Financial Data and Key Metrics Changes - FFO per share for 2025 was $2.72, a 5.8% increase from 2024 and 6 cents above initial guidance, marking the seventh consecutive year of growth [3][22] - Same-property cash NOI increased by 4.1% year-over-year, driven by a 40 basis point increase in average occupancy [3][22] - Same property occupancy ended the year at 94.2%, aligning with updated guidance and showing a 20 basis point increase from initial guidance [23] Business Line Data and Key Metrics Changes - Executed 557,000 sq ft of vacancy leasing, exceeding initial targets by 40% [12] - In the defense IT portfolio, executed 424,000 sq ft of vacancy leasing, surpassing the initial goal of 400,000 sq ft [13] - Renewal leasing totaled 2 million sq ft for the year with a tenant retention rate of 78% [15] Market Data and Key Metrics Changes - The defense budget for FY 2026 is $841 billion, an $8 billion increase over the initial request, with a total expected budget exceeding $950 billion [8][9] - The company anticipates strong demand in the defense sector, particularly in intelligence, surveillance, and reconnaissance, as well as cybersecurity and missile defense [10] Company Strategy and Development Direction - The company committed $278 million to new investments in five projects across four markets, with 81% pre-leased [3][4] - A strong pipeline of development opportunities is expected to generate an incremental $52 million of cash NOI on a stabilized annual basis [6] - The company aims to maintain a conservative approach to capital expenditures, with a forecasted AFFO payout ratio under 65% in 2026 [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth, projecting a midpoint FFO per share guidance of $2.75 for 2026, reflecting a 1.1% increase over 2025 [7][24] - The company expects to benefit from the increasing defense budget and ongoing demand for secure facilities [9][10] - Management noted that the impact of the new defense appropriations will likely be felt 12 to 18 months after funding is allocated [69] Other Important Information - The company has a strong liquidity position and plans to self-fund the equity component of its capital investments [30] - The development pipeline includes nearly $450 million in active projects, with 86% pre-leased [18] Q&A Session Summary Question: Development pipeline opportunities related to Golden Dome - Management indicated that many prospects are related to Golden Dome and expect larger requirements as contracts are awarded [34][36] Question: Tenant retention and reasons for non-renewals - Non-renewals are typically smaller tenants needing different space sizes, with a historical retention rate of 80% [37] Question: Mix of acquisitions and developments for additional investments - The company targets an 8.5% cash-on-cash yield for developments and considers acquisitions opportunistic [40][41] Question: Equity issuance as a funding source - Equity issuance is a last resort, with the company confident in handling expected development investments through internal cash generation [42][43] Question: Outlook for Huntsville's growth - The company has significant development runway in Huntsville, with 3 million sq ft of potential development capacity [64][65] Question: Impact of the defense budget on leasing opportunities - Demand impact from the defense budget is expected to materialize 12 to 18 months after appropriation [69][70]

Financial Data and Key Metrics Changes - FFO per share for 2025 was $2.72, exceeding initial guidance by $0.06 and representing a 5.8% increase over 2024 [3][24] - Same Property Cash NOI increased by 4.1% year-over-year, driven by a 40 basis point increase in average occupancy [3][24] - Same Property occupancy ended the year at 94.2%, aligning with updated guidance [25] Business Line Data and Key Metrics Changes - Executed 557,000 sq ft of vacancy leasing, exceeding initial targets by 40% [12][14] - In the defense IT portfolio, 424,000 sq ft of leasing was executed, surpassing the 400,000 sq ft goal [14] - Tenant retention for the year was 78%, with cash rent spreads up 1.1% [16] Market Data and Key Metrics Changes - The defense budget for FY 2026 was signed at $841 billion, marking a 15% year-over-year increase [7][8] - The company expects continued growth in demand from government and contractors due to the increasing defense budget [9] Company Strategy and Development Direction - The company committed $278 million to new investments, with projects 81% pre-leased [3][4] - A strong pipeline of development opportunities is anticipated, particularly in the Huntsville area, with significant growth expected from the Golden Dome Initiative [9][19] - The company aims for a vacancy leasing target of 400,000 sq ft for 2026, despite limited unleased space [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued growth, projecting FFO per share guidance for 2026 at $2.75, reflecting a 1.1% increase over 2025 [6][27] - The company anticipates strong tenant retention and a solid development pipeline, with a focus on maintaining liquidity and self-funding investments [33][34] Other Important Information - The company reported a conservative approach to capital expenditures, with an AFFO payout ratio forecasted to be under 65% in 2026 [28] - The company has a long runway for development in Huntsville, with 3 million sq ft of potential development capacity remaining [67] Q&A Session Summary Question: Development pipeline opportunities related to Golden Dome - Management indicated that many prospects are related to Golden Dome, with expectations for larger requirements as contracts are awarded [38][39] Question: Tenant retention and reasons for non-renewals - Non-renewals are typically smaller tenants needing different space sizes, with a historical retention rate of 80% [40] Question: Mix of acquisitions and developments for additional investments - The company targets an 8.5% cash-on-cash yield for developments, with acquisitions considered opportunistic [44] Question: Equity issuance as a funding source - Equity issuance is a last alternative, with the company confident in handling expected development investments through internal cash generation [46] Question: Growth potential in Huntsville - The company has significant development runway in Huntsville, with ample land available for expansion [67] Question: Impact of the defense budget on leasing opportunities - Demand impact from the defense budget is expected to materialize 12-18 months after appropriations [72]

Financial Data and Key Metrics Changes - FFO per share for 2025 was $2.72, exceeding initial guidance by 6 cents and representing a 5.8% increase over 2024 [3][23] - Same-property cash NOI increased by 4.1% year-over-year, driven by a 40 basis point increase in average occupancy [3][23] - Same property occupancy ended the year at 94.2%, aligning with updated guidance [24] Business Line Data and Key Metrics Changes - Executed 557,000 sq ft of vacancy leasing, exceeding initial targets by 40% [11][12] - In the defense IT portfolio, 424,000 sq ft of vacancy leasing was executed, surpassing the 400,000 sq ft goal [12] - Tenant retention for the year was 78%, with cash rent spreads up 1.1% [15] Market Data and Key Metrics Changes - The defense budget for FY 2026 was set at $841 billion, a 15% year-over-year increase, indicating strong future demand for defense-related properties [7][8] - The company expects continued growth in demand from government and contractors in the Huntsville area due to significant military initiatives [9][66] Company Strategy and Development Direction - The company committed $278 million to new investments in five projects across four markets, with 81% pre-leased [3][4] - A strong pipeline of development opportunities is anticipated, with a focus on high-security facilities for defense contractors [19][21] - The company aims for a vacancy leasing target of 400,000 sq ft for 2026, reflecting an aggressive growth strategy [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued increase of the defense budget and its positive impact on the company's growth [8][9] - The company anticipates a solid performance in 2026, with FFO per share guidance set at $2.71-$2.79, implying 1.1% growth at the midpoint [25][26] - Management highlighted the importance of maintaining a conservative approach to capital expenditures and financing [27] Other Important Information - The company has a strong liquidity position and expects to self-fund the equity component of its capital investments [30] - The development pipeline currently stands at nearly $450 million, with 86% pre-leased [18] Q&A Session Summary Question: Development pipeline opportunities related to Golden Dome - Management indicated that many prospects are tied to Golden Dome, with expectations for increased velocity in contract processing [34][35] Question: Tenant retention and reasons for non-renewals - Non-renewals are primarily from smaller tenants needing different space sizes, with a historical retention rate of 80% [36][37] Question: Mix of acquisitions and developments for additional investments - The company targets an 8.5% cash-on-cash yield for developments, with acquisitions considered opportunistic [40][41] Question: Equity issuance as a funding source - Equity issuance is a last resort, with the company confident in handling development investments through internal cash generation [42][43] Question: Future development plans beyond 2026 - Management confirmed ongoing evaluations for additional development opportunities, with significant spending expected in 2027 and 2028 [51][52] Question: Demand driven by existing versus new tenants - Demand is roughly 50/50 between existing and new tenants, with some migration from other regions [58] Question: Outlook on Huntsville's growth potential - The company has significant development runway in Huntsville, with ample land available for future expansion [66]

Results for 4 th Quarter + FY 2025 2026 Guidance FEBRUARY 5, 2026 Change Presentation Title on First Master Slide Table of Contents ACHIEVEMENTS OVER THE PAST 6 YEARS • Page 3 RESULTS FOR 4 TH QUARTER + FY 2025 • Page 4 2026 GUIDANCE • Page 7 FACTORS SUPPORTING GROWTH • Page 9 PORTFOLIO UPDATE • Page 15 CONCLUSION • Page 21 APPENDICES 2 2 • Page 25 • Safe Harbor | Page 26 • Definitions + Glossary | Page 27 • Reconciliations | Page 32 Achievements Over the Past Six Years1 • Increased Total Portfolio size by ...

COPT Defense (CDP) came out with quarterly funds from operations (FFO) of $0.7 per share, beating the Zacks Consensus Estimate of $0.68 per share. This compares to FFO of $0.65 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an FFO surprise of +2.94%. A quarter ago, it was expected that this real estate investment trust specializing in suburban office properties would post FFO of $0.68 per share when it actually produced FFO of $0.69, delivering a su ...

Financial Performance - For the three months ended December 31, 2025, net income was $39.396 million, compared to $36.467 million for the same period in 2024, representing a year-over-year increase of 5.1%[14]. - The company's same property net operating income (NOI) for the year ended December 31, 2025, was $427.968 million, up from $413.067 million in 2024, reflecting a growth of 3.6%[14]. - Adjusted EBITDA for the year ended December 31, 2025, was $415.839 million, compared to $392.297 million in 2024, indicating an increase of 6.0%[14]. - The diluted funds from operations (FFO) per share for the year ended December 31, 2025, was $2.72, up from $2.57 in 2024, marking a growth of 5.8%[14]. - Net income for the year ended December 31, 2025, was $159.5 million, a 10.8% increase from $143.9 million in 2024[24]. - Total revenues for Q4 2025 reached $197.4 million, an increase of 7.6% compared to $183.4 million in Q4 2024[24]. - Funds from Operations (FFO) for the three months ended December 31, 2025, was $82,371,000, up from $76,033,000 in the same period last year, reflecting an increase of 8.4%[26]. - Total revenue for the year ended December 31, 2025, was $159,534,000, compared to $143,942,000 for the previous year, marking an increase of 10.8%[26]. - Total consolidated real estate revenue for the year ended December 31, 2025, was $721,849 thousand, compared to $677,717 thousand for the previous year[44]. - Total revenues for the year ended December 31, 2025, were $763.9 million, compared to $753.3 million in 2024, reflecting a growth of 1.8%[197]. Asset and Equity Growth - The total assets of COPT Defense Properties as of December 31, 2025, were $4.701 billion, an increase from $4.254 billion in 2024[16]. - The company's total equity as of December 31, 2025, was $1.562 billion, compared to $1.537 billion in 2024, reflecting a growth of 1.6%[16]. - Total assets increased to $4.7 billion as of December 31, 2025, up from $4.3 billion at the end of Q3 2025[21]. - The company’s equity market capitalization is $3.206 billion, while the total market capitalization is $5.997 billion[95]. Debt and Financial Ratios - The debt to assets ratio as of December 31, 2025, was 58.9%, compared to 56.2% in the previous year[16]. - Total consolidated debt as of 12/31/25 is $2.791 billion, with an effective interest rate of 3.33%[95]. - The company has $2.649 billion in unsecured debt, with a stated rate of 3.25%[99]. - Total Debt to Total Assets ratio is 43.5%, well below the required threshold of 60%[109]. - Debt Service Coverage ratio stands at 4.8x, exceeding the required minimum of 1.5x[109]. - The company’s net debt is $2,589,666, with a net debt to adjusted book ratio of 40.5%[109]. Dividend Information - The dividend per common share for the year ended December 31, 2025, was $1.22, an increase from $1.18 in 2024[14]. - Dividends/distributions per common share/unit increased to $1.22 for the year ended December 31, 2025, compared to $1.18 in 2024, a rise of 3.4%[199]. Portfolio and Occupancy - As of December 31, 2025, COPT Defense Properties' Defense/IT Portfolio consists of 201 properties, encompassing 23.2 million square feet and is 96.5% leased[8]. - The total portfolio occupancy rate improved to 94.0% in Q4 2025, compared to 93.6% in Q4 2024[18]. - The total number of properties in the Defense/IT Portfolio is 192, with a total operational square footage of 21,870 thousand square feet[58]. - The total square feet leased across all categories was 735, with 637 square feet in the Defense/IT portfolio[67]. - Total leased square feet increased to 2,043, with expiring square feet at 2,623, indicating a retention rate of 77.9%[71]. - The average cash rent per square foot for the Defense/IT portfolio was $35.51[67]. Leasing Activity - The company executed 735,000 square feet of leasing in Q4 2025, including 336,000 square feet of renewals and 125,000 square feet of vacancy leasing[186]. - Total leasing activity for 2025 was 3.1 million square feet, exceeding the initial annual target by nearly 40%[175]. - The company committed $278 million to 5 new investments, which are 81% pre-leased[177]. Development and Future Plans - The anticipated total cost for the Defense/IT portfolio under development is $447.672 million, with $110.081 million spent to date[87]. - The development pipeline consists of six properties totaling 882,000 square feet, 86% leased as of February 4, 2026, with an estimated investment of $448 million[186]. - The company owns or controls 990 acres of land for future development in the Defense/IT portfolio, with an estimated developable square feet of 10,399[93]. Operational Metrics - The company reported a total of 25,147 thousand square feet in its total portfolio, an increase from 24,537 thousand square feet in Q4 2024[18]. - Cash and cash equivalents significantly increased to $275.0 million in Q4 2025, compared to $38.3 million in Q4 2024[21]. - The average committed cost per square foot for completed leasing was $4.56, with a weighted average lease term of 6.1 years[67]. - The average escalations per year across the portfolio were 2.6%[67]. Non-GAAP Measures - The company utilizes non-GAAP measures to provide investors with a clearer understanding of performance compared to other REITs, acknowledging limitations in these measures[130]. - Adjusted EBITDA is net income adjusted for interest, depreciation, and other non-operational expenses, providing insight into the company's ability to repay debt[132]. - Cash NOI is defined as NOI adjusted for non-cash items, providing a more accurate reflection of the company's operating performance[137].

COLUMBIA, Md.--(BUSINESS WIRE)--COPT Defense Properties (NYSE: CDP) ("COPT Defense†or the "Company†) is establishing the following guidance for the year ending December 31, 2026: 2026 Guidance Diluted earnings per share ("EPS†) in the range of $1.21$1.29; and Diluted FFO per share ("FFOPS†) - Nareit and as adjusted for comparability, in the range of $2.71$2.79. 1Q26 Guidance For the quarter ending March 31, 2026, the Company is establishing the following guidance: EPS in the range of $0.30$. ...

"Company†) (NYSE: CDP) announced results for the fourth quarter and full year ended December 31, 2025. Management Comments Stephen E. Budorick, COPT Defense's President & Chief Executive Officer, commented, "We achieved excellent results in 2025, evidenced by our outperformance in FFO, leasing and capital commitments to new investments, along with our success in closing on three financings, which pre-fund our 202. COLUMBIA, Md.--(BUSINESS WIRE)--COPT Defense Properties ("COPT Defense†or the ...

COLUMBIA, Md.--(BUSINESS WIRE)--COPT Defense Properties (NYSE: CDP) ("COPT Defense†or the "Company†) executed a 148,000 square foot lease with a top 10 U.S. Defense contractor at 400 National Business Parkway for a lease term of nearly 11 years, at The National Business Park ("NBP†), adjacent to Fort George G. Meade in Annapolis Junction, Maryland. This lease, which is expected to commence in the fourth quarter of 2026, brings the Company's 882,000 square foot development pipeline to 86% lease. ...

COLUMBIA, Md.--(BUSINESS WIRE)--COPT Defense Properties (NYSE: CDP) ("COPT Defense†or the "Company†) announced the 2025 tax treatment of its common share distributions as described below. Shareholders are encouraged to consult with their tax advisors as to their specific tax treatment of COPT Defense common share distributions. Please note that the common share distributions with a record date of December 31, 2025, and payment date of January 15, 2026, are allocated to 2025 for income tax purposes. About ...