EPS of $0.37
FFO per Share, as Adjusted for Comparability, of $0.69
6.2% FFO per Share Growth Year-over-Year
2-cents above the Midpoint of Guidance
Increased Midpoint of 2025 FFO per Share Guidance by 3-cents to $2.70
Implies 5.1% FFO per Share Growth for the Year
Same Property Cash NOI Increased 4.6% in both 3Q25 and Year-to-Date
Increased Midpoint of 2025 Guidance for the Year by 75 basis points to 4.0%
Continued Strong Occupancy and Leased Levels
Total Portfolio 93.9% Occupied and 95.7% Leased
Highest Leased Rate in 20 Years
Defense/IT Portfolio 95.4% Occupied and 97.0% Leased
Increased Midpoint of 2025 Guidance for Same Property Year-End Occupancy by 20 basis points to 94.2%
3Q25 Leasing Outperformed Expectations; On Track to Exceed Already Increased 2025 Goals
Total Leasing in 3Q25 and YTD of 971,000 SF and 2.3 million SF, respectively
Vacancy Leasing in 3Q25 and YTD of 78,000 SF and 432,000 SF, respectively
Increased Annual Target to 500,000 SF from 450,000 SF
Tenant Retention of 82% in both 3Q25 and YTD
Investment Leasing in 3Q25 and YTD of 101,000 SF and 203,000 SF, respectively
Success in Capital Deployment
Over the Past 5 Weeks, Committed $72M of Capital to a Build-to-Suit Development Project and a Building Acquisition
Capital Commitment to New Investments YTD is $124M
COLUMBIA, Md.--(BUSINESS WIRE)--October 30, 2025--
COPT Defense Properties ("COPT Defense" or the "Company") $(CDP)$ announced results for the third quarter ended September 30, 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, continued to generate excellent results during the third quarter. FFO per share exceeded the midpoint of our guidance range by $0.02. Based on this outperformance, and our forecast for the remainder of the year, we increased the midpoint of 2025 FFO per share guidance by $0.03 to $2.70, which implies 5.1% year-over-year growth, and is $0.04 above our initial guidance.
We are exceeding our plan in several areas and raised 2025 guidance on multiple key metrics. We increased the midpoint of 2025 guidance for same property cash NOI growth by 75 basis points to 4.0%, cash rent spread on renewals by 200 basis points to 2%, and year-end same property occupancy by 20 basis points to 94.2%. In addition, with 432,000 square feet signed in the first nine months of the year, and a strong pipeline of deals in advanced negotiations, we raised our target for vacancy leasing by 11% from 450,000 square feet to 500,000 square feet. Our revised target is 25% higher than our initial target of 400,000 square feet, and reflects the depth of tenant demand to support priority missions. Additionally, in October, we successfully closed on three financings which pre-fund our 2026 bond maturity and provide $400 million of additional liquidity to fund our external growth.
We committed $72 million of capital to two new investments in September and October, both of which expand our strategic relationships with existing Defense/IT tenants. In September, we commenced construction on a 101,000 square foot build-to-suit development for Yulista, our 14(th) largest tenant, at our Redstone Gateway park in Huntsville, and in October, we acquired a 142,000 square foot office building in Chantilly, Virginia, which is 100% leased to a top 20 U.S. Defense Contractor. This acquisition exceeds our development yield threshold, is accretive to FFO per share, and reinforces our position as the dominant owner in the highly-leased and supply-constrained Westfields submarket, as we own roughly one-third of the 4 million square feet of office inventory.
We have produced excellent results for the first nine months of the year, we expect a strong fourth quarter and we continue to anticipate compound annual FFO per share growth of over 4% between 2023 to 2026."
Financial Highlights
3rd Quarter Financial Results:
-- Diluted earnings per share ("EPS") was $0.37 for the quarter ended
September 30, 2025, compared to $0.32 for the quarter ended September 30,
2024.
-- Diluted funds from operations per share ("FFOPS"), as calculated in
accordance with Nareit's definition and as adjusted for comparability,
was $0.69 for the quarter ended September 30, 2025, compared to $0.65 for
the quarter ended September 30, 2024.
Operating Performance Highlights
Operating Portfolio Summary:
-- At September 30, 2025, the Company's 24.6 million square foot total
portfolio was 93.9% occupied and 95.7% leased, which includes the 22.6
million square foot Defense/IT Portfolio that was 95.4% occupied and
97.0% leased.
Same Property Performance:
-- At September 30, 2025, the Company's 23.9 million square foot Same
Property portfolio was 94.3% occupied and 95.8% leased.
-- The Company's Same Property cash NOI increased 4.6% in the quarter
ended September 30, 2025, compared to the same period in 2024.
Leasing:
-- Total Square Feet Leased: For the quarter ended September 30, 2025, the Company leased 971,000 square feet, including 792,000 square feet of renewals, 78,000 square feet of vacancy leasing, and 101,000 square feet of investment leasing. For the nine months ended September 30, 2025, the Company executed 2.3 million square feet of total leasing, including 1.7 million square feet of renewals, 432,000 square feet of vacancy leasing, and 203,000 square feet of investment leasing. -- Tenant Retention Rates: During the quarter ended September 30, 2025, the Company renewed 81.8% of expiring square feet in its total portfolio. During the nine months ended September 30, 2025, the Company renewed 81.9% of expiring square feet in its total portfolio. -- Rent Spreads and Average Escalations on Renewing Leases: For the quarter and nine months ended September 30, 2025, straight-line rents on renewals increased 13.4% and 11.0%, respectively, and cash rents on renewed space increased 7.5% and 2.4%, respectively, while annual escalations on renewing leases averaged 1.4% and 1.9%, respectively. -- Lease Terms: In the quarter ended September 30, 2025, lease terms averaged 5.4 years on renewing leases, 8.6 years on vacancy leasing, and 12.6 years on investment leasing. For the nine months ended September 30, 2025, lease terms averaged 5.1 years on renewing leases, 7.8 years on vacancy leasing, and 11.2 years on investment leasing.
Investment Activity Highlights
-- Development Pipeline: The Company's development pipeline consists of
five properties totaling 812,000 square feet that were 68% leased as of
October 30, 2025. These projects represent a total estimated investment
of $311 million, of which $154 million was spent as of September 30,
2025.
-- Acquisition: On October 30, 2025, the Company acquired Stonegate I at
15050 Conference Center Drive in Chantilly, Virginia, a 142,000 square
foot Class A office building for a gross purchase price of $40.2 million.
The building is fully leased to a top 20 U.S. Government defense
contractor.
-- Please see the Company's acquisition press release dated October 30,
2025 and pages 13-17 of the Company's 3Q25 Results Presentation (refer to
the 'Associated Supplemental Presentation' section below).
Balance Sheet and Capital Transaction Highlights
-- On October 2, 2025, the Company issued $400 million of 4.50% Senior
Notes due 2030. The Company intends to use the net proceeds to repay the
2.25% Senior Notes at maturity in March 2026. Until March, the proceeds
will be used for general corporate purposes, including paying down
amounts under its Revolving Credit Facility and investment in
interest-bearing accounts.
-- On October 6, 2025, the Company entered into an amendment to the credit
agreement underlying its Revolving Credit Facility (the "Revolver") and
Unsecured Bank Term Loan (the "Term Loan"). This amendment: increased the
aggregate lender commitment under the Revolver from $600 million to $800
million; extended the maturity date of the Revolver from October 2026 to
October 2029, which may be extended by two six-month periods at the
Company's option; reduced the initial interest rate on the Revolver to
SOFR + 0.85% and on the Term Loan to SOFR + 1.05%; and eliminated the
0.10% SOFR transition charge.
-- On October 16, 2025, the Company entered into a secured revolving
credit agreement with a lender for an aggregate of $200 million of
available borrowings, which the Company intends to use to fund property
development activities.
-- For the quarter ended September 30, 2025, the Company's adjusted EBITDA
fixed charge coverage ratio was 4.8x.
-- At September 30, 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 5.8x.
-- At September 30, 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
4.1 years (assuming exercise of available extension options and including
effect of subsequent amendment to the Company's Revolving Credit
Facility), and 97% 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 third quarter 2025 conference call; the presentation can be viewed and downloaded from the 'Financial Info -- Financial Results' section of COPT Defense's Investors website:
https://investors.copt.com/financial-information/financial-results
2025 Guidance
Management is revising and increasing the midpoint of its full-year guidance for diluted EPS and diluted FFOPS, per Nareit and as adjusted for comparability of $1.30-$1.34 and $2.65-$2.69, respectively, to new ranges of $1.35-$1.37 and $2.69-$2.71, respectively. Management is establishing fourth quarter guidance for diluted EPS and diluted FFOPS per Nareit and as adjusted for comparability at $0.32-$0.34 and $0.67-$0.69, respectively. Reconciliations of projected diluted EPS to projected diluted FFOPS, in accordance with Nareit and as adjusted for comparability, are as follows:
Quarter Ending
December 31, Year Ending
2025 December 31, 2025
----------------- -----------------------
Reconciliation
of Diluted EPS
to FFOPS, per
Nareit, and As
Adjusted for
Comparability Low High Low High
Diluted EPS $ 0.32 $ 0.34 $ 1.35 $ 1.37
Real
estate-related
depreciation
and
amortization 0.35 0.35 1.37 1.37
Gain on sales of
real estate -- -- (0.03) (0.03)
----- ----- ------ ------
Diluted FFOPS,
Nareit
definition and
as adjusted for
comparability $ 0.67 $ 0.69 $ 2.69 $ 2.71
===== ===== ====== ======
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: https://investors.copt.com/news-events/press-releases
Conference Call Information
Management will discuss third quarter 2025 results on its conference call tomorrow, details of which are listed below:
Conference Call Date: Friday, October 31, 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:
https://register-conf.media-server.com/register/BI35f24564a63b4f47ada7811d5e985227
The conference call will also be available via live webcast in the 'News & Events -- IR Calendar' section of COPT Defense's Investors website: https://investors.copt.com/news-events/ir-calendar
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 (www.copt.com). 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 September 30, 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 97.0% 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.
COPT Defense Properties
Summary Financial Data
(unaudited)
(dollars and shares in thousands, except per share data)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
-------------------- ----------------------
2025 2024 2025 2024
Revenues
Lease revenue $178,272 $170,549 $529,178 $501,601
Other property
revenue 2,038 2,014 6,186 4,710
Construction
contract and
other service
revenues 8,485 16,662 31,202 63,523
------- ------- ------- -------
Total
revenues 188,795 189,225 566,566 569,834
Operating expenses
Property
operating
expenses 70,356 68,881 209,311 199,037
Depreciation and
amortization
associated with
real estate
operations 40,631 38,307 119,563 114,819
Construction
contract and
other service
expenses 7,952 16,127 29,530 61,746
General and
administrative
expenses 8,483 8,157 24,833 25,126
Leasing expenses 2,449 2,341 8,061 6,990
Business
development
expenses and
land carry
costs 1,098 918 3,203 3,079
------- ------- ------- -------
Total
operating
expenses 130,969 134,731 394,501 410,797
Interest expense (20,894) (20,376) (62,336) (61,760)
Interest and other
income, net 2,591 3,324 5,382 10,330
Gain on sales of
real estate 3,018 -- 3,318 --
------- ------- ------- -------
Income before
equity in income
of unconsolidated
entities and
income taxes 42,541 37,442 118,429 107,607
Equity in income of
unconsolidated
entities 1,815 85 2,541 180
Income tax expense (612) (130) (832) (312)
------- ------- ------- -------
Net income 43,744 37,397 120,138 107,475
Net income
attributable to
noncontrolling
interests
Common units in
the Operating
Partnership
("OP") (924) (711) (2,496) (2,013)
Other
consolidated
entities (1,093) (601) (2,828) (1,654)
------- ------- ------- -------
Net income
attributable to
common
shareholders $ 41,727 $ 36,085 $114,814 $103,808
======= ======= ======= =======
Earnings per share
("EPS")
computation
Numerator for
diluted EPS
Net income
attributable
to common
shareholders $ 41,727 $ 36,085 $114,814 $103,808
Amount
allocable to
share-based
compensation
awards (133) (104) (340) (319)
------- ------- ------- -------
Numerator for
diluted EPS $ 41,594 $ 35,981 $114,474 $103,489
======= ======= ======= =======
Denominator
Weighted
average
common
shares -
basic 112,485 112,314 112,442 112,279
Dilutive
effect of
share-based
compensation
awards 702 696 749 566
------- ------- ------- -------
Weighted
average
common
shares -
diluted 113,187 113,010 113,191 112,845
======= ======= ======= =======
Diluted EPS $ 0.37 $ 0.32 $ 1.01 $ 0.92
======= ======= ======= =======
COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands, except per share data)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
-------------------- ----------------------
2025 2024 2025 2024
Net income $ 43,744 $ 37,397 $120,138 $107,475
Real estate-related
depreciation and
amortization 40,631 38,307 119,563 114,819
Gain on sales of real
estate (3,018) -- (3,318) --
Depreciation and
amortization on
unconsolidated real
estate JVs 733 756 2,206 2,311
------- ------- ------- -------
Funds from operations
("FFO") 82,090 76,460 238,589 224,605
FFO allocable to other
noncontrolling
interests (1,502) (985) (4,042) (2,805)
Basic FFO allocable to
share-based
compensation awards (548) (617) (1,628) (1,803)
------- ------- ------- -------
Basic FFO available to
common share and common
unit holders ("Basic
FFO") 80,040 74,858 232,919 219,997
Redeemable
noncontrolling
interest -- -- -- 1,446
Diluted FFO adjustments
allocable to
share-based
compensation awards 53 47 294 141
------- ------- ------- -------
Diluted FFO available to
common share and common
unit holders ("Diluted
FFO") 80,093 74,905 233,213 221,584
Loss on early
extinguishment of debt
on unconsolidated real
estate JVs 28 -- 28 --
Executive transition
costs -- 69 -- 227
Diluted FFO
comparability
adjustments allocable
to share-based
compensation awards -- -- -- (1)
------- ------- ------- -------
Diluted FFO available to
common share and common
unit holders, as
adjusted for
comparability 80,121 74,974 233,241 221,810
Straight line rent
adjustments and lease
incentive amortization 5,053 613 1,518 7,874
Amortization of
intangibles and other
assets included in net
operating income
("NOI") 42 211 268 544
Share-based
compensation, net of
amounts capitalized 2,961 2,617 8,739 7,826
Amortization of deferred
financing costs 657 671 1,981 2,037
Amortization of net debt
discounts, net of
amounts capitalized 1,070 1,032 3,181 3,069
Replacement capital
expenditures (26,982) (27,824) (72,365) (69,850)
Other 352 298 508 493
------- ------- ------- -------
Diluted adjusted funds
from operations
available to common
share and common unit
holders ("Diluted
AFFO") $ 63,274 $ 52,592 $177,071 $173,803
======= ======= ======= =======
Diluted FFO per share $ 0.69 $ 0.65 $ 2.02 $ 1.92
======= ======= ======= =======
Diluted FFO per share,
as adjusted for
comparability $ 0.69 $ 0.65 $ 2.02 $ 1.92
======= ======= ======= =======
Dividends/distributions
per common share/unit $ 0.305 $ 0.295 $ 0.915 $ 0.885
COPT Defense Properties
Summary Financial Data
(unaudited)
(dollars and shares in thousands, except per share data)
September 30, December 31,
2025 2024
Balance Sheet Data
Properties, net of accumulated
depreciation $ 3,725,856 $ 3,630,526
Total assets $ 4,351,432 $ 4,254,191
Debt per balance sheet $ 2,443,518 $ 2,391,755
Total liabilities $ 2,772,176 $ 2,693,624
Redeemable noncontrolling interest $ 24,217 $ 23,974
Total equity $ 1,555,039 $ 1,536,593
Debt to assets 56.2% 56.2%
Net debt to adjusted book 40.2% 40.4%
Defense/IT Portfolio Data (as of
period end)
Number of operating properties 198 197
Total operational square feet (in
thousands) 22,597 22,549
% Occupied 95.4% 95.4%
% Leased 97.0% 96.7%
For the Three Months For the Nine Months Ended
Ended September 30, September 30,
------------------------- --------------------------
2025 2024 2025 2024
GAAP
Payout ratio
Net income 80.5% 90.7% 87.9% 94.6%
Debt ratios
Net income to
interest
expense ratio 2.1x 1.8x 1.9x 1.7x
Debt to net
income ratio 14.0x 16.0x N/A N/A
Non-GAAP
Payout ratios
Diluted FFO 43.7% 44.9% 45.0% 45.6%
Diluted FFO,
as adjusted
for
comparability 43.7% 44.9% 45.0% 45.5%
Diluted AFFO 55.3% 64.0% 59.3% 58.1%
Debt ratios
Adjusted
EBITDA fixed
charge
coverage
ratio 4.8x 4.8x 4.8x 4.7x
Net debt to
in-place
adjusted
EBITDA ratio 6.1x 6.1x N/A N/A
Net debt adj.
for
fully-leased
investment
properties to
in-place adj.
EBITDA ratio 5.8x 5.9x N/A N/A
Reconciliation of denominators
for per share measures
Denominator for
diluted EPS 113,187 113,010 113,191 112,845
Weighted average
common units 2,182 1,696 2,136 1,675
Redeemable
noncontrolling
interest -- -- -- 873
------- --- ------- ------- --- --------
Denominator for
diluted FFO per
share and as
adjusted for
comparability 115,369 114,706 115,327 115,393
======= === ======= ======= === ========
COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)
For the Three
Months Ended For the Nine Months
September 30, Ended September 30,
------------------- ----------------------
2025 2024 2025 2024
Numerators for
Payout Ratios
Dividends on
unrestricted
common and
deferred shares $ 34,332 $33,165 $102,974 $ 99,461
Distributions on
unrestricted
common units 658 491 1,985 1,496
Dividends and
distributions on
restricted shares
and units 209 247 663 752
------- ------ ------- -------
Total dividends
and distributions
for GAAP payout
ratio 35,199 33,903 105,622 101,709
Dividends and
distributions on
antidilutive
shares and units (202) (249) (592) (756)
------- ------ ------- -------
Dividends and
distributions for
non-GAAP payout
ratios $ 34,997 $33,654 $105,030 $100,953
======= ====== ======= =======
Reconciliation of
net income to
earnings before
interest, income
taxes,
depreciation and
amortization for
real estate
("EBITDAre"),
adjusted EBITDA
and in-place
adjusted EBITDA
Net income $ 43,744 $37,397 $120,138 $107,475
Interest expense 20,894 20,376 62,336 61,760
Income tax expense 612 130 832 312
Real
estate-related
depreciation and
amortization 40,631 38,307 119,563 114,819
Other depreciation
and amortization 428 614 1,438 1,786
Gain on sales of
real estate (3,018) -- (3,318) --
Adjustments from
unconsolidated
real estate JVs 1,758 1,759 4,791 5,139
------- ------ ------- -------
EBITDAre 105,049 98,583 305,780 291,291
Credit loss
(recoveries)
expense (324) 38 1,378 496
Business
development
expenses 731 557 2,065 1,790
Executive
transition costs -- 69 78 580
Loss on early
extinguishment of
debt on
unconsolidated
real estate JVs 28 -- 28 --
Net gain on other
investments (1,713) (11) (1,713) (488)
------- ------ ------- -------
Adjusted EBITDA 103,771 99,236 $307,616 $293,669
======= =======
Pro forma NOI
adjustment for
property changes
within period 21 --
------- ------
In-place adjusted
EBITDA $103,792 $99,236
======= ======
Reconciliations of
tenant
improvements and
incentives,
building
improvements and
leasing costs for
operating
properties to
replacement
capital
expenditures
Tenant
improvements and
incentives $ 24,769 $18,772 $ 53,820 $ 46,593
Building
improvements 3,662 6,694 11,175 17,352
Leasing costs 2,240 3,013 10,630 9,713
Net (exclusions
from) additions
to tenant
improvements and
incentives (3,390) 728 (93) 4
Excluded building
improvements (299) (1,383) (2,203) (3,771)
Excluded leasing
costs -- -- (964) (41)
------- ------ ------- -------
Replacement
capital
expenditures $ 26,982 $27,824 $ 72,365 $ 69,850
======= ====== ======= =======
COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)
For the Three Months For the Nine Months
Ended September 30, Ended September 30,
-------------------- ----------------------
2025 2024 2025 2024
Reconciliation of
interest expense
to the denominator
for fixed charge
coverage-Adjusted
EBITDA
Interest expense $ 20,894 $ 20,376 $ 62,336 $ 61,760
Less: Amortization
of deferred
financing costs (657) (671) (1,981) (2,037)
Less: Amortization
of net debt
discounts, net of
amounts
capitalized (1,070) (1,032) (3,181) (3,069)
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 898 821 2,409 2,433
Scheduled
principal
amortization 458 448 1,376 1,879
Capitalized
interest 1,292 712 3,345 1,944
------- ------- ------- -------
Denominator for
fixed charge
coverage-Adjusted
EBITDA $ 21,815 $ 20,654 $ 64,304 $ 62,910
======= ======= ======= =======
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
Net income $ 43,744 $ 37,397 $120,138 $107,475
Construction
contract and
other service
revenues (8,485) (16,662) (31,202) (63,523)
Depreciation and
other
amortization
associated with
real estate
operations 40,631 38,307 119,563 114,819
Construction
contract and
other service
expenses 7,952 16,127 29,530 61,746
General and
administrative
expenses 8,483 8,157 24,833 25,126
Leasing expenses 2,449 2,341 8,061 6,990
Business
development
expenses and land
carry costs 1,098 918 3,203 3,079
Interest expense 20,894 20,376 62,336 61,760
Interest and other
income, net (2,591) (3,324) (5,382) (10,330)
Gain on sales of
real estate (3,018) -- (3,318) --
Equity in income
of unconsolidated
entities (1,815) (85) (2,541) (180)
Unconsolidated
real estate JVs
NOI allocable to
COPT Defense
included in
equity in income
of unconsolidated
entities 1,864 1,844 5,623 5,319
Income tax expense 612 130 832 312
------- ------- ------- -------
NOI from real
estate
operations 111,818 105,526 331,676 312,593
Non-Same Property
NOI from real
estate
operations (3,948) (1,482) (10,865) (3,345)
------- ------- ------- -------
Same Property NOI
from real estate
operations 107,870 104,044 320,811 309,248
Straight line rent
adjustments and
lease incentive
amortization 3,315 (498) 3,460 3,597
Amortization of
acquired above-
and below-market
rents (92) (69) (230) (207)
Lease termination
fees, net (1,191) (931) (2,753) (2,587)
Tenant funded
landlord assets
and lease
incentives (4,920) (2,103) (12,954) (15,065)
Cash NOI
adjustments in
unconsolidated
real estate JVs (209) (280) (689) (796)
------- ------- ------- -------
Same Property Cash
NOI from real
estate
operations $104,773 $100,163 $307,645 $294,190
======= ======= ======= =======
COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)
September 30, December 31,
2025 2024
Reconciliation of total assets to
adjusted book
Total assets $ 4,351,432 $ 4,254,191
Accumulated depreciation 1,644,472 1,537,293
Accumulated amortization of
intangibles on property
acquisitions and deferred leasing
costs 226,312 228,154
COPT Defense's share of liabilities
of unconsolidated real estate JVs 82,430 61,294
COPT Defense's share of accumulated
depreciation and amortization of
unconsolidated real estate JVs 15,197 12,817
Less: Property - operating lease
liabilities (46,203) (49,240)
Less: Property - finance lease
liabilities (370) (391)
Less: Cash and cash equivalents (23,687) (38,284)
Less: COPT Defense's share of cash
of unconsolidated real estate JVs (2,080) (2,053)
----------- ----------
Adjusted book $ 6,247,503 $ 6,003,781
=========== ==========
September 30, December 31, September 30,
2025 2024 2024
Reconciliation
of debt to net
debt and net
debt adjusted
for
fully-leased
investment
properties
Debt per balance
sheet $ 2,443,518 $ 2,391,755 $ 2,390,839
Net discounts
and deferred
financing
costs 19,123 23,262 24,633
COPT Defense's
share of
unconsolidated
JV gross debt 75,250 53,750 53,148
--------- ---------- ----------
Gross debt 2,537,891 2,468,767 2,468,620
Less: Cash and
cash
equivalents (23,687) (38,284) (34,478)
Less: COPT
Defense's share
of cash of
unconsolidated
real estate
JVs (2,080) (2,053) (1,575)
--------- ---------- ----------
Net debt 2,512,124 2,428,430 2,432,567
Costs incurred
on fully-leased
development
properties (83,794) (18,774) (70,954)
Costs incurred
on fully-leased
operating
property
acquisitions -- (17,034) (17,034)
--------- ---------- ----------
Net debt
adjusted for
fully-leased
investment
properties $ 2,428,330 $ 2,392,622 $ 2,344,579
========= ========== ==========
Source: COPT Defense Properties
View source version on businesswire.com: https://www.businesswire.com/news/home/20251030353489/en/
CONTACT:
IR Contacts:
Venkat Kommineni, CFA
443.285.5587
venkat.kommineni@copt.com
Michelle Layne
443.285.5452
michelle.layne@copt.com
(END) Dow Jones Newswires
October 30, 2025 16:16 ET (20:16 GMT)