COPT DEFENSE PROPERTIES Focuses on US Government Defense Installations

By Chris Stiles • Saturday, February 21 13:55 • Permanent Link

COPT DEFENSE PROPERTIES recently released its 10-K report, revealing a focus on owning, operating, and developing properties near key U.S. Government defense installations and missions. As of September 31, 2025, the company's Defense/IT Portfolio comprised 201 properties, encompassing 23.2 million square feet and boasting a 96.5% lease rate. The tenants include the USG and their defense contractors, primarily engaged in priority national security activities, requiring mission-critical and high-security property enhancements.

The 10-K report's Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, highlighted the company's achievements in 2025. This included a year-end occupancy of 94.0% for the total portfolio and 95.5% for the Defense/IT Portfolio, as well as strong leasing activities and capital commitments to new external growth investments. The report also discussed the company's focus on the Defense/IT Portfolio segment, which represented 92.1% of the property square footage and 90.3% of the ARR, with a tenant retention rate of 79.3% and increased average rent per renewed square foot.

In terms of financial activities, COPT DEFENSE PROPERTIES issued $400.0 million of 4.50% Senior Notes due 2030, entered into an amendment to the existing credit agreement, and established the Revolving Development Facility with an initial aggregate lender commitment of $200.0 million. The company ended the year with $275.0 million in cash and cash equivalents, $746.0 million in available borrowing capacity under the Revolving Credit Facility, and $104.0 million in available borrowing capacity under the Revolving Development Facility.

The 10-K report also detailed the company's results of operations, showing an increase in diluted earnings per share from $1.23 per share in 2024 to $1.34 per share in 2025. Net operating income from real estate operations increased by $26.7 million, or 6.4%, relative to 2024, driven primarily by increased rental and occupancy rates in the Defense/IT Portfolio and external growth in the portfolio.

Today the company's shares have moved 2.15% to a price of $30.84. Check out the company's full 10-K submission here.

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