COPT Defense Properties has reported a significant decrease in the value of several properties and a parcel of land located in the Baltimore-Washington region, resulting in an impairment charge of $252.8 million for the third quarter. The REIT, based in Columbia, MD, plans to sell these assets as part of its strategic focus on defense properties.
The “Other” segment within COPT’s portfolio includes eight office properties previously categorized under “regional office.” In line with their rebranding efforts announced last September, these six operating properties and one parcel of land have been reclassified as part of this segment. As reported by Washington Business Journal , this move is intended to streamline COPT’s operations and prioritize their focus on defense/IT market assets.
According to COPT’s latest earnings report, only 75.9% percent leased and 75.4% occupied at the end September were its “Other” properties compared to an impressive 97% lease rate and 96% occupancy for their defense/IT market portfolio consisting over nearly two hundred assets.
Pictured: One example behind Q3s write-down is COPT Defense Properties’ property located at250 W West Pratt St., Baltimore.
Connect CRE Reports: Impairment Charge Worth $253M Recorded by General Office Assets Owned By Columbia-based REIT
In Q3 alone,Columbia-based Real Estate Investment Trust (REIT) -COPT recorded a massive impairment charge worth$252 .8million due to devaluationofsix operating offices situatedinthe Othersegment along witha pieceoflandlocatedinBaltimore,Maryland,Northern Virginia,andWashington DC.The company intendson sellingthese assetsto alignwithitsstrategicfocusondefensepropertiesandtofacilitatearecentlyannouncedrebrandingeffortreportedbyWashingtonBusinessJournal .
Previously classifiedunder regionaloffice,the sixoperatingofficesandoneparceloflandhavebeenreclassifiedaspartofthe”Other”segment,streamliningCOPT’soperationsandprioritizingtheirfocusondefense/ITmarketassets.
As per COPT’s latest earnings report,the “Other” properties were only 75.9% leased and about 75.4% occupied as of the end of September.However,in contrast to this,its defense/IT market portfolio consistingof188propertieswere97%leasedand96%occupiedduringthesametimeframe.
Pictured:OneexamplebehindQ3s write-downisCOPTDefenseProperties’propertylocatedat250WWestPrattSt.,Baltimore.
