COPT Defense Properties

Welcome to the Corporate Assets Properties Trust First Quarter 2021 Results Conference Call. As a reminder, today's call is being recorded. At this time, I will turn the call over to Stephanie Crewson-Kelly, COPT's Vice President of Investor Relations. Ms. Crewson-Kelly, please go ahead.

Thank you, Paul. Good afternoon and welcome to COPS Conference Call to discuss First Quarter 2021 Results. With me today are Steve Bedorek, President and CEO of Todd Hartman, Executive Vice President and COO, and Anthony Mifsud, EVP and CFO. Reconciliations of GAAP and non-GAAP financial measures management discusses on this call are available on our website, in the results press release and presentation, and in our supplemental information package. As a reminder, forward-looking statements made during today's call are subject to risks and uncertainties, which are discussed at length in our SEC filings. Actual events and results can differ materially from these forward-looking statements and the company does not undertake a duty to update them. Steve?

Good afternoon. Our unique strategy of concentrating assets around U.S. defense installations, executing priority missions, continues to produce highly resilient, growing cash flows, as demonstrated by our strong first quarter results, representing a great start to what is shaping up to be another strong year. Driven by solid operations and interest savings from our recent bond financing, first quarter FFO per share has adjusted for comparability. A 56 cents met the high end of guidance and is 10% higher than the first quarter results in 2020. Additionally, NOI from real estate operations in the quarter was up 6% from a year ago. And FFO increased an impressive 26%. As these year-over-year comparisons demonstrate, we are clearly on a path of sustainable and highly visible growth. First quarter leasing results were solid, totaling 258,000 square feet, and second quarter leasing is off to a blistering start. In April, we've completed 662,000 square feet of renewals and vacancy leasing, equipsing first quarter volume by two and a half times. Better-than-planned outcomes on vacancy and renewal leasing are driving our increased guidance for same-property results for the year. Development and leasing in the quarter total 11,000 square feet. However, we're in advanced negotiations on nearly 900,000 square feet that should close in the coming months. Bridging to financing activities, we completed a second landmark bond offering last month. The $600 million 10-year issuance is a 2.75% coupon and was the strongest debt financing in the company's history. The bonds priced a full notch higher than our current ratings, reflecting the market's growing recognition of the durability of our portfolio, our strategy, and our cash flow. So for the second time in six months, the fixed income investor community unequivocally recognized and rewarded our company with robust demand for and exceptional pricing of our bond offerings. The improved outlook for staying property cash NOI and interest savings from the bond refinancing are driving the three cent increase in the midpoint of 2021 guidance for FFO per share, as adjusted for comparability, which at the midpoint implies 4.7% growth over the elevated 2020 results. And with that, I'll hand the call over to Todd.