Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by ...

Core Insights - CDP has shown resilience and growth, making it a top investment pick with a stock price increase of approximately 3.62% over the past month, despite a recent dip of 2.46% in the last 10 days [1][6] - The stock has a growth potential of 20.93%, with a target price set at $36, indicating it is currently undervalued [2] - CDP's Piotroski Score of 8 reflects strong financial health and solid fundamentals, suggesting efficient operations and prudent management [3][6] Performance Analysis - The recent dip in CDP's stock price may be attributed to market fluctuations or short-term profit-taking rather than fundamental weaknesses, presenting a potential buying opportunity for long-term investors [4][5] - The overall positive performance over the last month should not be overlooked, as it indicates the company's resilience in the market [4] Investment Opportunity - CDP is positioned as a compelling investment opportunity due to its strong growth potential, solid fundamentals, and high Piotroski Score, making it attractive for investors seeking future gains [5][6]

COLUMBIA, Md.--(BUSINESS WIRE)--COPT Defense Properties (NYSE: CDP) ("COPT Defense†or the "Company†) announced that its operating partnership, COPT Defense Properties, L.P. (the "Operating Partnership†), priced an underwritten public offering (the "Offering†) of $400 million of 4.500% Senior Notes due 2030 (the "2030 Notes†). The Company will fully and unconditionally guarantee the Operating Partnership's obligations under the 2030 Notes. The Offering is expected to close on October 2, 2025, s. ...

PresentationSteve will introduce his team and provide some opening remarks, and then we'll open it up for questions.Thank you all for joining us for the final roundtable of the Bank of America's 2025 Global Real Estate Conference. I'm Jana Galan, and I cover the office REITs at BofA. We're very pleased to have with us COPT Defense Properties CEO and President, Steve Budorick here today.Stephen E. BudorickPresident, CEO & Trustee So with me is our Chief Operating Officer, Britt Snider; and our Chief Financia ...

Summary of COPT Defense Properties Conference Call Company Overview - COPT Defense Properties is a specialized Real Estate Investment Trust (REIT) focused on mission-critical assets supporting U.S. national defense activities. [2] - The company operates 204 properties, primarily located near key defense installations in Virginia, Maryland, Washington D.C., Alabama, and Texas. [2] Core Business Insights - 80% of the defense portfolio consists of high-security operations, including eight U.S. government-secured campuses totaling over 4 million square feet. [3] - The U.S. government is the largest tenant, accounting for 36% of annualized rental revenue, with defense contractors contributing 51%. [4] - Non-defense properties contribute only 10% of annualized rental revenue, indicating a strong focus on defense-related assets. [4] Financial Performance and Growth - The defense IT segment is 96.8% leased, significantly above the peer average. [4] - The company forecasts nearly 4% growth in Funds From Operations (FFO) per share for 2025, marking the seventh consecutive year of growth. [8] - COPT has increased its dividend by nearly 11% over the last three years and is the only office REIT to raise dividends in 2023, 2024, and 2025. [8] Development and Leasing Strategy - The company plans to commit $225 million to new developments in 2025, with $50 million already allocated by mid-year. [9] - COPT has a strong leasing pipeline, with over 70% of vacant space having prospects. [35] - The company is in advanced negotiations for build-to-suit solutions with six different tenants. [9] Defense Budget Outlook - The One Big Beautiful Bill pre-appropriated $150 billion for defense over five years, with $113 billion allocated for fiscal year 2026, representing a 13% increase in defense spending. [11] - The president's budget for fiscal year 2026 is $831 billion, which may increase as it moves through Congress. [12] Strategic Opportunities - The relocation of U.S. Space Command headquarters to Huntsville will be developed on COPT's land, representing a significant opportunity for growth. [16][17] - The Golden Dome initiative aims to create an anti-missile defense shield with an estimated budget of $175 billion, expected to drive leasing demand. [28][29] Market Position and Competitive Advantage - COPT has a competitive advantage due to its long-standing relationship with the U.S. government and its specialized focus on defense-related properties. [5][6] - The company has a strong investment-grade balance sheet and a disciplined approach to capital allocation. [5] Risks and Challenges - Government shutdowns do not significantly impact COPT, as leases are covered by the U.S. government. [14] - The company is aware of potential risks related to the broader review of government real estate usage but remains focused on mission-critical work. [33] Future Development Plans - COPT has acquired land in Des Moines, Iowa, for future development, anticipating a four-year timeline before breaking ground due to power constraints. [39] - The company has over 6 million square feet of data centers, with significant rent increases observed upon renewal. [38] Conclusion - COPT Defense Properties is well-positioned for growth in the defense sector, with strong financial performance, strategic development opportunities, and a focus on high-security assets. [6][8][29]

Core Insights - WuXi Biologics has been recognized on the CDP's A List for Supplier Engagement Assessment, highlighting its leadership in climate-related supply chain engagement [1][2] - The company has achieved a 30% reduction in GHG emissions intensity (Scope 1 and Scope 2) in 2024 compared to the base year 2020, with a goal of net-zero emissions by 2050 [3][4] - WuXi Biologics has received multiple recognitions for its sustainability efforts, including an MSCI AAA Rating and inclusion in the Dow Jones Sustainability Indices [4][9] Company Overview - WuXi Biologics is a leading global Contract Research, Development, and Manufacturing Organization (CRDMO) that provides end-to-end solutions for biologics [6][8] - The company employs over 12,000 skilled professionals across various countries, supporting 817 integrated client projects as of December 31, 2024 [8] - Sustainability is a cornerstone of WuXi Biologics' long-term business strategy, focusing on green technology innovations and responsible practices [9] Environmental Commitment - WuXi Biologics is committed to the Science Based Target initiative (SBTi) and has established measurable targets for climate change [3] - The company actively engages with suppliers to enhance sustainable supply chain management and Scope 3 emissions reporting [3][4] - WuXi Biologics has been recognized for its water security efforts, being included in CDP's Water Security A List [2][4] Recognition and Ratings - The company has received leadership-level scores from CDP for two consecutive years, reflecting its commitment to climate change initiatives [2][4] - WuXi Biologics has been awarded an EcoVadis Platinum Medal and recognized as a top-rated company by Sustainalytics for five consecutive years [4][9] - The company is a participant in the United Nations Global Compact and the Pharmaceutical Supply Chain Initiative, further emphasizing its dedication to sustainability [4]

CDP's SEA evaluates the effectiveness of companies' climate change engagement efforts with their suppliers, helping to drive greater impact across their value chain. About Pyxus International, Inc. "One of Pyxus' greatest strengths is our close collaboration with our contracted grower base. Our ability to educate, demonstrate and train growers on updated agronomic best practices and climate change adaptation has an essential link to the reduction of our Company's indirect greenhouse gas emissions," said Pyx ...

[PART I. FINANCIAL INFORMATION](index=3&type=section&id=PART%20I.%20FINANCIAL%20INFORMATION) Presents the company's consolidated financial statements and related disclosures for the reporting period [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements of COPT Defense Properties and its subsidiaries for the periods ended June 30, 2025, and December 31, 2024, including balance sheets, statements of operations, comprehensive income, equity, and cash flows, along with detailed notes explaining accounting policies, fair value measurements, debt, equity, segment information, and other financial disclosures [Consolidated Balance Sheets](index=3&type=section&id=Consolidated%20Balance%20Sheets) Details the company's assets, liabilities, and equity at specific reporting dates Consolidated Balance Sheet Highlights (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | | :----- | :------------ | :---------------- | :----- | | Total Assets | $4,286,950 | $4,254,191 | $32,759 | | Properties, net | $3,682,556 | $3,630,526 | $52,030 | | Debt, net | $2,438,591 | $2,391,755 | $46,836 | | Total Liabilities | $2,717,951 | $2,693,624 | $24,327 | | Total Equity | $1,545,741 | $1,536,593 | $9,148 | [Consolidated Statements of Operations](index=4&type=section&id=Consolidated%20Statements%20of%20Operations) Reports the company's revenues, expenses, and net income over specific periods Consolidated Statements of Operations Highlights (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change | YoY Change (%) | | :----- | :--- | :--- | :----- | :------------- | | Total Revenues | $189,915 | $187,343 | $2,572 | 1.4% | | Lease revenue | $175,598 | $165,619 | $9,979 | 6.0% | | Construction contract and other service revenues | $12,458 | $20,258 | $(7,800) | -38.5% | | Total Operating Expenses | $130,272 | $133,215 | $(2,943) | -2.2% | | Net income attributable to common shareholders | $38,347 | $35,114 | $3,233 | 9.2% | | Basic EPS | $0.34 | $0.31 | $0.03 | 9.7% | | Diluted EPS | $0.34 | $0.31 | $0.03 | 9.7% | Consolidated Statements of Operations Highlights (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change | YoY Change (%) | | :----- | :--- | :--- | :----- | :------------- | | Total Revenues | $377,771 | $380,609 | $(2,838) | -0.7% | | Lease revenue | $350,906 | $331,052 | $19,854 | 6.0% | | Construction contract and other service revenues | $22,717 | $46,861 | $(24,144) | -51.5% | | Total Operating Expenses | $263,532 | $276,066 | $(12,534) | -4.5% | | Net income attributable to common shareholders | $73,087 | $67,723 | $5,364 | 7.9% | | Basic EPS | $0.65 | $0.60 | $0.05 | 8.3% | | Diluted EPS | $0.64 | $0.60 | $0.04 | 6.7% | [Consolidated Statements of Comprehensive Income](index=5&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Presents net income and other comprehensive income components, reflecting total changes in equity Consolidated Statements of Comprehensive Income Highlights (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change | YoY Change (%) | | :----- | :--- | :--- | :----- | :------------- | | Net income | $40,166 | $36,407 | $3,759 | 10.3% | | Total other comprehensive (loss) income | $(92) | $(262) | $170 | -64.9% | | Comprehensive income attributable to common shareholders | $38,286 | $34,879 | $3,407 | 9.8% | Consolidated Statements of Comprehensive Income Highlights (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change | YoY Change (%) | | :----- | :--- | :--- | :----- | :------------- | | Net income | $76,394 | $70,078 | $6,316 | 9.0% | | Total other comprehensive (loss) income | $(734) | $1,539 | $(2,273) | -147.7% | | Comprehensive income attributable to common shareholders | $72,441 | $69,222 | $3,219 | 4.6% | [Consolidated Statements of Equity](index=6&type=section&id=Consolidated%20Statements%20of%20Equity) Outlines changes in the company's equity accounts over the reporting period Consolidated Statements of Equity Highlights (Six Months Ended June 30, 2025, in thousands) | Metric | Balance at Dec 31, 2024 | Comprehensive Income | Dividends | Share-based Compensation | Balance at Jun 30, 2025 | | :----- | :-------------------- | :------------------- | :-------- | :----------------------- | :-------------------- | | Total Equity | $1,536,593 | $74,325 | $(68,904) | $6,095 | $1,545,741 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Summarizes cash inflows and outflows from operating, investing, and financing activities Consolidated Statements of Cash Flows Highlights (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change | YoY Change (%) | | :----- | :--- | :--- | :----- | :------------- | | Net cash provided by operating activities | $159,972 | $164,825 | $(4,853) | -2.9% | | Net cash used in investing activities | $(148,573) | $(132,242) | $(16,331) | 12.3% | | Net cash used in financing activities | $(27,713) | $(99,404) | $71,691 | -72.1% | | Net decrease in cash and cash equivalents and restricted cash | $(16,314) | $(66,821) | $50,507 | -75.6% | | Cash and cash equivalents and restricted cash, End of period | $23,383 | $102,603 | $(79,220) | -77.2% | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Provides detailed explanations of accounting policies, financial statement line items, and other disclosures [1. Organization](index=10&type=section&id=1.%20Organization) Describes the company's structure, business, and ownership details - COPT Defense Properties is a self-managed REIT focused on owning, operating, and developing properties near U.S. Government defense installations, with **97.2% ownership** in its operating partnership, CDPLP[27](index=27&type=chunk)[29](index=29&type=chunk) Defense/IT Portfolio Overview (as of June 30, 2025) | Portfolio Component | Details | | :------------------ | :------ | | Operating Properties | 198 properties, 22.6 million sq ft (16.7M sq ft office, 5.9M sq ft data center shells) | | Properties Under Development | 5 properties (3 office, 2 data center shells), ~756,000 sq ft upon completion | | Developable Land | ~1,010 acres, potential for ~10.8 million sq ft | [2. Summary of Significant Accounting Policies](index=10&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) Outlines the key accounting principles and methods applied in financial reporting - The company consolidates entities where it has a majority voting interest or is the primary beneficiary of VIEs, using the equity method for significant influence and fair value/cost for other investments[31](index=31&type=chunk)[32](index=32&type=chunk)[33](index=33&type=chunk) - Adopted FASB guidance on profits interest awards effective January 1, 2025, with no material effect on financial statements[37](index=37&type=chunk) - New FASB guidance on income tax disclosures is effective for 2025 annual reporting, not expected to materially affect future disclosures[38](index=38&type=chunk) - New FASB guidance on disaggregated expense disclosures is effective for annual periods after December 15, 2026, and interim periods after December 15, 2027; impact is currently being assessed[39](index=39&type=chunk) [3. Fair Value Measurements](index=11&type=section&id=3.%20Fair%20Value%20Measurements) Details the valuation techniques and inputs used for financial instruments measured at fair value - Interest rate derivatives are classified as Level 2 in the fair value hierarchy, with credit valuation adjustments using Level 3 inputs deemed not significant[40](index=40&type=chunk) - Unsecured senior notes are valued using Level 1 inputs (quoted market rates), while other debt and investing receivables use Level 3 inputs (discounted estimated future cash flows)[41](index=41&type=chunk) Fair Value Measurements of Financial Assets (June 30, 2025, in thousands) | Description | Level 1 | Level 2 | Level 3 | Total | | :---------- | :------ | :------ | :------ | :---- | | Interest rate derivatives | $— | $581 | $— | $581 | [4. Properties, Net](index=12&type=section&id=4.%20Properties%2C%20Net) Provides a breakdown of the company's real estate properties, including buildings and accumulated depreciation Operating Properties, Net (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | | :----- | :------------ | :---------------- | :----- | | Operating properties, net | $3,359,676 | $3,353,477 | $6,199 | | Buildings and improvements | $4,472,185 | $4,395,063 | $77,122 | | Accumulated depreciation | $(1,608,032) | $(1,537,293) | $(70,739) | [5. Leases](index=12&type=section&id=5.%20Leases) Presents information on the company's lessor and lessee arrangements, including lease revenues and costs Lessor Arrangements - Lease Revenue (Six Months Ended June 30, in thousands) | Lease Revenue Type | 2025 | 2024 | Change | YoY Change (%) | | :----------------- | :--- | :--- | :----- | :------------- | | Fixed | $268,025 | $253,561 | $14,464 | 5.7% | | Variable | $82,881 | $77,491 | $5,390 | 7.0% | | Total Lease Revenue | $350,906 | $331,052 | $19,854 | 6.0% | - As of June 30, 2025, operating leases had a weighted average remaining lease term of **39 years** and a weighted average discount rate of **7.3%**[45](index=45&type=chunk) Lessee Arrangements - Property Lease Cost (Six Months Ended June 30, in thousands) | Lease Cost Type | 2025 | 2024 | Change | YoY Change (%) | | :-------------- | :--- | :--- | :----- | :------------- | | Operating lease cost | $4,591 | $3,935 | $656 | 16.7% | | Finance lease cost | $55 | $56 | $(1) | -1.8% | | Total Property Lease Cost | $4,646 | $3,991 | $655 | 16.4% | [6. Real Estate Joint Ventures](index=14&type=section&id=6.%20Real%20Estate%20Joint%20Ventures) Details the company's investments in consolidated and unconsolidated real estate joint ventures Consolidated Real Estate Joint Ventures (June 30, 2025, in thousands) | Entity | Nominal Ownership % | Location | Total Encumbered Assets | Mortgage Debt | | :----- | :------------------ | :------- | :---------------------- | :------------ | | LW Redstone Company, LLC | 85% | Huntsville, AL | $747,960 | $22,025 | | Stevens Investors, LLC | 95% | Washington, DC | $141,483 | $— | | M Square Associates, LLC | 50% | College Park, MD | $100,213 | $46,816 | Unconsolidated Real Estate Joint Ventures - Carrying Value (June 30, 2025, in thousands) | Entity | Nominal Ownership % | Number of Properties | Carrying Value of Investment | | :----- | :------------------ | :------------------- | :--------------------------- | | Redshift JV LLC | 10% | 3 | $20,842 | | BREIT COPT DC JV LLC | 10% | 9 | $9,058 | | Quark JV LLC | 10% | 2 | $6,675 | | B RE COPT DC JV III LLC | 10% | 2 | $1,980 | | B RE COPT DC JV II LLC | 10% | 8 | $(3,823) | | Total | | 24 | $34,732 | [7. Investing Receivables](index=15&type=section&id=7.%20Investing%20Receivables) Describes the nature and balances of the company's investing loans and notes receivable Investing Receivables, Net (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | | :----- | :------------ | :---------------- | :----- | | Investing receivables, net | $79,300 | $69,680 | $9,620 | | Notes receivable from City of Huntsville | $71,963 | $69,241 | $2,722 | | Other investing loans receivable | $11,903 | $3,231 | $8,672 | | Allowance for credit losses | $(4,566) | $(2,792) | $(1,774) | - Notes receivable from the City of Huntsville carry a **9.95% interest rate**, while other investing loans receivable carry effective interest rates ranging from **12.0% to 14.0%** and mature by early 2026[51](index=51&type=chunk) [8. Debt, Net](index=16&type=section&id=8.%20Debt%2C%20Net) Provides a comprehensive overview of the company's debt obligations, including types, interest rates, and maturities Debt, Net (June 30, 2025, in thousands) | Debt Type | Carrying Value | Stated Interest Rate | Scheduled Maturity | | :-------- | :------------- | :------------------- | :----------------- | | Mortgage and Other Secured Debt | $68,841 | 3.82% (fixed), SOFR + 0.10% + 1.45-1.55% (variable) | June 2026, 2026 | | Revolving Credit Facility | $120,000 | SOFR + 0.10% + 0.725-1.400% | October 2026 | | Term Loan Facility | $124,805 | SOFR + 0.10% + 0.850-1.700% | January 2026 | | Unsecured Senior Notes (various) | $2,124,788 | 2.00% - 5.25% | March 2026 - December 2033 | | Total Debt, Net | $2,438,591 | | | - The company was compliant with all restrictive financial covenants as of June 30, 2025[62](index=62&type=chunk)[164](index=164&type=chunk) Debt Maturity Schedule (June 30, 2025, in thousands) | Year Ending December 31, | Amount | | :----------------------- | :----- | | 2025 (remaining 6 months) | $925 | | 2026 | $713,175 | | 2027 | $— | | 2028 | $345,000 | | 2029 | $400,000 | | Thereafter | $1,000,000 | | Total | $2,459,100 | [9. Interest Rate Derivatives](index=17&type=section&id=9.%20Interest%20Rate%20Derivatives) Details the fair value and impact of the company's interest rate derivative instruments Fair Value of Interest Rate Derivatives (in thousands) | Metric | June 30, 2025 | December 31, 2024 | Change | | :----- | :------------ | :---------------- | :----- | | Fair Value | $581 | $1,315 | $(734) | - Approximately **$569,000** of gains are estimated to be reclassified from accumulated other comprehensive income (AOCI) as a decrease to interest expense over the next 12 months[68](index=68&type=chunk) [10. Redeemable Noncontrolling Interest](index=18&type=section&id=10.%20Redeemable%20Noncontrolling%20Interest) Reports changes in the redeemable noncontrolling interest during the reporting period Redeemable Noncontrolling Interest Activity (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change | | :----- | :--- | :--- | :----- | | Beginning balance | $23,974 | $23,580 | $394 | | Ending balance | $23,258 | $22,765 | $493 | | Adjustments for changes in fair value of interest | $(716) | $(816) | $100 | [11. Equity](index=18&type=section&id=11.%20Equity) Summarizes key equity-related activities, including stock offerings and dividends - Remaining capacity under the at-the-market stock offering program is **$300 million**[71](index=71&type=chunk) Dividends per Common Share | Period | Dividends per Common Share | | :----- | :------------------------- | | Three months ended June 30, 2025 | $0.305 | | Three months ended June 30, 2024 | $0.295 | | Six months ended June 30, 2025 | $0.61 | | Six months ended June 30, 2024 | $0.59 | - **11,589 common units** in CDPLP were converted to common shares during the six months ended June 30, 2025[71](index=71&type=chunk) [12. Information by Business Segment](index=19&type=section&id=12.%20Information%20by%20Business%20Segment) Presents financial performance data disaggregated by the company's operating segments - The company's reportable segments are Defense/IT Portfolio and Other, with the Defense/IT Portfolio further broken down into sub-segments[73](index=73&type=chunk) - Segment performance is measured by Net Operating Income from real estate operations (NOI from real estate operations)[74](index=74&type=chunk) Same Property NOI from Real Estate Operations by Segment (Six Months Ended June 30, in thousands) | Segment | 2025 | 2024 | Change | YoY Change (%) | | :------ | :--- | :--- | :----- | :------------- | | Defense/IT Portfolio | $195,631 | $191,552 | $4,079 | 2.1% | | Other | $17,310 | $13,652 | $3,658 | 26.8% | | Total Same Property NOI from real estate operations | $212,941 | $205,204 | $7,737 | 3.8% | Total Revenues by Type (Six Months Ended June 30, in thousands) | Revenue Type | 2025 | 2024 | Change | YoY Change (%) | | :----------- | :--- | :--- | :----- | :------------- | | Segment revenues from real estate operations | $355,054 | $333,748 | $21,306 | 6.4% | | Construction contract and other service revenues | $22,717 | $46,861 | $(24,144) | -51.5% | | Total Revenues | $377,771 | $380,609 | $(2,838) | -0.7% | [13. Construction Contract and Other Service Revenues](index=24&type=section&id=13.%20Construction%20Contract%20and%20Other%20Service%20Revenues) Details revenues from construction contracts and other services by compensation arrangement Construction Contract and Other Service Revenues by Compensation Arrangement (Six Months Ended June 30, in thousands) | Revenue Type | 2025 | 2024 | Change | YoY Change (%) | | :----------- | :--- | :--- | :----- | :------------- | | Firm fixed price | $11,813 | $21,185 | $(9,372) | -44.2% | | Guaranteed maximum price | $7,454 | $22,092 | $(14,638) | -66.3% | | Cost-plus fee | $2,907 | $2,706 | $201 | 7.4% | | Other | $543 | $878 | $(335) | -38.2% | | Total | $22,717 | $46,861 | $(24,144) | -51.5% | - Revenue allocated to remaining performance obligations as of June 30, 2025, was **$23.4 million**, all expected to be recognized in the six months ending December 31, 2025[86](index=86&type=chunk) [14. Credit Losses on Financial Assets and Other Instruments](index=25&type=section&id=14.%20Credit%20Losses%20on%20Financial%20Assets%20and%20Other%20Instruments) Provides information on the allowance for credit losses and credit quality of financial assets Allowance for Credit Losses Activity (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change | | :----- | :--- | :--- | :----- | | Beginning balance | $3,482 | $3,196 | $286 | | Net credit loss expense (recoveries) | $1,702 | $458 | $1,244 | | Ending balance | $5,184 | $3,654 | $1,530 | - As of June 30, 2025, **$71,963 thousand** of investing receivables were investment grade, and **$11,903 thousand** were non-investment grade. For tenant notes receivable, **$480 thousand** were investment grade, and **$1,654 thousand** were non-investment grade[90](index=90&type=chunk) [15. Share-Based Compensation](index=26&type=section&id=15.%20Share-Based%20Compensation) Details activity related to restricted shares and profit interest units under share-based compensation plans Restricted Shares Activity (Six Months Ended June 30, 2025) | Metric | Number of Shares | Weighted Average Grant Date Fair Value | | :----- | :--------------- | :----------------------------------- | | Unvested as of Dec 31, 2024 | 353,014 | $25.65 | | Granted | 238,084 | $27.07 | | Forfeited | (11,824) | $26.49 | | Vested | (133,247) | $25.43 | | Unvested as of Jun 30, 2025 | 446,027 | $26.46 | Time-Based Profit Interest Units (TB-PIUs) Activity (Six Months Ended June 30, 2025) | Metric | Number of TB-PIUs | Weighted Average Grant Date Fair Value | | :----- | :---------------- | :----------------------------------- | | Unvested as of Dec 31, 2024 | 223,939 | $25.14 | | Granted | 123,250 | $27.11 | | Vested | (106,592) | $25.32 | | Unvested as of Jun 30, 2025 | 240,597 | $26.07 | - Performance-based awards granted on January 1, 2025, include **246,230 PB-PIUs** and **20,296 PSUs**, with a three-year performance period tied to COPT Defense's total shareholder return (TSR) relative to a peer group[98](index=98&type=chunk)[99](index=99&type=chunk) [16. Earnings Per Share ("EPS")](index=28&type=section&id=16.%20Earnings%20Per%20Share%20%28%22EPS%22%29) Presents basic and diluted earnings per share calculations and related adjustments EPS Summary (Three Months Ended June 30) | Metric | 2025 | 2024 | Change | YoY Change (%) | | :----- | :--- | :--- | :----- | :------------- | | Basic EPS attributable to common shareholders | $0.34 | $0.31 | $0.03 | 9.7% | | Diluted EPS attributable to common shareholders | $0.34 | $0.31 | $0.03 | 9.7% | EPS Summary (Six Months Ended June 30) | Metric | 2025 | 2024 | Change | YoY Change (%) | | :----- | :--- | :--- | :----- | :------------- | | Basic EPS attributable to common shareholders | $0.65 | $0.60 | $0.05 | 8.3% | | Diluted EPS attributable to common shareholders | $0.64 | $0.60 | $0.04 | 6.7% | - Diluted EPS computations exclude the conversion of common units and redeemable noncontrolling interest, as well as certain share-based compensation awards, because their effect was antidilutive for the respective periods[107](index=107&type=chunk)[109](index=109&type=chunk) [17. Commitments and Contingencies](index=29&type=section&id=17.%20Commitments%20and%20Contingencies) Discloses potential future obligations and liabilities, including legal and environmental matters - Management believes it is reasonably possible to recognize a loss of up to **$5.1 million** for certain municipal tax claims, which could be material to results of operations[111](index=111&type=chunk) - Environmental assessments have not revealed any environmental liability that would have a materially adverse effect on financial position, operations, or liquidity[112](index=112&type=chunk) - The company does not expect future fundings for its **$25 million** tax incremental financing obligation related to the National Business Park[114](index=114&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=30&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on the company's financial condition and results of operations, highlighting key performance indicators such as occupancy, leasing activity, and Net Operating Income (NOI). It details the drivers behind changes in revenues and expenses for both real estate and service operations, discusses Funds from Operations (FFO), property additions, cash flows, and outlines the company's liquidity and capital resources [Overview](index=30&type=section&id=Overview) Provides a high-level summary of the company's operational performance, occupancy, and key forward-looking statements - Portfolio occupancy was **94.0%** and leased percentage was **95.6%** as of June 30, 2025[119](index=119&type=chunk) - Achieved an **81.9% tenant retention rate** for the six months ended June 30, 2025, primarily driven by the Defense/IT Portfolio[119](index=119&type=chunk)[123](index=123&type=chunk) - Forward-looking statements are subject to risks including general economic conditions, real estate market changes, borrowing ability, property acquisition/development risks, joint venture risks, government actions, and cybersecurity[120](index=120&type=chunk)[124](index=124&type=chunk) [Occupancy and Leasing](index=31&type=section&id=Occupancy%20and%20Leasing) Details the company's portfolio occupancy rates, leasing activity, and tenant retention metrics Occupancy Rates at Period End | Segment | June 30, 2025 | December 31, 2024 | Change (pp) | | :------ | :------------ | :---------------- | :---------- | | Total | 94.0% | 93.6% | 0.4% | | Defense/IT Portfolio | 95.6% | 95.4% | 0.2% | | Data Center Shells | 100.0% | 100.0% | 0.0% | | Other | 76.2% | 72.7% | 3.5% | - Annualized Rental Revenue (ARR) per occupied square foot increased to **$35.77** at June 30, 2025, from **$35.35** at December 31, 2024[122](index=122&type=chunk) - Leased **1.4 million square feet** during the six months ended June 30, 2025, comprising **915,000 sq ft of renewals** (81.9% retention), **353,000 sq ft of vacant space**, and **103,000 sq ft of investment space**[123](index=123&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) Analyzes the company's financial performance by comparing revenues and expenses across reporting periods - Operating performance is evaluated using Net Operating Income (NOI) from real estate operations and NOI from service operations[125](index=125&type=chunk)[126](index=126&type=chunk) - The Same Property pool consisted of **198 properties**, representing **97.1%** of the portfolio's square footage as of June 30, 2025[125](index=125&type=chunk) [Comparison of Statements of Operations for the Three Months Ended June 30, 2025 and 2024](index=33&type=section&id=Comparison%20of%20Statements%20of%20Operations%20for%20the%20Three%20Months%20Ended%20June%2030%2C%202025%20and%202024) Compares the company's operational results for the three-month periods ended June 30 Statements of Operations Comparison (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Variance | | :----- | :--- | :--- | :------- | | Revenues from real estate operations | $177,457 | $167,085 | $10,372 | | Construction contract and other service revenues | $12,458 | $20,258 | $(7,800) | | Total revenues | $189,915 | $187,343 | $2,572 | | Total operating expenses | $130,272 | $133,215 | $(2,943) | | Net income | $40,166 | $36,407 | $3,759 | [NOI from Real Estate Operations (3 Months)](index=34&type=section&id=NOI%20from%20Real%20Estate%20Operations%20%283%20Months%29) Analyzes Net Operating Income from real estate for the three-month period, highlighting drivers of change NOI from Real Estate Operations (Three Months Ended June 30, in thousands) | Category | 2025 | 2024 | Variance | | :------- | :--- | :--- | :------- | | Same Property NOI | $108,665 | $104,092 | $4,573 | | Developed properties placed in service | $2,424 | $844 | $1,580 | | Acquired properties | $926 | $370 | $556 | | Total NOI from real estate operations | $112,412 | $105,410 | $7,002 | - The increase in Same Property NOI was primarily due to additional revenue from increased rental and occupancy rates[131](index=131&type=chunk) - Average occupancy rate for Same Property increased by **0.5%** to **94.3%**, and average straight-line rent per occupied square foot increased by **$0.25** to **$7.10**[130](index=130&type=chunk) [NOI from Service Operations (3 Months)](index=35&type=section&id=NOI%20from%20Service%20Operations%20%283%20Months%29) Analyzes Net Operating Income from service operations for the three-month period NOI from Service Operations (Three Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Variance | | :----- | :--- | :--- | :------- | | Construction contract and other service revenues | $12,458 | $20,258 | $(7,800) | | Construction contract and other service expenses | $(11,873) | $(19,612) | $7,739 | | NOI from service operations | $585 | $646 | $(61) | - Decrease in service operations NOI was due to lower volume of construction activity for a tenant[132](index=132&type=chunk) [Comparison of Statements of Operations for the Six Months Ended June 30, 2025 and 2024](index=35&type=section&id=Comparison%20of%20Statements%20of%20Operations%20for%20the%20Six%20Months%20Ended%20June%2030%2C%202025%20and%202024) Compares the company's operational results for the six-month periods ended June 30 Statements of Operations Comparison (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Variance | | :----- | :--- | :--- | :------- | | Revenues from real estate operations | $355,054 | $333,748 | $21,306 | | Construction contract and other service revenues | $22,717 | $46,861 | $(24,144) | | Total revenues | $377,771 | $380,609 | $(2,838) | | Total operating expenses | $263,532 | $276,066 | $(12,534) | | Net income | $76,394 | $70,078 | $6,316 | [NOI from Real Estate Operations (6 Months)](index=36&type=section&id=NOI%20from%20Real%20Estate%20Operations%20%286%20Months%29) Analyzes Net Operating Income from real estate for the six-month period, highlighting drivers of change NOI from Real Estate Operations (Six Months Ended June 30, in thousands) | Category | 2025 | 2024 | Variance | | :------- | :--- | :--- | :------- | | Same Property NOI | $212,941 | $205,204 | $7,737 | | Developed properties placed in service | $4,896 | $1,106 | $3,790 | | Acquired properties | $1,242 | $441 | $801 | | Total NOI from real estate operations | $219,858 | $207,067 | $12,791 | - Same Property NOI increase was largely due to additional revenue from increased rental and occupancy rates, partially offset by higher property operating expenses[136](index=136&type=chunk) - The Other segment's NOI increase included **$2.2 million** from refunds of prior year real estate taxes, net of related tenant reimbursements[136](index=136&type=chunk) - Average occupancy rate for Same Property increased by **0.4%** to **94.2%**, and average straight-line rent per occupied square foot increased by **$0.45** to **$14.14**[135](index=135&type=chunk) [NOI from Service Operations (6 Months)](index=37&type=section&id=NOI%20from%20Service%20Operations%20%286%20Months%29) Analyzes Net Operating Income from service operations for the six-month period NOI from Service Operations (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Variance | | :----- | :--- | :--- | :------- | | Construction contract and other service revenues | $22,717 | $46,861 | $(24,144) | | Construction contract and other service expenses | $(21,578) | $(45,619) | $24,041 | | NOI from service operations | $1,139 | $1,242 | $(103) | - Decrease in service operations NOI was due to lower volume of construction activity for a tenant[137](index=137&type=chunk) [Interest and Other Income, Net](index=37&type=section&id=Interest%20and%20Other%20Income%2C%20Net) Discusses the components and changes in the company's interest and other net income Interest and Other Income, Net (Six Months Ended June 30, in thousands) | Metric | 2025 | 2024 | Change | YoY Change (%) | | :----- | :--- | :--- | :----- | :------------- | | Interest and other income, net | $2,791 | $7,006 | $(4,215) | -60.2% | - Decrease primarily due to lower interest income from excess loan proceeds invested in short-term money market accounts in the prior period[138](index=138&type=chunk) [Funds from Operations](index=37&type=section&id=Funds%20from%20Operations) Explains the calculation and drivers of Funds from Operations (FFO), a key REIT performance metric - Funds from Operations (FFO) is a non-GAAP measure used to compare operating performance between periods by excluding real estate-related depreciation, amortization, and gains/losses on sales[139](index=139&type=chunk) Diluted FFO per Share (Three Months Ended June 30) | Metric | 2025 | 2024 | Change | YoY Change (%) | | :----- | :--- | :--- | :----- | :------------- | | Diluted FFO per share | $0.68 | $0.64 | $0.04 | 6.3% | Diluted FFO per Share (Six Months Ended June 30) | Metric | 2025 | 2024 | Change | YoY Change (%) | | :----- | :--- | :--- | :----- | :------------- | | Diluted FFO per share | $1.33 | $1.27 | $0.06 | 4.7% | [Property Additions](index=40&type=section&id=Property%20Additions) Details capital expenditures related to properties in development, tenant improvements, and capital improvements Major Components of Property Additions (Six Months Ended June 30, 2025, in thousands) | Component | Amount | | :-------- | :----- | | Properties in development or held for future development | $93,771 | | Tenant improvements on operating properties | $21,670 | | Capital improvements on operating properties | $7,513 | | Total | $122,954 | [Cash Flows](index=40&type=section&id=Cash%20Flows) Analyzes the company's cash flow activities from operations, investing, and financing - Net cash flow from operating activities decreased by **$4.9 million** for the six months ended June 30, 2025, compared to 2024[151](index=151&type=chunk) - Net cash flow used in investing activities increased by **$16.3 million**, primarily due to properties in development and funding of investing receivables[152](index=152&type=chunk) - Net cash flow used in financing activities decreased by **$71.7 million**, driven by **$44.1 million** net debt proceeds in 2025 versus **$29.1 million** debt repayments in 2024[152](index=152&type=chunk)[157](index=157&type=chunk) [Supplemental Guarantor Information](index=40&type=section&id=Supplemental%20Guarantor%20Information) Provides additional financial information regarding the company's guarantees of its operating partnership's obligations - COPT Defense fully and unconditionally guarantees CDPLP's unsecured senior notes and other obligations[153](index=153&type=chunk) - COPT Defense holds no direct indebtedness, and its only material asset is its investment in CDPLP[153](index=153&type=chunk) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) Discusses the company's current liquidity position, capital availability, and future cash requirements Liquidity Position (as of June 30, 2025, in thousands) | Metric | Amount | | :----- | :----- | | Cash and cash equivalents | $21,300 | | Available borrowing capacity under Revolving Credit Facility | $480,000 | - The company expects to spend **$115 million to $135 million** on properties actively under development during the remainder of 2025[162](index=162&type=chunk) - Material cash requirements include property operating expenses, construction expenses, general/administrative expenses, debt service, property development costs, tenant/capital improvements, debt balloon payments, and dividends[166](index=166&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=41&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's exposure to market risks, primarily interest rate risk. It explains how changes in interest rates could impact variable-rate debt and refinanced fixed-rate debt, providing a quantitative sensitivity analysis for interest expense and debt fair value - Primary market risk exposure is to changes in interest rates, affecting variable-rate debt and refinanced fixed-rate debt[165](index=165&type=chunk) - A **1% increase** in the applicable variable index rate would have increased interest expense by approximately **$260,000** for the six months ended June 30, 2025[169](index=169&type=chunk) Debt Obligations and Weighted Average Interest Rates (June 30, 2025, in thousands) | Debt Type | 2025 (remaining) | 2026 | 2028 | 2029 | Thereafter | Total | | :-------- | :--------------- | :--- | :--- | :--- | :--------- | :---- | | Fixed rate debt | $655 | $436,140 | $345,000 | $400,000 | $1,000,000 | $2,181,795 | | Wtd Avg Interest Rate (Fixed) | 3.24% | 2.38% | 5.25% | 2.00% | 2.81% | 2.96% | | Variable rate debt | $270 | $277,035 | $— | $— | $— | $277,305 | | Wtd Avg Interest Rate (Variable) | 5.89% | 5.63% | —% | —% | —% | 5.64% | [Item 4. Controls and Procedures](index=42&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of the company's disclosure controls and procedures, concluding they were effective as of June 30, 2025. No material changes in internal control over financial reporting occurred during the most recent fiscal quarter - Disclosure controls and procedures were functioning effectively as of June 30, 2025[170](index=170&type=chunk) - No material changes in internal control over financial reporting occurred during the most recent fiscal quarter[171](index=171&type=chunk) [PART II. OTHER INFORMATION](index=42&type=section&id=PART%20II.%20OTHER%20INFORMATION) Contains non-financial disclosures and other required information not covered in Part I [Item 1. Legal Proceedings](index=42&type=section&id=Item%201.%20Legal%20Proceedings) The company is not currently involved in any material litigation, nor is any material litigation currently threatened against it, beyond routine matters expected to be covered by liability insurance - No material litigation is currently ongoing or threatened against the company[172](index=172&type=chunk) [Item 1A. Risk Factors](index=42&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's 2024 Annual Report on Form 10-K - No material changes to risk factors since the 2024 Annual Report on Form 10-K[173](index=173&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=42&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable for the current reporting period - Not applicable[174](index=174&type=chunk) [Item 3. Defaults Upon Senior Securities](index=43&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable for the current reporting period - Not applicable[175](index=175&type=chunk) [Item 4. Mine Safety Disclosures](index=43&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable for the current reporting period - Not applicable[175](index=175&type=chunk) [Item 5. Other Information](index=43&type=section&id=Item%205.%20Other%20Information) During the quarter ended June 30, 2025, no trustees or executive officers adopted or terminated Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements - No Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements were adopted or terminated by trustees or executive officers during the quarter[176](index=176&type=chunk) [Item 6. Exhibits](index=43&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the Form 10-Q, including certifications from the Chief Executive Officer and Chief Financial Officer, as well as various XBRL (eXtensible Business Reporting Language) documents - Includes certifications from the CEO and CFO (Exhibits 31.1, 31.2, 32.1, 32.2) and various XBRL documents (Exhibits 101.INS, SCH, CAL, LAB, PRE, DEF, 104)[178](index=178&type=chunk) [SIGNATURES](index=44&type=section&id=SIGNATURES) Confirms the official signing and certification of the report by authorized officers [SIGNATURES](index=44&type=section&id=SIGNATURES) The report is officially signed by Stephen E. Budorick, President and Chief Executive Officer, and Anthony Mifsud, Executive Vice President and Chief Financial Officer, on behalf of COPT Defense Properties - Report signed by Stephen E. Budorick (President and CEO) and Anthony Mifsud (EVP and CFO) on July 31, 2025[183](index=183&type=chunk)

Albert Anthony is the pen name of a Croatian-American business author who is a media contributor on investor platform Seeking Alpha, where he has over +1K followers, & also writes for platforms like Investing dot com and is launching a book on Amazon in 2025 called Financial Markets: The Next Generation. Calling himself part of the new generation of analysts in the financial markets, he comes from a non-traditional financial background having been an analyst in the IT sector for several Fortune 500 companie ...

Press Release *** About Atos Group Atos Group is a global leader in digital transformation with c. 72,000 employees and annual revenue of c. € 10 billion, operating in 68 countries under two brands — Atos for services and Eviden for products. European number one in cybersecurity, cloud and high-performance computing, Atos Group is committed to a secure and decarbonized future and provides tailored AI-powered, end-to-end solutions for all industries. Atos is a SE (Societas Europaea) and listed on Euronext Pa ...