Corporate Office Properties Trust (NYSE:OFC.PRL) Q4 2016 Earnings Conference Call - Final Transcript

Feb 10, 2017 • 12:00 pm ET

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Corporate Office Properties Trust (NYSE:OFC.PRL) Q4 2016 Earnings Conference Call - Final Transcript

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Presentation
Executive
Steve Budorick

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.