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COPT Defense Reports First Quarter 2025 Results

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EPS of $0.31

FFO per Share, as Adjusted for Comparability, of $0.65

4.8% FFO per Share Growth Year-over-Year

Met Midpoint of Guidance

Reiterates Midpoint of 2025 FFO per Share Guidance of $2.66

Implies 3.5% FFO per Share Growth for the Year

Continued Strong Occupancy and Leased Levels

Defense/IT Portfolio 95.3% Occupied and 96.6% Leased

Occupancy Rate Exceeded 94% for 9 Consecutive Quarters

Same Property Cash NOI Increased 7.1%

Reiterates Midpoint of Same Property Cash NOI Guidance for the Year of 2.75%

Committed $52 million of Capital to New Investment in Huntsville

$308 million of Active Developments (756,000 SF) are 62% Leased

Excellent Leasing to Start the Year

Total Leasing of 647,000 SF

120,000 SF of Vacancy Leasing

On Track to Achieve/Exceed Annual Target of 400,000 SF

Tenant Retention of 75%

On Track to Achieve Annual Goal of 75%-85%

89,000 SF of Investment Leasing

COLUMBIA, Md.--(BUSINESS WIRE)-- COPT Defense Properties (“COPT Defense� or the “Company�) (NYSE: CDP) announced results for the first quarter ended March 31, 2025.

Management Comments

Stephen E. Budorick, COPT Defense’s President & Chief Executive Officer, commented, “Our Defense/IT investment strategy, which concentrates our portfolio near priority U.S. defense installations, generated strong results in the first quarter with FFO per share at the midpoint of our guidance range, despite incurring higher than expected net weather-related expenses. Our performance year-to-date is tracking according to plan and we are reiterating the midpoint of our 2025 FFO per share guidance range at $2.66, which implies 3.5% year-over-year growth.

In terms of our leasing achievements, we are off to a great start, as we have executed 179,000 square feet of vacancy leasing and over 100,000 square feet of investment leasing year-to-date, while maintaining a strong tenant retention rate of 75%. Our Defense/IT Portfolio was 95.3% occupied and 96.6% leased at quarter-end, and marked nine consecutive quarters in which our occupancy rate exceeded 94%, highlighting the strength and durability of our portfolio.

In terms of external growth, we commenced construction on a 150,000 square foot development at Redstone Gateway in order to capture near-term demand, as we only have 37,000 square feet of inventory across our entire 2.5 million square foot Huntsville portfolio.

Our actual and expected performance led our Board of Trustees to approve a 3.4% increase in our quarterly dividend in February, which marks our third consecutive annual increase, amounting to a 10.9% cumulative increase since 2022. Looking forward, we continue to anticipate compound annual FFO per share growth of roughly 4% between 2023 to 2026.�

Financial Highlights

1st Quarter Financial Results:

> Diluted earnings per share (“EPS�) was $0.31 for the quarter ended March 31, 2025, compared to $0.29 for the quarter ended March 31, 2024.

> Diluted funds from operations per share (“FFOPS�), as calculated in accordance with Nareit’s definition and as adjusted for comparability, was $0.65 for the quarter ended March 31, 2025, compared to $0.62 for the quarter ended March 31, 2024.

Operating Performance Highlights

Operating Portfolio Summary:

> At March 31, 2025, the Company’s 24.5 million square foot total portfolio was 93.6% occupied and 95.1% leased, which includes the 22.6 million square foot Defense/IT Portfolio that was 95.3% occupied and 96.6% leased.

> During the quarter ended March 31, 2025, the Company placed into service 10,000 square feet of development that was 100% leased.

Same Property Performance:

> At March 31, 2025, the Company’s 23.9 million square foot Same Property portfolio was 94.1% occupied and 95.2% leased.

> The Company’s Same Property cash NOI increased 7.1% in the quarter ended March 31, 2025, compared to the same period in 2024.

Leasing:

> Total Square Feet Leased: For the quarter ended March 31, 2025, the Company leased 647,000 square feet, including 438,000 square feet of renewals, 120,000 square feet of vacancy leasing, and 89,000 square feet of investment leasing.

> Tenant Retention Rates: During the quarter ended March 31, 2025, the Company renewed 74.9% of expiring square feet in its total portfolio, all of which was in the Defense/IT Portfolio.

> Rent Spreads and Average Escalations on Renewing Leases: For the quarter ended March 31, 2025, straight-line rents on renewals increased 8.2% and cash rents on renewed space decreased 0.9% while annual escalations on renewing leases averaged 2.6%.

> Lease Terms: In the quarter ended March 31, 2025, lease terms averaged 3.4 years on renewing leases, 7.1 years on vacancy leasing, and 10.5 years on investment leasing.

Investment Activity Highlights

> Development Pipeline: The Company’s development pipeline consists of five properties totaling 756,000 square feet that were 62% leased as of April 14, 2025. These projects represent a total estimated investment of $308 million, of which $91 million was spent as of March 31, 2025.

Balance Sheet and Capital Transaction Highlights

> For the quarter ended March 31, 2025, the Company’s adjusted EBITDA fixed charge coverage ratio was 4.7x.

> At March 31, 2025, the Company’s net debt to in-place adjusted EBITDA ratio was 6.1x and its net debt adjusted for fully-leased investment properties to in-place adjusted EBITDA ratio was 6.0x.

> At March 31, 2025, and including the effect of interest rate swaps, the Company’s weighted average effective interest rate on its consolidated debt portfolio was 3.4% with a weighted average maturity of 4.5 years, and 98% of the Company’s debt was subject to fixed interest rates.

Associated Supplemental Presentation

Prior to the call, the Company will post a slide presentation to accompany management’s prepared remarks for its first quarter 2025 conference call; the presentation can be viewed and downloaded from the ‘Financial Info � Financial Results� section of COPT Defense’s Investors website:

2025 Guidance

Management is narrowing its full-year guidance for diluted EPS and diluted FFOPS, per Nareit and as adjusted for comparability of $1.27-$1.35 and $2.62-$2.70, respectively to new ranges of $1.28-$1.34 and $2.63-$2.69, respectively. Management is establishing second quarter guidance for diluted EPS and diluted FFOPS per Nareit and as adjusted for comparability at $0.31-$0.33 and $0.65-$0.67, respectively. Reconciliations of projected diluted EPS to projected diluted FFOPS, in accordance with Nareit and as adjusted for comparability are as follows:

Reconciliation of Diluted EPS to FFOPS, per Nareit, and As Adjusted for Comparability

Ìý

Quarter Ending
June 30, 2025

Ìý

Year Ending
December 31, 2025

Ìý

Low

Ìý

High

Ìý

Low

Ìý

High

Diluted EPS

Ìý

$

0.31

Ìý

$

0.33

Ìý

$

1.28

Ìý

$

1.34

AGÕæÈ˹ٷ½ estate-related depreciation and amortization

Ìý

Ìý

0.34

Ìý

Ìý

0.34

Ìý

Ìý

1.35

Ìý

Ìý

1.35

Diluted FFOPS, Nareit definition and as adjusted for comparability

Ìý

$

0.65

Ìý

$

0.67

Ìý

$

2.63

Ìý

$

2.69

The Company detailed its initial full year guidance, with supporting assumptions, in a separate press release issued February 6, 2025; that release can be found in the ‘News & Events � Press Releases� section of COPT Defense’s Investors website:

Conference Call Information

Management will discuss first quarter 2025 results on its conference call tomorrow at 12:00 p.m. Eastern Time, details of which are listed below:

Conference Call Date:

Tuesday, April 29, 2025

Time:

12:00 p.m. Eastern Time

Participants must register for the conference call at the link below to receive the dial-in number and personal pin. Registering only takes a few moments and provides direct access to the conference call without waiting for an operator. You may register at any time, including up to and after the call start time:

The conference call will also be available via live webcast in the ‘News & Events � IR Calendar� section of COPT Defense’s Investors website:

Replay Information

A replay of the conference call will be immediately available via webcast only on COPT Defense’s Investors website and will be maintained on the website for approximately 90 days after the conference call.

Definitions

For definitions of certain terms used in this press release, please refer to the information furnished in the Company’s Supplemental Information Package furnished on a Form 8-K which can be found on its website (). Reconciliations of non-GAAP measures to the most directly comparable GAAP measures are included in the attached tables.

About COPT Defense

COPT Defense, an S&P MidCap 400 Company, is a self-managed REIT focused on owning, operating and developing properties in locations proximate to, or sometimes containing, key U.S. Government (“USG�) defense installations and missions (referred to as its Defense/IT Portfolio). The Company’s tenants include the USG and their defense contractors, who are primarily engaged in priority national security activities, and who generally require mission-critical and high security property enhancements. As of March 31, 2025, the Company’s Defense/IT Portfolio of 198 properties, including 24 owned through unconsolidated joint ventures, encompassed 22.6 million square feet and was 96.6% leased.

Forward-Looking Information

This press release may contain “forward-looking� statements, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that are based on the Company’s current expectations, estimates and projections about future events and financial trends affecting the Company. Forward-looking statements can be identified by the use of words such as “may,� “will,� “should,� “could,� “believe,� “anticipate,� “expect,� “estimate,� “plan� or other comparable terminology. Forward-looking statements are inherently subject to risks and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate. Although the Company believes that the expectations, estimates and projections reflected in such forward-looking statements are based on reasonable assumptions at the time made, the Company can give no assurance that these expectations, estimates and projections will be achieved. Future events and actual results may differ materially from those discussed in the forward-looking statements and the Company undertakes no obligation to update or supplement any forward-looking statements.

The areas of risk that may affect these expectations, estimates and projections include, but are not limited to, those risks described in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Source: COPT Defense Properties

COPT Defense Properties

Summary Financial Data

(unaudited)

(dollars and shares in thousands, except per share data)

Ìý

Ìý

For the Three Months Ended
March 31,

Ìý

Ìý

2025

Ìý

Ìý

Ìý

2024

Ìý

Revenues

Ìý

Ìý

Ìý

Lease revenue

$

175,308

Ìý

Ìý

$

165,433

Ìý

Other property revenue

Ìý

2,289

Ìý

Ìý

Ìý

1,230

Ìý

Construction contract and other service revenues

Ìý

10,259

Ìý

Ìý

Ìý

26,603

Ìý

Total revenues

Ìý

187,856

Ìý

Ìý

Ìý

193,266

Ìý

Operating expenses

Ìý

Ìý

Ìý

Property operating expenses

Ìý

72,040

Ìý

Ìý

Ìý

66,746

Ìý

Depreciation and amortization associated with real estate operations

Ìý

39,359

Ìý

Ìý

Ìý

38,351

Ìý

Construction contract and other service expenses

Ìý

9,705

Ìý

Ìý

Ìý

26,007

Ìý

General and administrative expenses

Ìý

8,148

Ìý

Ìý

Ìý

8,378

Ìý

Leasing expenses

Ìý

2,999

Ìý

Ìý

Ìý

2,187

Ìý

Business development expenses and land carry costs

Ìý

1,009

Ìý

Ìý

Ìý

1,182

Ìý

Total operating expenses

Ìý

133,260

Ìý

Ìý

Ìý

142,851

Ìý

Interest expense

Ìý

(20,504

)

Ìý

Ìý

(20,767

)

Interest and other income, net

Ìý

1,568

Ìý

Ìý

Ìý

4,122

Ìý

Gain on sales of real estate

Ìý

300

Ìý

Ìý

Ìý

�

Ìý

Income before equity in income of unconsolidated entities and income taxes

Ìý

35,960

Ìý

Ìý

Ìý

33,770

Ìý

Equity in income of unconsolidated entities

Ìý

371

Ìý

Ìý

Ìý

69

Ìý

Income tax expense

Ìý

(103

)

Ìý

Ìý

(168

)

Net income

Ìý

36,228

Ìý

Ìý

Ìý

33,671

Ìý

Net income attributable to noncontrolling interests

Ìý

Ìý

Ìý

Common units in the Operating Partnership (“OP�)

Ìý

(726

)

Ìý

Ìý

(608

)

Other consolidated entities

Ìý

(762

)

Ìý

Ìý

(454

)

Net income attributable to common shareholders

$

34,740

Ìý

Ìý

$

32,609

Ìý

Ìý

Ìý

Ìý

Ìý

Earnings per share (“EPS�) computation

Ìý

Ìý

Ìý

Numerator for diluted EPS

Ìý

Ìý

Ìý

Net income attributable to common shareholders

$

34,740

Ìý

Ìý

$

32,609

Ìý

Amount allocable to share-based compensation awards

Ìý

(143

)

Ìý

Ìý

(129

)

Numerator for diluted EPS

$

34,597

Ìý

Ìý

$

32,480

Ìý

Denominator

Ìý

Ìý

Ìý

Weighted average common shares - basic

Ìý

112,383

Ìý

Ìý

Ìý

112,231

Ìý

Dilutive effect of share-based compensation awards

Ìý

643

Ìý

Ìý

Ìý

509

Ìý

Weighted average common shares - diluted

Ìý

113,026

Ìý

Ìý

Ìý

112,740

Ìý

Diluted EPS

$

0.31

Ìý

Ìý

$

0.29

Ìý

COPT Defense Properties

Summary Financial Data

(unaudited)

(in thousands, except per share data)

Ìý

Ìý

For the Three Months Ended
March 31,

Ìý

Ìý

2025

Ìý

Ìý

Ìý

2024

Ìý

Net income

$

36,228

Ìý

Ìý

$

33,671

Ìý

AGÕæÈ˹ٷ½ estate-related depreciation and amortization

Ìý

39,359

Ìý

Ìý

Ìý

38,351

Ìý

Gain on sales of real estate

Ìý

(300

)

Ìý

Ìý

�

Ìý

Depreciation and amortization on unconsolidated real estate JVs

Ìý

741

Ìý

Ìý

Ìý

777

Ìý

Funds from operations (“FFO�)

Ìý

76,028

Ìý

Ìý

Ìý

72,799

Ìý

FFO allocable to other noncontrolling interests

Ìý

(1,158

)

Ìý

Ìý

(836

)

Basic FFO allocable to share-based compensation awards

Ìý

(530

)

Ìý

Ìý

(587

)

Basic FFO available to common share and common unit holders (“Basic FFO�)

Ìý

74,340

Ìý

Ìý

Ìý

71,376

Ìý

Redeemable noncontrolling interest

Ìý

�

Ìý

Ìý

Ìý

469

Ìý

Diluted FFO adjustments allocable to share-based compensation awards

Ìý

53

Ìý

Ìý

Ìý

47

Ìý

Diluted FFO available to common share and common unit holders (“Diluted FFO�)

Ìý

74,393

Ìý

Ìý

Ìý

71,892

Ìý

Executive transition costs

Ìý

�

Ìý

Ìý

Ìý

77

Ìý

Diluted FFO available to common share and common unit holders, as adjusted for comparability

Ìý

74,393

Ìý

Ìý

Ìý

71,969

Ìý

Straight line rent adjustments and lease incentive amortization

Ìý

(1,699

)

Ìý

Ìý

3,473

Ìý

Amortization of intangibles and other assets included in net operating income (“NOI�)

Ìý

162

Ìý

Ìý

Ìý

122

Ìý

Share-based compensation, net of amounts capitalized

Ìý

2,854

Ìý

Ìý

Ìý

2,645

Ìý

Amortization of deferred financing costs

Ìý

667

Ìý

Ìý

Ìý

685

Ìý

Amortization of net debt discounts, net of amounts capitalized

Ìý

1,051

Ìý

Ìý

Ìý

1,014

Ìý

Replacement capital expenditures

Ìý

(21,464

)

Ìý

Ìý

(20,776

)

Other

Ìý

81

Ìý

Ìý

Ìý

137

Ìý

Diluted adjusted funds from operations available to common share and common unit holders (“Diluted AFFO�)

$

56,045

Ìý

Ìý

$

59,269

Ìý

Diluted FFO per share

$

0.65

Ìý

Ìý

$

0.62

Ìý

Diluted FFO per share, as adjusted for comparability

$

0.65

Ìý

Ìý

$

0.62

Ìý

Dividends/distributions per common share/unit

$

0.305

Ìý

Ìý

$

0.295

Ìý

COPT Defense Properties

Summary Financial Data

(unaudited)

(Dollars and shares in thousands, except per share data)

Ìý

Ìý

March 31,
2025

Ìý

December 31,
2024

Balance Sheet Data

Ìý

Ìý

Ìý

Properties, net of accumulated depreciation

$

3,643,482

Ìý

Ìý

$

3,630,526

Ìý

Total assets

$

4,250,311

Ìý

Ìý

$

4,254,191

Ìý

Debt per balance sheet

$

2,412,670

Ìý

Ìý

$

2,391,755

Ìý

Total liabilities

$

2,688,481

Ìý

Ìý

$

2,693,624

Ìý

Redeemable noncontrolling interest

$

23,539

Ìý

Ìý

$

23,974

Ìý

Total equity

$

1,538,291

Ìý

Ìý

$

1,536,593

Ìý

Debt to assets

Ìý

56.8

%

Ìý

Ìý

56.2

%

Net debt to adjusted book

Ìý

40.7

%

Ìý

Ìý

40.4

%

Ìý

Ìý

Ìý

Ìý

Defense/IT Portfolio Data (as of period end)

Ìý

Ìý

Ìý

Number of operating properties

Ìý

198

Ìý

Ìý

Ìý

197

Ìý

Total operational square feet (in thousands)

Ìý

22,560

Ìý

Ìý

Ìý

22,549

Ìý

% Occupied

Ìý

95.3

%

Ìý

Ìý

95.4

%

% Leased

Ìý

96.6

%

Ìý

Ìý

96.7

%

Ìý

Ìý

For the Three Months Ended
March 31,

Ìý

2025

Ìý

Ìý

Ìý

2024

Ìý

GAAP

Ìý

Ìý

Ìý

Payout ratio

Ìý

Ìý

Ìý

Net income

Ìý

97.2

%

Ìý

Ìý

100.7

%

Debt ratios

Ìý

Ìý

Ìý

Net income to interest expense ratio

1.8x

Ìý

1.6x

Debt to net income ratio

16.6x

Ìý

17.9x

Non-GAAP

Ìý

Ìý

Ìý

Payout ratios

Ìý

Ìý

Ìý

Diluted FFO

Ìý

47.0

%

Ìý

Ìý

46.8

%

Diluted FFO, as adjusted for comparability

Ìý

47.0

%

Ìý

Ìý

46.7

%

Diluted AFFO

Ìý

62.4

%

Ìý

Ìý

56.8

%

Debt ratios

Ìý

Ìý

Ìý

Adjusted EBITDA fixed charge coverage ratio

4.7x

Ìý

4.5x

Net debt to in-place adjusted EBITDA ratio

6.1x

Ìý

6.1x

Net debt adj. for fully-leased investment properties to in-place adj. EBITDA ratio

6.0x

Ìý

6.0x

Ìý

Ìý

Ìý

Ìý

Reconciliation of denominators for per share measures

Ìý

Ìý

Denominator for diluted EPS

Ìý

113,026

Ìý

Ìý

Ìý

112,740

Ìý

Weighted average common units

Ìý

2,047

Ìý

Ìý

Ìý

1,625

Ìý

Redeemable noncontrolling interest

Ìý

�

Ìý

Ìý

Ìý

947

Ìý

Denominator for diluted FFO per share and as adjusted for comparability

Ìý

115,073

Ìý

Ìý

Ìý

115,312

Ìý

COPT Defense Properties

Summary Financial Data

(unaudited)

(in thousands)

Ìý

For the Three Months
Ended March 31,

Ìý

Ìý

2025

Ìý

Ìý

Ìý

2024

Ìý

Numerators for Payout Ratios

Ìý

Ìý

Ìý

Dividends on unrestricted common and deferred shares

$

34,318

Ìý

Ìý

$

33,143

Ìý

Distributions on unrestricted common units

Ìý

661

Ìý

Ìý

Ìý

500

Ìý

Dividends and distributions on restricted shares and units

Ìý

236

Ìý

Ìý

Ìý

267

Ìý

Total dividends and distributions for GAAP payout ratio

Ìý

35,215

Ìý

Ìý

Ìý

33,910

Ìý

Dividends and distributions on antidilutive shares and units

Ìý

(237

)

Ìý

Ìý

(266

)

Dividends and distributions for non-GAAP payout ratios

$

34,978

Ìý

Ìý

$

33,644

Ìý

Ìý

Ìý

Ìý

Ìý

Reconciliation of net income to earnings before interest, income taxes, depreciation and amortization for real estate (“EBITDAre�), adjusted EBITDA and in-place adjusted EBITDA

Ìý

Ìý

Ìý

Net income

$

36,228

Ìý

Ìý

$

33,671

Ìý

Interest expense

Ìý

20,504

Ìý

Ìý

Ìý

20,767

Ìý

Income tax expense

Ìý

103

Ìý

Ìý

Ìý

168

Ìý

AGÕæÈ˹ٷ½ estate-related depreciation and amortization

Ìý

39,359

Ìý

Ìý

Ìý

38,351

Ìý

Other depreciation and amortization

Ìý

542

Ìý

Ìý

Ìý

608

Ìý

Gain on sales of real estate

Ìý

(300

)

Ìý

Ìý

�

Ìý

Adjustments from unconsolidated real estate JVs

Ìý

1,518

Ìý

Ìý

Ìý

1,671

Ìý

EBITDAre

Ìý

97,954

Ìý

Ìý

Ìý

95,236

Ìý

Credit loss expense

Ìý

515

Ìý

Ìý

Ìý

22

Ìý

Business development expenses

Ìý

593

Ìý

Ìý

Ìý

630

Ìý

Executive transition costs

Ìý

57

Ìý

Ìý

Ìý

430

Ìý

Net gain on other investments

Ìý

�

Ìý

Ìý

Ìý

(477

)

Adjusted EBITDA

Ìý

99,119

Ìý

Ìý

Ìý

95,841

Ìý

Pro forma NOI adjustment for property changes within period

Ìý

786

Ìý

Ìý

Ìý

813

Ìý

Change in collectability of deferred rental revenue

Ìý

1,232

Ìý

Ìý

Ìý

�

Ìý

In-place adjusted EBITDA

$

101,137

Ìý

Ìý

$

96,654

Ìý

Ìý

Ìý

Ìý

Ìý

Reconciliations of tenant improvements and incentives, building improvements and leasing costs for operating properties to replacement capital expenditures

Ìý

Ìý

Ìý

Tenant improvements and incentives

$

13,758

Ìý

Ìý

$

12,776

Ìý

Building improvements

Ìý

1,872

Ìý

Ìý

Ìý

4,953

Ìý

Leasing costs

Ìý

3,461

Ìý

Ìý

Ìý

3,590

Ìý

Net additions to tenant improvements and incentives

Ìý

3,538

Ìý

Ìý

Ìý

316

Ìý

Excluded building improvements

Ìý

(201

)

Ìý

Ìý

(818

)

Excluded leasing costs

Ìý

(964

)

Ìý

Ìý

(41

)

Replacement capital expenditures

$

21,464

$

20,776

COPT Defense Properties

Summary Financial Data

(unaudited)

(in thousands)

Ìý

Ìý

For the Three Months Ended
March 31,

Ìý

Ìý

2025

Ìý

Ìý

Ìý

2024

Ìý

Reconciliation of interest expense to the denominator for fixed charge coverage-Adjusted EBITDA

Ìý

Ìý

Ìý

Interest expense

$

20,504

Ìý

Ìý

$

20,767

Ìý

Less: Amortization of deferred financing costs

Ìý

(667

)

Ìý

Ìý

(685

)

Less: Amortization of net debt discounts, net of amounts capitalized

Ìý

(1,051

)

Ìý

Ìý

(1,014

)

COPT Defense’s share of interest expense of unconsolidated real estate JVs, excluding amortization of deferred financing costs and net debt premium and gain or loss on interest rate derivatives

Ìý

752

Ìý

Ìý

Ìý

804

Ìý

Scheduled principal amortization

Ìý

461

Ìý

Ìý

Ìý

769

Ìý

Capitalized interest

Ìý

927

Ìý

Ìý

Ìý

589

Ìý

Denominator for fixed charge coverage-Adjusted EBITDA

$

20,926

Ìý

Ìý

$

21,230

Ìý

Ìý

Ìý

Ìý

Ìý

Reconciliation of net income to NOI from real estate operations, same property NOI from real estate operations and same property cash NOI from real estate operations

Ìý

Ìý

Ìý

Net income

$

36,228

Ìý

Ìý

$

33,671

Ìý

Construction contract and other service revenues

Ìý

(10,259

)

Ìý

Ìý

(26,603

)

Depreciation and other amortization associated with real estate operations

Ìý

39,359

Ìý

Ìý

Ìý

38,351

Ìý

Construction contract and other service expenses

Ìý

9,705

Ìý

Ìý

Ìý

26,007

Ìý

General and administrative expenses

Ìý

8,148

Ìý

Ìý

Ìý

8,378

Ìý

Leasing expenses

Ìý

2,999

Ìý

Ìý

Ìý

2,187

Ìý

Business development expenses and land carry costs

Ìý

1,009

Ìý

Ìý

Ìý

1,182

Ìý

Interest expense

Ìý

20,504

Ìý

Ìý

Ìý

20,767

Ìý

Interest and other income, net

Ìý

(1,568

)

Ìý

Ìý

(4,122

)

Gain on sales of real estate

Ìý

(300

)

Ìý

Ìý

�

Ìý

Equity in income of unconsolidated entities

Ìý

(371

)

Ìý

Ìý

(69

)

Unconsolidated real estate JVs NOI allocable to COPT Defense included in equity in income of unconsolidated entities

Ìý

1,889

Ìý

Ìý

Ìý

1,740

Ìý

Income tax expense

Ìý

103

Ìý

Ìý

Ìý

168

Ìý

NOI from real estate operations

Ìý

107,446

Ìý

Ìý

Ìý

101,657

Ìý

Non-Same Property NOI from real estate operations

Ìý

(3,170

)

Ìý

Ìý

(545

)

Same Property NOI from real estate operations

Ìý

104,276

Ìý

Ìý

Ìý

101,112

Ìý

Straight line rent adjustments and lease incentive amortization

Ìý

154

Ìý

Ìý

Ìý

3,913

Ìý

Amortization of acquired above- and below-market rents

Ìý

(69

)

Ìý

Ìý

(69

)

Lease termination fees, net

Ìý

(834

)

Ìý

Ìý

(775

)

Tenant funded landlord assets and lease incentives

Ìý

(3,105

)

Ìý

Ìý

(10,364

)

Cash NOI adjustments in unconsolidated real estate JVs

Ìý

(260

)

Ìý

Ìý

(262

)

Same Property Cash NOI from real estate operations

$

100,162

Ìý

Ìý

$

93,555

Ìý

COPT Defense Properties

Summary Financial Data

(unaudited)

(in thousands)

Ìý

Ìý

Ìý

March 31,
2025

Ìý

December 31,
2024

Reconciliation of total assets to adjusted book

Ìý

Ìý

Ìý

Ìý

Total assets

Ìý

$

4,250,311

Ìý

Ìý

$

4,254,191

Ìý

Accumulated depreciation

Ìý

Ìý

1,572,422

Ìý

Ìý

Ìý

1,537,293

Ìý

Accumulated amortization of intangibles on property acquisitions and deferred leasing costs

Ìý

Ìý

227,122

Ìý

Ìý

Ìý

228,154

Ìý

COPT Defense’s share of liabilities of unconsolidated real estate JVs

Ìý

Ìý

61,190

Ìý

Ìý

Ìý

61,294

Ìý

COPT Defense’s share of accumulated depreciation and amortization of unconsolidated real estate JVs

Ìý

Ìý

13,616

Ìý

Ìý

Ìý

12,817

Ìý

Less: Property - operating lease liabilities

Ìý

Ìý

(48,216

)

Ìý

Ìý

(49,240

)

Less: Property - finance lease liabilities

Ìý

Ìý

(384

)

Ìý

Ìý

(391

)

Less: Cash and cash equivalents

Ìý

Ìý

(24,292

)

Ìý

Ìý

(38,284

)

Less: COPT Defense’s share of cash of unconsolidated real estate JVs

Ìý

Ìý

(1,766

)

Ìý

Ìý

(2,053

)

Adjusted book

Ìý

$

6,050,003

Ìý

Ìý

$

6,003,781

Ìý

Ìý

Ìý

March 31,
2025

Ìý

December 31,
2024

Ìý

March 31,
2024

Reconciliation of debt to net debt and net debt adjusted for fully-leased investment properties

Ìý

Ìý

Ìý

Ìý

Ìý

Ìý

Debt per balance sheet

Ìý

$

2,412,670

Ìý

Ìý

$

2,391,755

Ìý

Ìý

$

2,416,873

Ìý

Net discounts and deferred financing costs

Ìý

Ìý

21,886

Ìý

Ìý

Ìý

23,262

Ìý

Ìý

Ìý

27,358

Ìý

COPT Defense’s share of unconsolidated JV gross debt

Ìý

Ìý

53,750

Ìý

Ìý

Ìý

53,750

Ìý

Ìý

Ìý

52,819

Ìý

Gross debt

Ìý

Ìý

2,488,306

Ìý

Ìý

Ìý

2,468,767

Ìý

Ìý

Ìý

2,497,050

Ìý

Less: Cash and cash equivalents

Ìý

Ìý

(24,292

)

Ìý

Ìý

(38,284

)

Ìý

Ìý

(123,144

)

Less: COPT Defense’s share of cash of unconsolidated real estate JVs

Ìý

Ìý

(1,766

)

Ìý

Ìý

(2,053

)

Ìý

Ìý

(1,159

)

Net debt

Ìý

Ìý

2,462,248

Ìý

Ìý

Ìý

2,428,430

Ìý

Ìý

Ìý

2,372,747

Ìý

Costs incurred on fully-leased development properties

Ìý

Ìý

(27,499

)

Ìý

Ìý

(18,774

)

Ìý

Ìý

(43,034

)

Costs incurred on fully-leased operating property acquisitions

Ìý

Ìý

�

Ìý

Ìý

Ìý

(17,034

)

Ìý

Ìý

�

Ìý

Net debt adjusted for fully-leased investment properties

Ìý

$

2,434,749

Ìý

Ìý

$

2,392,622

Ìý

Ìý

$

2,329,713

Ìý

Ìý

IR Contacts:

Venkat Kommineni, CFA

443.285.5587

[email protected]

Michelle Layne

443.285.5452

[email protected]

Source: COPT Defense Properties

Copt Defense Properties

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AGÕæÈ˹ٷ½ Estate Investment Trusts
United States
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