Financial Performance - For Q1 2025, net income was $36.228 million, a slight decrease of 0.7% from $36.467 million in Q4 2024[14]. - NOI from real estate operations for Q1 2025 was $107.446 million, up from $106.340 million in Q4 2024, reflecting a growth of 1.04%[14]. - Same Property NOI increased to $104.276 million in Q1 2025, compared to $103.819 million in Q4 2024, marking a growth of 0.44%[14]. - Adjusted EBITDA for Q1 2025 was $99.119 million, slightly up from $98.628 million in Q4 2024[14]. - The diluted FFO per share for Q1 2025 was $0.65, consistent with the previous quarter[14]. - Total revenues for Q1 2025 reached $187.856 million, a decrease of 2.4% compared to $193.266 million in Q1 2024[24]. - Net income attributable to common shareholders for Q1 2025 was $34.740 million, up from $32.609 million in Q1 2024, representing a growth of 6.5%[24]. - Funds from Operations (FFO) for Q1 2025 was $76.028 million, consistent with $76.460 million in Q3 2024, indicating stability in performance[26]. - The company reported a gain on sales of real estate amounting to $300,000 in Q1 2025, indicating ongoing asset management activities[24]. - The company reported a total of 204 properties in its portfolio, with 180 being consolidated properties[51]. Portfolio and Occupancy - As of March 31, 2025, COPT Defense Properties' Defense/IT Portfolio consists of 198 properties, encompassing 22.6 million square feet, with a leasing rate of 96.6%[7]. - The consolidated portfolio occupancy rate was 92.3% for Q1 2025, up from 92.2% in the previous quarter, indicating a slight improvement[18]. - The total Defense/IT Portfolio occupancy rate was 95.3% as of March 31, 2025, with a leased rate of 96.6%[39]. - The occupancy rate for the Total Portfolio was 93.6% as of March 31, 2025, slightly down from 95.1% in the previous quarter[51]. - The Defense/IT Portfolio's total annualized rental revenue was $624,853, representing 90.1% of the total portfolio[51]. - The percentage of leased properties in the Defense/IT Portfolio was 95.3% as of March 31, 2025, compared to 96.6% in the previous quarter[51]. - The average occupancy rate across operating properties is 95.2%[107]. Debt and Assets - The total assets as of March 31, 2025, were $4.250 billion, a marginal decrease from $4.254 billion in Q4 2024[16]. - The debt to assets ratio stood at 56.8% as of March 31, 2025, compared to 56.2% in the previous quarter[16]. - Total liabilities stood at $2.688 billion as of March 31, 2025, compared to $2.683 billion in the same period last year, showing a marginal increase[22]. - The company has 179 unencumbered properties, representing 88% of the total portfolio[103]. - As of March 31, 2025, the total consolidated debt is $2,434,556,000, with a weighted average effective rate of 3.38%[88]. - The company has a net debt to adjusted book ratio of 40.7%[105]. - Total unsecured debt amounts to $2,365,211, with an average stated rate of 3.19%[102]. - Total secured debt is $69,345, with an average stated rate of 4.81%[102]. Dividends and Shareholder Returns - The company declared a dividend of $0.305 per common share for Q1 2025, up from $0.295 in Q4 2024[14]. - The quarterly dividend was increased by 3.4%, marking a cumulative increase of 10.9% since 2022[172]. - Total dividends and distributions for GAAP payout ratio increased to $35,215, up from $33,910, representing a growth of 3.8% year-over-year[195]. Development and Future Outlook - The company plans to continue focusing on market expansion and enhancing its Defense/IT portfolio in the upcoming quarters[39]. - The company has 756,000 square feet under development in the Defense/IT portfolio, with an anticipated total cost of $308,450,000[81]. - The anticipated operational date for the 400 National Business Parkway project is in Q2 2026, with a total cost of $65,100,000[81]. - The development pipeline consists of five properties totaling 756,000 square feet, with an estimated investment of $308 million[176]. Tenant and Leasing Activity - Total leasing activity for the quarter reached 647,000 square feet, including 120,000 square feet of vacancy leasing[167]. - Tenant retention rate stood at 75%, on track to meet the annual goal of 75%-85%[170]. - The tenant retention rate for the quarter was 74.9% for expiring square feet in the total portfolio, all within the Defense/IT Portfolio[178]. - Straight-line rents on renewals increased by 8.2%, while cash rents on renewed space decreased by 0.9%, with annual escalations averaging 2.6%[178]. Non-GAAP Measures and Adjustments - The company utilizes non-GAAP measures to provide investors with a clearer understanding of its performance compared to other REITs, emphasizing the limitations of these measures[124]. - Adjusted EBITDA is calculated by adjusting net income for interest expense, depreciation, and other non-recurring items, providing a clearer picture of the company's operational performance[126]. - Cash NOI is defined as NOI adjusted to eliminate effects of straight-line rental adjustments and other non-cash items, providing a more accurate measure of cash generated from real estate operations[131].
COPT(CDP) - 2025 Q1 - Quarterly Results