Corporate Office Properties Trust (NYSE:OFC) Q2 2023 Earnings Conference Call July 28, 2023 12:00 PM ET
Company Participants
Venkat Kommineni - Vice President of Investor Relations
Steve Budorick - President and Chief Executive Officer
Anthony Mifsud - Executive Vice President and Chief Financial Officer
Conference Call Participants
Blaine Heck - Wells Fargo
Michael Griffin - Citi
Camille Bonnel - Bank of America
Tom Catherwood - BTIG
Jay Poskitt - Evercore ISI
Operator
Welcome to the Corporate Office Properties Trust [Second] (ph) Quarter 2023 Results Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] As a reminder, today's call is being recorded.
At this time, I would like to turn the call over to Venkat Kommineni, COPT's Vice President of Investor Relations. Mr. Kommineni, please go ahead.
Venkat Kommineni
Thank you, Joanne. Good afternoon, and welcome to COPT's conference call to discuss second quarter results.
With me today are Steve Budorick, President and CEO; and Anthony Mifsud, Executive Vice President and CFO.
Reconciliations of GAAP and non-GAAP financial measures that management discusses are available on our website in the results, press release and presentation and in our supplemental information package. As a reminder, forward-looking statements made during today's call are subject to risks and uncertainties, which are discussed in our SEC filings. Actual events and results can differ materially from these forward-looking statements and the company does not undertake a duty to update them. Steve?
Steve Budorick
Good afternoon, and thank you for joining us.
Our investment strategy and differentiated portfolio continue to generate strong operating results and support our positive outlook for our business for the coming years. The $100 billion increase to the Department of Defense budget that had been appropriated since March 2022 and the roughly $25 billion increase that's expected to occur later this year has and will continue to drive strong demand throughout our Defense/IT portfolio.
Our capital allocation decisions have deeply concentrated our assets in locations adjacent to or in some instances containing high-priority missions. Defense contractors benefit greatly by locating offices approximate to these high-priority missions. These missions require secure office environments and the mission work cannot be performed from home. The secure environments for these missions are difficult to get approval to construct, expensive to create, and requiring significant tenant co-investment, and are not transportable. These are the major factors that drive our industry-leading retention rates.