COPT Defense Establishes 2024 Guidance

2024 Guidance - COPT Defense Properties has established guidance for the year ending December 31, 2024, with diluted earnings per share (EPS) projected in the range of $1.15−$1.23 and diluted funds from operations per share (FFOPS) - Nareit and as adjusted for comparability, in the range of $2.47−$2.55 [1] - For the first quarter of 2024, EPS is expected to be in the range of $0.26−$0.28, and FFOPS - Nareit and as adjusted for comparability, is projected to be in the range of $0.59−$0.61 [1] 2024 Guidance Reconciliation - The reconciliation of projected EPS to projected FFOPS - Nareit and as adjusted for comparability includes real estate-related depreciation and amortization of $1.32 for the year ending December 31, 2024, and $0.33 for the quarter ending March 31, 2024 [2] Key Assumptions - The 2024 same property pool is expected to see a cash net operating income (NOI) growth of 5.7%, driven by cash rent increases from leases and new rents from leasing activity in 2022 and 2023 [3] - Year-end occupancy is projected at 93.4%, positively impacted by leasing executed in 2023, despite some known non-renewals primarily in the first quarter of 2024 [3] Management Commentary - The year-over-year growth in FFOPS is driven by an increase in NOI from the same property portfolio and developments placed into service, partially offset by higher interest expenses and general and administrative costs [5] - The decline from the fourth quarter of 2023 to the first quarter of 2024 is attributed to higher seasonal operating expenses and a slight decline in occupancy due to known non-renewals [8] Company Overview - COPT Defense is a self-managed REIT focused on owning, operating, and developing properties near key U.S. Government defense installations, with a portfolio of 190 properties encompassing 21.7 million square feet, 97.2% of which is leased [9]