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Research Alert: CFRA Maintains Hold Opinion On Shares Of Corporate Office Properties Trust

· 02/05/2021 04:58

09:55 AM EST, 02/05/2021 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We raise our target by $3 to $28, applying a forward P/ FFO of 12.7x our 2021 FFO estimate, near the office REIT peer average at 13.6x, given OFC's diversified mix of properties. We raise our 2020 FFO estimate by $0.04 to $2.20 and introduce new 2022's at $2.28. OFC reported Q4 2020 FFO of $0.56, a $0.03 beat to our estimate. Cash NOI is expected to be flat in 2021 Y/Y. OFC forecasts occupancy in the 90% to 92% range, compared to 92.1% in 2020. The trust has two large leases expiring in 2021 for 250,000 sq. ft. and seven leases in 2022 for 996,950 sq. ft. that are expected to renew. The trust has 20.7 million total sq. ft. of properties, and expects to deliver 1.0 mil. sq. ft. of development leasing in 2021 for a $275-$300 million total cost. OFC has sizable projects that are tied to the U.S. Department of Defense budget that could impact future leasing activity. We think OFC has ample liquidity with $705 million from cash and unused lines of credit. The shares offer a 4.1% cash dividend yield.