Corporate Office Properties Trust CEO Stephen Budorick on Q2 2020 Results - Earnings Call Transcript

8/2/20

Thank you. We had another great quarter, outperforming guidance for FFO per share and same-property cash NOI growth, and we're on track to achieve the highest tenant retention rate in 20 years. We affirm our existing 2020 guidance with a conservative posture and continue to expect healthy growth in 2021.

Our high concentration of U.S. government, high-priority defense tenants and essential nondefense businesses offer uniquely strong credit and cash flow advantages that have insulated our operations during the shutdowns. Regarding our operations, each of our 174 properties have operated continually during the shutdowns, and our company continues to execute our normal workflows seamlessly. 85% of our portfolio houses tenants whose mission work cannot be performed remotely. This includes 65% of our space that is either in a secured campus or has SCIF environments and another 20% that has other high security requirements.

Most of our tenants have their employees working in rotating weekly shifts with longer workdays to create distancing, so our building utilization is much higher than most other office environments. Across our 19.8 million square foot portfolio, our tenants' employees have experienced only 41 confirmed cases of COVID-19, which speaks to the quality of the management practices of our operating teams and our tenants' leadership.

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