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

COPT Defense Reports Second Quarter 2026 Results

CDP

COPT Defense Properties reported Q2 2026 diluted EPS of $0.40 & diluted FFO per share of $0.71, representing 4.4% year-over-year FFO growth.
The company increased its 2026 FFO per share guidance midpoint by 2 cents to $2.78, implying 2.2% annual growth & exceeding the prior midpoint by 2 cents.
Same property cash NOI increased 7.4% year-over-year, leading to a 100 basis point increase in the 2026 same property cash NOI growth guidance midpoint to 4%.
The total portfolio occupancy stood at 94.1% & leased levels at 95.6%, with the Defense/IT portfolio specifically at 95.1% occupied & 96.4% leased.
Total leasing activity reached 518,000 square feet in Q2 2026 & 2.2 million square feet in H1 2026, including 139,000 SF of vacancy leasing in the quarter.
Tenant retention rates were 68% for Q2 2026 & 84% for H1 2026, while the annual vacancy leasing target was raised to 475,000 SF from 400,000 SF.
Management committed $43 million in capital for a land & ground lease acquisition in Chantilly, VA, increasing the 2026 investment guidance target by $45 million to $335 million.
The Defense/IT development pipeline consists of six properties totaling 885,000 SF that were 73% leased as of June 30, 2026, with an estimated total investment of $440 million.
Balance sheet metrics included a net debt to in-place adjusted EBITDA ratio of 6.0x & an adjusted EBITDA fixed charge coverage ratio of 4.4x for the quarter.
The company updated its full-year 2026 diluted EPS guidance to a range of $1.39-$1.43 & diluted FFO per share guidance to $2.76-$2.80.