Corporate Office Properties Trust (NYSE:OFC)
A fully-integrated and self-managed real estate investment trust that focuses on the acquisition, development, ownership, management and leasing of primarily Class A suburban office properties in the Greater Washington, D.C. region and other submarkets.
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OFC specializes in providing office space for government agencies and contractors in the intelligence and security businesses . Their assets are focussed in those areas where there will be great growth in the next few years( e.g. Fort Meade MD area, N.Va., Aberdeen Md, etc)due to BRAC, new intel/security agencies and organic growth of existing agencies. Spook firms and agencies have to have clearances - including facilty clearances. This means special physical features that are required by the gov't. Most REITs don't do anything close to this and are dealing with regular office tenants. This is a totally different animal and COPT is unique in this arena.
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I am LOVING REIT's right now!
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Lots of upcoming debt to rollover. Will they be able to extend and pretend? I think not.
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This company was individually screened to verify that during the boom years ('04-'08), their Balance Sheet expansion appeared excessive or at the very least aggressive. At some point or another, something's gotta give with this company. Income will start collapsing due to debt levels, and/or dividends will be slashed or removed, and/or significant losses will be realized. The chances of this being a growth company or having significant growth is heavily muted due to its dividend paying obligations at the current levels of today.
This company was personally found after using a screener. The screener yielded many companies that often relate to the energy/commodity industry, or FIRE (financial insurance real estate).
google screener options:
Market cap over 400M
Dividend yield over 2%
1 Year price change better than -35%
price to book 0.9 or higher
total debt/assets (recent qtr) greater than 50%
total debt/equity (recent qtr) greater than 50%
13 week price change greater than 10%
After individually screening for companies appearing overvalued due to Balance sheet expansion, it yielded the following stocks to short:
EPE NRGP NRGY OFC EV EPB CNK ASCA MAA EVR
For the heavy shorting within the energy sector as part of the above picks, I will offset them with the following longs relating to energy/commodities:
LONG on PBT, BPT, SJT, GCC
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DC focus will benefit from expanded government. Did not experience major increases in rents, so will not fall as far.
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rally picks
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From my short ideas/valuation screen
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overvalued
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A good REIT. Market oversold anything dealing with real estate. Pays a 4.2 dividend.
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This company will likely avoid the housing market meltdown. If only because it deals in office and commercial properties not residential real estate.
However it is carrying a large debt load. This can be very bad given the credit market crunch that we are experiencing. If it needs to refinance any of its holdings it may not be able to find the financing it wants.
What I like about this company is that they are still paying dividends. Some REIT's have stopped paying dividends and abandoned their REIT status. If the FED continues to lower interest rates then their regularly increasing dividend will make them more attractive.
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Poor achievement.
Pay more dividends than earnings.
Incredibly high P/E above 100. Projected P/E above 90.
1 Year or two goal!!
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just wait until commercial property starts following residential property down the drain...
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I believe Corporate Office Properties Trust Inc. has a great selection of commercial property, and will continue its profitability as long as the economy avoids a major recession. I also think the sector downturn has made COPT a good value.
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Overpriced and insiders are bailing out.
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Pretty good business. As far as I know, it's the only company that provides secure buildings for government, defense, consulting firms, etc...
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