Financial Data and Key Metrics Changes - FFO per share for 2024 was $2.06, a 6.2% increase from 2023, exceeding initial guidance by six cents [6] - Same property cash NOI increased by 9.1% year over year, marking the highest increase reported [6] - 2025 FFO per share guidance is set at $2.66, implying a 3.5% growth over 2024 [8] Business Line Data and Key Metrics Changes - Executed 500,000 square feet of vacancy leasing, representing 45% of the space that was vacant at the beginning of the year [7] - Tenant retention reached 86%, the highest annual level in over twenty years [20] - Occupancy levels were reported at 93.6% for the overall portfolio and 95.6% for the defense IT portfolio [23] Market Data and Key Metrics Changes - Nearly 50% of GSA space contains SCIF improvements, with minimal exposure to GSA leases, generating only 36% of annualized rental revenue [16][17] - The company has seen strong demand for SCIF space, with over 160,000 square feet backfilled with long-term defense contractor leases [21][22] Company Strategy and Development Direction - The company is focusing on defense priorities such as space activities, missile defense, and naval capabilities expansion, which are expected to drive demand in specific markets [9][66] - Plans to commit $200 million to $250 million in capital for new investments and $250 million to $300 million for development projects in 2025 [56][57] - The development pipeline includes 600,000 square feet of active or not yet stabilized developments, with 75% pre-leased [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong demand for their portfolio, particularly in light of the new presidential administration's defense priorities [19][66] - The company anticipates a healthy year of performance in 2025, with expectations for FFO per share growth and strong tenant retention [48][61] Other Important Information - The company has maintained a strong balance sheet, with 100% of debt at fixed rates [47] - Management noted that the demand for their space remains robust, with a strong leasing pipeline and advanced negotiations for over 170,000 square feet [30] Q&A Session Summary Question: How would you expect demand to evolve in your markets around the three defense priorities? - Management expects strong demand in Huntsville due to potential relocations and expansions related to space command and missile defense [66] Question: Can you provide an update on your data center land in Iowa? - The company is working through power requests and has a path to a gigawatt, but timing remains unclear [72][73] Question: Do you foresee any potential issues with defense budget appropriations? - Management noted bipartisan support for increased DOD funding and does not anticipate a slowdown from customers [81][82] Question: Have you seen any ability to push on pricing with private sector tenants? - The company continues to focus on reducing concessions and maintaining tenant retention rather than aggressively pushing for rent increases [85] Question: What is the outlook for development starts in 2025? - The company plans to start development on RG 8500 in Redstone and is preparing for potential demand increases [93] Question: Are there any risks of move-outs from government leases expected to extend into 2026? - Management does not foresee move-outs and believes the extensions are typical administrative processes [105] Question: What is the natural level of occupancy for the portfolio? - The company considers a natural occupancy level of 95% to 96% but sees opportunities to improve slightly [114] Question: What does the acquisition pipeline look like? - The company is exploring distressed opportunities but maintains strict criteria for acquisitions [121][122]

Financial Data and Key Metrics Changes - FFO per share for 2024 was $2.57, representing a 6.2% increase over 2023 [4][28] - Same property cash NOI increased by 9.1% year over year, the highest increase reported [5][28] - Same property occupancy ended the year at 94.1%, a 30 basis point increase year over year [28] Business Line Data and Key Metrics Changes - Executed 500,000 square feet of vacancy leasing, exceeding the initial target by 25% [19] - Tenant retention rate reached 86%, the highest level in over twenty years [5][14] - The Defense IT portfolio occupancy was 95.6%, with overall portfolio occupancy at 93.6% [15] Market Data and Key Metrics Changes - Over 40% of vacancy leasing was executed in Navy support and other markets, indicating strong demand [19] - The company has a strong leasing pipeline with over 170,000 square feet in advanced negotiations [20] Company Strategy and Development Direction - The company is focusing on defense-related developments, particularly in response to the new presidential administration's priorities [6][8] - Plans to commit $200 million to $250 million for new investments and $250 million to $300 million for development projects in 2025 [35][38] - The company aims to maintain a strong development pipeline with 600,000 square feet of active developments, 75% of which are pre-leased [25] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in continued strong demand for their properties, particularly in defense sectors [13][14] - The company anticipates a 3.5% growth in FFO per share for 2025, with a focus on maintaining high tenant retention [6][38] - Management noted that the operating environment remains favorable despite potential delays in defense budget appropriations [51][53] Other Important Information - The company has minimal exposure to GSA leases, with only 8 leases totaling 185,000 square feet, representing less than 1% of annualized rental revenue [10][12] - The company has a strong balance sheet, with 100% of debt at fixed rates [29] Q&A Session Summary Question: How would you expect demand to evolve in your markets around the three defense priorities? - Management expects strong demand in Huntsville, particularly with potential relocations of Space Command and missile defense initiatives [41] Question: Could there be an indirect impact to COPD if there's increased focus on contractor customers? - Management believes that service companies are well-positioned to bring efficiencies to the DoD, indicating a positive outlook for contractor relationships [44] Question: Can you provide an update on your data center land in Iowa? - Management confirmed they are working through power requests and have a path to a gigawatt, but timing remains unclear [45] Question: Do you foresee any potential issues with defense budget appropriations? - Management acknowledged the uncertainty but noted bipartisan support for increased DoD funding over the past years [51][52] Question: Have you seen any ability to push on pricing with private sector tenants? - Management indicated they are focused on reducing concessions and maintaining tenant relationships rather than aggressively pushing for price increases [54] Question: Can you provide additional color on development starts for 2025? - Management confirmed plans to start new developments in response to anticipated demand, particularly for defense IT [61][62] Question: What is the natural level of frictional vacancy in the portfolio? - Management suggested that a natural occupancy level of 95% to 96% is expected, with opportunities to improve slightly [78] Question: What does the pipeline look like for acquisitions? - Management is seeing some distressed opportunities but emphasized strict criteria for any potential acquisitions [82][84]

Results for 4 th Quarter + FY 2024 2025 Guidance FEBRUARY 6, 2025 Change Presentation Title on First Master Slide Table of Contents RESULTS FOR 4TH QUARTER + FY 2024 > Page 3 2025 GUIDANCE > Page 5 FACTORS SUPPORTING GROWTH > Page 7 PORTFOLIO UPDATE > Page 15 CONTINUED GROWTH THROUGH 2026 > Page 20 | | 4Q24 | FY 2024 | | --- | --- | --- | | FFOPS, as adjusted for comparability | $0.65 | $2.57 | | > 6-cents above the initial midpoint of guidance | | | | > Met or exceeded guidance each quarter over the past 2 ...

Core Insights - COPT Defense reported revenue of $183.43 million for the quarter ended December 2024, marking a year-over-year increase of 2.1% [1] - The earnings per share (EPS) for the same period was $0.65, compared to $0.30 a year ago [1] - The reported revenue exceeded the Zacks Consensus Estimate of $181.8 million, resulting in a surprise of +0.90% [1] - The company experienced an EPS surprise of -1.52%, with the consensus EPS estimate being $0.66 [1] Revenue Breakdown - Revenue from real estate operations was $171.41 million, slightly above the estimated $170.57 million, but represented a -4.6% change year-over-year [4] - Revenue from construction contracts and other services was $12.03 million, significantly below the average estimate of $19.49 million, reflecting a -33.8% year-over-year change [4] Stock Performance - COPT Defense shares returned -2% over the past month, while the Zacks S&P 500 composite increased by +2.1% [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance compared to the broader market in the near term [3]

Company Performance - COPT Defense (CDP) reported quarterly funds from operations (FFO) of $0.65 per share, missing the Zacks Consensus Estimate of $0.66 per share, but showing an increase from $0.62 per share a year ago [1] - The quarterly report indicates an FFO surprise of -1.52%, while the previous quarter had a positive surprise of 1.56% with an actual FFO of $0.65 against an expected $0.64 [2] - The company posted revenues of $183.43 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 0.90% and increasing from $179.73 million year-over-year [3] Market Outlook - COPT Defense shares have declined approximately 5.7% since the beginning of the year, contrasting with the S&P 500's gain of 3.1% [4] - The current consensus FFO estimate for the upcoming quarter is $0.66 on revenues of $181.92 million, and for the current fiscal year, it is $2.67 on revenues of $741.17 million [8] - The estimate revisions trend for COPT Defense is currently unfavorable, resulting in a Zacks Rank 4 (Sell), indicating expected underperformance in the near future [7] Industry Context - The REIT and Equity Trust - Other industry, to which COPT Defense belongs, is currently ranked in the bottom 34% of over 250 Zacks industries, suggesting potential challenges ahead [9] - Another company in the same industry, Gladstone Land (LAND), is expected to report a quarterly earnings decline of 26.7% year-over-year, with revenues anticipated to drop 17.2% from the previous year [10][11]

EXHIBIT 99.1 COPT Defense Properties Supplemental Information + Earnings Release - Unaudited For the Period Ended 12/31/24 | OVERVIEW | Summary Description | 1 | | --- | --- | --- | | | Equity Research Coverage | 2 | | | Selected Financial Summary Data | 3 | | | Selected Portfolio Data | 5 | | FINANCIAL | Consolidated Balance Sheets | 6 | | STATEMENTS | Consolidated Statements of Operations | 7 | | | Funds from Operations | 8 | | | Diluted Share + Unit Computations | 9 | | | Adjusted Funds from Operations | ...

SAN FRANCISCO, Nov. 19, 2024 (GLOBE NEWSWIRE) -- Advisor Access spoke at length with Stephen E. Budorick, president and CEO. Advisor Access: How would you describe COPT Defense Properties’ niche position among REITs? Stephen Budorick: COPT Defense’s business model focuses on owning properties and developable land (Defense/IT Properties) near key United States defense installations whose missions have been and continue to be Department of Defense spending priorities such as Intelligence, Surveillance and Rec ...

Occupancy and Leasing - The portfolio was 93.1% occupied and 94.8% leased as of September 30, 2024[110] - Tenant retention rate was 84.3%, driven by strong leasing demand in the Defense/IT Portfolio[110] - Leased 2.5 million sq ft during the nine months ended September 30, 2024, including 2.1 million sq ft of renewals[120] - Average occupancy rate improved to 93.6%, up from 93.5% year-over-year[127] - Average occupancy rate improved to 93.5%, up from 93.0% year-over-year, indicating a 0.5% increase[137] Financial Performance - Net income for the three months ended September 30, 2024, was $37.4 million, a significant improvement from a loss of $221.2 million in the same period of 2023[121] - Total revenues increased to $189.2 million for the three months ended September 30, 2024, up from $168.6 million in 2023[125] - NOI from real estate operations was $105.5 million for the three months ended September 30, 2024, compared to $96.5 million in 2023[121] - Same Property total revenues increased to $161,981,000 for the three months ended September 30, 2024, up from $153,589,000, representing an increase of $8,392,000[127] - NOI from real estate operations reached $105,526,000, compared to $96,494,000 for the same period last year, reflecting an increase of $9,032,000[127] - Revenues from real estate operations for the nine months ended September 30, 2024, totaled $506,311,000, an increase of $43,070,000 from $463,241,000 in the prior year[135] - Total revenues for the nine months ended September 30, 2024, were $569,834,000, an increase of $64,581,000 from $505,253,000[135] - Same Property total revenues increased to $476,447,000 for the nine months ended September 30, 2024, compared to $455,584,000 for the same period in 2023, reflecting a variance of $20,863,000[137] - NOI from real estate operations reached $312,593,000, up from $285,421,000, representing an increase of $27,172,000[137] - Funds from operations (FFO) for the nine months ended September 30, 2024, increased to $224.6 million, up from $208.9 million in the prior year, representing a 7.9% increase[153] Property Acquisitions and Developments - Acquired three properties: 202,000 sq ft for $15.0 million, 80,000 sq ft for $17.0 million, and 365 acres for $32.0 million[110] - Developed properties placed in service generated revenues of $21,710,000, significantly higher than $1,596,000 in the previous year, a variance of $20,114,000[137] - Total property additions for the nine months ended September 30, 2024, amounted to $203.7 million, with $123.9 million allocated to development[155] - The company expects to spend between $55 million and $65 million on property development costs during the remainder of 2024[167] Operating Expenses - Total operating expenses decreased significantly to $134.7 million for the three months ended September 30, 2024, from $374.3 million in 2023[125] - Property operating expenses for the nine months ended September 30, 2024, were $199,037,000, an increase of $16,229,000 from $182,808,000[135] Debt and Interest - As of September 30, 2024, the total debt obligations amounted to $2.18 billion, with fixed-rate debt at $2.18 billion and variable-rate debt at $232.71 million[172][173] - The weighted average interest rate on fixed-rate debt is 2.96%, while the variable-rate debt has a weighted average interest rate of 6.56%[172] - Interest expense increased to $61,760,000, up from $50,759,000, primarily due to additional interest from the 5.25% Notes issued in September 2023[132] - The company’s interest expense for the nine months ended September 30, 2024, would remain unchanged if the applicable variable index rate was 1% higher[174] - Fixed-rate debt maturing in 2025 is $1.30 billion, while $436.14 million is due in 2026[172] - The company has $75 million of debt maturing in 2026 that may be extended to 2027, and $125 million that may be extended to 2028, subject to certain conditions[172] Cash Flow - Net cash flow from operating activities increased by $20.2 million for the nine months ended September 30, 2024, primarily due to growth in the operating portfolio[156] - Net cash flow used in investing activities increased by $127.3 million compared to the prior year, mainly due to proceeds from properties sold in the previous period[157] - As of September 30, 2024, the company had $34.5 million in cash and cash equivalents and a Revolving Credit Facility with a maximum borrowing capacity of $600 million[161][162] Financial Metrics - Basic FFO available to common share and common unit holders is a key metric for assessing operating performance, excluding gains on sales and impairment losses[142] - Diluted FFO per share provides context for evaluating FFO results, similar to how EPS is used for net income[149] - Diluted FFO per share for the three months ended September 30, 2024, was $0.65, compared to $0.60 in the same period last year[153] Impairment and Gains - Impairment losses recognized during the period amounted to $252.8 million due to the review of long-lived assets[131] - The company reported a gain on sales of real estate from the prior period due to the sale of a 90% interest in three data center shell properties[141]

COPT Defense Properties (NYSE:CDP) Q3 2024 Earnings Conference Call October 29, 2024 12:00 PM ET Company Participants Venkat Kommineni - VP, IR Steve Budorick - President and CEO Britt Snider - EVP and COO Anthony Mifsud - EVP and CFO Conference Call Participants Steve Sakwa - Evercore ISI Blaine Heck - Wells Fargo Michael Griffin - Citi Tom Catherwood - BTIG Richard Anderson - Wedbush Securities Peter Abramowitz - Jefferies Dylan Burzinski - Green Street Operator Welcome to the COPT Defense Properties Thir ...

Core Insights - COPT Defense (CDP) reported revenue of $189.23 million for Q3 2024, marking a 12.3% year-over-year increase and a slight surprise of +0.15% over the Zacks Consensus Estimate of $188.95 million [1] - The earnings per share (EPS) for the quarter was $0.65, a significant improvement from -$1.94 a year ago, with an EPS surprise of +1.56% compared to the consensus estimate of $0.64 [1] Revenue Breakdown - Revenue from real estate operations was $172.56 million, exceeding the average estimate of $168.88 million by three analysts, reflecting a year-over-year increase of +10.2% [3] - Revenue from construction contracts and other services was reported at $16.66 million, below the average estimate of $20.16 million from two analysts, but still showing a substantial year-over-year increase of +39.4% [3] Stock Performance - COPT Defense shares have returned +5.6% over the past month, outperforming the Zacks S&P 500 composite, which saw a +2% change [4] - The stock currently holds a Zacks Rank 2 (Buy), suggesting potential for outperformance in the near term [4]