It's been more than three months since I last wrote about Corporate Office Properties Trust (NYSE:OFC), and since then, the shares have posted a total return of -12.3% (including dividends). In this article, I evaluate whether if the stock now presents a better value or if it is something to be avoided, so let's get started.

Corporate Office Properties Trust is a REIT that is focused on owning and acquiring properties that are leased to the U.S. government and its contractors for defense/IT purposes. It currently owns 174 properties, of which 27 are data-center facilities. Its Class A office properties cover 19.6M square feet, and last year, the company generated $643M in total revenue.

What I like about COPT is the defensive nature of its portfolio, the majority of which house mission-critical operations for the government. At the end of Q2, COPT derived 88% of its core portfolio ARR (annual recurring revenue) from Defense/IT locations that support the U.S. government and its contractors. This provides a high level of stability for COPT and provides a recession-resistant business model.

READ FULL ARTICLE HERE