SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) March 6, 1998
CORPORATE OFFICE PROPERTIES TRUST, INC.
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(Exact name of registrant as specified in its charter)
Minnesota 0-20047 41-1691930
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
One Logan Square
Suite 1105
Philadelphia, PA 19103
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (215) 567-1800
N/A
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(Former name or former address, if changed since last report)
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Item 5. Other Events.
Corporate Office Properties Trust, Inc. today announced its December 31,
1997 results.
A copy of the press release issued by the Company on March 6, 1998 relating
to the foregoing is attached hereto as Exhibit 99.1 and is incorporated herein
by reference.
Item 7. Financial Statements and Exhibits.
Exhibits.
Exhibit No. Description
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99.1 Press release dated March 6, 1998
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CORPORATE OFFICE PROPERTIES TRUST, INC.
Dated: March 6, 1998 By: /s/ Thomas D. Cassel
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Thomas D. Cassel
Vice President,
Finance
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EXHIBIT INDEX
Number Description Page
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99.1 Press release dated March 6, 1998 5
Exhibit 99.1
Corporate Office Properties Announces 1997 Fourth Quarter and Year End Results
Highlights * 1997 Funds from Operations (FFO) per share up 33% to $.80 *
Fourth quarter 1997 FFO per share up 60% to $0.24
Philadelphia, Pennsylvania, March 6, 1998 -- Corporate Office Properties
Trust, Inc. (Nasdaq-COPT) today reported FFO of $1,039,000 or $.24 per common
share/unit for the fourth quarter ended December 31, 1997 as compared to
$218,000 or $.15 per common share/unit for the fourth quarter 1996, representing
a per share/unit increase in FFO of 60%. Revenues for the fourth quarter 1997
increased 637% to $4,719,000 and net operating income grew 532% to $4,010,000
compared to the fourth quarter 1996.
For the year ended December 31, 1997, FFO grew to $1,718,000 or $.80 per
common share/unit compared to $847,000 or $.60 per common share/unit for 1996, a
per share/unit increase of 33%. Revenues for 1997 increased approximately 163%
to $6,618,000 and net operating income grew 138% to $5,890,000 compared to 1996.
The Company's FFO dividend payout ratio decreased to 63% for 1997 from 84% for
1996.
The Company's improved performance results directly from the acquisition of
the Mid-Atlantic operations of the The Shidler Group on October 14, 1997. In
connection with the acquisition, Corporate Office Properties' total weighted
average common shares and units increased to 4,326,000 for the fourth quarter
1997 and 2,153,000 for the year ended 1997 from 1,420,000 shares for both the
fourth quarter and year ended 1996.
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Corporate Office Properties Trust, Inc. (formerly Royale Investments, Inc.)
acquired the Mid-Atlantic suburban office operations of The Shidler Group,
consisting of 10 properties totalling 1.5 million square feet located in Blue
Bell and Harrisburg, Pennsylvania and Princeton, New Jersey along with its
entire management team.
Commenting on the Company's results, Clay W. Hamlin, III, President and
Chief Executive Officer, stated, "Our transformation reflects the strategic
repositioning of the Company into a high growth suburban office REIT. We feel
confident that our ability to identify the areas of greatest opportunity in the
market and our disciplined acquisition strategy will continue to grow FFO per
share/unit and deliver a strong return on investment to our shareholders."
Corporate Office Properties Trust, Inc. is a self-administered real estate
investment trust focused on the acquisition, ownership and operation of suburban
office properties located in high-growth submarkets.
To receive COPT's latest news release and other corporate
documents via FAX
- no cost-dial 1-800-PRO-INFO. Use company's ticker, COPT.
# # #
Financial Tables Attached
This press release contains forward-looking information based upon the
Company's current best judgment and expectations. Actual results could vary from
those presented herein. The risks and uncertainties associated with the
forward-looking information include the strength of the commercial office real
estate markets in which the Company operates, competitive market conditions,
general economic growth, interest rates and capital market conditions. For
further information, please refer to the Company's filings with the Securities
and Exchange Commission.
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<TABLE>
<CAPTION>
Corporate Office Properties Trust, Inc.
Three Months Ended December 31, Year Ended December 31,
1997 1996 1997 1996
Operating Data: (Dollars in thousands, except per share data)
<S> <C> <C> <C> <C>
Revenue:
Rental income ........................................... $ 4,241 $ 633 $ 6,122 $ 2,477
Tenant reimbursements and other income .................. 478 7 496 32
---------- ---------- ---------- ----------
Total revenue .................................... 4,719 640 6,618 2,509
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Expenses:
Interest ................................................ 1,935 309 2,855 1,246
Depreciation and amortization............................ 905 142 1,331 567
Property expenses ....................................... 709 6 728 31
General and administrative .............................. 262 104 533 372
Termination of Advisory Agreement (1) ................... 1,353 -- 1,353 --
---------- ---------- ---------- ----------
Total expenses ................................... 5,164 561 6,800 2,216
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Income (loss) before minority interests...................... (445) 79 (182) 293
Minority interests:
Preferred units............................................ (785) -- (720) --
Common units -- -- ( 65) --
---------- ---------- ---------- ----------
Net income (loss)............................................ $ (1,230) $ 79 $ (967) $ 293
========== ========== ========== ==========
Income (loss) before minority interests...................... $ 445 $ 79 $ (182) $ 293
Less: Distributions to preferred units....................... (720) -- (720) --
Add: Real estate depreciation................................ 851 139 1,267 554
Add: Termination of Advisory Agreement (1)................... 1,353 -- 1,353 --
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Funds from Operations ("FFO")................................ $ 1,039 $ 218 $ 1,718 $ 847
========== ========== ========== ==========
Weighted average number of shares outstanding................ 2,137 1,420 1,601 1,420
Weighted average number of units outstanding................. 2,189 -- 552 --
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Total weighted average number of share/units outstanding..... 4,326 1,420 2,153 1,420
========== ========== ========== ==========
FFO - basic.................................................. $ 0.24 $ 0.15 $ 0.80 $ 0.60
========== ========== ========== ==========
Net income (loss) per common share........................... $ (0.58) $ 0.06 $ (0.60) $ 0.21
========== ========== ========== ==========
Cash dividends/distributions per common share/unit .......... $ 0.13 $ 0.13 $ 0.50 $ 0.50
========== ========== ========== ==========
FFO payout ratio............................................. 54% 82% 63% 84%
========== ========== ========== ==========
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
Balance Sheet Data (as of period end):
Real estate investments, net of accumulated
depreciation ........................................... $ 188,625 $ 23,070
Total assets ............................................... 193,534 24,197
Mortgages payable .......................................... 114,375 14,658
Total liabilities .......................................... 117,008 15,026
Minority interests ......................................... 64,862 -
Stockholders' equity........................................ 11,664 9,171
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Property Data (as of period end):
Number of properties owned ................................. 17 7
Total net rentable square feet owned (in thousands) ........ 1,852 370
Occupancy................................................... 99% 100%
</TABLE>
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1) Reflects a non-recurring expense of $1,353 associated with the termination
of the Advisory Agreement which was paid in the form of Common Stock. This
transaction has been eliminated in determining FFO since it is not expected
to have a continuing impact on the Company.
