COPT Defense Properties — Q3 2026 Earnings Summary

Financial Performance:

• Net income for the three months ended September 30, 2026, was $49.794 million, compared to $43.744 million for the same period in 2025.
• Net income for the nine months ended September 30, 2026, was $138.492 million, compared to $120.138 million for the same period in 2025.
• NOI from real estate operations for the three months ended September 30, 2026, was $120.330 million, compared to $111.818 million for the same period in 2025.
• NOI from real estate operations for the nine months ended September 30, 2026, was $355.637 million, compared to $331.676 million for the same period in 2025.
• Same Property NOI for the three months ended September 30, 2026, was $114.280 million, compared to $111.277 million for the same period in 2025.
• Same Property NOI for the nine months ended September 30, 2026, was $339.628 million, compared to $330.230 million for the same period in 2025.
• Same Property Cash NOI for the three months ended September 30, 2026, was $110.270 million, compared to $106.864 million for the same period in 2025.
• Same Property Cash NOI for the nine months ended September 30, 2026, was $328.775 million, compared to $312.175 million for the same period in 2025.
• Adjusted EBITDA for the three months ended September 30, 2026, was $111.390 million, compared to $103.771 million for the same period in 2025.
• Adjusted EBITDA for the nine months ended September 30, 2026, was $329.902 million, compared to $307.616 million for the same period in 2025.
• Diluted FFO per share (NAREIT) for the three months ended September 30, 2026, was $0.71, compared to $0.69 for the same period in 2025.
• Diluted FFO per share (NAREIT) for the nine months ended September 30, 2026, was $2.11, compared to $2.02 for the same period in 2025.
• Diluted AFFO available to common share and unit holders for the three months ended September 30, 2026, was $65.384 million, compared to $63.274 million for the same period in 2025.
• Diluted AFFO available to common share and unit holders for the nine months ended September 30, 2026, was $199.582 million, compared to $177.071 million for the same period in 2025.
• Total assets as of September 30, 2026, were $4.573 billion, compared to $4.351 billion as of September 30, 2025.
• Total debt as of September 30, 2026, was $2.580 billion, compared to $2.444 billion as of September 30, 2025.
• Net debt as of September 30, 2026, was $2.649 billion.
• Debt-to-assets ratio as of September 30, 2026, was 56.4%, compared to 56.2% as of September 30, 2025.
• Net debt to adjusted book ratio as of September 30, 2026, was 39.9%.
• Adjusted EBITDA fixed charge coverage ratio for the three months ended September 30, 2026, was 4.4x, compared to 4.8x for the same period in 2025.
• Net debt to in-place adjusted EBITDA ratio as of September 30, 2026, was 5.9x, compared to 6.1x as of September 30, 2025.
• Diluted EPS for the three months ended September 30, 2026, was $0.41, compared to $0.37 for the same period in 2025.
• Diluted EPS for the nine months ended September 30, 2026, was $1.15, compared to $1.01 for the same period in 2025.
• Dividend per common share for the three months ended September 30, 2026, was $0.32, compared to $0.305 for the same period in 2025.
• Dividend per common share for the nine months ended September 30, 2026, was $0.96, compared to $0.915 for the same period in 2025.
• Payout ratio based on diluted FFO for the three months ended September 30, 2026, was 43.9%, compared to 43.7% for the same period in 2025.
• Payout ratio based on diluted FFO for the nine months ended September 30, 2026, was 44.8%, compared to 45.0% for the same period in 2025.
• Payout ratio based on diluted AFFO for the three months ended September 30, 2026, was 56.4%, compared to 55.3% for the same period in 2025.
• Payout ratio based on diluted AFFO for the nine months ended September 30, 2026, was 55.4%, compared to 59.3% for the same period in 2025.

Business Segments and Product Lines:

• The Defense/IT Portfolio consists of 202 properties (including 24 owned through unconsolidated joint ventures) encompassing 23.3 million square feet as of September 30, 2026.
• The Defense/IT Portfolio was 96.2% leased as of September 30, 2026, compared to 97.0% as of September 30, 2025.
• The Fort Meade/Baltimore Washington Corridor segment includes 96 properties with 9,403,000 square feet, 92.8% occupied, and 94.3% leased.
• The Redstone Arsenal segment includes 25 properties with 2,525,000 square feet, 96.9% occupied, and 98.0% leased.
• The Northern Virginia Defense/IT segment includes 17 properties with 2,644,000 square feet, 93.5% occupied, and 95.2% leased.
• The Lackland Air Force Base segment includes 9 properties with 1,143,000 square feet, 96.5% occupied, and 96.5% leased.
• The Navy Support segment includes 22 properties with 1,271,000 square feet, 88.2% occupied, and 89.0% leased.
• Data Center Shells (Consolidated) include 9 properties with 2,035,000 square feet, 100.0% occupied, and 100.0% leased.
• Unconsolidated JV properties include 24 properties with 4,295,000 square feet, 100.0% occupied, and 100.0% leased.
• Other properties include 6 properties with 1,987,000 square feet, 80.4% occupied, and 81.5% leased.
• Consolidated real estate revenues for the Defense/IT Portfolio for the nine months ended September 30, 2026, were $523.548 million, compared to $479.709 million for the same period in 2025.
• NOI from real estate operations for the Defense/IT Portfolio for the nine months ended September 30, 2026, was $330.565 million, compared to $304.626 million for the same period in 2025.
• Cash NOI from real estate operations for the Defense/IT Portfolio for the nine months ended September 30, 2026, was $317.718 million, compared to $287.639 million for the same period in 2025.

Other Key Points:

• COPT Defense Properties is an S&P MidCap 400 Company and a self-managed REIT focused on owning, operating, and developing properties near U.S. Government defense installations.
• The Company's common shares are publicly traded on the New York Stock Exchange under the ticker symbol "CDP".
• Corporate credit ratings are BBB- Stable (Fitch), Baa2 Stable (Moody's), and BBB- Stable (S&P).
• The Company has 208 total properties in its portfolio as of September 30, 2026, with a total of 25.3 million square feet.
• The Consolidated Portfolio consists of 184 properties with 21.0 million square feet, 92.8% occupied, and 94.0% leased.
• Total portfolio occupancy was 94.0% as of September 30, 2026, compared to 93.9% as of September 30, 2025.
• Total portfolio leased percentage was 95.0% as of September 30, 2026, compared to 95.7% as of September 30, 2025.
• Same Property average occupancy rates were 93.9% as of September 30, 2026, compared to 93.9% as of September 30, 2025.
• Same Property period end occupancy rates were 93.9% as of September 30, 2026, compared to 93.9% as of September 30, 2025.
• Total Market Capitalization as of September 30, 2026, was $6.469 billion.
• Total Equity Market Capitalization as of September 30, 2026, was $3.870 billion.
• The Company reported a gain on sales of real estate of $7.673 million for the three months ended September 30, 2026, and $14.697 million for the nine months ended September 30, 2026.
• Replacement capital expenditures for the nine months ended September 30, 2026, were $67.319 million, compared to $72.365 million for the same period in 2025.
• Tenant improvements and incentives for the nine months ended September 30, 2026, were $54.977 million, compared to $53.820 million for the same period in 2025.
• Building improvements for the nine months ended September 30, 2026, were $7.916 million, compared to $11.175 million for the same period in 2025.
• Leasing costs for the nine months ended September 30, 2026, were $7.913 million, compared to $10.630 million for the same period in 2025.