Business Wire·Apr 27, 2026, 4:16 PM ET

COPT Defense Reports First Quarter 2026 Results

CDP

COPT Defense reported first quarter 2026 diluted EPS of $0.34 & diluted FFO per share of $0.69, exceeding the midpoint guidance by $0.01.
FFO per share grew 6.2% year-over-year while same property cash NOI increased 5.4%.
The company raised its full-year 2026 FFO per share guidance midpoint by 1 cent to $2.76, implying 1.5% annual growth.
Same property cash NOI guidance midpoint for 2026 was increased by 50 basis points to 3.0%.
Same property cash NOI guidance midpoint for 2026 was increased by 250 basis points to 82.5%.
Total portfolio occupancy stood at 94.4% with 95.2% leased, while the Defense/IT Portfolio was 95.6% occupied & 96.4% leased.
Total leasing activity reached 1.6 million SF, including 1.2 million SF in renewals, 92,000 SF in vacancy leasing, & 384,000 SF in investment leasing.
Tenant retention rate was 91% with a record 1.2 million SF in renewal volume driven by a 953,000 SF government campus renewal.
Management committed $201 million in capital to two new investments that are 61% pre-leased.
Investment guidance midpoint for 2026 was increased by $40 million to $290 million.
The Board approved a 4.9% dividend increase in February, marking the fourth consecutive annual hike & a 16.4% cumulative increase since 2022.
Moody's upgraded the company's investment grade rating to Baa2 with a stable outlook in March.
The company repaid $400 million in notes at maturity on March 16, 2026, using available cash & credit facility borrowings.
The adjusted EBITDA fixed charge coverage ratio was 4.3x, with a net debt to in-place adjusted EBITDA ratio of 6.1x.
The weighted average effective interest rate on debt was 3.8% with 85% of debt subject to fixed rates.
Subsequent to the quarter, the company acquired 17 acres of land in Chantilly, Virginia, for approximately $43 million subject to a ground lease.
Second quarter 2026 guidance was established for diluted EPS of $0.31-$0.33 & diluted FFO per share of $0.68-$0.70.