Press Release: COPT Defense Reports Strong Full Year 2025 Results

Dow Jones
Feb 06

EPS of $1.34 for Full Year

FFO per Share, as Adjusted for Comparability, of $2.72

Increased 5.8% Over 2024 Results

7(th) Consecutive Year of FFO per Share Growth

For the year, Same Property Cash NOI Increased 4.1%

Solid Occupancy and Leased Levels

Total Portfolio 94.0% Occupied and 95.3% Leased

Defense/IT Portfolio 95.5% Occupied and 96.5% Leased

Excellent Leasing Performance in 2025

Total Leasing of 3.1 million SF

Vacancy Leasing of 557,000 SF

Exceeded Initial Annual Target by Nearly 40%

Tenant Retention of 78%

Investment Leasing of 477,000 SF

Exceeded Capital Deployment Guidance in 2025

Committed $278 million of Capital to 5 New Investments that are 81% Pre-Leased

COLUMBIA, Md.--(BUSINESS WIRE)--February 05, 2026-- 

COPT Defense Properties ("COPT Defense" or the "Company") $(CDP)$ 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 2026 bond maturity and provide $400 million of additional liquidity to fund our external growth. We generated FFO per share growth, which represented a 5.8% increase over 2024's results.

We executed 557,000 square feet of vacancy leasing, which was nearly 40% higher than our initial target. Our leasing success resulted in a 40 basis point year-over-year increase in our Total Portfolio occupancy to 94.0% and a 20 basis point increase in our Total Portfolio leased rate to 95.3%.

We committed $278 million to 5 new investments during 2025, that are 81% pre-leased on a weighted average basis, which speaks to our ability to capitalize on opportunities that drive exceptional risk-adjusted returns and fit within our broader strategy of allocating capital to locations that support priority national defense missions. Importantly, 4 of these 5 capital commitments represent an existing tenant expanding in our portfolio.

We have generated FFO per share growth in each of the past 7 years, which amounts to a compound annual growth rate of 5.0% between 2019 and 2025. Looking forward, our guidance implies continued growth in 2026, with FFO per share growth of 1.1% at the midpoint, which is in-line with our historical performance after adjusting for an increase in financing costs."

Financial Highlights

4th Quarter Financial Results:

   --  Diluted earnings per share ("EPS") was $0.33 for the quarter ended 
      December 31, 2025, compared to $0.31 for the quarter ended December 31, 
      2024. 
 
   --  Diluted funds from operations per share ("FFOPS"), as calculated in 
      accordance with Nareit's definition and as adjusted for comparability, 
      was $0.70 for the quarter ended December 31, 2025, compared to FFOPS per 
      Nareit of $0.64 and FFOPS, as adjusted for comparability of $0.65 for the 
      quarter ended December 31, 2024. 

Full Year 2025 Financial Results:

   --  EPS for the year ended December 31, 2025 was $1.34 as compared to $1.23 
      for 2024. 
 
   --  Per Nareit's definition and as adjusted for comparability, FFOPS for 
      2025 was $2.72 as compared to $2.57 for 2024. 

Operating Performance Highlights

Operating Portfolio Summary:

   --  At December 31, 2025, the Company's 25.1 million square foot total 
      portfolio was 94.0% occupied and 95.3% leased, which includes the 23.2 
      million square foot Defense/IT Portfolio that was 95.5% occupied and 
      96.5% leased. 
 
   --  During the quarter and year ended December 31, 2025, the Company placed 
      into service 418,000 and 468,000 square feet, respectively, of 
      developments that were 100% leased. 

Same Property Performance:

   --  At December 31, 2025, the Company's 23.9 million square foot Same 
      Property portfolio was 94.2% occupied and 95.3% leased. 
 
   --  The Company's Same Property cash NOI increased 2.6% and 4.1% in the 
      quarter and year ended December 31, 2025, respectively, compared to the 
      same periods in 2024. 

Leasing:

   --  Total Square Feet Leased: For the quarter ended December 31, 2025, the 
      Company leased 735,000 square feet, including 336,000 square feet of 
      renewals, 125,000 square feet of vacancy leasing, and 274,000 square feet 
      of investment leasing. For the year ended December 31, 2025, the Company 
      executed 3.1 million square feet of total leasing, including 2.0 million 
      square feet of renewals, 557,000 square feet of vacancy leasing, and 
      477,000 square feet of investment leasing. 
 
   --  Tenant Retention Rates: During the quarter ended December 31, 2025, the 
      Company renewed 62.5% of expiring square feet in its total portfolio. 
      During the year ended December 31, 2025, the Company renewed 77.9% of 
      expiring square feet in its total portfolio. 
 
   --  Rent Spreads and Average Escalations on Renewing Leases: For the 
      quarter and year ended December 31, 2025, straight-line rents on renewals 
      increased 3.4% and 9.6%, respectively, and cash rents on renewed space 
      decreased 5.2% and increased 1.1%, respectively, while annual escalations 
      on renewing leases averaged 2.5% and 2.0%, respectively. 
 
   --  Lease Terms: In the quarter ended December 31, 2025, lease terms 
      averaged 6.1 years on renewing leases, 6.9 years on vacancy leasing, and 
      14.5 years on investment leasing. For the year ended December 31, 2025, 
      lease terms averaged 5.3 years on renewing leases, 7.6 years on vacancy 
      leasing, and 13.1 years on investment leasing. 

Investment Activity Highlights

   --  Development Pipeline: The Company's development pipeline consists of 
      six properties totaling 882,000 square feet that were 86% leased as of 
      February 4, 2026. These projects represent a total estimated investment 
      of $448 million, of which $110 million was spent as of December 31, 
      2025. 
 
   --  Acquisition: On October 30, 2025, the Company acquired Stonegate I at 
      15050 Conference Center Drive in Chantilly, Virginia, a 142,000 square 
      foot Class A office building for a gross purchase price of $40 million. 
      The building is fully leased to a top 20 U.S. Government defense 
      contractor. 
 
          --  Please see the Company's acquisition press release dated October 
             30, 2025. 
 
 

Balance Sheet and Capital Transaction Highlights

   --  On October 2, 2025, the Company issued $400 million of 4.50% Senior 
      Notes due 2030. The Company intends to use the net proceeds to repay the 
      2.25% Senior Notes at maturity in March 2026. Until March, the proceeds 
      are being used for general corporate purposes, including paying down 
      amounts under its Revolving Credit Facility and investment in 
      interest-bearing accounts. 
 
   --  On October 6, 2025, the Company entered into an amendment to the credit 
      agreement underlying its Revolving Credit Facility (the "Revolver") and 
      Unsecured Bank Term Loan (the "Term Loan"). This amendment: increased the 
      aggregate lender commitment under the Revolver from $600 million to $800 
      million; extended the maturity date of the Revolver from October 2026 to 
      October 2029, which may be extended by two six-month periods at the 
      Company's option; reduced the initial interest rate on the Revolver to 
      SOFR + 0.85% and on the Term Loan to SOFR + 1.05%; and eliminated the 
      0.10% SOFR transition charge. 
 
   --  On October 16, 2025, the Company entered into a secured revolving 
      credit agreement with a lender for an aggregate of $200 million of 
      available borrowings, which the Company intends to use to fund property 
      development activities. 
 
   --  For the quarter ended December 31, 2025, the Company's adjusted EBITDA 
      fixed charge coverage ratio was 4.3x. 
 
   --  At December 31, 2025, the Company's net debt to in-place adjusted 
      EBITDA ratio was 5.9x and its net debt adjusted for fully-leased 
      investment properties to in-place adjusted EBITDA ratio was 5.8x. 
 
   --  At December 31, 2025, and including the effect of interest rate swaps, 
      the Company's weighted average effective interest rate on its 
      consolidated debt portfolio was 3.5% with a weighted average maturity of 
      4.1 years (assuming exercise of available extension options), and 100% of 
      the Company's debt was subject to fixed interest rates. 

Associated Supplemental Presentation

Prior to the call, the Company will post a slide presentation to accompany management's prepared remarks for its fourth quarter and full year 2025 conference call; the presentation can be viewed and downloaded from the 'Financial Info -- Financial Results' section of COPT Defense's Investors website: https://investors.copt.com/financial-information/financial-results

2026 Guidance

The Company details its initial full year and first quarter guidance, with supporting assumptions, in a separate press release issued concurrently with this press release; that release can be found in the 'News & Events -- Press Releases' section of COPT Defense's Investors website: https://investors.copt.com/news-events/press-releases

Conference Call Information

Management will discuss fourth quarter and full year 2025 results on its conference call tomorrow, details of which are listed below:

 
Conference Call Date:  Friday, February 6, 2026 
Time:                  12:00 p.m. Eastern Time 
 

Participants must register for the conference call at the link below to receive the dial-in number and personal pin. Registering only takes a few moments and provides direct access to the conference call without waiting for an operator. You may register at any time, including up to and after the call start time: https://register-conf.media-server.com/register/BI9dcc3f52190b419eb2751ac67965679e

The conference call will also be available via live webcast in the 'News & Events -- IR Calendar' section of COPT Defense's Investors website: https://investors.copt.com/news-events/ir-calendar

Replay Information

A replay of the conference call will be immediately available via webcast only on COPT Defense's Investors website and will be maintained on the website for approximately 90 days after the conference call.

Definitions

For definitions of certain terms used in this press release, please refer to the information furnished in the Company's Supplemental Information Package furnished on a Form 8-K which can be found on its website (www.copt.com). Reconciliations of non-GAAP measures to the most directly comparable GAAP measures are included in the attached tables.

About COPT Defense

COPT Defense, an S&P MidCap 400 Company, is a self-managed REIT focused on owning, operating and developing properties in locations proximate to, or sometimes containing, key U.S. Government ("USG") defense installations and missions (referred to as its Defense/IT Portfolio). The Company's tenants include the USG and their defense contractors, who are primarily engaged in priority national security activities, and who generally require mission-critical and high security property enhancements. As of December 31, 2025, the Company's Defense/IT Portfolio of 201 properties, including 24 owned through unconsolidated joint ventures, encompassed 23.2 million square feet and was 96.5% leased.

Forward-Looking Information

This press release may contain "forward-looking" statements, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that are based on the Company's current expectations, estimates and projections about future events and financial trends affecting the Company. Forward-looking statements can be identified by the use of words such as "may," "will," "should," "could," "believe," "anticipate," "expect," "estimate," "plan" or other comparable terminology. Forward-looking statements are inherently subject to risks and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate. Although the Company believes that the expectations, estimates and projections reflected in such forward-looking statements are based on reasonable assumptions at the time made, the Company can give no assurance that these expectations, estimates and projections will be achieved. Future events and actual results may differ materially from those discussed in the forward-looking statements and the Company undertakes no obligation to update or supplement any forward-looking statements.

The areas of risk that may affect these expectations, estimates and projections include, but are not limited to, those risks described in Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2024.

Source: COPT Defense Properties

 
                    COPT Defense Properties 
                     Summary Financial Data 
                          (unaudited) 
    (dollars and shares in thousands, except per share data) 
 
                    For the Three Months   For the Years Ended 
                     Ended December 31,        December 31, 
                    --------------------  ---------------------- 
                      2025       2024       2025        2024 
Revenues 
   Lease revenue    $185,002   $169,765   $714,180   $671,366 
   Other property 
    revenue            1,483      1,641      7,669      6,351 
   Construction 
    contract and 
    other service 
    revenues          10,872     12,027     42,074     75,550 
                     -------    -------    -------    ------- 
Total revenues       197,357    183,433    763,923    753,267 
Operating expenses 
   Property 
    operating 
    expenses          74,616     66,964    283,927    266,001 
   Depreciation 
    and 
    amortization 
    associated 
    with real 
    estate 
    operations        42,263     38,821    161,826    153,640 
   Construction 
    contract and 
    other service 
    expenses          10,432     11,519     39,962     73,265 
   General and 
    administrative 
    expenses           7,943      8,429     32,776     33,555 
   Leasing 
    expenses           2,896      2,243     10,957      9,233 
   Business 
    development 
    expenses and 
    land carry 
    costs                904      1,171      4,107      4,250 
                     -------    -------    -------    ------- 
Total operating 
 expenses            139,054    129,147    533,555    539,944 
Interest expense     (24,324)   (20,391)   (86,660)   (82,151) 
Interest and other 
 income, net           5,301      2,331     10,683     12,661 
Gain on sales of 
 real estate              32         --      3,350         -- 
Loss on early 
 extinguishment of 
 debt                    (66)        --        (66)        -- 
                     -------    -------    -------    ------- 
Income before 
 equity in income 
 of unconsolidated 
 entities and 
 income taxes         39,246     36,226    157,675    143,833 
Equity in income 
 of unconsolidated 
 entities                265        217      2,806        397 
Income tax 
 (expense) 
 benefit                (115)        24       (947)      (288) 
                     -------    -------    -------    ------- 
Net income            39,396     36,467    159,534    143,942 
Net income 
attributable to 
noncontrolling 
interests 
   Common units in 
    the Operating 
    Partnership 
    ("OP")              (743)      (681)    (3,239)    (2,694) 
   Other 
    consolidated 
    entities          (1,152)      (665)    (3,980)    (2,319) 
                     -------    -------    -------    ------- 
Net income 
 attributable to 
 common 
 shareholders       $ 37,501   $ 35,121   $152,315   $138,929 
                     =======    =======    =======    ======= 
 
Earnings per share 
("EPS") 
computation 
   Numerator for 
   diluted EPS 
     Net income 
      attributable 
      to common 
      shareholders  $ 37,501   $ 35,121   $152,315   $138,929 
     Amount 
      allocable to 
      share-based 
      compensation 
      awards            (113)      (103)      (435)      (421) 
                     -------    -------    -------    ------- 
     Numerator for 
      diluted EPS   $ 37,388   $ 35,018   $151,880   $138,508 
                     =======    =======    =======    ======= 
   Denominator 
     Weighted 
      average 
      common 
      shares - 
      basic          112,733    112,347    112,516    112,296 
     Dilutive 
      effect of 
      share-based 
      compensation 
      awards             850        711        788        603 
     Dilutive 
     exchangeable 
     debt                 --        664         --         -- 
                     -------    -------    -------    ------- 
     Weighted 
      average 
      common 
      shares - 
      diluted        113,583    113,722    113,304    112,899 
                     =======    =======    =======    ======= 
   Diluted EPS      $   0.33   $   0.31   $   1.34   $   1.23 
                     =======    =======    =======    ======= 
 
 
                        COPT Defense Properties 
                         Summary Financial Data 
                              (unaudited) 
                  (in thousands, except per share data) 
 
                          For the Three Months    For the Years Ended 
                           Ended December 31,         December 31, 
                          --------------------  ------------------------ 
                            2025       2024        2025         2024 
Net income                $ 39,396   $ 36,467   $ 159,534   $ 143,942 
Real estate-related 
 depreciation and 
 amortization               42,263     38,821     161,826     153,640 
Gain on sales of real 
 estate                        (32)        --      (3,350)         -- 
Depreciation and 
 amortization on 
 unconsolidated real 
 estate JVs                    744        745       2,950       3,056 
                           -------    -------    --------    -------- 
Funds from operations 
 ("FFO")                    82,371     76,033     320,960     300,638 
FFO allocable to other 
 noncontrolling 
 interests                  (1,524)    (1,050)     (5,566)     (3,855) 
Basic FFO allocable to 
 share-based 
 compensation awards          (543)      (614)     (2,171)     (2,417) 
                           -------    -------    --------    -------- 
Basic FFO available to 
 common share and common 
 unit holders ("Basic 
 FFO")                      80,304     74,369     313,223     294,366 
Redeemable 
 noncontrolling 
 interest                       --         --          --       1,963 
Diluted FFO adjustments 
 allocable to 
 share-based 
 compensation awards            54         47         387         188 
                           -------    -------    --------    -------- 
Diluted FFO available to 
 common share and common 
 unit holders ("Diluted 
 FFO")                      80,358     74,416     313,610     296,517 
Loss on early 
 extinguishment of debt         66         --          66          -- 
Loss on early 
extinguishment of debt 
on unconsolidated real 
estate JVs                      --         --          28          -- 
Executive transition 
 costs                          --         58          --         285 
Diluted FFO 
 comparability 
 adjustments allocable 
 to share-based 
 compensation awards            --         (1)         --          (2) 
                           -------    -------    --------    -------- 
Diluted FFO available to 
 common share and common 
 unit holders, as 
 adjusted for 
 comparability              80,424     74,473     313,704     296,800 
Straight line rent 
 adjustments and lease 
 incentive amortization      3,634      2,950       5,152      10,824 
Amortization of 
 intangibles and other 
 assets included in net 
 operating income 
 ("NOI")                      (384)       211        (116)        755 
Share-based 
 compensation, net of 
 amounts capitalized         2,954      2,617      11,693      10,443 
Amortization of deferred 
 financing costs               817        671       2,798       2,708 
Amortization of net debt 
 discounts, net of 
 amounts capitalized         1,282      1,041       4,463       4,110 
Replacement capital 
 expenditures              (31,290)   (34,134)   (103,655)   (103,984) 
Other                         (228)        73         280         566 
                           -------    -------    --------    -------- 
Diluted adjusted funds 
 from operations 
 available to common 
 share and common unit 
 holders ("Diluted 
 AFFO")                   $ 57,209   $ 47,902   $ 234,319   $ 222,222 
                           =======    =======    ========    ======== 
Diluted FFO per share     $   0.70   $   0.64   $    2.72   $    2.57 
                           =======    =======    ========    ======== 
Diluted FFO per share, 
 as adjusted for 
 comparability            $   0.70   $   0.65   $    2.72   $    2.57 
                           =======    =======    ========    ======== 
Dividends/distributions 
 per common share/unit    $  0.305   $  0.295   $    1.22   $    1.18 
 
 
                          COPT Defense Properties 
                           Summary Financial Data 
                                (unaudited) 
          (dollars and shares in thousands, except per share data) 
 
                                          December 31,       December 31, 
                                               2025               2024 
Balance sheet data 
Properties, net of accumulated 
 depreciation                            $  3,783,477       $  3,630,526 
Total assets                             $  4,701,790       $  4,254,191 
Debt per balance sheet                   $  2,767,834       $  2,391,755 
Total liabilities                        $  3,114,115       $  2,693,624 
Redeemable noncontrolling interest       $     25,506       $     23,974 
Total equity                             $  1,562,169       $  1,536,593 
Debt to assets                                   58.9%              56.2% 
Net debt to adjusted book                        40.5%              40.4% 
 
Defense/IT Portfolio data (as of 
period end) 
Number of operating properties                    201                197 
Total operational square feet (in 
 thousands)                                    23,159             22,549 
% Occupied                                       95.5%              95.4% 
% Leased                                         96.5%              96.7% 
 
 
                   For the Three Months Ended     For the Years Ended 
                          December 31,                December 31, 
                   --------------------------  ------------------------- 
                       2025          2024          2025         2024 
GAAP 
Payout ratio 
   Net income         89.3%          93.0%         88.3%        94.2% 
Debt ratios 
   Net income to 
   interest 
   expense ratio           1.6x          1.8x          1.8x         1.8x 
   Debt to net 
   income ratio           17.6x         16.4x       N/A          N/A 
Non-GAAP 
Payout ratios 
   Diluted FFO        43.5%          45.2%         44.7%        45.4% 
   Diluted FFO, 
    as adjusted 
    for 
    comparability     43.5%          45.2%         44.6%        45.4% 
   Diluted AFFO       61.2%          70.3%         59.8%        60.6% 
Debt ratios 
   Adjusted 
   EBITDA fixed 
   charge 
   coverage 
   ratio                   4.3x          4.7x          4.6x         4.7x 
   Net debt to 
   in-place 
   adjusted 
   EBITDA ratio            5.9x          6.0x       N/A          N/A 
   Net debt adj. 
   for 
   fully-leased 
   investment 
   properties to 
   in-place adj. 
   EBITDA ratio            5.8x          5.9x       N/A          N/A 
 
Reconciliation of denominators 
for per share measures 
Denominator for 
 diluted EPS       113,583        113,722       113,304      112,899 
Weighted average 
 common units        1,926          1,664         2,083        1,672 
Redeemable 
 noncontrolling 
 interest               --             --            --          842 
                   -------  ---  --------      --------      ------- 
Denominator for 
 diluted FFO per 
 share and as 
 adjusted for 
 comparability     115,509        115,386       115,387      115,413 
                   =======  ===  ========      ========      ======= 
 
 
                   COPT Defense Properties 
                    Summary Financial Data 
                         (unaudited) 
                        (in thousands) 
 
                  For the Three Months   For the Years Ended 
                   Ended December 31,        December 31, 
                  --------------------  ---------------------- 
                    2025       2024       2025        2024 
Numerators for 
payout ratios 
Dividends on 
 unrestricted 
 common and 
 deferred 
 shares           $ 34,414   $ 33,167   $137,388   $132,628 
Distributions on 
 unrestricted 
 common units          573        491      2,558      1,987 
Dividends and 
 distributions 
 on restricted 
 shares and 
 units                 205        248        868      1,000 
                   -------    -------    -------    ------- 
Total dividends 
 and 
 distributions 
 for GAAP payout 
 ratio              35,192     33,906    140,814    135,615 
Dividends and 
 distributions 
 on antidilutive 
 shares and 
 units                (198)      (250)      (774)    (1,006) 
                   -------    -------    -------    ------- 
Dividends and 
 distributions 
 for non-GAAP 
 payout ratios    $ 34,994   $ 33,656   $140,040   $134,609 
                   =======    =======    =======    ======= 
 
Reconciliation 
of net income to 
earnings before 
interest, income 
taxes, 
depreciation and 
amortization for 
real estate 
("EBITDAre"), 
adjusted EBITDA 
and in-place 
adjusted EBITDA 
Net income        $ 39,396   $ 36,467   $159,534   $143,942 
Interest expense    24,324     20,391     86,660     82,151 
Income tax 
 expense 
 (benefit)             115        (24)       947        288 
Real 
 estate-related 
 depreciation 
 and 
 amortization       42,263     38,821    161,826    153,640 
Other 
 depreciation 
 and 
 amortization          435        589      1,873      2,375 
Gain on sales of 
 real estate           (32)        --     (3,350)        -- 
Adjustments from 
 unconsolidated 
 real estate 
 JVs                 1,818      1,681      6,609      6,820 
                   -------    -------    -------    ------- 
EBITDAre           108,319     97,925    414,099    389,216 
Credit loss 
 (recoveries) 
 expense              (644)      (113)       734        383 
Business 
 development 
 expenses              508        758      2,573      2,548 
Executive 
 transition 
 costs                  --         58         78        638 
Loss on early 
 extinguishment 
 of debt                66         --         66         -- 
Loss on early 
extinguishment 
of debt on 
unconsolidated 
real estate JVs         --         --         28         -- 
Net gain on 
 other 
 investments           (26)        --     (1,739)      (488) 
                   -------    -------    -------    ------- 
Adjusted EBITDA    108,223     98,628   $415,839   $392,297 
                                         =======    ======= 
Pro forma NOI 
 adjustment for 
 property 
 changes within 
 period              1,969        528 
Change in 
 collectability 
 of deferred 
 rental revenue        127      1,646 
                   -------    ------- 
In-place 
 adjusted 
 EBITDA           $110,319   $100,802 
                   =======    ======= 
 
Reconciliations 
of tenant 
improvements and 
incentives, 
building 
improvements and 
leasing costs 
for operating 
properties to 
replacement 
capital 
expenditures 
Tenant 
 improvements 
 and incentives   $ 25,671   $ 22,912   $ 79,491   $ 69,505 
Building 
 improvements        8,888     10,942     20,063     28,294 
Leasing costs        5,008      2,629     15,638     12,342 
Net exclusions 
 from tenant 
 improvements 
 and incentives     (6,335)        (7)    (6,428)        (3) 
Excluded 
 building 
 improvements       (1,942)    (2,342)    (4,145)    (6,113) 
Excluded leasing 
 costs                  --         --       (964)       (41) 
                   -------    -------    -------    ------- 
Replacement 
 capital 
 expenditures     $ 31,290   $ 34,134   $103,655   $103,984 
                   =======    =======    =======    ======= 
 
 
                    COPT Defense Properties 
                     Summary Financial Data 
                          (unaudited) 
                         (in thousands) 
 
                    For the Three Months   For the Years Ended 
                     Ended December 31,        December 31, 
                    --------------------  ---------------------- 
                      2025       2024       2025        2024 
Reconciliation of 
interest expense 
to the denominator 
for fixed charge 
coverage-Adjusted 
EBITDA 
Interest expense    $ 24,324   $ 20,391   $ 86,660   $ 82,151 
Less: Amortization 
 of deferred 
 financing costs        (817)      (671)    (2,798)    (2,708) 
Less: Amortization 
 of net debt 
 discounts, net of 
 amounts 
 capitalized          (1,282)    (1,041)    (4,463)    (4,110) 
COPT Defense's 
 share of interest 
 expense of 
 unconsolidated 
 real estate JVs, 
 excluding 
 amortization of 
 deferred 
 financing costs 
 and net debt 
 premium and gain 
 or loss on 
 interest rate 
 derivatives             968        872      3,377      3,305 
Scheduled 
 principal 
 amortization            416        455      1,792      2,334 
Capitalized 
 interest              1,714        928      5,059      2,872 
                     -------    -------    -------    ------- 
Denominator for 
 fixed charge 
 coverage-Adjusted 
 EBITDA             $ 25,323   $ 20,934   $ 89,627   $ 83,844 
                     =======    =======    =======    ======= 
 
Reconciliation of 
net income to NOI 
from real estate 
operations, same 
property NOI from 
real estate 
operations and 
same property cash 
NOI from real 
estate operations 
Net income          $ 39,396   $ 36,467   $159,534   $143,942 
Construction 
 contract and 
 other service 
 revenues            (10,872)   (12,027)   (42,074)   (75,550) 
Depreciation and 
 other 
 amortization 
 associated with 
 real estate 
 operations           42,263     38,821    161,826    153,640 
Construction 
 contract and 
 other service 
 expenses             10,432     11,519     39,962     73,265 
General and 
 administrative 
 expenses              7,943      8,429     32,776     33,555 
Leasing expenses       2,896      2,243     10,957      9,233 
Business 
 development 
 expenses and land 
 carry costs             904      1,171      4,107      4,250 
Interest expense      24,324     20,391     86,660     82,151 
Interest and other 
 income, net          (5,301)    (2,331)   (10,683)   (12,661) 
Gain on sales of 
 real estate             (32)        --     (3,350)        -- 
Loss on early 
 extinguishment of 
 debt                     66         --         66         -- 
Equity in income 
 of unconsolidated 
 entities               (265)      (217)    (2,806)      (397) 
Unconsolidated 
 real estate JVs 
 NOI allocable to 
 COPT Defense 
 included in 
 equity in income 
 of unconsolidated 
 entities              2,083      1,898      7,706      7,217 
Income tax expense 
 (benefit)               115        (24)       947        288 
                     -------    -------    -------    ------- 
NOI from real 
 estate 
 operations          113,952    106,340    445,628    418,933 
Non-Same Property 
 NOI from real 
 estate 
 operations           (6,795)    (2,521)   (17,660)    (5,866) 
                     -------    -------    -------    ------- 
Same Property NOI 
 from real estate 
 operations          107,157    103,819    427,968    413,067 
Straight line rent 
 adjustments and 
 lease incentive 
 amortization          3,701      5,065      7,161      8,662 
Amortization of 
 acquired above- 
 and below-market 
 rents                  (504)       (69)      (734)      (276) 
Lease termination 
 fees, net              (859)      (864)    (3,612)    (3,451) 
Tenant funded 
 landlord assets 
 and lease 
 incentives           (4,798)    (6,035)   (17,752)   (21,100) 
Cash NOI 
 adjustments in 
 unconsolidated 
 real estate JVs        (401)      (287)    (1,090)    (1,083) 
                     -------    -------    -------    ------- 
Same Property Cash 
 NOI from real 
 estate 
 operations         $104,296   $101,629   $411,941   $395,819 
                     =======    =======    =======    ======= 
 
 
                        COPT Defense Properties 
                         Summary Financial Data 
                              (unaudited) 
                             (in thousands) 
 
                                       December 31,      December 31, 
                                            2025              2024 
Reconciliation of total assets to 
adjusted book 
Total assets                           $   4,701,790    $   4,254,191 
Accumulated depreciation                   1,682,367        1,537,293 
Accumulated amortization of 
 intangibles on property 
 acquisitions and deferred leasing 
 costs                                       228,656          228,154 
COPT Defense's share of liabilities 
 of unconsolidated real estate JVs            82,039           61,294 
COPT Defense's share of accumulated 
 depreciation and amortization of 
 unconsolidated real estate JVs               16,000           12,817 
Less: Property - operating lease 
 liabilities                                 (45,012)         (49,240) 
Less: Property - finance lease 
 liabilities                                    (363)            (391) 
Less: Cash and cash equivalents             (274,986)         (38,284) 
Less: COPT Defense's share of cash 
 of unconsolidated real estate JVs            (1,898)          (2,053) 
                                          ----------       ---------- 
Adjusted book                          $   6,388,593    $   6,003,781 
                                          ==========       ========== 
 
 
                                       December 31,      December 31, 
                                            2025              2024 
Reconciliation of debt to net debt 
and net debt adjusted for 
fully-leased investment properties 
Debt per balance sheet                 $   2,767,834    $   2,391,755 
Net discounts and deferred financing 
 costs                                        23,466           23,262 
COPT Defense's share of 
 unconsolidated JV gross debt                 75,250           53,750 
                                          ----------       ---------- 
Gross debt                                 2,866,550        2,468,767 
Less: Cash and cash equivalents             (274,986)         (38,284) 
Less: COPT Defense's share of cash 
 of unconsolidated real estate JVs            (1,898)          (2,053) 
                                          ----------       ---------- 
Net debt                                   2,589,666        2,428,430 
Costs incurred on fully-leased 
 development properties                       (8,226)         (18,774) 
Costs incurred on fully-leased 
 operating property acquisitions                  --          (17,034) 
                                          ----------       ---------- 
Net debt adjusted for fully-leased 
 investment properties                 $   2,581,440    $   2,392,622 
                                          ==========       ========== 
 

View source version on businesswire.com: https://www.businesswire.com/news/home/20260205614011/en/

 
    CONTACT:    IR Contacts: 

Venkat Kommineni, CFA

443.285.5587

venkat.kommineni@copt.com

Michelle Layne

443.285.5452

michelle.layne@copt.com

 
 

(END) Dow Jones Newswires

February 05, 2026 16:17 ET (21:17 GMT)

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