Corporate Office Properties Trust (NYSE:OFC) Q3 2022 Earnings Conference Call October 28, 2022 12:00 PM ET
Company Participants
Michelle Layne - Manager of Investor Relations
Steve Budorick - President and Chief Executive Officer
Todd Hartman - Executive Vice President and Chief Operating Officer
Anthony Mifsud - Executive Vice President and Chief Financial Officer
Conference Call Participants
Camille Bonnel - Bank of America
Anthony Paolone - JPMorgan
Michael Griffin - Citi
Steve Sakwa - Evercore ISI
Blaine Heck - Wells Fargo
Tom Catherwood - BTIG
Dave Rodgers - Robert W. Baird
Rich Anderson - SMBC
Bill Crow - Raymond James
Chris Lucas - Capital One
Operator
Welcome to the Corporate Office Properties Trust Third Quarter 2022 Results Conference Call. As a reminder, today's call is being recorded.
At this time, I'll turn the call over to Michelle Layne, COPT's Manager of Investor Relations. Ms. Layne, please go ahead.
Michelle Layne
Thank you, Andrew. Good afternoon, and welcome to COPT's conference call to discuss third quarter results and updated guidance for the year. With me today are Steve Budorick, President and CEO; Todd Hartman, Executive Vice President and COO; 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 those 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. The markets have been highly dynamic since our second quarter call, but I'm happy to report that we delivered strong quarterly performance and achieved key financing and leasing milestones. In yesterday's press release, we announced that we completed a new line of credit and term loan, which extended those maturities until 2027 and 2028, virtually eliminating any borrowing risk for the company until 2026.
We also announced record quarterly leasing. Our third quarter vacancy leasing was the highest quarterly volume in the last 12-years. Our retention rate was 92%, our highest in 21-years, and we fully leased 310 National Business Parkway to the U.S. government. Our total portfolio was now 94.9% leased and 92.7% occupied.
Given the success in the quarter and our knowledge of large tenant renewal intentions, we expect our portfolio occupancy to increase over the next five quarters irrespective of the volume of future vacancy leasing. We expect the occupancy to increase 50 basis points in the pessimistic scenario with no further vacancy leasing and 200 basis points in the optimistic scenario.