Corporate Office Prop Closes Exit From Colorado Springs;lifts Q4,FY FFO/shr View

(RTTNews) - Corporate Office Properties Trust (OFC) announced Friday that it completed the transfer of 14 operating properties in satisfaction of $146.5 million of secured indebtedness. In total, the properties contained 1.0 million square feet and were 73% occupied. Nine of the properties are located in Linthicum, MD, and five are in Colorado Springs CO.

Combined with the Company's prior disposition of 15 operating properties in Colorado, COPT said it has completed its strategic exit from the Colorado Springs market. Together, the 20 Colorado Springs assets totaled 1.6 million square feet and were disposed of for a total of $177 million.

In the fourth quarter of 2013 the Company expects to recognize a non-cash accounting gain estimated to be approximately $67 million or $0.74 per share, representing the difference between the face value of the $146.5 million secured debt over the book value of the properties at the date of the transfer.

The company said that the gain affects its previously issued fourth quarter and full year 2013 FFO per share or "FFOPS", per NAREIT, and earnings per share, but not its FFOPS, as adjusted for comparability.

Accordingly, the company increased its previous guidance for the fourth quarter and full year 2013 FFO per share, per NAREIT to new ranges of between $1.21-$1.23 and $2.39-$2.41 respectively, from prior ranges of between $0.47-$0.49 and $1.65-$1.67.

The company affirmed its previous guidance for the fourth quarter and full year 2013 FFO per share, as adjusted for comparability, in ranges of between $0.47 - $0.49 and $1.96 - $1.98, respectively.

Analysts polled by Thomson Reuters expect the company to report earnings of $0.20 per share, for the fourth-quarter. Analysts' estimates typically exclude special items.