amounts of the properties will not likely be recovered from the cash flows from the operations and sales of the properties over the likely remaining holding period. 

Accordingly, during the three months ending Sept. 30, 2012, COPT will recognize a total non-cash impairment loss of $46 million -- the amount that the carrying values of the properties exceed their respective estimated fair values. 

These losses reflect the REIT's expectation that it will spend $25 million to complete its redevelopment and disposition of the properties over the next four years. 

COPT's Greater Philadelphia Holdings include: 

· 785 Jolly Road in Blue Bell, 219,065-SF office building, 100% occupied, $2,884,072 annualized rental revenue 
· 801 Lakeview Drive in Blue Bell, 218,653-SF office building, 99.4% occupied, $5,341,961 
· 751 Arbor Way (Hillcrest I) in Blue Bell, PA, 113,291 SF of office space upon redevelopment, 39% occupied, - 
· Arborcrest land in Blue Bell, 8 acres, 722,000 developable SF.

www.omegare.com 

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