COPT views its data center shell program as part of its core business largely because the tenant's main business is with COPT's main clients, EVP and CFO Anthony Mifsud told an audience at NAREIT's REITWeek earlier this year, according to a transcript provided by Fair Disclosure. As such, it believes that the NOI "is similar to leasing to one of our contractors in some of our other parks," he said.

Budorick went into a bit more, but not that much more, detail about where its data center shelf development program fits on the balance sheet.

Also speaking at NAREIT's REITWeek earlier this year, Budorick said that (per a transcript from Fair Disclosure):

We segment the commercial datacenter shells separately, but remember our data center capability -- development and operating capability originated in specialized developments for the US government that are segmented in our government bucket. And we don't disclose the magnitude of the revenue or the locations of those facilities.

COLUMBIA, MD-Corporate Office Properties Trust has partnered with an affiliate of the San Francisco-based private investment firm GI Partners to recapitalize six data center properties from its data center shell development program that total 962,000 square feet. GI Partners purchased its interest in the new 50-50 owned JV for $44 million while COPT realized $104 million in proceeds.

The venture raised $60 million of 10-year mortgages at a 3.4% interest rate to finance approximately 40% of the value of the properties.

“This venture demonstrates the strength of demand for strategically located data center properties leased to high credit tenants, as well as the value creation inherent in our Defense/IT development business,” Stephen E. Budorick, who became the REIT's CEO in May, said in a prepared statement.

It is difficult to gauge what the returns would be for this partnership.

COPT views its data center shell program as part of its core business largely because the tenant's main business is with COPT's main clients, EVP and CFO Anthony Mifsud told an audience at NAREIT's REITWeek earlier this year, according to a transcript provided by Fair Disclosure. As such, it believes that the NOI "is similar to leasing to one of our contractors in some of our other parks," he said.

Budorick went into a bit more, but not that much more, detail about where its data center shelf development program fits on the balance sheet.

Also speaking at NAREIT's REITWeek earlier this year, Budorick said that (per a transcript from Fair Disclosure):

We segment the commercial datacenter shells separately, but remember our data center capability -- development and operating capability originated in specialized developments for the US government that are segmented in our government bucket. And we don't disclose the magnitude of the revenue or the locations of those facilities.