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COPT Defense Reports Strong Full Year 2025 Results

CDP
  • COPT Defense Properties reported full-year 2025 earnings per share of $1.34, up from $1.23 in 2024.
  • Adjusted funds from operations per share reached $2.72, representing a 5.8% increase over 2024 results.
  • The company achieved its seventh consecutive year of FFO per share growth, with a compound annual growth rate of 5.0% from 2019 to 2025.
  • Same property cash net operating income increased 4.1% for the full year 2025 compared to 2024.
  • The total portfolio occupancy stood at 94.0% with a leased rate of 95.3% as of December 31, 2025.
  • The Defense/IT portfolio specifically reported 95.5% occupancy and a 96.5% leased rate.
  • Total leasing activity for 2025 reached 3.1 million square feet, exceeding the initial annual target by nearly 40%.
  • Vacancy leasing accounted for 557,000 square feet, while investment leasing comprised 477,000 square feet.
  • Tenant retention rates for the full year 2025 were 78%.
  • The company committed $278 million to five new investments, which were 81% pre-leased on a weighted average basis.
  • Four of the five new capital commitments involved existing tenants expanding within the portfolio.
  • COPT Defense acquired Stonegate I in Chantilly, Virginia, for $40 million in October 2025, a property fully leased to a top 20 U.S. government defense contractor.
  • The company issued $400 million in 4.50% Senior Notes due 2030 in October 2025 to pre-fund a March 2026 bond maturity.
  • The Revolver credit agreement was amended to increase aggregate lender commitments to $800 million and extend maturity to October 2029.
  • A new secured revolving credit agreement for $200 million was entered into in October 2025 to fund property development activities.
  • The weighted average effective interest rate on the consolidated debt portfolio was 3.5% with 100% of debt fixed as of December 31, 2025.
  • Management provided 2026 guidance indicating a midpoint FFO per share growth of 1.1%.
  • The development pipeline includes six properties totaling 882,000 square feet, which were 86% leased as of February 4, 2026.
  • Adjusted EBITDA fixed charge coverage ratio for the fourth quarter of 2025 was 4.3x.
  • Net debt to in-place adjusted EBITDA ratio was 5.9x at December 31, 2025.