Corporate Office Properties Trust (NYSE:OFC) Q1 2022 Results Conference Call April 29, 2022 12:00 PM ET
Company Participants
Stephanie Krewson-Kelly - VP, IR
Steve Budorick - President, CEO
Anthony Mifsud - EVP, CFO
Todd Hartman - EVP, COO
Conference Call Participants
Blaine Heck - Wells Fargo
Brian Spahn - Evercore ISI
Manny Korchman - Citi
Rich Anderson - SMBC
Bill Crow - Raymond James
Tom Catherwood - BTIG
Operator
Welcome to the Corporate Office Properties Trust First Quarter 2022 Results Conference Call. As a reminder, today's call is being recorded.
At this time, I'd like to turn the call over to Stephanie Krewson-Kelly, COPT, Vice President of Investor Relations. Ms. Krewson-Kelly, please go ahead.
Stephanie Krewson-Kelly
Thank you, Valerie. Good afternoon, and welcome to COPT's conference call to discuss first quarter results. With me today are Steve Budorick, President and CEO; Todd Hartman, Executive Vice President and COO; and Anthony Mifsud, EVP 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 at length 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. Yesterday, we announced another strong quarter with continued progress on our growth strategy. Our successful performance and execution since 2018 have positioned our company to deliver reliable annual FFO growth and long-term shareholder value.
Over the past decade, COPT has deeply concentrated its invested capital in the property, supporting priority U.S. defense missions and select mission-critical assets in regions that we collectively refer to as Defense/IT locations. These locations now generate 90% of our annualized rental revenue. Our concentration of leases to the U.S. government and high credit tenants supporting national defense and cyber-security is the foundation of our ability to generate resilient, high-quality cash flow regardless of the broader economy.
Our external growth strategy is driven by our achievement of pre-leased and low-risk development at these proven Defense/IT locations. We have an advantaged position in this unique market as the go-to landlord for specialized space, satisfying government security requirements. We continue to experience strong leasing demand.
As of March 31, our portfolio was 94% leased and 92% occupied and generating steady high-quality cash flow. Our active development pipeline contains 1.7 million square feet of projects at Defense/IT locations. These projects are 96% leased, and one place into service will produce incremental FFO that will augment the growth from our stable operating portfolio.