Corporate Office Properties Trust (NYSE:OFC.PRL) Q4 2016 Earnings Conference Call - Final Transcript
Feb 10, 2017 • 12:00 pm ET
are doing this by aggressively pursuing defense IT business and by managing our portfolio and balance sheet risk to ensure stable, predictable growth throughout the economic cycle. The four strengths I spoke about earlier, our portfolio, our balance sheet, our organization and our industry outlook should combine to produce very attractive risk-adjusted returns for shareholders. Going forward, our strategy will produce same-office growth, which, when combined with our development yields and at least $200 million of all of these projects should generate annual FFO growth of around 5% to 6%. Even assuming no multiple expansions, such levels of steady growth in conjunction with our secure dividend should translate into total annual returns of 8% to 9%.
In conclusion, after years to being on defense, we are excited to shift to offense. Our 2016 achievements and the years of change that preceded them that provided a strong foundation for future success. Defense spending bottomed in 2015 and has begun a multiyear upturn. Our defense IT locations are aligned with the US government spending priorities and intelligence, surveillance, reconnaissance, missile-defense, navy force and cyber security. We're optimistic about our future prospects and ready to capitalize on them for shareholders.
With that, operator, please open the call up for questions.