Exhibit 99.1

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COPT Defense Properties
Supplemental Information + Earnings Release - Unaudited
For the Period Ended 12/31/23
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Please refer to the section entitled “Definitions” for definitions of non-GAAP measures
and other terms we use herein that may not be customary or commonly known.

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COPT Defense Properties
Summary Description
THE COMPANY
COPT Defense Properties (the “Company” or “COPT Defense”), an S&P MidCap 400 Company, is a self-managed real estate investment trust (“REIT”) focused on owning, operating and developing properties in locations proximate to, or sometimes containing, key U.S. Government (“USG”) defense installations and missions (which we refer to herein as our Defense/IT Portfolio). Our 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. The ticker symbol under which our common shares are publicly traded on the New York Stock Exchange is “CDP”. As of December 31, 2023, our Defense/IT Portfolio of 190 properties, including 24 owned through unconsolidated joint ventures, encompassed 21.7 million square feet and was 97.2% leased.


MANAGEMENTStephen E. Budorick, President + CEOINVESTOR RELATIONSVenkat Kommineni, VP
Anthony Mifsud, EVP + CFO
443.285.5587 | venkat.kommineni@copt.com
Britt A. Snider, EVP + COO
Michelle Layne, Manager
443.285.5452 | michelle.layne@copt.com


CORPORATE CREDIT RATING
Fitch: BBB- Stable | Moody’s: Baa3 Stable | S&P: BBB- Stable


DISCLOSURE STATEMENT
This supplemental package contains forward-looking statements within the meaning of the Federal securities laws. 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 we cannot predict with accuracy and some of which we might not even anticipate.  Although we believe that the expectations, estimates and projections reflected in such forward-looking statements are based on reasonable assumptions at the time made, we 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 we undertake 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 our Annual Report on Form 10-K for the year ended December 31, 2022.
1

COPT Defense Properties
Equity Research Coverage
Firm Senior AnalystPhone Email
Bank of America Securities Camille Bonnel 416.369.2140 camille.bonnel@bofa.com
BTIGTom Catherwood212.738.6410tcatherwood@btig.com
Citigroup Global Markets Michael Griffin 212.816.5871 michael.a.griffin@citi.com
Evercore ISISteve Sakwa212.446.9462steve.sakwa@evercoreisi.com
Green Street  Dylan Burzinski 949.640.8780 dburzinski@greenstreet.com
Jefferies & Co. Peter Abramowitz 212.336.7241  pabramowitz@jefferies.com
JP Morgan Tony Paolone 212.622.6682 anthony.paolone@jpmorgan.com
Raymond James Bill Crow 727.567.2594 bill.crow@raymondjames.com
Truist Securities Michael Lewis 212.319.5659 michael.r.lewis@truist.com
Wedbush SecuritiesRichard Anderson212.938.9949richard.anderson@wedbush.com
Wells Fargo SecuritiesBlaine Heck443.263.6529blaine.heck@wellsfargo.com
 
With the exception of Green Street, the above-listed firms are those whose analysts publish research material on the Company and whose estimates of our FFO per share can be tracked through FactSet. Any opinions, estimates or forecasts the above analysts make regarding COPT Defense’s future performance are their own and do not represent the views, estimates or forecasts of COPT Defense’s management.
2

COPT Defense Properties
Selected Financial Summary Data
(in thousands, except per share data)
 PageThree Months EndedYears Ended
SUMMARY OF RESULTS Refer.12/31/239/30/236/30/233/31/2312/31/2212/31/2312/31/22
Net income (loss)7$34,820 $(221,207)$31,642 $80,398 $52,087 $(74,347)$178,822 
NOI from real estate operations13$98,656 $96,494 $95,024 $93,903 $93,810 $384,077 $362,304 
Same Property NOI17$86,951 $87,176 $86,254 $84,452 $84,795 $344,833 $334,313 
Same Property cash NOI18$86,501 $85,940 $85,037 $83,194 $82,808 $340,672 $322,230 
Adjusted EBITDA11$93,934 $90,260 $89,044 $87,443 $87,787 $360,681 $341,709 
FFO per NAREIT8$72,360 $70,016 $70,033 $68,816 $70,282 $281,225 $274,339 
Diluted AFFO avail. to common share and unit holders10$54,280 $64,122 $46,003 $38,616 $26,122 $203,021 $178,413 
Dividend per common shareN/A$0.285 $0.285 $0.285 $0.285 $0.275 $1.14 $1.10 
Per share - diluted:      
EPS9$0.30 $(1.94)$0.27 $0.70 $0.45 $(0.67)$1.53 
FFO - Nareit9$0.62 $0.60 $0.60 $0.59 $0.60 $2.41 $2.35 
FFO - as adjusted for comparability9$0.62 $0.60 $0.60 $0.59 $0.60 $2.42 $2.36 
Numerators for diluted per share amounts:
Diluted EPS7$33,552 $(217,179)$30,138 $78,467 $50,290 $(74,668)$172,397 
Diluted FFO available to common share and unit holders8$70,913 $68,512 $68,323 $67,651 $68,696 $275,399 $268,186 
Diluted FFO available to common share and unit holders, as adjusted for comparability8$71,100 $68,593 $68,569 $67,651 $68,794 $275,913 $268,965 

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COPT Defense Properties
Selected Financial Summary Data (continued)
(in thousands, except ratios)
 PageThree Months EndedYears Ended
PAYOUT RATIOS AND CAPITALIZATIONRefer.12/31/239/30/236/30/233/31/2312/31/2212/31/2312/31/22
GAAP
Payout ratio:
Net incomeN/A93.7%N/A103.1%40.6%60.3%N/A70.2%
Capitalization and debt ratios:
Total assets6$4,246,966 $4,239,257 $4,246,346 $4,177,992 $4,257,275 
Total equity6$1,523,755 $1,525,873 $1,776,695 $1,768,814 $1,721,455 
Debt per balance sheet6$2,416,287 $2,415,783 $2,176,174 $2,123,012 $2,231,794 
Debt to assets3256.9%57.0%51.2%50.8%52.4%N/AN/A
Net income to interest expense ratio321.7xN/A1.9x4.9x3.1xN/A2.9x
Debt to net income ratio3217.3xN/A17.2x6.6x10.7xN/AN/A
Non-GAAP
Payout ratios:      
Diluted FFON/A45.7%47.3%47.5%47.9%45.5%47.1%46.6%
Diluted FFO - as adjusted for comparabilityN/A45.6%47.3%47.3%47.9%45.4%47.0%46.5%
Diluted AFFON/A59.7%50.6%70.5%83.9%119.7%63.9%70.1%
Capitalization and debt ratios:     
Total Market Capitalization29$5,377,815 $5,172,058 $4,914,516 $4,856,761 $5,214,423 
Total Equity Market Capitalization29$2,932,815 $2,726,295 $2,717,000 $2,711,499 $2,959,469 
Net debt38$2,328,941 $2,293,005 $2,234,633 $2,181,408 $2,294,261 
Net debt to adjusted book3240.6%40.5%38.4%38.1%39.8%N/AN/A
Adjusted EBITDA fixed charge coverage ratio324.4x4.6x4.9x5.0x4.7x4.7x5.1x
Net debt to in-place adj. EBITDA ratio326.1x6.2x6.3x6.2x6.3xN/AN/A
Pro forma net debt to in-place adjusted EBITDA ratio (1)N/AN/AN/AN/AN/A6.0xN/AN/A
Net debt adjusted for fully-leased development to in-place adj. EBITDA ratio326.0x5.9x5.7x5.8x6.1xN/AN/A
Pro forma net debt adj. for fully-leased development to in-place adj. EBITDA ratio (1)N/AN/AN/AN/AN/A5.7xN/AN/A
(1)Includes, for the 12/31/22 period, adjustments associated with our sale on 1/10/23 of a 90% interest in three data center shell properties.
4

COPT Defense Properties
Selected Portfolio Data (1)
 12/31/239/30/236/30/233/31/2312/31/22
# of Properties
Total Portfolio198196194194194
Consolidated Portfolio174172170170173
Defense/IT Portfolio190188186186186
Same Property180180180180180
% Occupied
Total Portfolio94.2 %94.1 %93.4 %92.8 %92.7 %
Consolidated Portfolio92.9 %92.7 %91.9 %91.2 %91.4 %
Defense/IT Portfolio96.2 %95.9 %95.3 %94.4 %94.1 %
Same Property93.4 %93.4 %92.8 %92.1 %92.0 %
% Leased
Total Portfolio95.3 %95.1 %94.9 %95.0 %95.2 %
Consolidated Portfolio94.3 %94.0 %93.7 %93.9 %94.3 %
Defense/IT Portfolio97.2 %97.0 %96.8 %96.7 %96.7 %
Same Property94.7 %94.5 %94.4 %94.5 %94.7 %
Square Feet (in thousands)
Total Portfolio23,85923,47923,03523,02023,006
Consolidated Portfolio19,56319,18418,74018,72519,458
Defense/IT Portfolio21,71921,33920,89520,87820,869
Same Property20,60920,60920,60920,60920,609
(1)Except for the Consolidated Portfolio, includes properties owned through unconsolidated real estate joint ventures (see page 34).

5

COPT Defense Properties
Consolidated Balance Sheets
(in thousands)
 12/31/239/30/236/30/233/31/2312/31/22
Assets     
Properties, net:     
Operating properties, net$3,246,806 $3,148,434 $3,272,670 $3,272,873 $3,258,899 
Development and redevelopment in progress, including land (1)82,972 141,854 206,130 151,910 109,332 
Land held (1)173,900 177,909 193,435 189,292 188,167 
Total properties, net3,503,678 3,468,197 3,672,235 3,614,075 3,556,398 
Property - operating right-of-use assets 41,296 40,487 41,652 42,808 37,020 
Assets held for sale, net— — — — 161,286 
Cash and cash equivalents167,820 204,238 14,273 15,199 12,337 
Investment in unconsolidated real estate joint ventures41,052 41,495 41,928 42,279 21,460 
Accounts receivable, net48,946 40,211 47,363 46,149 43,334 
Deferred rent receivable 149,237 142,041 136,382 130,153 125,147 
Lease incentives, net61,331 60,506 59,541 49,679 49,757 
Deferred leasing costs, net 70,057 68,033 69,218 68,930 69,339 
Investing receivables, net81,512 87,535 86,708 85,499 84,621 
Prepaid expenses and other assets, net82,037 86,514 77,046 83,221 96,576 
Total assets$4,246,966 $4,239,257 $4,246,346 $4,177,992 $4,257,275 
Liabilities and equity     
Liabilities:     
Debt $2,416,287 $2,415,783 $2,176,174 $2,123,012 $2,231,794 
Accounts payable and accrued expenses133,315 135,605 135,784 128,509 157,998 
Rents received in advance and security deposits35,409 32,063 32,021 34,653 30,016 
Dividends and distributions payable32,644 32,645 32,636 32,630 31,400 
Deferred revenue associated with operating leases29,049 24,590 9,199 9,022 11,004 
Property - operating lease liabilities33,931 32,940 33,923 34,896 28,759 
Other liabilities18,996 17,936 27,699 21,008 18,556 
Total liabilities2,699,631 2,691,562 2,447,436 2,383,730 2,509,527 
Redeemable noncontrolling interests23,580 21,822 22,215 25,448 26,293 
Equity:   
COPT Defense’s shareholders’ equity:   
Common shares1,126 1,125 1,125 1,125 1,124 
Additional paid-in capital2,489,989 2,489,717 2,486,996 2,484,501 2,486,116 
Cumulative distributions in excess of net income(1,009,318)(1,010,885)(762,617)(760,820)(807,508)
Accumulated other comprehensive income 2,115 6,094 5,224 1,353 2,071 
Total COPT Defense’s shareholders’ equity1,483,912 1,486,051 1,730,728 1,726,159 1,681,803 
Noncontrolling interests in subsidiaries:     
Common units in the Operating Partnership25,502 25,337 29,563 29,268 25,808 
Other consolidated entities14,341 14,485 16,404 13,387 13,844 
Total noncontrolling interests in subsidiaries39,843 39,822 45,967 42,655 39,652 
Total equity1,523,755 1,525,873 1,776,695 1,768,814 1,721,455 
Total liabilities, redeemable noncontrolling interests and equity$4,246,966 $4,239,257 $4,246,346 $4,177,992 $4,257,275 
(1)Refer to pages 26 and 28 for detail.


6

COPT Defense Properties
Consolidated Statements of Operations
(in thousands)
 Three Months EndedYears Ended
 12/31/239/30/236/30/233/31/2312/31/2212/31/2312/31/22
Revenues     
Lease revenue$160,337 $155,268 $153,682 $150,560 $150,022 $619,847 $580,169 
Other property revenue1,225 1,339 1,271 1,121 1,163 4,956 4,229 
Construction contract and other service revenues18,167 11,949 14,243 15,820 24,062 60,179 154,632 
Total revenues179,729 168,556 169,196 167,501 175,247 684,982 739,030 
Operating expenses     
Property operating expenses64,577 61,788 61,600 59,420 58,470 247,385 227,430 
Depreciation and amortization associated with real estate operations36,735 37,620 37,600 36,995 36,907 148,950 141,230 
Construction contract and other service expenses17,167 11,493 13,555 15,201 23,454 57,416 149,963 
Impairment losses— 252,797 — — — 252,797 — 
General and administrative expenses8,240 7,582 7,287 7,996 7,766 31,105 27,461 
Leasing expenses2,308 2,280 2,345 1,999 2,235 8,932 8,337 
Business development expenses and land carry costs797 714 726 495 1,157 2,732 3,193 
Total operating expenses129,824 374,274 123,113 122,106 129,989 749,317 557,614 
Interest expense(20,383)(17,798)(16,519)(16,442)(16,819)(71,142)(61,174)
Interest and other income, net5,659 2,529 2,143 2,256 4,671 12,587 9,070 
Gain on sales of real estate— — 14 49,378 19,238 49,392 19,250 
Loss on early extinguishment of debt— — — — (267)— (609)
Income (loss) from continuing operations before equity in (loss) income of unconsolidated entities and income taxes35,181 (220,987)31,721 80,587 52,081 (73,498)147,953 
Equity in (loss) income of unconsolidated entities(240)(68)111 (64)229 (261)1,743 
Income tax expense(121)(152)(190)(125)(223)(588)(447)
Income (loss) from continuing operations34,820 (221,207)31,642 80,398 52,087 (74,347)149,249 
Discontinued operations— — — — — — 29,573 
Net income (loss)34,820 (221,207)31,642 80,398 52,087 (74,347)178,822 
Net (income) loss attributable to noncontrolling interests:     
Common units in the Operating Partnership(576)3,691 (516)(1,293)(775)1,306 (2,603)
Other consolidated entities(592)1,329 (839)(326)(833)(428)(3,190)
Net income (loss) attributable to common shareholders$33,652 $(216,187)$30,287 $78,779 $50,479 $(73,469)$173,029 
Amount allocable to share-based compensation awards(100)(992)(98)(248)(129)(1,199)(463)
Redeemable noncontrolling interests— — (51)(64)(60)— (169)
Numerator for diluted EPS$33,552 $(217,179)$30,138 $78,467 $50,290 $(74,668)$172,397 
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COPT Defense Properties
Funds from Operations
(in thousands)
 Three Months EndedYears Ended
 12/31/239/30/236/30/233/31/2312/31/2212/31/2312/31/22
Net income (loss)$34,820 $(221,207)$31,642 $80,398 $52,087 $(74,347)$178,822 
Real estate-related depreciation and amortization36,735 37,620 37,600 36,995 36,907 148,950 141,230 
Impairment losses on real estate— 252,797 — — — 252,797 — 
Gain on sales of real estate (1)— — (14)(49,378)(19,238)(49,392)(47,814)
Depreciation and amortization on unconsolidated real estate JVs (2)805 806 805 801 526 3,217 2,101 
FFO - per Nareit (3)72,360 70,016 70,033 68,816 70,282 281,225 274,339 
FFO allocable to other noncontrolling interests (4)(972)(1,059)(1,239)(708)(1,227)(3,978)(4,795)
Basic FFO allocable to share-based compensation awards(513)(481)(480)(466)(360)(1,940)(1,433)
Basic FFO available to common share and common unit holders (3)70,875 68,476 68,314 67,642 68,695 275,307 268,111 
Redeemable noncontrolling interests— — (28)(30)(27)(58)(34)
Diluted FFO adjustments allocable to share-based compensation awards38 36 37 39 28 150 109 
Diluted FFO available to common share and common unit holders - per Nareit (3)70,913 68,512 68,323 67,651 68,696 275,399 268,186 
Loss on early extinguishment of debt— — — — 267 — 609 
Gain on early extinguishment of debt on unconsolidated real estate JVs (2)— — — — (168)— (168)
Executive transition costs188 82 248 — — 518 343 
Diluted FFO comparability adjustments allocable to share-based compensation awards(1)(1)(2)— (1)(4)(5)
Diluted FFO available to common share and common unit holders, as adjusted for comparability (3)$71,100 $68,593 $68,569 $67,651 $68,794 $275,913 $268,965 
(1)Refer to the section entitled “Supplementary Reconciliations of Non-GAAP Measures” for reconciliation.
(2)See page 34 for additional disclosure regarding our unconsolidated real estate JVs.
(3)Refer to the section entitled “Definitions” for a definition of this measure.
(4)Pertains to noncontrolling interests in consolidated real estate JVs reported on page 33.

8

COPT Defense Properties
Diluted Share + Unit Computations
(in thousands, except per share data)

 Three Months EndedYears Ended
 12/31/239/30/236/30/233/31/2312/31/2212/31/2312/31/22
EPS Denominator:     
Weighted average common shares - basic112,199 112,196 112,188 112,127 112,096 112,178 112,073 
Dilutive effect of share-based compensation awards432 — 426 410 435 — 431 
Dilutive effect of redeemable noncontrolling interests— — 62 91 102 — 116 
Weighted average common shares - diluted112,631 112,196 112,676 112,628 112,633 112,178 112,620 
Diluted EPS$0.30 $(1.94)$0.27 $0.70 $0.45 $(0.67)$1.53 
Weighted Average Shares for period ended:       
Common shares112,199 112,196 112,188 112,127 112,096 112,178 112,073 
Dilutive effect of share-based compensation awards432 429 426 410 435 424 431 
Common units1,514 1,520 1,514 1,489 1,476 1,509 1,454 
Redeemable noncontrolling interests— — 62 91 102 38 116 
Denominator for diluted FFO per share and as adjusted for comparability114,145 114,145 114,190 114,117 114,109 114,149 114,074 
Weighted average common units(1,514)(1,520)(1,514)(1,489)(1,476)(1,509)(1,454)
Redeemable noncontrolling interests— — — — — (38)— 
Dilutive effect of additional share-based compensation awards— (429)— — — (424)— 
Denominator for diluted EPS112,631 112,196 112,676 112,628 112,633 112,178 112,620 
Diluted FFO per share - Nareit (1)$0.62 $0.60 $0.60 $0.59 $0.60 $2.41 $2.35 
Diluted FFO per share - as adjusted for comparability (1)$0.62 $0.60 $0.60 $0.59 $0.60 $2.42 $2.36 
(1)Refer to the section entitled “Definitions” for a definition of this measure.
9

COPT Defense Properties
Adjusted Funds from Operations
(in thousands)
 Three Months EndedYears Ended
 12/31/239/30/236/30/233/31/2312/31/2212/31/2312/31/22
Diluted FFO available to common share and common unit holders, as adjusted for comparability (1)$71,100 $68,593 $68,569 $67,651 $68,794 $275,913 $268,965 
Straight line rent adjustments and lease incentive amortization313 12,882 (3,161)(3,516)(3,043)6,518 (8,825)
Amortization of intangibles and other assets included in NOI26 26 17 (19)15 50 (258)
Share-based compensation, net of amounts capitalized2,318 2,280 2,213 1,733 2,247 8,544 8,700 
Amortization of deferred financing costs681 639 628 632 619 2,580 2,297 
Amortization of net debt discounts, net of amounts capitalized1,004 750 622 618 615 2,994 2,440 
Replacement capital expenditures (1)(21,498)(21,122)(22,664)(28,210)(43,283)(93,494)(95,886)
Other336 74 (221)(273)158 (84)980 
Diluted AFFO available to common share and common unit holders (“diluted AFFO”) (1)$54,280 $64,122 $46,003 $38,616 $26,122 $203,021 $178,413 
Replacement capital expenditures (1)     
Tenant improvements and incentives$7,850 $14,457 $32,619 $19,986 $33,439 $74,912 $62,952 
Building improvements14,762 6,307 2,766 2,141 8,468 25,976 29,528 
Leasing costs2,440 1,902 3,542 1,750 4,389 9,634 11,480 
Net (exclusions from) additions to tenant improvements and incentives(189)(813)(16,007)4,839 (75)(12,170)2,150 
Excluded building improvements and leasing costs(3,365)(731)(256)(506)(2,938)(4,858)(10,224)
Replacement capital expenditures$21,498 $21,122 $22,664 $28,210 $43,283 $93,494 $95,886 
(1)Refer to the section entitled “Definitions” for a definition of this measure.
10

COPT Defense Properties
EBITDAre + Adjusted EBITDA
(in thousands)
 Three Months EndedYears Ended
 12/31/239/30/236/30/233/31/2312/31/2212/31/2312/31/22
Net income (loss)$34,820 $(221,207)$31,642 $80,398 $52,087 $(74,347)$178,822 
Interest expense20,383 17,798 16,519 16,442 16,819 71,142 61,174 
Income tax expense121 152 190 125 223 588 447 
Real estate-related depreciation and amortization36,735 37,620 37,600 36,995 36,907 148,950 141,230 
Other depreciation and amortization619 615 609 602 602 2,445 2,363 
Impairment losses on real estate— 252,797 — — — 252,797 — 
Gain on sales of real estate (1)— — (14)(49,378)(19,238)(49,392)(47,814)
Adjustments from unconsolidated real estate JVs1,911 1,743 1,559 1,704 1,033 6,917 3,313 
EBITDAre (2)94,589 89,518 88,105 86,888 88,433 359,100 339,535 
Credit loss (recoveries) expense(1,288)372 238 67 (1,331)(611)271 
Business development expenses445 313 394 241 794 1,393 1,891 
Executive transition costs188 82 307 247 387 824 730 
Loss on early extinguishment of debt— — — — 267 — 609 
Gain on early extinguishment of debt on unconsolidated real estate JVs— — — — (168)— (168)
Net gain on other investments— (25)— — (595)(25)(1,159)
Adjusted EBITDA (2)93,934 90,260 89,044 87,443 87,787 $360,681 $341,709 
Pro forma NOI adjustment for property changes within period1,341 1,647 56 (318)2,704 
Change in collectability of deferred rental revenue(198)— 28 899 — 
In-place adjusted EBITDA (2)95,077 91,907 89,128 88,024 90,491 
Pro forma NOI adjustment from subsequent event transactions (3)N/AN/AN/AN/A(2,903)
Pro forma in-place adjusted EBITDA (2)$95,077 $91,907 $89,128 $88,024 $87,588 
(1)Refer to the section entitled “Supplementary Reconciliations of Non-GAAP Measures” for reconciliation.
(2)Refer to the section entitled “Definitions” for a definition of this measure.
(3)Includes, for the 12/31/22 period, NOI adjustment from our sale on 1/10/23 of a 90% interest in three data center shell properties.
11

COPT Defense Properties
Properties by Segment - 12/31/23
(square feet in thousands)
# of
Properties
Operational
Square Feet
% Occupied% Leased
Defense/IT Portfolio:
Fort Meade/Baltimore Washington (“BW”) Corridor:    
National Business Park34 4,293 99.3%99.4%
Howard County35 2,862 93.9%94.9%
Other23 1,725 93.1%94.6%
Total Fort Meade/BW Corridor92 8,880 96.4%97.0%
Northern Virginia (“NoVA”) Defense/IT 16 2,501 88.9%92.4%
Lackland AFB (San Antonio, Texas)1,062 100.0%100.0%
Navy Support22 1,273 87.4%89.6%
Redstone Arsenal (Huntsville, Alabama)22 2,300 97.5%98.7%
Data Center Shells:
Consolidated Properties1,408 100.0%100.0%
Unconsolidated JV Properties (1)24 4,295 100.0%100.0%
Total Defense/IT Portfolio190 21,719 96.2%97.2%
Other 2,140 73.2%76.8%
Total Portfolio198 23,859 94.2%95.3%
Consolidated Portfolio174 19,563 92.9%94.3%
(1)See page 34 for additional disclosure regarding our unconsolidated real estate JVs.

chart-c93c464d891c414a9e4a.jpgchart-2741020e0c2f404a90ca.jpg
(2)Refer to the section entitled “Definitions” for a definition of this measure.
12

COPT Defense Properties
Consolidated Real Estate Revenues + NOI by Segment
(in thousands)
 Three Months EndedYears Ended
 12/31/239/30/236/30/233/31/2312/31/2212/31/2312/31/22
Consolidated real estate revenues     
Defense/IT Portfolio:
Fort Meade/BW Corridor$74,758 $73,350 $72,176 $69,777 $69,778 $290,061 $273,790 
NoVA Defense/IT 20,410 20,333 19,841 19,829 18,695 80,413 73,985 
Lackland Air Force Base17,861 16,193 17,595 15,605 17,118 67,254 62,911 
Navy Support8,405 8,190 8,118 7,925 8,247 32,638 32,754 
Redstone Arsenal14,971 13,768 12,978 13,414 10,114 55,131 38,593 
Data Center Shells-Consolidated7,654 6,811 6,287 6,692 10,008 27,444 35,722 
Total Defense/IT Portfolio144,059 138,645 136,995 133,242 133,960 552,941 517,755 
Wholesale Data Center— — — — — — 1,980 
Other 17,503 17,962 17,958 18,439 17,225 71,862 66,643 
Consolidated real estate revenues (1)$161,562 $156,607 $154,953 $151,681 $151,185 $624,803 $586,378 
NOI from real estate operations (2)     
Defense/IT Portfolio:
Fort Meade/BW Corridor$48,894 $48,134 $47,988 $45,257 $45,784 $190,273 $176,063 
NoVA Defense/IT 11,972 12,433 12,158 12,257 11,862 48,820 47,350 
Lackland Air Force Base7,708 7,626 7,644 7,660 7,690 30,638 30,610 
Navy Support4,783 4,257 4,602 4,382 4,712 18,024 18,753 
Redstone Arsenal10,157 8,820 8,228 8,778 6,204 35,983 22,993 
Data Center Shells:
Consolidated properties6,966 6,133 5,544 6,098 8,951 24,741 31,350 
COPT Defense’s share of unconsolidated real estate JVs1,671 1,675 1,671 1,642 1,095 6,659 4,327 
Total Defense/IT Portfolio92,151 89,078 87,835 86,074 86,298 355,138 331,446 
Wholesale Data Center— — — — (4)— 1,001 
Other 6,505 7,416 7,189 7,829 7,516 28,939 29,857 
NOI from real estate operations (1)$98,656 $96,494 $95,024 $93,903 $93,810 $384,077 $362,304 
(1)Refer to the section entitled “Supplementary Reconciliations of Non-GAAP Measures” for reconciliation.
(2)Refer to the section entitled “Definitions” for a definition of this measure.
13

COPT Defense Properties
Cash NOI by Segment
(in thousands)
 Three Months EndedYears Ended
 12/31/239/30/236/30/233/31/2312/31/2212/31/2312/31/22
Cash NOI from real estate operations (1)     
Defense/IT Portfolio:
Fort Meade/BW Corridor$46,173 $45,513 $45,727 $43,662 $45,106 $181,075 $174,713 
NoVA Defense/IT12,881 12,765 12,642 11,423 10,274 49,711 40,881 
Lackland Air Force Base8,114 7,913 7,919 7,915 7,889 31,861 31,023 
Navy Support5,008 4,621 4,911 5,023 5,257 19,563 19,976 
Redstone Arsenal4,869 4,861 3,707 4,988 5,263 18,425 19,276 
Data Center Shells:
Consolidated properties5,868 4,904 4,918 5,379 6,960 21,069 25,976 
COPT Defense’s share of unconsolidated real estate JVs1,400 1,396 1,385 1,351 1,012 5,532 3,967 
Total Defense/IT Portfolio84,313 81,973 81,209 79,741 81,761 327,236 315,812 
Wholesale Data Center— — — — (4)— 1,010 
Other 6,536 7,400 7,350 7,583 6,876 28,869 26,990 
Cash NOI from real estate operations (2)$90,849 $89,373 $88,559 $87,324 $88,633 $356,105 $343,812 
(1)Refer to the section entitled “Definitions” for a definition of this measure.
(2)Refer to the section entitled “Supplementary Reconciliations of Non-GAAP Measures” for reconciliation.
chart-54f5c064c343449ea8ea.jpgchart-a6ab7bd5163b448fb08a.jpg

14

COPT Defense Properties
NOI from Real Estate Operations + Occupancy by Property Grouping - 12/31/23
(dollars and square feet in thousands)
 As of Period EndNOI from Real Estate Operations (3)
# of
Properties
Operational Square Feet% Occupied (1)% Leased (1)Annualized
Rental Revenue (2)
% of Total
Annualized
Rental Revenue (2)
Property GroupingThree Months EndedYear Ended
Defense/IT Portfolio:
Same Property: (2)
Consolidated properties153 15,287 94.8%96.1%$514,672 79.6 %$79,563 $312,400 
Unconsolidated real estate JV 19 3,182 100.0%100.0%4,916 0.8 %1,074 4,301 
Total Same Property in Defense/IT Portfolio172 18,469 95.7%96.8%519,588 80.3 %80,637 316,701 
Properties Placed in Service (4)13 2,137 98.7%98.7%58,969 9.1 %10,916 35,735 
Other unconsolidated JV properties (5)1,113 100.0%100.0%1,826 0.3 %598 2,702 
Total Defense/IT Portfolio190 21,719 96.2%97.2%580,383 89.8 %92,151 355,138 
Other2,140 73.2%76.8%66,277 10.2 %6,505 28,939 
Total Portfolio 198 23,859 94.2%95.3%$646,660 100.0 %$98,656 $384,077 
Consolidated Portfolio174 19,563 92.9%94.3%$639,920 99.0 %$96,985 $377,418 
(1)Percentages calculated based on operational square feet.
(2)Refer to the section entitled “Definitions” for a definition of this measure.
(3)Refer to the section entitled “Supplementary Reconciliations of Non-GAAP Measures” for reconciliation.
(4)Newly developed or redeveloped properties placed in service that were not fully operational by 1/1/22.
(5)Includes data center shell properties in which we sold ownership interests and retained 10% interests through unconsolidated real estate JVs in 2023 and 2022. See page 34 for additional disclosure regarding our unconsolidated real estate JVs.


15

COPT Defense Properties
Same Property (1) Average Occupancy Rates by Segment 
(square feet in thousands)
 # of PropertiesOperational Square FeetThree Months EndedYears Ended
 12/31/239/30/236/30/233/31/2312/31/2212/31/2312/31/22
Defense/IT Portfolio:
Fort Meade/BW Corridor90 8,510 96.1 %95.7 %94.7 %92.9 %92.5 %94.8 %91.1 %
NoVA Defense/IT16 2,501 88.5 %89.8 %89.9 %90.6 %89.9 %89.7 %89.1 %
Lackland Air Force Base1,062 100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
Navy Support21 1,244 87.8 %87.2 %87.6 %88.9 %90.4 %87.9 %91.5 %
Redstone Arsenal16 1,512 96.9 %91.6 %87.8 %87.0 %87.6 %90.8 %88.5 %
Data Center Shells:
Consolidated properties458 100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
Unconsolidated JV properties19 3,182 100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %100.0 %
Total Defense/IT Portfolio172 18,469 95.6 %95.1 %94.4 %93.6 %93.5 %94.7 %92.9 %
Other 2,140 73.9 %75.2 %75.0 %78.6 %80.0 %75.7 %80.2 %
Total Same Property180 20,609 93.3 %93.0 %92.3 %92.1 %92.1 %92.7 %91.6 %

Same Property (1) Period End Occupancy Rates by Segment 
(square feet in thousands)
# of PropertiesOperational Square Feet
 12/31/239/30/236/30/233/31/2312/31/22
Defense/IT Portfolio:
Fort Meade/BW Corridor90 8,510 96.2 %96.0 %95.3 %93.3 %92.5 %
NoVA Defense/IT16 2,501 88.9 %89.5 %89.9 %90.7 %90.0 %
Lackland Air Force Base1,062 100.0 %100.0 %100.0 %100.0 %100.0 %
Navy Support21 1,244 88.0 %87.4 %87.4 %88.4 %89.7 %
Redstone Arsenal16 1,512 97.4 %94.7 %90.1 %86.7 %88.0 %
Data Center Shells:
Consolidated properties458 100.0 %100.0 %100.0 %100.0 %100.0 %
Unconsolidated JV properties19 3,182 100.0 %100.0 %100.0 %100.0 %100.0 %
Total Defense/IT Portfolio172 18,469 95.7 %95.5 %94.8 %93.8 %93.5 %
Other 2,140 73.2 %75.4 %74.9 %77.6 %78.8 %
Total Same Property180 20,609 93.4 %93.4 %92.8 %92.1 %92.0 %
(1)Includes properties stably owned and 100% operational since at least 1/1/22.

16

COPT Defense Properties
Same Property Real Estate Revenues + NOI by Segment
(in thousands)
 Three Months EndedYears Ended
 12/31/239/30/236/30/233/31/2312/31/2212/31/2312/31/22
Same Property real estate revenues     
Defense/IT Portfolio:
Fort Meade/BW Corridor$72,326 $71,668 $70,510 $68,112 $68,673 $282,616 $272,656 
NoVA Defense/IT20,411 20,333 19,840 19,829 18,695 80,413 73,985 
Lackland Air Force Base17,860 16,193 17,596 15,605 17,118 67,254 62,911 
Navy Support8,251 8,035 7,964 7,771 8,092 32,021 32,276 
Redstone Arsenal9,972 9,629 8,972 9,499 9,204 38,072 36,424 
Data Center Shells-Consolidated2,479 2,479 2,538 2,505 2,395 10,001 9,560 
Total Defense/IT Portfolio131,299 128,337 127,420 123,321 124,177 510,377 487,812 
Other 15,500 15,953 15,964 16,790 16,059 64,207 62,069 
Same Property real estate revenues$146,799 $144,290 $143,384 $140,111 $140,236 $574,584 $549,881 
Same Property NOI from real estate operations (“NOI”)     
Defense/IT Portfolio:
Fort Meade/BW Corridor$46,816 $46,721 $46,489 $43,887 $44,858 $183,913 $175,138 
NoVA Defense/IT11,972 12,433 12,158 12,257 11,862 48,820 47,350 
Lackland Air Force Base7,708 7,625 7,645 7,660 7,690 30,638 30,610 
Navy Support4,702 4,177 4,510 4,293 4,610 17,682 18,421 
Redstone Arsenal6,200 5,746 5,197 5,465 5,307 22,608 21,364 
Data Center Shells:
Consolidated properties2,165 2,166 2,170 2,238 2,088 8,739 8,186 
COPT Defense’s share of unconsolidated real estate JVs1,074 1,078 1,073 1,076 1,076 4,301 4,308 
Total Defense/IT Portfolio80,637 79,946 79,242 76,876 77,491 316,701 305,377 
Other 6,314 7,230 7,012 7,576 7,304 28,132 28,936 
Same Property NOI (1)$86,951 $87,176 $86,254 $84,452 $84,795 $344,833 $334,313 
(1)Refer to the section entitled “Supplementary Reconciliations of Non-GAAP Measures” for reconciliation.



17

COPT Defense Properties
Same Property Cash NOI by Segment
(dollars in thousands)
 Three Months EndedYears Ended
 12/31/239/30/236/30/233/31/2312/31/2212/31/2312/31/22
Same Property cash NOI from real estate operations (“cash NOI”)     
Defense/IT Portfolio:
Fort Meade/BW Corridor$46,526 $45,783 $45,894 $43,949 $45,285 $182,152 $174,892 
NoVA Defense/IT12,882 12,764 12,642 11,423 10,274 49,711 40,881 
Lackland Air Force Base8,114 7,913 7,919 7,915 7,889 31,861 31,023 
Navy Support4,932 4,545 4,825 4,940 5,163 19,242 19,666 
Redstone Arsenal4,779 4,894 3,706 4,704 4,746 18,083 18,767 
Data Center Shells:
Consolidated properties1,988 1,894 1,954 2,020 1,866 7,856 7,270 
COPT Defense’s share of unconsolidated real estate JVs1,016 1,013 1,005 1,000 994 4,034 3,950 
Total Defense/IT Portfolio80,237 78,806 77,945 75,951 76,217 312,939 296,449 
Other 6,264 7,134 7,092 7,243 6,591 27,733 25,781 
Same Property cash NOI (1)$86,501 $85,940 $85,037 $83,194 $82,808 $340,672 $322,230 
Percentage change in total Same Property cash NOI (1)(2)4.5%5.7%
Percentage change in Defense/IT Portfolio Same Property cash NOI (2)5.3%5.6%

(1)Refer to the section entitled “Supplementary Reconciliations of Non-GAAP Measures” for reconciliation.
(2)Represents the change between the current period and the same period in the prior year.

chart-0f12103f144d4eb0929a.jpgchart-caf92cb1bfab4ddb965a.jpg
18

COPT Defense Properties
Leasing (1)(2)
Three Months Ended 12/31/23
(square feet in thousands)
Defense/IT Portfolio
 Ft Meade/BW CorridorNoVA Defense/ITNavy SupportRedstone ArsenalData Center ShellsTotal Defense/IT PortfolioOther Total
Renewed Space    
Leased Square Feet94 — 133 — 24 251 50 301 
Expiring Square Feet114 28 159 — 24 324 113 437 
Vacating Square Feet20 28 26 — — 73 63 136 
Retention Rate (% based upon square feet)82.8 %— %83.9 %— %100.0 %77.6 %44.2 %68.9 %
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot $6.71 $— $3.41 $— $0.44 $4.37 $4.94 $4.47 
Weighted Average Lease Term in Years4.8 — 6.3 — 5.0 5.6 9.8 6.3 
Straight-line Rent Per Square Foot
Renewal Straight-line Rent$42.16 $— $19.20 $— $27.10 $28.56 $32.73 $29.25 
Expiring Straight-line Rent$37.26 $— $14.92 $— $10.96 $22.93 $31.04 $24.28 
Change in Straight-line Rent13.2 %— %28.7 %— %147.3 %24.5 %5.5 %20.5 %
Cash Rent Per Square Foot
Renewal Cash Rent$41.15 $— $18.12 $— $25.81 $27.49 $29.00 $27.74 
Expiring Cash Rent$41.57 $— $16.89 $— $11.81 $25.68 $33.06 $26.90 
Change in Cash Rent(1.0 %)— %7.2 %— %118.5 %7.0 %(12.3 %)3.1 %
Average Escalations Per Year2.5 %— %2.5 %— %3.0 %2.5 %2.5 %2.5 %
New Leases
Development and Redevelopment Space
Leased Square Feet— — — 27 225 252 — 252 
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot$— $— $— $8.32 $— $0.88 $— $0.88 
Weighted Average Lease Term in Years— — — 10.8 15.0 14.6 — 14.6 
Straight-line Rent Per Square Foot$— $— $— $34.85 $42.01 $41.26 $— $41.26 
Cash Rent Per Square Foot$— $— $— $33.00 $34.99 $34.78 $— $34.78 
Vacant Space
Leased Square Feet18 10 18 — 50 65 115 
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot $7.72 $2.03 $11.97 $6.11 $— $6.15 $15.11 $11.25 
Weighted Average Lease Term in Years8.3 1.0 3.5 10.3 — 7.3 10.8 9.3 
Straight-line Rent Per Square Foot$26.58 $33.78 $28.03 $30.33 $— $29.56 $55.83 $44.52 
Cash Rent Per Square Foot$26.20 $33.78 $27.78 $28.18 $— $28.61 $57.44 $45.02 
Total Square Feet Leased112 10 136 45 249 552 115 668 
Average Escalations Per Year2.6 %— %2.5 %2.6 %2.8 %2.7 %2.4 %2.6 %
Average Escalations Excl. Data Center Shells2.5 %
(1)Activity excludes owner occupied space, leases with less than a one-year term and expirations associated with space removed from service. Weighted average lease term is based on the term defined in the lease assuming no exercise of early termination rights. Committed costs for leasing are reported above in the period of lease execution. Actual capital expenditures for leasing are reported on page 10 in the period such costs are incurred.
(2)Refer to the section entitled “Definitions” for definitions of certain terms on this schedule.

19

COPT Defense Properties
Leasing (1)(2)
Year Ended 12/31/23
(square feet in thousands)
Defense/IT Portfolio
 Ft Meade/BW CorridorNoVA Defense/ITNavy SupportRedstone ArsenalData Center ShellsTotal Defense/IT PortfolioOtherTotal
Renewed Space    
Leased Square Feet1,103 240 246 24 1,616 52 1,668 
Expiring Square Feet1,203 351 306 24 1,886 207 2,093 
Vacating Square Feet100 111 60 — — 271 154 425 
Retention Rate (% based upon square feet)91.7 %68.3 %80.5 %100.0 %100.0 %85.7 %25.3 %79.7 %
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot$2.99 $4.27 $2.75 $1.04 $0.44 $3.10 $4.95 $3.16 
Weighted Average Lease Term in Years4.5 4.8 4.7 3.2 5.0 4.6 9.8 4.8 
Straight-line Rent Per Square Foot
Renewal Straight-line Rent$37.55 $36.69 $21.06 $26.12 $27.10 $34.74 $33.03 $34.69 
Expiring Straight-line Rent$34.80 $34.01 $17.99 $25.50 $10.96 $31.76 $31.03 $31.73 
Change in Straight-line Rent7.9 %7.9 %17.0 %2.4 %147.3 %9.4 %6.5 %9.3 %
Cash Rent Per Square Foot
Renewal Cash Rent$37.53 $38.27 $20.58 $26.78 $25.81 $34.87 $29.33 $34.69 
Expiring Cash Rent$37.09 $38.20 $19.72 $26.13 $11.81 $34.22 $33.21 $34.19 
Change in Cash Rent1.2 %0.2 %4.4 %2.5 %118.5 %1.9 %(11.7 %)1.5 %
Average Escalations Per Year2.7 %2.3 %2.5 %2.5 %3.0 %2.6 %2.5 %2.6 %
New Leases
Development and Redevelopment Space
Leased Square Feet— — — 104 643 747 — 747 
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot$— $— $— $7.91 $— $1.10 $— $1.10 
Weighted Average Lease Term in Years— — — 10.5 15.0 14.4 — 14.4 
Straight-line Rent Per Square Foot$— $— $— $33.76 $35.30 $35.09 $— $35.09 
Cash Rent Per Square Foot$— $— $— $31.11 $30.05 $30.20 $— $30.20 
Vacant Space
Leased Square Feet150 137 44 29 — 361 91 452 
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot$6.94 $9.92 $7.75 $6.24 $— $8.11 $14.56 $9.41 
Weighted Average Lease Term in Years6.8 9.3 5.7 9.9 — 7.9 9.5 8.2 
Straight-line Rent Per Square Foot$29.94 $33.83 $27.92 $29.65 $— $31.14 $50.78 $35.10 
Cash Rent Per Square Foot$29.29 $33.33 $28.40 $27.76 $— $30.59 $51.83 $34.87 
Total Square Feet Leased1,253 377 290 136 667 2,724 143 2,867 
Average Escalations Per Year2.6 %2.4 %2.5 %2.7 %2.4 %2.5 %2.4 %2.5 %
Average Escalations Excl. Data Center Shells2.6 %
(1)Activity excludes owner occupied space, leases with less than a one-year term and expirations associated with space removed from service. Weighted average lease term is based on the term defined in the lease assuming no exercise of early termination rights. Committed costs for leasing are reported above in the period of lease execution. Actual capital expenditures for leasing are reported on page 10 in the period such costs are incurred.
(2)Refer to the section entitled “Definitions” for definitions of certain terms on this schedule.
20

COPT Defense Properties
Lease Expiration Analysis as of 12/31/23 (1)
(dollars and square feet in thousands, except per square foot amounts)
Segment of Lease and Year of Expiration (2)Square Footage of Leases ExpiringAnnualized Rental
Revenue of Expiring Leases (3)
% of Defense/IT
Annualized 
Rental
Revenue
Expiring (3)
Annualized Rental
Revenue of
Expiring Leases per Occupied Sq. Foot (3)
Defense/IT Portfolio
Ft Meade/BW Corridor1,360 $54,190 9.3 %$39.82 
NoVA Defense/IT264 9,782 1.7 %37.02 
Navy Support352 10,373 1.8 %29.50 
Redstone Arsenal130 3,502 0.6 %27.00 
Data Center Shells-Unconsolidated JV Properties310 439 0.1 %14.17 
20242,416 78,286 13.5 %36.62 
Ft Meade/BW Corridor1,913 71,809 12.4 %37.48 
NoVA Defense/IT281 11,781 2.0 %41.97 
Lackland Air Force Base703 39,803 6.9 %56.64 
Navy Support197 4,506 0.8 %22.86 
Redstone Arsenal296 6,972 1.2 %23.53 
Data Center Shells-Unconsolidated JV Properties121 170 — %14.09 
20253,511 135,042 23.3 %39.66 
Ft Meade/BW Corridor825 33,086 5.7 %40.09 
NoVA Defense/IT66 2,230 0.4 %33.54 
Lackland Air Force Base250 12,565 2.2 %50.26 
Navy Support178 5,998 1.0 %33.62 
Redstone Arsenal29 742 0.1 %25.85 
Data Center Shells-Unconsolidated JV Properties446 806 0.1 %18.07 
20261,794 55,427 9.6 %39.78 
Ft Meade/BW Corridor687 26,092 4.5 %37.97 
NoVA Defense/IT190 6,300 1.1 %33.11 
Navy Support195 7,742 1.3 %39.70 
Redstone Arsenal163 4,405 0.8 %27.00 
Data Center Shells-Unconsolidated JV Properties364 490 0.1 %13.46 
20271,599 45,030 7.8 %35.40 
Ft Meade/BW Corridor1,395 46,215 8.0 %33.10 
NoVA Defense/IT211 7,050 1.2 %33.36 
Navy Support54 1,438 0.2 %26.87 
Data Center Shells-Unconsolidated JV Properties515 840 0.1 %16.30 
20282,175 55,543 9.6 %32.43 
Thereafter
Consolidated Properties6,867 207,060 35.7 %29.38 
Unconsolidated JV Properties2,540 3,995 0.7 %15.73 
Total Defense/IT Portfolio20,902 $580,383 100.0 %$33.74 
21

COPT Defense Properties
Lease Expiration Analysis as of 12/31/23 (1) (continued)
(dollars and square feet in thousands, except per square foot amounts)
Segment of Lease and Year of Expiration (2)Square Footage of Leases ExpiringAnnualized Rental
Revenue of Expiring Leases (3)
% of Total
Annualized 
Rental
Revenue
Expiring (3)
Annualized Rental
Revenue of
Expiring Leases per Occupied Sq. Foot (3)
Total Defense/IT Portfolio20,902 $580,383 89.8 %$33.74 
Other
2024161 4,313 0.7 %26.52 
2025135 10,620 1.6 %35.71 
2026164 5,971 0.9 %36.32 
2027115 4,353 0.7 %37.66 
2028243 8,848 1.4 %36.34 
Thereafter750 32,172 5.0 %42.69 
Total Other1,568 66,277 10.2 %38.42 
Total Portfolio22,470 $646,660 100.0 %$34.14 
Consolidated Portfolio18,175 $639,920 
Unconsolidated JV Properties4,295 $6,741 
Note: As of 12/31/23, the weighted average lease term was 5.3 years for both the Defense/IT and total portfolio and 5.1 years for the consolidated portfolio.

(1)This expiration analysis reflects consolidated and unconsolidated properties and includes the effect of early renewals completed on existing leases but excludes the effect of new tenant leases on square feet yet to commence as of 12/31/23. With regard to properties owned through unconsolidated real estate joint ventures, the amounts reported above reflect 100% of the properties’ square footage but only reflect the portion of Annualized Rental Revenue that was allocable to COPT Defense’s ownership interest.
(2)The year of lease expiration is based on the lease term determined in accordance with GAAP.
(3)Refer to the section entitled “Definitions” for a definition of annualized rental revenue.
chart-f802338b11554304b91a.jpg
22

COPT Defense Properties
2024 Defense/IT Portfolio Quarterly Lease Expiration Analysis as of 12/31/23 (1)
(dollars and square feet in thousands, except per square foot amounts)
Segment of Lease and Quarter of Expiration (2)Square Footage of Leases ExpiringAnnualized Rental
Revenue of Expiring Leases (3)
% of Defense/IT
Annualized
Rental
Revenue Expiring (3)
Annualized Rental Revenue of Expiring Leases per Occupied Sq. Foot (3)
Defense IT Portfolio
Ft Meade/BW Corridor671 $26,715 4.6 %$39.78 
NoVA Defense/IT49 1,612 0.3 %33.07 
Navy Support84 3,050 0.5 %36.42 
Redstone Arsenal122 — %29.11 
Q1 2024808 31,499 5.4 %38.97 
Ft Meade/BW Corridor191 6,507 1.1 %34.13 
NoVA Defense/IT82 3,004 0.5 %36.42 
Navy Support12 395 0.1 %33.45 
Redstone Arsenal31 531 0.1 %17.10 
Q2 2024316 10,437 1.8 %33.03 
Ft Meade/BW Corridor279 10,013 1.7 %35.74 
NoVA Defense/IT13 435 0.1 %33.33 
Navy Support104 2,425 0.4 %23.31 
Redstone Arsenal130 — %33.25 
Data Center Shells-Unconsolidated JV Properties310 439 0.1 %14.17 
Q3 2024710 13,442 2.3 %31.10 
Ft Meade/BW Corridor219 10,953 1.9 %50.09 
NoVA Defense/IT120 4,732 0.8 %39.43 
Navy Support152 4,503 0.8 %29.62 
Redstone Arsenal91 2,720 0.5 %30.02 
Q4 2024582 22,908 4.0 %39.41 
2,416 $78,286 13.5 %$36.62 
(1)This expiration analysis reflects consolidated and unconsolidated properties and includes the effect of early renewals completed on existing leases but excludes the effect of new tenant leases on square feet yet to commence as of 12/31/23.
(2)The period of lease expiration is based on the lease term determined in accordance with GAAP.
(3)Refer to the section entitled “Definitions” for a definition of annualized rental revenue.

23

COPT Defense Properties
Top 20 Tenants as of 12/31/23 (1)
(dollars and square feet in thousands)
TenantTotal
Annualized
Rental Revenue (2)
%
of Total
Annualized 
Rental Revenue (2)
Occupied Square FeetWeighted Average Remaining Lease Term (3)
United States Government(4)$232,220 35.9 %5,536 3.7 
Fortune 100 Company56,031 8.7 %6,182 8.1 
General Dynamics Corporation32,553 5.0 %703 3.1 
CACI International Inc14,940 2.3 %354 3.9 
Northrop Grumman Corporation14,815 2.3 %519 5.7 
The Boeing Company 14,665 2.3 %443 2.7 
Peraton Corp. 12,633 2.0 %330 4.7 
Booz Allen Hamilton, Inc. 11,819 1.8 %297 2.1 
Fortune 100 Company 11,752 1.8 %183 10.8 
Morrison & Foerster, LLP 9,437 1.5 %102 13.3 
CareFirst Inc.9,036 1.4 %264 10.7 
KBR, Inc. 7,832 1.2 %310 9.4 
Yulista Holding, LLC 6,906 1.1 %368 6.0 
RTX Corporation 6,890 1.1 %186 3.4 
Miles and Stockbridge, PC 6,702 1.0 %160 2.9 
AT&T Corporation 6,655 1.0 %321 5.8 
Mantech International Corp. 6,467 1.0 %200 1.5 
Jacobs Engineering Group Inc. 6,448 1.0 %185 5.1 
Wells Fargo & Company 6,244 1.0 %145 4.7 
The University System of Maryland 5,885 0.9 %172 4.9 
Subtotal Top 20 Tenants 479,930 74.3 %16,960 5.8 
All remaining tenants 166,730 25.7 %5,510 4.0 
Total / Weighted Average $646,660 100.0 %22,470 5.3 

(1)For properties owned through unconsolidated real estate JVs, includes COPT Defense’s share of those properties’ ARR of $6.7 million (see page 34 for additional information).
(2)Refer to the section entitled “Definitions” for a definition of annualized rental revenue.
(3)Weighted average remaining lease term is based on the lease term determined in accordance with GAAP. The weighting of the lease term was computed based on occupied square feet (excluding leases not associated with square feet, such as ground leases).
(4)Substantially all of our government leases are subject to early termination provisions which are customary in government leases. As of 12/31/23, $5.8 million of our ARR was through the General Services Administration (GSA), representing 2.5% of our ARR from the United States Government and 0.9% of our total ARR.






24

COPT Defense Properties
Property Dispositions
(dollars and square feet in thousands)
PropertyProperty Segment/Sub-SegmentLocation# of PropertiesOperational Square FeetTransaction
Date
% Occupied on Transaction DateTransaction
Value
(in millions)
90% interest in P2 A, B and C (1)Data Center ShellsNorthern Virginia7481/10/23100.0 %$190 

(1)     We sold a 90% interest in these properties based on an aggregate property value of $211.3 million and retained a 10% interest in the properties through a newly-formed JV.
25

COPT Defense Properties
Summary of Development Projects as of 12/31/23 (1)
(dollars and square feet in thousands) 
Total Rentable Square Feet
% Leased as of 12/31/23
as of 12/31/23 (2)
Actual or Anticipated Shell Completion Date Anticipated Operational Date (3)
Anticipated Total CostCost to DateCost to Date Placed in Service
Property and Segment/Sub-SegmentLocation
Redstone Arsenal:
5300 Redstone GatewayHuntsville, Alabama46 100%$20,551 $17,973 $— 1Q 241Q 24
8100 Rideout RoadHuntsville, Alabama128 42%43,963 30,485 — 3Q 233Q 24
Subtotal / Average174 57%64,514 48,458 — 
Data Center Shells:
Southpoint Phase 2 Bldg ANorthern Virginia225 100%82,500 20,760 — 3Q 243Q 24
Southpoint Phase 2 Bldg BNorthern Virginia193 100%65,000 5,150 — 3Q 253Q 25
MP 3Northern Virginia225 100%111,800 10,031 — 4Q 254Q 25
Subtotal / Average643 100%259,300 35,941 — 
Total Under Development817 91%$323,814 $84,399 $   
(1)Includes properties under, or contractually committed for, development as of 12/31/23.
(2)Cost includes land, development, leasing costs and allocated portion of structured parking and other shared infrastructure, if applicable.
(3)Anticipated operational date is the earlier of the estimated date when leases have commenced on 100% of a property’s space or one year from the cessation of major construction activities.




26

COPT Defense Properties
Development Placed in Service as of 12/31/23
(square feet in thousands)
 
Total Space Placed in Service % Leased as of 12/31/23
Total PropertySquare Feet Placed in Service
Property Segment/Sub-Segment
% Leased as of 12/31/23
Rentable Square FeetPrior Year2023Total
Property and Location1st Quarter2nd Quarter3rd Quarter4th Quarter
Total 2023
Expedition VII
St. Mary’s County, Maryland
Navy Support62%29 18 11 — — — 11 29 62%
7000 Redstone Gateway
  Huntsville, Alabama
Redstone Arsenal78%46 21 — 15 10 — 25 46 78%
300 Secured Gateway
  Huntsville, Alabama
Redstone Arsenal100%206 — — — 206 — 206 206 100%
PS A
Northern Virginia
Data Center Shells100%227 — — — 227 — 227 227 100%
PS B
Northern Virginia
Data Center Shells100%193 — — — — 193 193 193 100%
550 National Business Parkway
  Annapolis Junction, Maryland
Fort Meade/BW Corridor100%186 — — — — 186 186 186 100%
Total Development Placed in Service98%887 39 11 15 443 379 848 887 98%
% Leased as of 12/31/23
0%100%98%100%98%

27

COPT Defense Properties
Summary of Land Owned/Controlled as of 12/31/23 (1)
(dollars and square feet in thousands)
LocationAcres Estimated Developable Square FeetCarrying Amount
Defense/IT Portfolio land owned/controlled for future development:   
Fort Meade/BW Corridor:
National Business Park1441,630
Howard County19290
Other1261,338
Total Fort Meade/BW Corridor289 3,258
NoVA Defense/IT29 1,171
Navy Support3864
Redstone Arsenal (2)3003,400
Total Defense/IT Portfolio land owned/controlled for future development6567,893$164,367 
Other land owned/controlled53 1,5389,533 
Land held, net7099,431$173,900 

(1)This land inventory schedule includes properties under ground lease to us and excludes all properties listed as development as detailed on page 26. The costs associated with the land included on this summary are reported on our consolidated balance sheet in the line entitled “land held.”
(2)This land is controlled under a long-term master lease agreement to LW Redstone Company, LLC, a consolidated JV (see page 33). As this land is developed in the future, the JV will execute site-specific leases under the master lease agreement. Lease payments will commence under the site-specific leases as cash rents under tenant leases commence at the respective properties.
28

COPT Defense Properties
Capitalization Overview
(dollars, shares and units in thousands)
Wtd. Avg. Maturity (Years) (1)Stated RateEffective Rate
(2)(3)
Amount Outstanding at 12/31/23
Debt
Secured debt1.65.04 %3.55 %$99,539 
Unsecured debt5.83.26 %3.34 %2,345,461 
Total Consolidated Debt5.73.33 %3.35 %$2,445,000 
Fixed-rate debt (3)5.92.98 %3.35 %$2,445,000 
Variable-rate debt (3)3.76.69 %N/A— 
Total Consolidated Debt$2,445,000 
Common Equity
Common Shares112,555 
Common Units (4)1,874 
Total Common Shares and Units114,429 
Closing Common Share Price on 12/29/23
$25.63 
Equity Market Capitalization (5)$2,932,815 
Total Market Capitalization (5)$5,377,815 
(1)Calculated assuming exercise of extension options on our Revolving Credit Facility and term loan.
(2)Excludes the effect of deferred financing cost amortization.
(3)Includes the effect of interest rate swaps with notional amounts totaling $233.1 million that hedge the risk of changes in interest rates on variable-rate debt. We had swaps in place for all of our variable-rate debt balances as of 12/31/23.
(4)Includes certain unvested share-based compensation awards in the form of profit interest units.
(5)Refer to the section entitled “Definitions” for a definition of this measure.











Investment Grade Ratings & OutlookLatest Report
FitchBBB-Stable11/22/23
Moody’sBaa3Stable1/22/24
S&PBBB-Stable9/7/23
chart-4983c68703cd4a4db81a.jpgchart-48967414c5ab4de2b81a.jpg
29

COPT Defense Properties
Summary of Outstanding Debt as of 12/31/23
(dollars in thousands)
Unsecured DebtStated RateAmount OutstandingMaturity DateSecured DebtStated RateAmount OutstandingBalloon Payment Due Upon MaturityMaturity Date
Revolving Credit FacilitySOFR+
0.10%+1.05%
$75,000 Oct-26(1)(2)LW Redstone:
1000, 1200 & 1100 Redstone Gateway (3)4.47%(4)$28,187 $27,649 Jun-24
Senior Unsecured Notes
2.25% due 20262.25%400,000 Mar-264000 & 4100 Market Street and 8800 Redstone Gateway (2)(3) SOFR
+0.10%+1.55%
22,475 $22,100 Mar-25(6)
5.25% due 20285.25%345,000 Sep-28(5)
2.00% due 20292.00%400,000 Jan-29M Square:
2.75% due 20312.75%600,000 Apr-315825 & 5850 University Research Court (3) 3.82%38,237 $35,603 Jun-26
2.90% due 20332.90%400,000 Dec-33
Subtotal - Senior Unsecured Notes2.95%$2,145,000 5801 University Research Court (2)(3)SOFR
+0.10%+1.45%
10,640 $10,020 Aug-26
Unsecured Bank Term LoansTotal Secured Debt5.04%$99,539 
2026 MaturitySOFR+
0.10%+1.30%
$125,000 Jan-26(2)(7)
Other Unsecured Debt0.00%461 May-26
Total Unsecured Debt3.26%$2,345,461 
Debt Summary
Total Unsecured Debt3.26%$2,345,461 
Total Secured Debt5.04%99,539 
Consolidated Debt3.33%$2,445,000 
Debt per balance sheet$2,416,287 
Net discounts and deferred financing costs28,713 
Consolidated Debt2,445,000 
COPT Defense’s share of unconsolidated JV gross debt (8)52,613 
Gross debt$2,497,613 
(1)The Company’s $600.0 million Revolving Credit Facility matures in October 2026 and may be extended by two six-month periods at our option.
(2)Pre-payable anytime without penalty.
(3)These properties are owned through consolidated joint ventures.
(4)Represents the weighted average rate of three loans on the properties.
(5)These notes are due in 2028 unless earlier exchanged, redeemed or repurchased only in the event of certain circumstances and during certain periods defined under the terms of the notes. Upon exchange of the notes, the principal amount of notes exchanged is payable in cash, with the remainder of the exchange obligation, if any, payable in cash, common shares or a combination thereof at our election.
(6)The loan maturity may be extended for two one-year periods, provided certain conditions are met.
(7)The Company’s term loan matures in January 2026 and may be extended by two 12-month periods at our option.
(8)See page 34 for additional disclosure regarding our unconsolidated real estate joint ventures.

30

COPT Defense Properties
Summary of Outstanding Debt as of 12/31/23 (continued)

chart-f64db430a0114dd0a46a.jpg
chart-af161dab347246d2948a.jpgchart-ac0652520c714909b32a.jpg
(1)Revolving Credit Facility maturity of $75.0 million is included above in 2027 assuming our exercise of two six-month extension options.
(2)Term loan balance of $125.0 million is included in 2028 assuming our exercise of two 12-month extension options. Also includes $345.0 million principal amount of exchangeable senior notes due in 2028 unless earlier exchanged, redeemed or repurchased only in the event of certain circumstances and during certain periods defined under the terms of the notes.
(3)Includes the effect of interest rate swaps with notional amounts totaling $233.1 million that hedge the risk of changes in interest rates on variable-rate debt.
31

COPT Defense Properties
Debt Analysis
(dollars and square feet in thousands)
As of and for Three Months Ended
12/31/23
As of and for Three Months Ended
12/31/23
Senior Note Covenants (1)RequiredLine of Credit & Term Loan Covenants (1)(2)Required
Total Debt / Total Assets< 60%42.6%Total Debt / Total Assets< 60%38.9%
Secured Debt / Total Assets< 40%1.8%Secured Debt / Total Assets< 40%2.1%
Debt Service Coverage> 1.5x4.2xAdjusted EBITDA / Fixed Charges> 1.5x4.4x
Unencumbered Assets / Unsecured Debt> 150%234.0%Unsecured Debt / Unencumbered Assets< 60%39.4%
Unencumbered Adjusted NOI / Unsecured Interest Expense> 1.75x4.4x
Debt Ratios (All coverage computations include discontinued operations)Page Refer.Unencumbered Portfolio Analysis
GAAP# of unencumbered properties170 
Debt per balance sheet6$2,416,287 % of total portfolio86 %
Total assets6$4,246,966 Unencumbered square feet in-service19,846 
Debt to assets56.9 %% of total portfolio83 %
Net income7$34,820 NOI from unencumbered real estate operations$94,213 
Debt to net income ratio (2)17.3 x% of total NOI from real estate operations95 %
Interest expense7$20,383 Adjusted EBITDA from unencumbered real estate operations$89,491 
Net income to interest expense ratio (2)1.7 x% of total adjusted EBITDA from real estate operations95 %
Unencumbered adjusted book$5,465,260 
Non-GAAP% of total adjusted book95 %
Net debt38$2,328,941 
Adjusted book38$5,742,705 
Net debt to adjusted book40.6 %
Net debt adj. for fully-leased development38$2,275,027 
In-place adjusted EBITDA11$95,077 
Net debt to in-place adjusted EBITDA ratio 6.1 x
Net debt adj. for fully-leased devel. to in-place adj. EBITDA ratio6.0 x
Denominator for debt service coverage37$20,280 
Denominator for fixed charge coverage37$21,308 
Adjusted EBITDA11$93,934 
Adjusted EBITDA debt service coverage ratio4.6 x
Adjusted EBITDA fixed charge coverage ratio4.4 x
(1)The covenants are calculated as defined in the applicable agreements, and the calculations differ between those agreements.
(2)Refer to the section entitled “Definitions” for a definition of this measure.
32

COPT Defense Properties
Consolidated Real Estate Joint Ventures as of 12/31/23
(dollars and square feet in thousands)

NOI from Real Estate Operations (1)Venture Level Debt Outstanding (3)COPT Defense Nominal
Ownership %
Operating PropertiesOperational
Square Feet
% Occupied% LeasedThree Months EndedYear EndedTotal Assets (2)
Suburban Maryland:      
M Square Associates, LLC (4 properties)
414 88.8%88.8%$1,634 $6,375 $92,153 $48,877 50%
Huntsville, Alabama:
LW Redstone Company, LLC (21 properties)
2,164 97.9%99.2%9,765 34,411 562,268 50,662 85%(4)
Washington, D.C.:
Stevens Place (1 property)
188 60.6%83.5%1,205 4,970 128,857 — 95%
Total / Average2,766 94.0%96.6%$12,604 $45,756 $783,278 $99,539 
 
        
Non-Operating PropertiesEstimated Developable Square FeetTotal Assets (2)Venture Level Debt OutstandingCOPT Defense Nominal Ownership %
Suburban Maryland:    
M Square Research Park348 $5,964 $— 50%
Huntsville, Alabama:    
Redstone Gateway (5)3,574 156,254 — 85%(3)
Total3,922 $162,218 $  
 
(1)Represents NOI from real estate operations of the JV operating properties before allocation to JV partners.
(2)Total assets includes the assets of the consolidated JV plus any outside investment basis.
(3)Excludes debt from us to the JV, which is eliminated in the presentation of our consolidated financial statements.
(4)Our partner receives an annual priority return of 13.5% on its $9.0 million in contributed equity, plus certain fees for leasing and development, and we expect to receive all other distributions from the JV.
(5)Total assets include $77.0 million in notes receivable due from the City of Huntsville (including accrued interest and excluding allowance for credit losses) in connection with infrastructure costs funded by the JV.
33

COPT Defense Properties
Unconsolidated Real Estate Joint Ventures as of 12/31/23 (1)
(dollars and square feet in thousands) 
Joint venture information
COPT Defense ownership %
10 %
COPT Defense’s investment
$38,275 (2)
# of Properties24 
Square Feet4,295 
% Occupied100 %
COPT Defense’s share of ARR$6,741 
Balance sheet informationTotalCOPT Defense’s Share (4)
Operating properties, net$958,719 $95,872 
Total assets$1,056,461 $105,646 
Debt (3)$522,498 $52,250 
Total liabilities$605,833 $60,583 
Three Months EndedYear Ended
Operating information TotalCOPT Defense’s Share (4)TotalCOPT Defense’s Share (4)
Revenue$19,725 $1,973 $78,510 $7,851 
Operating expenses(3,006)(302)(11,913)(1,192)
NOI from real estate operations and EBITDAre (5)16,719 1,671 66,597 6,659 
Interest expense(11,060)(1,106)(37,001)(3,700)
Depreciation and amortization(8,520)(805)(34,027)(3,217)
Net loss$(2,861)$(240)$(4,431)$(258)
NOI from real estate operations (per above) (5)$16,719 $1,671 $66,597 $6,659 
Straight line rent adjustments(615)(62)(2,888)(289)
Amortization of acquired above- and below-market rents(2,097)(209)(8,385)(838)
Cash NOI from real estate operations (5)$14,007 $1,400 $55,324 $5,532 
(1)Includes equity method investments in five JVs that own and operate data center shell properties, including one JV formed on 1/10/23 in connection with our sale of a 90% interest in three data center shell properties totaling 748,000 square feet and retention of a 10% interest in the properties through the JV.
(2)Includes $41.1 million reported in “Investment in unconsolidated real estate joint ventures” and $2.8 million for investments with deficit balances reported in “other liabilities” on our consolidated balance sheet.
(3)Maturities on JV debt range from 2027 (assuming exercise of three one-year extension options) to 2030.
(4)Represents the portion allocable to our ownership interest.
(5)Refer to the section entitled “Definitions” for definitions of these measures.



34

COPT Defense Properties
Supplementary Reconciliations of Non-GAAP Measures
(in thousands)
 Three Months EndedYears Ended
 12/31/239/30/236/30/233/31/2312/31/2212/31/2312/31/22
Net income (loss)$34,820 $(221,207)$31,642 $80,398 $52,087 $(74,347)$178,822 
Construction contract and other service revenues(18,167)(11,949)(14,243)(15,820)(24,062)(60,179)(154,632)
Depreciation and other amortization associated with real estate operations36,735 37,620 37,600 36,995 36,907 148,950 141,230 
Construction contract and other service expenses17,167 11,493 13,555 15,201 23,454 57,416 149,963 
Impairment losses— 252,797 — — — 252,797 — 
General and administrative expenses8,240 7,582 7,287 7,996 7,766 31,105 27,461 
Leasing expenses2,308 2,280 2,345 1,999 2,235 8,932 8,337 
Business development expenses and land carry costs797 714 726 495 1,157 2,732 3,193 
Interest expense20,383 17,798 16,519 16,442 16,819 71,142 61,174 
Interest and other income, net(5,659)(2,529)(2,143)(2,256)(4,671)(12,587)(9,070)
Gain on sales of real estate from continuing operations— — (14)(49,378)(19,238)(49,392)(19,250)
Loss on early extinguishment of debt— — — — 267 — 609 
Equity in loss (income) of unconsolidated entities240 68 (111)64 (229)261 (1,743)
Unconsolidated real estate JVs NOI allocable to COPT Defense included in equity in (loss) income of unconsolidated entities (1)1,671 1,675 1,671 1,642 1,095 6,659 4,327 
Income tax expense121 152 190 125 223 588 447 
Discontinued operations— — — — — — (29,573)
Revenues from real estate operations from discontinued operations— — — — — — 1,980 
Property operating expenses from discontinued operations— — — — — — (971)
NOI from real estate operations98,656 96,494 95,024 93,903 93,810 384,077 362,304 
Straight line rent adjustments and lease incentive amortization703 13,262 (2,916)(3,818)(2,974)7,231 (7,822)
Amortization of acquired above- and below-market rents(121)(120)(129)(166)(131)(536)(844)
Amortization of intangibles and other assets to property operating expenses146 147 146 147 146 586 586 
Lease termination fees, net(716)(748)(1,059)(1,221)(1,026)(3,744)(2,237)
Tenant funded landlord assets and lease incentives(7,548)(19,383)(2,221)(1,230)(1,109)(30,382)(7,815)
Cash NOI adjustments in unconsolidated real estate JVs(271)(279)(286)(291)(83)(1,127)(360)
Cash NOI from real estate operations$90,849 $89,373 $88,559 $87,324 $88,633 $356,105 $343,812 
NOI from real estate operations (from above)$98,656 $96,494 $95,024 $93,903 $93,810 $384,077 $362,304 
Non-Same Property NOI from real estate operations(11,705)(9,318)(8,770)(9,451)(9,015)(39,244)(27,991)
Same Property NOI from real estate operations86,951 87,176 86,254 84,452 84,795 344,833 334,313 
Straight line rent adjustments and lease incentive amortization7,947 15,060 1,232 1,392 319 25,631 (2,729)
Amortization of acquired above- and below-market rents(121)(120)(129)(166)(131)(536)(844)
Lease termination fees, net(717)(748)(1,059)(1,221)(1,026)(3,745)(2,237)
Tenant funded landlord assets and lease incentives(7,501)(15,364)(1,191)(1,188)(1,068)(25,244)(5,915)
Cash NOI adjustments in unconsolidated real estate JVs(58)(64)(70)(75)(81)(267)(358)
Same Property Cash NOI from real estate operations$86,501 $85,940 $85,037 $83,194 $82,808 $340,672 $322,230 
(1)See page 34 for additional disclosure regarding our unconsolidated real estate JVs.
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COPT Defense Properties
Supplementary Reconciliations of Non-GAAP Measures (continued)
(in thousands)
 Three Months EndedYears Ended
 12/31/239/30/236/30/233/31/2312/31/2212/31/2312/31/22
Real estate revenues
Lease revenue
Fixed contractual payments$123,677 $120,408 $118,461 $116,039 $116,349 $478,585 $455,360 
Variable lease payments (1)36,660 34,860 35,221 34,521 33,673 141,262 126,789 
Lease revenue160,337 155,268 153,682 150,560 150,022 619,847 582,149 
Other property revenue1,225 1,339 1,271 1,121 1,163 4,956 4,229 
Real estate revenues$161,562 $156,607 $154,953 $151,681 $151,185 $624,803 $586,378 
Provision for credit losses (recoveries) on billed lease revenue$498 $13 $(196)$269 $— $584 $501 
Discontinued operations
Revenues from real estate operations$— $— $— $— $— $— $1,980 
Property operating expenses— — — — — — (971)
Gain on sale of real estate— — — — — — 28,564 
Discontinued operations$ $ $ $ $ $ $29,573 
Total revenues from continuing operations$179,729 $168,556 $169,196 $167,501 $175,247 $684,982 $739,030 
Construction contract and other service revenues(18,167)(11,949)(14,243)(15,820)(24,062)(60,179)(154,632)
Revenues from discontinued operations— — — — — — 1,980 
Real estate revenues$161,562 $156,607 $154,953 $151,681 $151,185 $624,803 $586,378 
Gain on sales of real estate from continuing operations$ $ $14 $49,378 $19,238 $49,392 $19,250 
Gain on sales of real estate from discontinued operations— — — — — — 28,564 
Gain on sales of real estate$ $ $14 $49,378 $19,238 $49,392 $47,814 
(1)Represents primarily lease revenue associated with property operating expense reimbursements from tenants.
36

COPT Defense Properties
Supplementary Reconciliations of Non-GAAP Measures (continued)
(in thousands)
 Three Months EndedYears Ended
 12/31/239/30/236/30/233/31/2312/31/2212/31/2312/31/22
Total interest expense$20,383 $17,798 $16,519 $16,442 $16,819 $71,142 $61,174 
Less: Amortization of deferred financing costs(681)(639)(628)(632)(619)(2,580)(2,297)
Less: Amortization of net debt discounts, net of amounts capitalized(1,004)(750)(622)(618)(615)(2,994)(2,440)
COPT Defense’s share of interest expense of unconsolidated real estate JVs, excluding amortization of deferred financing costs and net debt premium and loss on interest rate derivatives819 805 791 773 423 3,188 1,123 
Denominator for interest coverage19,517 17,214 16,060 15,965 16,008 68,756 57,560 
Scheduled principal amortization763 753 746 790 864 3,052 3,333 
Denominator for debt service coverage20,280 17,967 16,806 16,755 16,872 71,808 60,893 
Capitalized interest1,028 1,487 1,194 770 1,835 4,479 6,709 
Denominator for fixed charge coverage$21,308 $19,454 $18,000 $17,525 $18,707 $76,287 $67,602 
Dividends on unrestricted common and deferred shares$31,998 $31,996 $31,995 $31,989 $30,844 $127,978 $123,367 
Distributions on unrestricted common units430 432 433 430 406 1,725 1,623 
Dividends and distributions on restricted shares and units209 200 204 215 134 828 567 
Total dividends and distributions for GAAP payout ratio32,637 32,628 32,632 32,634 31,384 130,531 125,557 
Dividends and distributions on antidilutive shares and units(212)(202)(205)(216)(121)(835)(516)
Dividends and distributions for non-GAAP payout ratios$32,425 $32,426 $32,427 $32,418 $31,263 $129,696 $125,041 


37

COPT Defense Properties
Supplementary Reconciliations of Non-GAAP Measures (continued)
(in thousands)
12/31/239/30/236/30/233/31/2312/31/22
Total assets$4,246,966 $4,239,257 $4,246,346 $4,177,992 $4,257,275 
Accumulated depreciation1,400,162 1,367,473 1,334,066 1,300,430 1,267,434 
Accumulated depreciation included in assets held for sale— — — — 6,014 
Accumulated amortization of intangibles on property acquisitions and deferred leasing costs228,484 228,334 226,555 224,791 222,779 
COPT Defense’s share of liabilities of unconsolidated real estate JVs60,583 60,762 60,724 60,734 52,404 
COPT Defense’s share of accumulated depreciation and amortization of unconsolidated real estate JVs9,528 8,664 7,800 6,936 6,078 
Less: Property - operating lease liabilities(33,931)(32,940)(33,923)(34,896)(28,759)
Less: Property - finance lease liabilities(415)(420)(426)(431)— 
Less: Cash and cash equivalents(167,820)(204,238)(14,273)(15,199)(12,337)
Less: COPT Defense’s share of cash of unconsolidated real estate JVs(852)(1,031)(974)(881)(456)
Adjusted book$5,742,705 $5,665,861 $5,825,895 $5,719,476 $5,770,432 
Gross debt (page 30)
$2,497,613 $2,498,274 $2,249,880 $2,197,488 $2,307,054 
Less: Cash and cash equivalents(167,820)(204,238)(14,273)(15,199)(12,337)
Less: COPT Defense’s share of cash of unconsolidated real estate JVs(852)(1,031)(974)(881)(456)
Net debt2,328,941 2,293,005 2,234,633 2,181,408 2,294,261 
Costs incurred on fully-leased development properties(53,914)(124,038)(189,407)(137,309)(95,972)
Net debt adjusted for fully-leased development $2,275,027 $2,168,967 $2,045,226 $2,044,099 $2,198,289 
Net debt$2,328,941 $2,293,005 $2,234,633 $2,181,408 $2,294,261 
Pro forma debt adjustments from subsequent event transaction proceeds (1)N/AN/AN/AN/A(189,000)
Pro forma net debt2,328,941 2,293,005 2,234,633 2,181,408 2,105,261 
Costs incurred on fully-leased development properties(53,914)(124,038)(189,407)(137,309)(95,972)
Pro forma net debt adjusted for fully-leased development$2,275,027 $2,168,967 $2,045,226 $2,044,099 $2,009,289 
(1)Includes, for the 12/31/22 period, the effect of resulting proceeds available for debt pay downs from our sale on 1/10/23 of a 90% interest in three data center shell properties.
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COPT Defense Properties
Definitions
Non-GAAP Measures

We believe that the measures defined below that are not determined in accordance with generally accepted accounting principles (“GAAP”) are helpful to investors in measuring our performance and comparing it to that of other real estate investment trusts (“REITs”).  Since these measures exclude certain items includable in their respective most comparable GAAP measures, reliance on the measures has limitations; management compensates for these limitations by using the measures simply as supplemental measures that are weighed in balance with other GAAP and non-GAAP measures.  These measures should not be used as an alternative to the respective most comparable GAAP measures when evaluating our financial performance or to cash flow from operating, investing and financing activities when evaluating our liquidity or ability to make cash distributions or pay debt service.
 
Adjusted book
Defined as total assets presented on our consolidated balance sheet, net of lease liabilities associated with property right-of-use assets, and excluding the effect of cash and cash equivalents, accumulated depreciation on real estate properties, accumulated amortization of intangible assets on real estate acquisitions, accumulated amortization of deferred leasing costs and unconsolidated real estate joint ventures (“JVs”) cash and cash equivalents, liabilities and accumulated depreciation and amortization (of intangibles on property acquisitions and deferred leasing costs) allocable to our ownership interest in the JVs. We use adjusted book for purposes of calculating our net debt to adjusted book, which we believe is a useful supplemental measure for investors to use in further understanding the relationship of our outstanding debt to our assets available to service such debt. We believe that total assets is the most directly comparable GAAP measure to this non-GAAP measure.

Adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”) 
Adjusted EBITDA is net income or loss adjusted for the effects of interest expense, depreciation and amortization, gain on sales and impairment losses of real estate and investments in unconsolidated real estate JVs, gain or loss on early extinguishment of debt, loss on interest rate derivatives, net gain or loss on other investments, credit loss expense or recoveries, operating property acquisition costs, income taxes, business development expenses, demolition costs on redevelopment and nonrecurring improvements, executive transition costs and certain other expenses that we believe are not relevant to an investor’s evaluation of our ability to repay debt.  Adjusted EBITDA also includes adjustments to net income or loss for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. While EBITDA (earnings before interest, taxes, depreciation and amortization) is a universally-defined supplemental measure, Adjusted EBITDA incorporates additional adjustments for gains and losses from investing and financing activities and certain other items that we believe represent costs that are not closely correlated to (or associated with) our operating performance and are not relevant to an investor’s evaluation of our ability to repay debt. We believe that adjusted EBITDA is a
useful supplemental measure for assessing our un-levered performance and ability to repay outstanding debt from operations.  We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.
 
Adjusted EBITDA debt service coverage ratio 
This measure divides Adjusted EBITDA by the sum of interest expense (excluding amortization of deferred financing costs and amortization of debt discounts and premiums, net of amounts capitalized, and gains or losses on interest rate derivatives) and scheduled principal amortization on mortgage loans.

Amortization of acquisition intangibles included in NOI 
Represents the amortization of intangible asset and liability categories that is included in net operating income, including amortization of above- or below-market leases and above- or below-market cost arrangements.

Basic FFO available to common share and common unit holders (“Basic FFO”) 
This measure is FFO adjusted to subtract (1) preferred share dividends, (2) income or loss attributable to noncontrolling interests through ownership of preferred units in COPT Defense Properties, L.P. (the “Operating Partnership”) or interests in other consolidated entities not owned by us, (3) depreciation and amortization allocable to noncontrolling interests in other consolidated entities, (4) Basic FFO allocable to share-based compensation awards and (5) issuance costs associated with redeemed preferred shares.  With these adjustments, Basic FFO represents FFO available to common shareholders and holders of common units in the Operating Partnership (“common units”).  Common units are substantially similar to our common shares of beneficial interest (“common shares”) and are exchangeable into common shares, subject to certain conditions.  We believe that Basic FFO is useful to investors due to the close correlation of common units to common shares.  We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

Cash net operating income (“Cash NOI”) 
Defined as NOI from real estate operations adjusted to eliminate the effects of: straight-line rental adjustments, amortization of tenant incentives, amortization of intangibles and other assets included in FFO and NOI, lease termination fees from tenants to terminate their lease obligations prior to the end of the agreed upon lease terms and rental revenue recognized under GAAP resulting from landlord assets and lease incentives funded by tenants.  Cash NOI also includes adjustments to NOI from real estate operations for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. Under GAAP, rental revenue is recognized evenly over the term of tenant leases (through straight-line rental adjustments and amortization of tenant incentives), which, given the long term nature of our leases, does not align with the economics of when tenant payments are due to us under the arrangements.  Also under GAAP, when a property is acquired, we allocate the acquisition to certain intangible components, which are then amortized into NOI over their estimated lives, even though the resulting revenue adjustments are not reflective of our lease economics.  In addition, revenue from lease termination fees and tenant-
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COPT Defense Properties
Definitions
funded landlord improvements, absent an adjustment from us, would result in large one-time lump sum amounts in Cash NOI that we do not believe are reflective of a property’s long-term value.  We believe that Cash NOI is a useful supplemental measure of operating performance for a REIT’s operating real estate because it makes adjustments to NOI for the above stated items to be more reflective of the economics of when tenant payments are due to us under our leases and the value of our properties.  As is the case with NOI, the measure is useful in our opinion in evaluating and comparing the performance of reportable segments, Same Property groupings and individual properties.  We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

COPT Defense’s share of NOI from unconsolidated real estate JVs
Represents the net of revenues and property operating expenses of real estate operations owned through unconsolidated JVs that are allocable to COPT Defense’s ownership interest. This measure is included in the computation of NOI, our segment performance measure, as discussed below.

Diluted adjusted funds from operations available to common share and common unit holders (“Diluted AFFO”) 
Defined as Diluted FFO, as adjusted for comparability, adjusted for the following: (1) the elimination of the effect of (a) noncash rental revenues and property operating expenses (comprised of straight-line rental adjustments, which includes the amortization of recurring tenant incentives, and amortization of acquisition intangibles included in FFO and NOI, both of which are described under “Cash NOI” above), (b) share-based compensation, net of amounts capitalized, (c) amortization of deferred financing costs, (d) amortization of debt discounts and premiums and (e) amortization of settlements of debt hedges; and (2) replacement capital expenditures (defined below).  Diluted AFFO also includes adjustments to Diluted FFO, as adjusted for comparability for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We believe that Diluted AFFO is a useful supplemental measure of operating performance for a REIT because it incorporates adjustments for: certain revenue and expenses that are not associated with cash to or from us during the period; and certain capital expenditures for operating properties incurred during the period that do require cash outlays.  We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

Diluted FFO available to common share and common unit holders (“Diluted FFO”) 
Diluted FFO is Basic FFO adjusted to add back any changes in Basic FFO that would result from the assumed conversion of securities that are convertible or exchangeable into common shares.  The computation of Diluted FFO assumes the conversion of common units but does not assume the conversion of other securities that are convertible into common shares if the conversion of those securities would increase Diluted FFO per share in a given period.  We believe that Diluted FFO (which includes discontinued operations) is useful to investors because it is the numerator used to compute Diluted FFO per share, discussed below.  We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

Diluted FFO available to common share and common unit holders, as adjusted for comparability (“Diluted FFO, as adjusted for comparability”)
Defined as Diluted FFO or FFO adjusted to exclude: operating property acquisition costs; gain or loss on early extinguishment of debt; FFO associated with properties that secured non-recourse debt on which we defaulted and, subsequently, extinguished via conveyance of such properties (including property NOI, interest expense and gains on debt extinguishment); loss on interest rate derivatives; executive transition costs associated with named executive officers; and, for periods prior to 10/1/22, demolition costs on redevelopment and nonrecurring improvements and executive transition costs associated with other senior management team members.  Diluted FFO, as adjusted for comparability also includes adjustments to Diluted FFO for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We believe this to be a useful supplemental measure alongside Diluted FFO as it excludes gains and losses from certain investing and financing activities and certain other items that we believe are not closely correlated to (or associated with) our operating performance. We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.
 
Diluted FFO per share 
Diluted FFO per share is (1) Diluted FFO divided by (2) the sum of the (a) weighted average common shares outstanding during a period, (b) weighted average common units outstanding during a period and (c) weighted average number of potential additional common shares that would have been outstanding during a period if other securities that are convertible or exchangeable into common shares were converted or exchanged.  The computation of Diluted FFO per share assumes the conversion of common units but does not assume the conversion of other securities that are convertible into common shares if the conversion of those securities would increase Diluted FFO per share in a given period.  We believe that Diluted FFO per share is useful to investors because it provides investors with a further context for evaluating our FFO results in the same manner that investors use earnings per share (“EPS”) in evaluating net income or loss available to common shareholders.  We believe that diluted EPS is the most directly comparable GAAP measure to this non-GAAP measure.

Diluted FFO per share, as adjusted for comparability 
Defined as (1) Diluted FFO available to common share and common unit holders, as adjusted for comparability divided by (2) the sum of the (a) weighted average common shares outstanding during a period, (b) weighted average common units outstanding during a period and (c) weighted average number of potential additional common shares that would have been outstanding during a period if other securities that are convertible or exchangeable into common shares were converted or exchanged.  The computation of this measure assumes the conversion of common units but does not assume the conversion of other securities that are convertible into common shares if the conversion of those securities would increase the per share measure in a given period.  We believe this to be a useful supplemental measure alongside Diluted FFO per share as it excludes gains and losses from investing and financing activities and certain other items that we
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COPT Defense Properties
Definitions
believe are not closely correlated to (or associated with) our operating performance. We believe that diluted EPS is the most directly comparable GAAP measure to this non-GAAP measure.
 
Earnings before interest, income taxes, depreciation and amortization for real estate (“EBITDAre”) 
Defined as net income or loss adjusted for the effects of interest expense, depreciation and amortization, gains on sales and impairment losses of real estate and investments in unconsolidated real estate JVs, and income taxes. EBITDAre also includes adjustments to net income or loss for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. While EBITDA (earnings before interest, taxes, depreciation and amortization) is a universally-defined supplemental measure, EBITDAre incorporates additional adjustments for gains and losses from investing activities related to our investments in operating properties. We believe that EBITDAre is a useful supplemental measure for assessing our un-levered performance. We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

Funds from operations (“FFO” or “FFO per Nareit”)
Defined as net income or loss computed using GAAP, excluding gains on sales and impairment losses of real estate and investments in unconsolidated real estate JVs (net of associated income tax) and real estate-related depreciation and amortization. FFO also includes adjustments to net income or loss for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We believe that we use the National Association of Real Estate Investment Trust’s (“Nareit”) definition of FFO, although others may interpret the definition differently and, accordingly, our presentation of FFO may differ from those of other REITs.  We believe that FFO is useful to management and investors as a supplemental measure of operating performance because, by excluding gains on sales and impairment losses of real estate (net of associated income tax) and real estate-related depreciation and amortization, FFO can help one compare our operating performance between periods.  We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

Gross debt
Defined as debt reported on our consolidated balance sheet adjusted to exclude net discounts and premiums and deferred financing costs, as further adjusted to include outstanding debt of unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We believe that this measure is useful to investors as it represents our total outstanding debt, including our share of unconsolidated joint venture debt. We believe that debt reported on our consolidated balance sheet is the most directly comparable GAAP measure to this non-GAAP measure.

In-place adjusted EBITDA
Defined as Adjusted EBITDA, as further adjusted for: (1) certain events occurring in a three month period to reflect Adjusted EBITDA as if the events occurred at the beginning
of such period, including: (a) properties acquired, placed in service or expanded upon subsequent to the commencement of a period made in order to reflect a full period of ownership/operations; (b) properties removed from service or in which we disposed of interests; (c) significant mid-period occupancy changes associated with properties recently placed in service as if such occupancy changes occurred at the beginning of such period; and (2) adjustments to deferred rental revenue associated with changes in our assessment of collectability. The measure also includes adjustments for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We believe that the pro forma adjustments described above are consistent with the requirements for preparation of amounts presented on a pro forma basis in accordance with Article 11 of Regulation S-X. We believe that in-place adjusted EBITDA is a useful supplemental measure of performance for assessing our un-levered performance and ability to repay outstanding debt from operations, as further adjusted for changes in operating properties subsequent to the commencement of a quarter and for the other items noted above that we believe are not closely correlated with our operating performance and are not relevant to an investor’s evaluation of our ability to repay debt.  We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

Net debt
Defined as Gross debt (total outstanding debt reported per our balance sheet as adjusted to exclude net discounts and premiums and deferred financing costs), as adjusted to subtract cash and cash equivalents as of the end of the period. The measure also includes adjustments to Gross debt for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We use net debt for purposes of calculating our net debt to adjusted book, which we believe is a useful supplemental measure for investors to use in further understanding the relationship of our outstanding debt to our assets available to service such debt. We believe that debt reported on our consolidated balance sheet is the most directly comparable GAAP measure to this non-GAAP measure.

Net debt adjusted for fully-leased development
Defined as Net debt less costs incurred on properties under development that were 100% leased. We believe that this supplemental measure is useful in providing investors the impact to our debt of fully leased properties under development that are not yet contributing to our adjusted EBITDA. We believe that debt reported on our consolidated balance sheet is the most directly comparable GAAP measure to this non-GAAP measure.

Net debt to Adjusted book
Defined as Net debt divided by Adjusted book (defined above).

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COPT Defense Properties
Definitions
Net debt to in-place adjusted EBITDA ratio and Net debt adjusted for fully-leased development to in-place adjusted EBITDA ratio
Defined as Net debt or Net debt adjusted for fully-leased development divided by in-place adjusted EBITDA (defined above) for the three month period that is annualized by multiplying by four.

Net operating income from real estate operations (“NOI”)
NOI, which is our segment performance measure, includes: consolidated real estate revenues from continuing and discontinued operations; consolidated property operating expenses from continuing and discontinued operations; and the net of revenues and property operating expenses of real estate operations owned through unconsolidated real estate JVs that are allocable to COPT Defense’s ownership interest in the JVs. We believe that NOI is an important supplemental measure of operating performance for a REIT’s operating real estate because it provides a measure of the core real estate operations that is unaffected by depreciation, amortization, financing and general, administrative and leasing expenses; we believe this measure is particularly useful in evaluating the performance of reportable segments, Same Property groupings and individual properties.  We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

NOI fixed charge coverage ratio and Adjusted EBITDA fixed charge coverage ratio 
These measures divide either NOI from real estate operations or Adjusted EBITDA by the sum of (1) interest expense (excluding amortization of deferred financing costs and amortization of debt discounts and premiums, net of amounts capitalized, and gains or losses on interest rate derivatives), (2) scheduled principal amortization on mortgage loans, (3) capitalized interest, (4) dividends on preferred shares and (5) distributions on preferred units in the Operating Partnership not owned by us.
 
NOI interest coverage ratio and Adjusted EBITDA interest coverage ratio 
These measures divide either NOI from real estate operations or Adjusted EBITDA by interest expense (excluding amortization of deferred financing costs and amortization of debt discounts and premiums, net of amounts capitalized, gains on losses on interest rate derivatives and interest expense on debt in default to be extinguished via conveyance of properties).

Payout ratios based on: Diluted FFO; Diluted FFO, as adjusted for comparability; and Diluted AFFO 
These payout ratios are defined as (1) the sum of dividends on common and deferred shares and distributions to holders of interests in the Operating Partnership to the extent they are dilutive in the respective FFO per share numerators divided by (2) the respective non-GAAP measures.

Pro forma net debt, pro forma net debt adjusted for fully-leased development, pro forma in-place adjusted EBITDA and associated ratios
These measures and the ratios in which they are used adjust for the effect of noted dispositions of interests in properties that occurred subsequent to the end of reporting periods and before our release of financial results for such periods. The adjustments remove Adjusted EBITDA from real estate operations associated with the disposed interests in properties and adjust our net debt measures for resulting proceeds available for debt pay downs to reflect these measures and ratios as if such events occurring subsequent to a three month reporting period occurred at the beginning of such reporting period. We believe that these adjustments are consistent with the requirements for preparation of amounts presented on a pro forma basis in accordance with Article 11 of Regulation S-X. We believe that these further adjusted versions of these measures/ratios are useful in presenting the effect of the dispositions on our un-levered performance and ability to repay outstanding debt from operations.  We believe that debt reported on our consolidated balance sheet is the most directly comparable GAAP measure to pro forma net debt and pro forma net debt adjusted for fully-leased development and that net income or loss is the most directly comparable GAAP measure to pro forma in-place adjusted EBITDA.

Replacement capital expenditures 
Replacement capital expenditures are defined as tenant improvements and incentives, building improvements and leasing costs incurred during the period for operating properties that are not (1) items contemplated prior to the acquisition of a property, (2) improvements associated with the expansion of a building or its improvements, (3) renovations to a building which change the underlying classification of the building (for example, from industrial to office or Class C office to Class B office), (4) capital improvements that represent the addition of something new to the property rather than the replacement of something (for example, the addition of a new heating and air conditioning unit that is not replacing one that was previously there) or (5) replacements of significant components of a building after the building has reached the end of its original useful life. Replacement capital expenditures excludes expenditures of operating properties included in disposition plans during the period that were already sold or are held for future disposition. For cash tenant incentives not due to the tenant for a period exceeding three months past the date on which such incentives were incurred, we recognize such incentives as replacement capital expenditures in the periods such incentives are due to the tenant. Replacement capital expenditures, which is included in the computation of Diluted AFFO, is intended to represent non-transformative capital expenditures of existing properties held for long-term investment. We believe that the excluded expenditures are more closely associated with our investing activities than the performance of our operating portfolio.

Same Property NOI from real estate operations and Same Property cash NOI
from real estate operations Defined as NOI, or Cash NOI, from real estate operations of Same Property groupings.  We believe that these are important supplemental measures of Same Property operating performance for the same reasons discussed above for NOI from real estate operations and Cash NOI from real estate operations.
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COPT Defense Properties
Definitions
Other Definitions
 
Acquisition Costs — Transaction costs expensed in connection with executed or anticipated acquisitions of operating properties.
 
Annualized Rental Revenue (“ARR”) — The monthly contractual base rent as of the reporting date (ignoring free rent then in effect and rent associated with tenant funded landlord assets) multiplied by 12, plus the estimated annualized expense reimbursements under existing leases for occupied space. With regard to properties owned through unconsolidated real estate JVs, we include the portion of ARR allocable to COPT Defense’s ownership interest. We consider ARR to be a useful measure for analyzing revenue sources because, since it is point-in-time based, it does not contain increases and decreases in revenue associated with periods in which lease terms were not in effect; historical revenue under GAAP does contain such fluctuations. We find the measure particularly useful for leasing, tenant, segment and industry analysis.

Average Escalations — Leasing statistic used to report average increase in rental rates over lease terms for leases with a term of greater than one-year.

Cash Rent — Includes monthly contractual base rent (ignoring rent abatements and rent associated with tenant funded landlord assets) multiplied by 12, plus estimated annualized expense reimbursements (average for first 12 months of term for new or renewed leases or as of lease expiration for expiring leases). We believe that cash rent is a useful measure for evaluating the rental rates at the time rent payments commence for our leasing activity, including changes in such rates relative to rates that may have been previously in place.

Committed cost per square foot — Includes tenant improvement allowance (excluding tenant funded landlord assets), leasing commissions and estimated turn key costs and excludes lease incentives. We believe this is a useful measure for evaluating our costs associated with obtaining new leases.

Debt to net income ratio — Represents debt reported on our consolidated balance sheet divided by net income for the three month period that is annualized by multiplying by four. We do not present this ratio for periods with a net loss.

Defense/IT Portfolio — Represents properties in locations proximate to, or sometimes containing, key U.S. Government (“USG”) defense installations and missions.

Development Properties — Properties under, or contractually committed for, development.

Equity Market Capitalization — Defined as the sum of: (1) the product of the closing price of our common shares on the NYSE and the sum of (a) common shares outstanding and (b) common units outstanding; and (2) the liquidation value of preferred shares and preferred units in our operating partnership.

First Generation Space — Newly-developed or redeveloped space that has never been occupied.

Net income to interest expense ratio — Represents net income reported on our consolidated statements of operations divided by interest expense. We do not present this ratio for periods with a net loss.

Net income payout ratio — defined as (1) the sum of dividends on common and deferred shares and distributions to holders of interests in the Operating Partnership divided by (2) net income. We do not present this ratio for periods with a net loss.

Operational Space — The portion of a property in operations (excludes portion under development or redevelopment).

Redevelopment Properties — Properties previously in operations on which activities to substantially renovate such properties were underway or approved.

Same Property — Operating properties stably owned and 100% operational since at least 1/1/22.

Second Generation Space — Space leased that has been previously occupied.

Straight-line Rent — Includes annual minimum base rents, net of abatements and lease incentives and excluding rent associated with tenant funded landlord assets, on a straight-line basis over the term of the lease, and estimated annual expense reimbursements (as of lease commencement for new or renewed leases or as of lease expiration for expiring leases). We believe that straight-line rent is a useful measures for evaluating the rental rates over the related lease terms for our leasing activity, including changes in such rates relative to rates that may have been previously in place.

Total Market Capitalization — Defined as the sum of: (1) consolidated outstanding debt, excluding discounts, premiums and deferred financing costs; (2) the product of the closing price of our common shares on the NYSE and the sum of (a) common shares outstanding and (b) common units outstanding; and (3) the liquidation value of preferred shares and preferred units in our operating partnership.

Total Portfolio — Operating properties, including ones owned through unconsolidated real estate JVs.

Vacancy leasing activity ratio — Square footage associated with prospective tenants for vacant square feet in service divided by total vacant square feet in service.

Vacant space leased — Includes acquired first generation space, vacated second generation space and leases executed on developed and redeveloped space previously placed in service.
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NEWS RELEASE
IR Contacts:
Venkat Kommineni, CFAMichelle Layne
443.285.5587443.285.5452
venkat.kommineni@copt.commichelle.layne@copt.com


COPT Defense Reports Full Year 2023 Results
_______________________________________________________________

EPS of ($0.67) for Full Year
Impacted by 3Q23 Impairment of Assets in Other Segment

FFO per Share, as Adjusted for Comparability, of $2.42
Increased 2.5% Over 2022 Results

Defense/IT Portfolio 96.2% Occupied and 97.2% Leased

Same Property Cash NOI Increased 5.7%
Highest Reported Year-over-Year Annual Increase in Over 15 Years

Placed 848,000 SF of Developments into Service that are 98% Leased

817,000 SF of Active Developments are 91% Leased
_______________________________________________________________

Exceeded Leasing Goals in 2023
Total Leasing of 2.9 million SF

452,000 SF of Vacancy Leasing
Exceeded Annual Target of 400,000 SF

Tenant Retention of 80%
3rd Highest Annual Retention Rate Over Last 20 Years

747,000 SF of Development Leasing
Exceeded Annual Guidance of 700,000 SF
_______________________________________________________________


COLUMBIA, MD (BUSINESS WIRE) February 8, 2024 - COPT Defense Properties (“COPT Defense” or the “Company”) (NYSE: CDP) announced results for the fourth quarter and full year ended December 31, 2023.



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Management Comments

Stephen E. Budorick, COPT Defense’s President & Chief Executive Officer, commented, “The performance of our Defense/IT investment strategy, which concentrates our portfolio near priority U.S. defense installations, continues to demonstrate operating strength, resulting in a solid earnings growth profile.

We achieved several key operating and financial performance milestones in 2023. Our Defense/IT Portfolio was 96.2% occupied and 97.2% leased at year end, which are the highest rates reported since we began disclosing the segment in 2015. Our sector leading tenant retention rate of 79.4% was the third highest figure in the last 20 years. Same property cash NOI increased 5.7%, the highest reported level in over 15 years, while cash rent spreads on renewals were the highest since 2008.

We attribute our continued strong performance to the strength in defense spending over the past few years, which has resulted in growing tenant demand in our Defense/IT Portfolio to support mission-critical national defense activities.

The outlook for defense spending remains favorable as the FY24 National Defense Authorization Act, which was passed in December and is awaiting Appropriation, calls for 3.3% year-over-year growth, which we believe will fuel demand for space in our portfolio through 2025.

We have generated FFO per share growth in each of the past 5 years, which amounts to a compound annual growth rate of 4.5% between 2019 to 2023. Looking forward, we expect FFO per share to increase 3.7% at the midpoint in 2024 and continue to anticipate compound annual growth of roughly 4% between 2023 to 2026.”

Financial Highlights

4th Quarter Financial Results:
Diluted earnings per share (“EPS”) was $0.30 for the quarter ended December 31, 2023 as compared to $0.45 for the quarter ended December 31, 2022.

Diluted funds from operations per share (“FFOPS”), as calculated in accordance with Nareit’s definition and as adjusted for comparability, was $0.62 for the quarter ended December 31, 2023 compared to $0.60 for the quarter ended December 31, 2022.

Full Year 2023 Financial Results:
•    EPS for the year ended December 31, 2023 was $(0.67), which included a $252.8 million impairment charge for six operating properties in the Other segment and a parcel of land, located in Baltimore, Maryland, Northern Virginia and Washington, D.C., resulting from the Company’s quarterly portfolio review, as compared to $1.53 for 2022.

•     Per Nareit’s definition, FFOPS for 2023 was $2.41 as compared to $2.35 for 2022.

•     FFOPS, as adjusted for comparability, for 2023 was $2.42 as compared to $2.36 for 2022.




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Operating Performance Highlights

Operating Portfolio Summary:
At December 31, 2023, the Company’s 23.9 million square foot Total Portfolio was 94.2% occupied and 95.3% leased, which includes the 21.7 million square foot Defense/IT Portfolio that was 96.2% occupied and 97.2% leased.

During the quarter and year ended December 31, 2023, the Company placed into service 379,000 and 848,000 square feet, respectively, of developments that were 100% and 98% leased, respectively, as of year end.

Same Property Performance:
At December 31, 2023, the Company’s 20.6 million square foot same property portfolio was 93.4% occupied and 94.7% leased.

The Company’s same property cash NOI increased 4.5% and 5.7% for the three months and year ended December 31, 2023, respectively, compared to the same periods in 2022.

Leasing:
Total Square Feet Leased: For the quarter ended December 31, 2023, the Company leased 668,000 square feet, including 301,000 square feet of renewals, 115,000 square feet of vacancy leasing, and 252,000 square feet in development projects. For the year ended December 31, 2023, the Company executed 2.9 million square feet of total leasing, including 1.7 million square feet of renewals, 452,000 square feet of vacancy leasing, and 747,000 square feet in development projects.

Tenant Retention Rates: During the quarter and year ended December 31, 2023, the Company renewed 68.9% and 79.7% in its Total Portfolio, respectively, of expiring square feet. During the quarter and year ended December 31, 2023, the Company renewed 77.6% and 85.7% in its Defense/IT Portfolio, respectively, of expiring square feet.

Rent Spreads & Average Escalations on Renewing Leases: For the quarter and year ended December 31, 2023, straight-line rents on renewals increased 20.5% and 9.3%, respectively, and cash rents on renewed space increased 3.1% and 1.5%, respectively. For the same time periods, annual escalations on renewing leases averaged 2.5% and 2.6%, respectively.

Lease Terms: In the quarter ended December 31, 2023, lease terms averaged 6.3 years on renewing leases, 9.3 years on vacancy leasing, and 14.6 years on development projects. For the year ended December 31, 2023, lease terms averaged 4.8 years on renewing leases, 8.2 years on vacancy leasing, and 14.4 years on development leasing.

Investment Activity Highlights
Development Pipeline: The Company’s development pipeline consists of five properties totaling 817,000 square feet that were 91% leased as of December 31, 2023. These projects represent a total estimated investment of $323.8 million, of which $84.4 million has been spent.

Balance Sheet and Capital Transaction Highlights
For the quarter ended December 31, 2023, the Company’s adjusted EBITDA fixed charge coverage ratio was 4.4x.



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At December 31, 2023, the Company’s net debt to in-place adjusted EBITDA ratio was 6.1x and its net debt adjusted for fully-leased development to in-place adjusted EBITDA ratio was 6.0x.

At December 31, 2023, and including the effect of interest rate swaps, the Company’s weighted average effective interest rate on its consolidated debt portfolio was 3.3% with a weighted average maturity of 5.7 years 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 2023 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

2024 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 2023 results on its conference call tomorrow at 12:00 p.m. Eastern Time, details of which are listed below:

Conference Call Date: Friday, February 09, 2024
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.vevent.com/register/BIec6f0e6112cd459ab4eda8f3c55c2d22

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, 2023, the Company’s


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Defense/IT Portfolio of 190 properties, including 24 owned through unconsolidated joint ventures, encompassed 21.7 million square feet and was 97.2% 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, 2022.


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COPT Defense Properties
Summary Financial Data
(unaudited)
(dollars and shares in thousands, except per share data)
 For the Three Months Ended December 31,For the Years Ended December 31,
 2023202220232022
Revenues  
Lease revenue$160,337 $150,022 $619,847 $580,169 
Other property revenue1,225 1,163 4,956 4,229 
Construction contract and other service revenues18,167 24,062 60,179 154,632 
Total revenues179,729 175,247 684,982 739,030 
Operating expenses  
Property operating expenses64,577 58,470 247,385 227,430 
Depreciation and amortization associated with real estate operations36,735 36,907 148,950 141,230 
Construction contract and other service expenses17,167 23,454 57,416 149,963 
Impairment losses— — 252,797 — 
General and administrative expenses8,240 7,766 31,105 27,461 
Leasing expenses2,308 2,235 8,932 8,337 
Business development expenses and land carry costs797 1,157 2,732 3,193 
Total operating expenses129,824 129,989 749,317 557,614 
Interest expense(20,383)(16,819)(71,142)(61,174)
Interest and other income, net5,659 4,671 12,587 9,070 
Gain on sales of real estate— 19,238 49,392 19,250 
Loss on early extinguishment of debt— (267)— (609)
Income (loss) from continuing operations before equity in (loss) income of unconsolidated entities and income taxes35,181 52,081 (73,498)147,953 
Equity in (loss) income of unconsolidated entities(240)229 (261)1,743 
Income tax expense(121)(223)(588)(447)
Income (loss) from continuing operations34,820 52,087 (74,347)149,249 
Discontinued operations— — — 29,573 
Net income (loss)34,820 52,087 (74,347)178,822 
Net (income) loss attributable to noncontrolling interests:  
Common units in the Operating Partnership (“OP”)(576)(775)1,306 (2,603)
Other consolidated entities(592)(833)(428)(3,190)
Net income (loss) attributable to common shareholders$33,652 $50,479 $(73,469)$173,029 
Earnings per share (“EPS”) computation:  
Numerator for diluted EPS:  
Net income (loss) attributable to common shareholders$33,652 $50,479 $(73,469)$173,029 
Amount allocable to share-based compensation awards(100)(129)(1,199)(463)
Redeemable noncontrolling interests— (60)— (169)
Numerator for diluted EPS$33,552 $50,290 $(74,668)$172,397 
Denominator:  
Weighted average common shares - basic112,199 112,096 112,178 112,073 
Dilutive effect of share-based compensation awards432 435 — 431 
Dilutive effect of redeemable noncontrolling interests— 102 — 116 
Weighted average common shares - diluted112,631 112,633 112,178 112,620 
Diluted EPS$0.30 $0.45 $(0.67)$1.53 
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COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands, except per share data)
 For the Three Months Ended December 31,For the Years Ended December 31,
 2023202220232022
Net income (loss)$34,820 $52,087 $(74,347)$178,822 
Real estate-related depreciation and amortization36,735 36,907 148,950 141,230 
Impairment losses on real estate— — 252,797 — 
Gain on sales of real estate from continuing and discontinued operations— (19,238)(49,392)(47,814)
Depreciation and amortization on unconsolidated real estate JVs805 526 3,217 2,101 
Funds from operations (“FFO”)72,360 70,282 281,225 274,339 
FFO allocable to other noncontrolling interests(972)(1,227)(3,978)(4,795)
Basic FFO allocable to share-based compensation awards(513)(360)(1,940)(1,433)
Basic FFO available to common share and common unit holders (“Basic FFO”)70,875 68,695 275,307 268,111 
Redeemable noncontrolling interests— (27)(58)(34)
Diluted FFO adjustments allocable to share-based compensation awards38 28 150 109 
Diluted FFO available to common share and common unit holders (“Diluted FFO”)70,913 68,696 275,399 268,186 
Loss on early extinguishment of debt— 267 — 609 
Gain on early extinguishment of debt on unconsolidated real estate JVs— (168)— (168)
Executive transition costs188 — 518 343 
Diluted FFO comparability adjustments allocable to share-based compensation awards(1)(1)(4)(5)
Diluted FFO available to common share and common unit holders, as adjusted for comparability71,100 68,794 275,913 268,965 
Straight line rent adjustments and lease incentive amortization313 (3,043)6,518 (8,825)
Amortization of intangibles and other assets included in net operating income (“NOI”)26 15 50 (258)
Share-based compensation, net of amounts capitalized2,318 2,247 8,544 8,700 
Amortization of deferred financing costs681 619 2,580 2,297 
Amortization of net debt discounts, net of amounts capitalized1,004 615 2,994 2,440 
Replacement capital expenditures(21,498)(43,283)(93,494)(95,886)
Other336 158 (84)980 
Diluted adjusted funds from operations available to common share and common unit holders (“Diluted AFFO”)$54,280 $26,122 $203,021 $178,413 
Diluted FFO per share$0.62 $0.60 $2.41 $2.35 
Diluted FFO per share, as adjusted for comparability$0.62 $0.60 $2.42 $2.36 
Dividends/distributions per common share/unit$0.285 $0.275 $1.140 $1.100 

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COPT Defense Properties
Summary Financial Data
(unaudited)
(Dollars and shares in thousands, except per share data)
December 31,
2023
December 31,
2022
Balance Sheet Data  
Properties, net of accumulated depreciation$3,503,678 $3,556,398 
Total assets$4,246,966 $4,257,275 
Debt per balance sheet$2,416,287 $2,231,794 
Total liabilities$2,699,631 $2,509,527 
Redeemable noncontrolling interests$23,580 $26,293 
Total equity$1,523,755 $1,721,455 
Debt to assets56.9 %52.4 %
Net debt to adjusted book40.6 %39.8 %
Defense/IT Portfolio Data (as of period end)  
Number of operating properties190 186 
Total operational square feet (in thousands)21,719 20,869 
% Occupied96.2 %94.1 %
% Leased97.2 %96.7 %
For the Three Months Ended December 31,For the Years Ended December 31,
2023202220232022
GAAP    
Payout ratio:
Net income93.7 %60.3 %N/A70.2 %
Debt ratios:
Net income to interest expense ratio1.7 3.1 N/A2.9 
Debt to net income ratio17.3 10.7 N/AN/A
Non-GAAP
Payout ratios:
Diluted FFO45.7 %45.5 %47.1 %46.6 %
Diluted FFO, as adjusted for comparability45.6 %45.4 %47.0 %46.5 %
Diluted AFFO59.7 %119.7 %63.9 %70.1 %
Debt ratios:
Adjusted EBITDA fixed charge coverage ratio4.4 4.7 4.7 5.1 
Net debt to in-place adjusted EBITDA ratio6.1 6.3 N/AN/A
Pro forma net debt to in-place adjusted EBITDA ratio (1)N/A6.0 N/AN/A
Net debt adj. for fully-leased development to in-place adj. EBITDA ratio6.0 6.1 N/AN/A
Pro forma net debt adj. for fully-leased development to in-place adj. EBITDA ratio (1)N/A5.7 N/AN/A
Reconciliation of denominators for per share measures 
Denominator for diluted EPS112,631 112,633 112,178 112,620 
Weighted average common units1,514 1,476 1,509 1,454 
Dilutive effect of additional share-based compensation awards— — 424 — 
Redeemable noncontrolling interests— — 38 — 
Denominator for diluted FFO per share and as adjusted for comparability114,145 114,109 114,149 114,074 

(1)Includes, for the 12/31/22 period, adjustments associated with our sale on 1/10/23 of a 90% interest in three data center shell properties.


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COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)
For the Three Months Ended December 31,For the Years Ended December 31,
 2023202220232022
Numerators for Payout Ratios
Dividends on unrestricted common and deferred shares$31,998 $30,844 $127,978 $123,367 
Distributions on unrestricted common units430 406 1,725 1,623 
Dividends and distributions on restricted shares and units209 134 828 567 
Total dividends and distributions for GAAP payout ratio32,637 31,384 130,531 125,557 
Dividends and distributions on antidilutive shares and units(212)(121)(835)(516)
Dividends and distributions for non-GAAP payout ratios$32,425 $31,263 $129,696 $125,041 
Reconciliation of net income (loss) to earnings before interest, income taxes, depreciation and amortization for real estate (“EBITDAre”), adjusted EBITDA and in-place adjusted EBITDA    
Net income (loss)$34,820 $52,087 $(74,347)$178,822 
Interest expense20,383 16,819 71,142 61,174 
Income tax expense121 223 588 447 
Real estate-related depreciation and amortization36,735 36,907 148,950 141,230 
Other depreciation and amortization619 602 2,445 2,363 
Impairment losses on real estate— — 252,797 — 
Gain on sales of real estate from continuing and discontinued operations— (19,238)(49,392)(47,814)
Adjustments from unconsolidated real estate JVs1,911 1,033 6,917 3,313 
EBITDAre94,589 88,433 359,100 339,535 
Credit loss (recoveries) expense(1,288)(1,331)(611)271 
Business development expenses445 794 1,393 1,891 
Executive transition costs188 387 824 730 
Loss on early extinguishment of debt— 267 — 609 
Gain on early extinguishment of debt on unconsolidated real estate JVs— (168)— (168)
Net gain on other investments— (595)(25)(1,159)
Adjusted EBITDA93,934 87,787 $360,681 $341,709 
Pro forma NOI adjustment for property changes within period1,341 2,704 
Change in collectability of deferred rental revenue(198)— 
In-place adjusted EBITDA$95,077 $90,491 
Pro forma NOI adjustment from subsequent event transactionsN/A(2,903)
Pro forma in-place adjusted EBITDA$95,077 $87,588 
Reconciliations of tenant improvements and incentives, building improvements and leasing costs for operating properties to replacement capital expenditures
Tenant improvements and incentives$7,850 $33,439 $74,912 $62,952 
Building improvements14,762 8,468 25,976 29,528 
Leasing costs2,440 4,389 9,634 11,480 
Net (exclusions from) additions to tenant improvements and incentives(189)(75)(12,170)2,150 
Excluded building improvements and leasing costs(3,365)(2,938)(4,858)(10,224)
Replacement capital expenditures$21,498 $43,283 $93,494 $95,886 
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COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)
For the Three Months Ended December 31,For the Years Ended December 31,
 2023202220232022
Reconciliation of interest expense to the denominator for fixed charge coverage-Adjusted EBITDA    
Interest expense$20,383 $16,819 $71,142 $61,174 
Less: Amortization of deferred financing costs(681)(619)(2,580)(2,297)
Less: Amortization of net debt discounts, net of amounts capitalized(1,004)(615)(2,994)(2,440)
COPT Defense’s share of interest expense of unconsolidated real estate JVs, excluding amortization of deferred financing costs and net debt premium and loss on interest rate derivatives819 423 3,188 1,123 
Scheduled principal amortization763 864 3,052 3,333 
Capitalized interest1,028 1,835 4,479 6,709 
Denominator for fixed charge coverage-Adjusted EBITDA$21,308 $18,707 $76,287 $67,602 
Reconciliation of net income (loss) to NOI from real estate operations, same property NOI from real estate operations and same property cash NOI from real estate operations
Net income (loss)$34,820 $52,087 $(74,347)$178,822 
Construction contract and other service revenues(18,167)(24,062)(60,179)(154,632)
Depreciation and other amortization associated with real estate operations36,735 36,907 148,950 141,230 
Construction contract and other service expenses17,167 23,454 57,416 149,963 
Impairment losses— — 252,797 — 
General and administrative expenses8,240 7,766 31,105 27,461 
Leasing expenses2,308 2,235 8,932 8,337 
Business development expenses and land carry costs797 1,157 2,732 3,193 
Interest expense20,383 16,819 71,142 61,174 
Interest and other income, net(5,659)(4,671)(12,587)(9,070)
Gain on sales of real estate from continuing operations— (19,238)(49,392)(19,250)
Loss on early extinguishment of debt— 267 — 609 
Equity in loss (income) of unconsolidated entities240 (229)261 (1,743)
Unconsolidated real estate JVs NOI allocable to COPT Defense included in equity in (loss) income of unconsolidated entities1,671 1,095 6,659 4,327 
Income tax expense121 223 588 447 
Discontinued operations— — — (29,573)
Revenues from real estate operations from discontinued operations— — — 1,980 
Property operating expenses from discontinued operations— — — (971)
NOI from real estate operations98,656 93,810 384,077 362,304 
Non-Same Property NOI from real estate operations(11,705)(9,015)(39,244)(27,991)
Same Property NOI from real estate operations86,951 84,795 344,833 334,313 
Straight line rent adjustments and lease incentive amortization7,947 319 25,631 (2,729)
Amortization of acquired above- and below-market rents(121)(131)(536)(844)
Lease termination fees, net(717)(1,026)(3,745)(2,237)
Tenant funded landlord assets and lease incentives(7,501)(1,068)(25,244)(5,915)
Cash NOI adjustments in unconsolidated real estate JVs(58)(81)(267)(358)
Same Property Cash NOI from real estate operations$86,501 $82,808 $340,672 $322,230 

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COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)
December 31,
2023
December 31,
2022
Reconciliation of total assets to adjusted book  
Total assets$4,246,966 $4,257,275 
Accumulated depreciation1,400,162 1,267,434 
Accumulated depreciation included in assets held for sale— 6,014 
Accumulated amortization of intangibles on property acquisitions and deferred leasing costs228,484 222,779 
COPT Defense’s share of liabilities of unconsolidated real estate JVs60,583 52,404 
COPT Defense’s share of accumulated depreciation and amortization of unconsolidated real estate JVs9,528 6,078 
Less: Property - operating lease liabilities(33,931)(28,759)
Less: Property - finance lease liabilities(415)— 
Less: Cash and cash equivalents(167,820)(12,337)
Less: COPT Defense’s share of cash of unconsolidated real estate JVs(852)(456)
Adjusted book$5,742,705 $5,770,432 

December 31,
2023
December 31,
2022
Reconciliation of debt to net debt, net debt adjusted for fully-leased development and pro forma net debt adjusted for fully-leased development
Debt per balance sheet$2,416,287 $2,231,794 
Net discounts and deferred financing costs28,713 23,160 
COPT Defense’s share of unconsolidated JV gross debt52,613 52,100 
Gross debt2,497,613 2,307,054 
Less: Cash and cash equivalents(167,820)(12,337)
Less: COPT Defense’s share of cash of unconsolidated real estate JVs(852)(456)
Net debt2,328,941 2,294,261 
Costs incurred on fully-leased development properties(53,914)(95,972)
Net debt adjusted for fully-leased development $2,275,027 $2,198,289 
Net debt$2,328,941 $2,294,261 
Pro forma debt adjustments from subsequent event transaction proceedsN/A(189,000)
Pro forma net debt2,328,941 2,105,261 
Costs incurred on fully-leased development properties(53,914)(95,972)
Pro forma net debt adjusted for fully-leased development$2,275,027 $2,009,289 
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