J.P. Morgan Reports Declassified Docs Lead To A Land Impairment For Corporate Office Properties

According to J.P. Morgan, Corporate Office Properties OFC declassified documents lead to land impairment. J.P. Morgan reported that it is updating its 2011 FFO/share and 1Q estimates to reflect OFC's recently announced $28 million ($0.39/share) impairment charge relating to its Fort Ritchie asset. “This charge reduces our FFO/share estimate from $0.52 to $0.13 (vs. company guidance of $0.12 to $0.15) in 1Q, and from $2.44 to $2.06 for 2011. In accordance with this $0.39 charge, management lowered both the high and low end of its 2011 guidance range to $1.96 to $2.18 (previously $2.35 to $2.57). Our $2.06 estimate falls a penny below the mid-point of the new guidance range. Below are some details surrounding what happened here.” Corporate Office Properties closed yesterday at $36.21.