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COPT Defense Properties Takes $253M Write-Down on General Office Assets
COPT Defense Properties wrote down the value of six properties and a parcel of land in the Baltimore-Washington region by more than $250 million in the third quarter, the Washington Business Journal reported. The Columbia, MD-based REIT recorded a $252.8-million impairment charge for “six operating properties in the Other segment and a parcel of land, located in Baltimore, Maryland, Northern Virginia and Washington, DC” in the quarter ended Sept. 30 and plans to sell them.
The “Other” segment contains eight office properties, including six properties that were previously part of a “regional office” segment. Those properties were reclassified in Q3 as part of a larger move to focus on defense properties and as a part of a rebranding that COPT announced in September, reported the Business Journal.
COPT’s eight “Other” properties were only 75.9% leased and about 75.4% occupied as of the end of September, according to its latest earnings report. In contrast, its 188 properties in the defense/IT market were 97% leased and 96% occupied in the same time frame.
Pictured: COPT Defense Properties’ 250 W. West Pratt St. in Baltimore, one of the properties in the REIT’s “Other” segment.
- ◦Financing
