J.P Morgan Updates Its Model On Corporate Office Properties

J.P Morgan is updating its Corporate Office Properties OFC model and lowering its 2011 FFO estimate $0.01 and raising its 2012 FFO estimate $0.11 to $2.44 and $2.73, respectively. J.P Morgan's 2011 FFO estimate is $0.02 below the mid-point of management's guidance ($2.35 to $2.57). The lower 2011 estimate is a result of an assumed equity issuance, while the raise in 2012 estimate is a result of more aggressive development delivery assumptions.

J.P Morgan models $150 million in acquisitions in 2011 at an 8% GAAP cap rate and $100 million in acquisitions at an 8% cap rate spread evenly over 2012. Additionally, J.P Morgan models $100 million of dispositions each year at an 8% cap rate.

J.P Morgan has a Neutral rating and $39 PT on OFC

OFC is trading higher at $34.19