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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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MANAGEMENT | Stephen E. Budorick, President + CEO | INVESTOR RELATIONS | Venkat Kommineni, VP | |||||||||||
Britt A. Snider, EVP + COO | 443.285.5587 | venkat.kommineni@copt.com | |||||||||||||
Anthony Mifsud, EVP + CFO | ||||||||||||||
Michelle Layne, Manager | ||||||||||||||
443.285.5452 | michelle.layne@copt.com |
1 | 1Q 2025 Supplemental Information Package | ![]() |
Firm | Senior Analyst | Phone | ||||||||||||||||||
BTIG | Tom Catherwood | 212.738.6410 | tcatherwood@btig.com | |||||||||||||||||
Citigroup Global Markets | Seth Bergey | 212.816.2066 | seth.bergey@citi.com | |||||||||||||||||
Evercore ISI | Steve Sakwa | 212.446.9462 | steve.sakwa@evercoreisi.com | |||||||||||||||||
Green Street | Dylan Burzinski | 949.640.8780 | dburzinski@greenstreet.com | |||||||||||||||||
Jefferies | Peter Abramowitz | 212.336.7241 | pabramowitz@jefferies.com | |||||||||||||||||
JP Morgan | Tony Paolone | 212.622.6682 | anthony.paolone@jpmorgan.com | |||||||||||||||||
Truist Securities | Michael Lewis | 212.319.5659 | michael.r.lewis@truist.com | |||||||||||||||||
Wedbush Securities | Richard Anderson | 212.938.9949 | richard.anderson@wedbush.com | |||||||||||||||||
Wells Fargo Securities | Blaine Heck | 410.662.2556 | blaine.heck@wellsfargo.com |
2 | 1Q 2025 Supplemental Information Package | ![]() |
Page | Three Months Ended | |||||||||||||||||||||||||||||||||||||
SUMMARY OF RESULTS | Refer. | 3/31/25 | 12/31/24 | 9/30/24 | 6/30/24 | 3/31/24 | ||||||||||||||||||||||||||||||||
Net income | 7 | $ | 36,228 | $ | 36,467 | $ | 37,397 | $ | 36,407 | $ | 33,671 | |||||||||||||||||||||||||||
NOI from real estate operations | 13 | $ | 107,446 | $ | 106,340 | $ | 105,526 | $ | 105,410 | $ | 101,657 | |||||||||||||||||||||||||||
Same Property NOI | 17 | $ | 104,276 | $ | 103,819 | $ | 104,044 | $ | 104,092 | $ | 101,112 | |||||||||||||||||||||||||||
Same Property cash NOI | 18 | $ | 100,162 | $ | 101,629 | $ | 100,163 | $ | 100,472 | $ | 93,555 | |||||||||||||||||||||||||||
Adjusted EBITDA | 11 | $ | 99,119 | $ | 98,628 | $ | 99,236 | $ | 98,592 | $ | 95,841 | |||||||||||||||||||||||||||
FFO per NAREIT | 8 | $ | 76,028 | $ | 76,033 | $ | 76,460 | $ | 75,346 | $ | 72,799 | |||||||||||||||||||||||||||
Diluted AFFO avail. to common share and unit holders | 10 | $ | 56,045 | $ | 47,902 | $ | 52,592 | $ | 61,435 | $ | 59,269 | |||||||||||||||||||||||||||
Dividend per common share | N/A | $ | 0.305 | $ | 0.295 | $ | 0.295 | $ | 0.295 | $ | 0.295 | |||||||||||||||||||||||||||
Per share - diluted: | ||||||||||||||||||||||||||||||||||||||
EPS | 9 | $ | 0.31 | $ | 0.31 | $ | 0.32 | $ | 0.31 | $ | 0.29 | |||||||||||||||||||||||||||
FFO - Nareit | 9 | $ | 0.65 | $ | 0.64 | $ | 0.65 | $ | 0.64 | $ | 0.62 | |||||||||||||||||||||||||||
FFO - as adjusted for comparability | 9 | $ | 0.65 | $ | 0.65 | $ | 0.65 | $ | 0.64 | $ | 0.62 | |||||||||||||||||||||||||||
Numerators for diluted per share amounts: | ||||||||||||||||||||||||||||||||||||||
Diluted EPS | 7 | $ | 34,597 | $ | 35,018 | $ | 35,981 | $ | 35,022 | $ | 32,480 | |||||||||||||||||||||||||||
Diluted FFO available to common share and unit holders | 8 | $ | 74,393 | $ | 74,416 | $ | 74,905 | $ | 74,280 | $ | 71,892 | |||||||||||||||||||||||||||
Diluted FFO available to common share and unit holders, as adjusted for comparability | 8 | $ | 74,393 | $ | 74,473 | $ | 74,974 | $ | 74,360 | $ | 71,969 | |||||||||||||||||||||||||||
3 | 1Q 2025 Supplemental Information Package | ![]() |
Page | As of or for Three Months Ended | |||||||||||||||||||||||||||||||||||||
PAYOUT RATIOS AND CAPITALIZATION | Refer. | 3/31/25 | 12/31/24 | 9/30/24 | 6/30/24 | 3/31/24 | ||||||||||||||||||||||||||||||||
GAAP | ||||||||||||||||||||||||||||||||||||||
Payout ratio: | ||||||||||||||||||||||||||||||||||||||
Net income | N/A | 97.2% | 93.0% | 90.7% | 93.1% | 100.7% | ||||||||||||||||||||||||||||||||
Capitalization and debt ratios: | ||||||||||||||||||||||||||||||||||||||
Total assets | 6 | $ | 4,250,311 | $ | 4,254,191 | $ | 4,234,302 | $ | 4,219,338 | $ | 4,232,895 | |||||||||||||||||||||||||||
Total equity | 6 | $ | 1,538,291 | $ | 1,536,593 | $ | 1,532,595 | $ | 1,530,506 | $ | 1,526,046 | |||||||||||||||||||||||||||
Debt per balance sheet | 6 | $ | 2,412,670 | $ | 2,391,755 | $ | 2,390,839 | $ | 2,389,925 | $ | 2,416,873 | |||||||||||||||||||||||||||
Debt to assets | 30 | 56.8% | 56.2% | 56.5% | 56.6% | 57.1% | ||||||||||||||||||||||||||||||||
Net income to interest expense ratio | 30 | 1.8x | 1.8x | 1.8x | 1.8x | 1.6x | ||||||||||||||||||||||||||||||||
Debt to net income ratio | 30 | 16.6x | 16.4x | 16.0x | 16.4x | 17.9x | ||||||||||||||||||||||||||||||||
Non-GAAP | ||||||||||||||||||||||||||||||||||||||
Payout ratios: | ||||||||||||||||||||||||||||||||||||||
Diluted FFO | N/A | 47.0% | 45.2% | 44.9% | 45.3% | 46.8% | ||||||||||||||||||||||||||||||||
Diluted FFO - as adjusted for comparability | N/A | 47.0% | 45.2% | 44.9% | 45.3% | 46.7% | ||||||||||||||||||||||||||||||||
Diluted AFFO | N/A | 62.4% | 70.3% | 64.0% | 54.8% | 56.8% | ||||||||||||||||||||||||||||||||
Capitalization and debt ratios: | ||||||||||||||||||||||||||||||||||||||
Total Market Capitalization | 27 | $ | 5,578,378 | $ | 5,968,572 | $ | 5,897,659 | $ | 5,289,664 | $ | 5,218,681 | |||||||||||||||||||||||||||
Total Equity Market Capitalization | 27 | $ | 3,143,822 | $ | 3,553,555 | $ | 3,482,187 | $ | 2,873,744 | $ | 2,774,450 | |||||||||||||||||||||||||||
Net debt | 35 | $ | 2,462,248 | $ | 2,428,430 | $ | 2,432,567 | $ | 2,367,180 | $ | 2,372,747 | |||||||||||||||||||||||||||
Net debt to adjusted book | 30 | 40.7% | 40.4% | 40.8% | 40.5% | 40.9% | ||||||||||||||||||||||||||||||||
Adjusted EBITDA fixed charge coverage ratio | 30 | 4.7x | 4.7x | 4.8x | 4.7x | 4.5x | ||||||||||||||||||||||||||||||||
Net debt to in-place adj. EBITDA ratio | 30 | 6.1x | 6.0x | 6.1x | 6.0x | 6.1x | ||||||||||||||||||||||||||||||||
Net debt adjusted for fully-leased investment properties to in-place adj. EBITDA ratio | 30 | 6.0x | 5.9x | 5.9x | 5.9x | 6.0x | ||||||||||||||||||||||||||||||||
4 | 1Q 2025 Supplemental Information Package | ![]() |
3/31/25 | 12/31/24 | 9/30/24 | 6/30/24 | 3/31/24 | |||||||||||||||||||||||||
# of Properties | |||||||||||||||||||||||||||||
Total Portfolio | 204 | 203 | 202 | 201 | 201 | ||||||||||||||||||||||||
Consolidated Portfolio | 180 | 179 | 178 | 177 | 177 | ||||||||||||||||||||||||
Defense/IT Portfolio (2) | 198 | 197 | 196 | 195 | 195 | ||||||||||||||||||||||||
Same Property | 198 | 198 | 198 | 198 | 198 | ||||||||||||||||||||||||
% Occupied | |||||||||||||||||||||||||||||
Total Portfolio | 93.6 | % | 93.6 | % | 93.1 | % | 93.6 | % | 93.6 | % | |||||||||||||||||||
Consolidated Portfolio | 92.3 | % | 92.2 | % | 91.6 | % | 92.2 | % | 92.2 | % | |||||||||||||||||||
Defense/IT Portfolio (2) | 95.3 | % | 95.4 | % | 94.8 | % | 95.4 | % | 95.5 | % | |||||||||||||||||||
Same Property | 94.1 | % | 94.4 | % | 93.9 | % | 93.9 | % | 93.9 | % | |||||||||||||||||||
% Leased | |||||||||||||||||||||||||||||
Total Portfolio | 95.1 | % | 95.1 | % | 94.8 | % | 94.9 | % | 94.9 | % | |||||||||||||||||||
Consolidated Portfolio | 94.0 | % | 94.1 | % | 93.6 | % | 93.8 | % | 93.8 | % | |||||||||||||||||||
Defense/IT Portfolio (2) | 96.6 | % | 96.7 | % | 96.4 | % | 96.5 | % | 96.6 | % | |||||||||||||||||||
Same Property | 95.2 | % | 95.7 | % | 95.3 | % | 95.2 | % | 95.3 | % | |||||||||||||||||||
Square Feet (in thousands) | |||||||||||||||||||||||||||||
Total Portfolio | 24,548 | 24,537 | 24,316 | 24,135 | 24,137 | ||||||||||||||||||||||||
Consolidated Portfolio | 20,253 | 20,242 | 20,021 | 19,839 | 19,841 | ||||||||||||||||||||||||
Defense/IT Portfolio (2) | 22,560 | 22,549 | 22,331 | 22,150 | 22,150 | ||||||||||||||||||||||||
Same Property | 23,856 | 23,856 | 23,856 | 23,856 | 23,856 | ||||||||||||||||||||||||
5 | 1Q 2025 Supplemental Information Package | ![]() |
3/31/25 | 12/31/24 | 9/30/24 | 6/30/24 | 3/31/24 | |||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||
Properties, net: | |||||||||||||||||||||||||||||
Operating properties, net | $ | 3,343,341 | $ | 3,353,477 | $ | 3,289,959 | $ | 3,257,822 | $ | 3,272,452 | |||||||||||||||||||
Development and redevelopment in progress, including land (1) | 89,132 | 67,342 | 108,077 | 106,709 | 76,931 | ||||||||||||||||||||||||
Land held (1) | 211,009 | 209,707 | 206,652 | 171,062 | 168,495 | ||||||||||||||||||||||||
Total properties, net | 3,643,482 | 3,630,526 | 3,604,688 | 3,535,593 | 3,517,878 | ||||||||||||||||||||||||
Property - operating lease right-of-use assets | 54,374 | 55,760 | 40,523 | 40,899 | 40,368 | ||||||||||||||||||||||||
Cash and cash equivalents | 24,292 | 38,284 | 34,478 | 100,443 | 123,144 | ||||||||||||||||||||||||
Investment in unconsolidated real estate joint ventures | 38,960 | 39,360 | 39,720 | 40,148 | 40,597 | ||||||||||||||||||||||||
Accounts receivable, net | 45,924 | 42,234 | 42,240 | 46,963 | 50,088 | ||||||||||||||||||||||||
Deferred rent receivable | 165,968 | 161,438 | 159,182 | 156,123 | 153,788 | ||||||||||||||||||||||||
Lease incentives, net | 64,260 | 64,013 | 63,034 | 63,744 | 61,150 | ||||||||||||||||||||||||
Deferred leasing costs, net | 71,468 | 71,268 | 71,815 | 72,156 | 70,902 | ||||||||||||||||||||||||
Investing receivables, net | 78,430 | 69,680 | 83,536 | 84,087 | 82,523 | ||||||||||||||||||||||||
Prepaid expenses and other assets, net | 63,153 | 81,628 | 95,086 | 79,182 | 92,457 | ||||||||||||||||||||||||
Total assets | $ | 4,250,311 | $ | 4,254,191 | $ | 4,234,302 | $ | 4,219,338 | $ | 4,232,895 | |||||||||||||||||||
Liabilities and equity | |||||||||||||||||||||||||||||
Liabilities: | |||||||||||||||||||||||||||||
Debt | $ | 2,412,670 | $ | 2,391,755 | $ | 2,390,839 | $ | 2,389,925 | $ | 2,416,873 | |||||||||||||||||||
Accounts payable and accrued expenses | 98,039 | 126,031 | 134,112 | 122,202 | 111,981 | ||||||||||||||||||||||||
Rents received in advance and security deposits | 41,624 | 38,560 | 33,213 | 33,485 | 37,557 | ||||||||||||||||||||||||
Dividends and distributions payable | 35,208 | 33,909 | 33,915 | 33,908 | 33,906 | ||||||||||||||||||||||||
Deferred revenue associated with operating leases | 38,915 | 39,752 | 37,660 | 37,199 | 34,019 | ||||||||||||||||||||||||
Property - operating lease liabilities | 48,216 | 49,240 | 33,615 | 33,818 | 33,141 | ||||||||||||||||||||||||
Other liabilities | 13,809 | 14,377 | 15,917 | 15,530 | 16,406 | ||||||||||||||||||||||||
Total liabilities | 2,688,481 | 2,693,624 | 2,679,271 | 2,666,067 | 2,683,883 | ||||||||||||||||||||||||
Redeemable noncontrolling interest | 23,539 | 23,974 | 22,436 | 22,765 | 22,966 | ||||||||||||||||||||||||
Equity: | |||||||||||||||||||||||||||||
COPT Defense’s shareholders’ equity: | |||||||||||||||||||||||||||||
Common shares | 1,129 | 1,127 | 1,127 | 1,127 | 1,126 | ||||||||||||||||||||||||
Additional paid-in capital | 2,492,454 | 2,494,369 | 2,493,340 | 2,489,931 | 2,487,468 | ||||||||||||||||||||||||
Cumulative distributions in excess of net income | (1,003,120) | (1,003,401) | (1,005,260) | (1,008,087) | (1,009,964) | ||||||||||||||||||||||||
Accumulated other comprehensive income | 403 | 988 | 58 | 3,614 | 3,849 | ||||||||||||||||||||||||
Total COPT Defense’s shareholders’ equity | 1,490,866 | 1,493,083 | 1,489,265 | 1,486,585 | 1,482,479 | ||||||||||||||||||||||||
Noncontrolling interests in subsidiaries: | |||||||||||||||||||||||||||||
Common units in the Operating Partnership | 32,745 | 28,935 | 28,918 | 29,470 | 29,214 | ||||||||||||||||||||||||
Other consolidated entities | 14,680 | 14,575 | 14,412 | 14,451 | 14,353 | ||||||||||||||||||||||||
Total noncontrolling interests in subsidiaries | 47,425 | 43,510 | 43,330 | 43,921 | 43,567 | ||||||||||||||||||||||||
Total equity | 1,538,291 | 1,536,593 | 1,532,595 | 1,530,506 | 1,526,046 | ||||||||||||||||||||||||
Total liabilities, redeemable noncontrolling interest and equity | $ | 4,250,311 | $ | 4,254,191 | $ | 4,234,302 | $ | 4,219,338 | $ | 4,232,895 |
6 | 1Q 2025 Supplemental Information Package | ![]() |
Three Months Ended | |||||||||||||||||||||||||||||
3/31/25 | 12/31/24 | 9/30/24 | 6/30/24 | 3/31/24 | |||||||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||||
Lease revenue | $ | 175,308 | $ | 169,765 | $ | 170,549 | $ | 165,619 | $ | 165,433 | |||||||||||||||||||
Other property revenue | 2,289 | 1,641 | 2,014 | 1,466 | 1,230 | ||||||||||||||||||||||||
Construction contract and other service revenues | 10,259 | 12,027 | 16,662 | 20,258 | 26,603 | ||||||||||||||||||||||||
Total revenues | 187,856 | 183,433 | 189,225 | 187,343 | 193,266 | ||||||||||||||||||||||||
Operating expenses | |||||||||||||||||||||||||||||
Property operating expenses | 72,040 | 66,964 | 68,881 | 63,410 | 66,746 | ||||||||||||||||||||||||
Depreciation and amortization associated with real estate operations | 39,359 | 38,821 | 38,307 | 38,161 | 38,351 | ||||||||||||||||||||||||
Construction contract and other service expenses | 9,705 | 11,519 | 16,127 | 19,612 | 26,007 | ||||||||||||||||||||||||
General and administrative expenses | 8,148 | 8,429 | 8,157 | 8,591 | 8,378 | ||||||||||||||||||||||||
Leasing expenses | 2,999 | 2,243 | 2,341 | 2,462 | 2,187 | ||||||||||||||||||||||||
Business development expenses and land carry costs | 1,009 | 1,171 | 918 | 979 | 1,182 | ||||||||||||||||||||||||
Total operating expenses | 133,260 | 129,147 | 134,731 | 133,215 | 142,851 | ||||||||||||||||||||||||
Interest expense | (20,504) | (20,391) | (20,376) | (20,617) | (20,767) | ||||||||||||||||||||||||
Interest and other income, net | 1,568 | 2,331 | 3,324 | 2,884 | 4,122 | ||||||||||||||||||||||||
Gain on sales of real estate | 300 | — | — | — | — | ||||||||||||||||||||||||
Income before equity in income of unconsolidated entities and income taxes | 35,960 | 36,226 | 37,442 | 36,395 | 33,770 | ||||||||||||||||||||||||
Equity in income of unconsolidated entities | 371 | 217 | 85 | 26 | 69 | ||||||||||||||||||||||||
Income tax (expense) benefit | (103) | 24 | (130) | (14) | (168) | ||||||||||||||||||||||||
Net income | 36,228 | 36,467 | 37,397 | 36,407 | 33,671 | ||||||||||||||||||||||||
Net income attributable to noncontrolling interests: | |||||||||||||||||||||||||||||
Common units in the Operating Partnership | (726) | (681) | (711) | (694) | (608) | ||||||||||||||||||||||||
Other consolidated entities | (762) | (665) | (601) | (599) | (454) | ||||||||||||||||||||||||
Net income attributable to common shareholders | $ | 34,740 | $ | 35,121 | $ | 36,085 | $ | 35,114 | $ | 32,609 | |||||||||||||||||||
Amount allocable to share-based compensation awards | (143) | (103) | (104) | (92) | (129) | ||||||||||||||||||||||||
Numerator for diluted EPS | $ | 34,597 | $ | 35,018 | $ | 35,981 | $ | 35,022 | $ | 32,480 |
7 | 1Q 2025 Supplemental Information Package | ![]() |
Three Months Ended | |||||||||||||||||||||||||||||
3/31/25 | 12/31/24 | 9/30/24 | 6/30/24 | 3/31/24 | |||||||||||||||||||||||||
Net income | $ | 36,228 | $ | 36,467 | $ | 37,397 | $ | 36,407 | $ | 33,671 | |||||||||||||||||||
Real estate-related depreciation and amortization | 39,359 | 38,821 | 38,307 | 38,161 | 38,351 | ||||||||||||||||||||||||
Gain on sales of real estate | (300) | — | — | — | — | ||||||||||||||||||||||||
Depreciation and amortization on unconsolidated real estate JVs (1) | 741 | 745 | 756 | 778 | 777 | ||||||||||||||||||||||||
FFO - per Nareit (2) | 76,028 | 76,033 | 76,460 | 75,346 | 72,799 | ||||||||||||||||||||||||
FFO allocable to other noncontrolling interests (3) | (1,158) | (1,050) | (985) | (984) | (836) | ||||||||||||||||||||||||
Basic FFO allocable to share-based compensation awards | (530) | (614) | (617) | (599) | (587) | ||||||||||||||||||||||||
Basic FFO available to common share and common unit holders (2) | 74,340 | 74,369 | 74,858 | 73,763 | 71,376 | ||||||||||||||||||||||||
Redeemable noncontrolling interest | — | — | — | 471 | 469 | ||||||||||||||||||||||||
Diluted FFO adjustments allocable to share-based compensation awards | 53 | 47 | 47 | 46 | 47 | ||||||||||||||||||||||||
Diluted FFO available to common share and common unit holders - per Nareit (2) | 74,393 | 74,416 | 74,905 | 74,280 | 71,892 | ||||||||||||||||||||||||
Executive transition costs | — | 58 | 69 | 81 | 77 | ||||||||||||||||||||||||
Diluted FFO comparability adjustments allocable to share-based compensation awards | — | (1) | — | (1) | — | ||||||||||||||||||||||||
Diluted FFO available to common share and common unit holders, as adjusted for comparability (2) | $ | 74,393 | $ | 74,473 | $ | 74,974 | $ | 74,360 | $ | 71,969 |
8 | 1Q 2025 Supplemental Information Package | ![]() |
Three Months Ended | |||||||||||||||||||||||||||||
3/31/25 | 12/31/24 | 9/30/24 | 6/30/24 | 3/31/24 | |||||||||||||||||||||||||
EPS Denominator: | |||||||||||||||||||||||||||||
Weighted average common shares - basic | 112,383 | 112,347 | 112,314 | 112,293 | 112,231 | ||||||||||||||||||||||||
Dilutive effect of share-based compensation awards | 643 | 711 | 696 | 492 | 509 | ||||||||||||||||||||||||
Dilutive exchangeable debt | — | 664 | — | — | — | ||||||||||||||||||||||||
Weighted average common shares - diluted | 113,026 | 113,722 | 113,010 | 112,785 | 112,740 | ||||||||||||||||||||||||
Diluted EPS | $ | 0.31 | $ | 0.31 | $ | 0.32 | $ | 0.31 | $ | 0.29 | |||||||||||||||||||
Weighted Average Shares for period ended: | |||||||||||||||||||||||||||||
Common shares | 112,383 | 112,347 | 112,314 | 112,293 | 112,231 | ||||||||||||||||||||||||
Dilutive effect of share-based compensation awards | 643 | 711 | 696 | 492 | 509 | ||||||||||||||||||||||||
Common units | 2,047 | 1,664 | 1,696 | 1,703 | 1,625 | ||||||||||||||||||||||||
Redeemable noncontrolling interest | — | — | — | 926 | 947 | ||||||||||||||||||||||||
Dilutive exchangeable debt | — | 664 | — | — | — | ||||||||||||||||||||||||
Denominator for diluted FFO per share and as adjusted for comparability | 115,073 | 115,386 | 114,706 | 115,414 | 115,312 | ||||||||||||||||||||||||
Weighted average common units | (2,047) | (1,664) | (1,696) | (1,703) | (1,625) | ||||||||||||||||||||||||
Redeemable noncontrolling interest | — | — | — | (926) | (947) | ||||||||||||||||||||||||
Denominator for diluted EPS | 113,026 | 113,722 | 113,010 | 112,785 | 112,740 | ||||||||||||||||||||||||
Diluted FFO per share - Nareit (1) | $ | 0.65 | $ | 0.64 | $ | 0.65 | $ | 0.64 | $ | 0.62 | |||||||||||||||||||
Diluted FFO per share - as adjusted for comparability (1) | $ | 0.65 | $ | 0.65 | $ | 0.65 | $ | 0.64 | $ | 0.62 |
9 | 1Q 2025 Supplemental Information Package | ![]() |
Three Months Ended | |||||||||||||||||||||||||||||
3/31/25 | 12/31/24 | 9/30/24 | 6/30/24 | 3/31/24 | |||||||||||||||||||||||||
Diluted FFO available to common share and common unit holders, as adjusted for comparability (1) | $ | 74,393 | $ | 74,473 | $ | 74,974 | $ | 74,360 | $ | 71,969 | |||||||||||||||||||
Straight line rent adjustments and lease incentive amortization | (1,699) | 2,950 | 613 | 3,788 | 3,473 | ||||||||||||||||||||||||
Amortization of intangibles and other assets included in NOI | 162 | 211 | 211 | 211 | 122 | ||||||||||||||||||||||||
Share-based compensation, net of amounts capitalized | 2,854 | 2,617 | 2,617 | 2,564 | 2,645 | ||||||||||||||||||||||||
Amortization of deferred financing costs | 667 | 671 | 671 | 681 | 685 | ||||||||||||||||||||||||
Amortization of net debt discounts, net of amounts capitalized | 1,051 | 1,041 | 1,032 | 1,023 | 1,014 | ||||||||||||||||||||||||
Replacement capital expenditures (1) | (21,464) | (34,134) | (27,824) | (21,250) | (20,776) | ||||||||||||||||||||||||
Other | 81 | 73 | 298 | 58 | 137 | ||||||||||||||||||||||||
Diluted AFFO available to common share and common unit holders (“diluted AFFO”) (1) | $ | 56,045 | $ | 47,902 | $ | 52,592 | $ | 61,435 | $ | 59,269 | |||||||||||||||||||
Replacement capital expenditures (1) | |||||||||||||||||||||||||||||
Tenant improvements and incentives | $ | 13,758 | $ | 22,912 | $ | 18,772 | $ | 15,045 | $ | 12,776 | |||||||||||||||||||
Building improvements | 1,872 | 10,942 | 6,694 | 5,705 | 4,953 | ||||||||||||||||||||||||
Leasing costs | 3,461 | 2,629 | 3,013 | 3,110 | 3,590 | ||||||||||||||||||||||||
Net additions to (exclusions from) tenant improvements and incentives | 3,538 | (7) | 728 | (1,040) | 316 | ||||||||||||||||||||||||
Excluded building improvements | (201) | (2,342) | (1,383) | (1,570) | (818) | ||||||||||||||||||||||||
Excluded leasing costs | (964) | — | — | — | (41) | ||||||||||||||||||||||||
Replacement capital expenditures | $ | 21,464 | $ | 34,134 | $ | 27,824 | $ | 21,250 | $ | 20,776 |
10 | 1Q 2025 Supplemental Information Package | ![]() |
Three Months Ended | |||||||||||||||||||||||||||||
3/31/25 | 12/31/24 | 9/30/24 | 6/30/24 | 3/31/24 | |||||||||||||||||||||||||
Net income | $ | 36,228 | $ | 36,467 | $ | 37,397 | $ | 36,407 | $ | 33,671 | |||||||||||||||||||
Interest expense | 20,504 | 20,391 | 20,376 | 20,617 | 20,767 | ||||||||||||||||||||||||
Income tax expense (benefit) | 103 | (24) | 130 | 14 | 168 | ||||||||||||||||||||||||
Real estate-related depreciation and amortization | 39,359 | 38,821 | 38,307 | 38,161 | 38,351 | ||||||||||||||||||||||||
Other depreciation and amortization | 542 | 589 | 614 | 564 | 608 | ||||||||||||||||||||||||
Gain on sales of real estate | (300) | — | — | — | — | ||||||||||||||||||||||||
Adjustments from unconsolidated real estate JVs | 1,518 | 1,681 | 1,759 | 1,709 | 1,671 | ||||||||||||||||||||||||
EBITDAre (1) | 97,954 | 97,925 | 98,583 | 97,472 | 95,236 | ||||||||||||||||||||||||
Credit loss expense (recoveries) | 515 | (113) | 38 | 436 | 22 | ||||||||||||||||||||||||
Business development expenses | 593 | 758 | 557 | 603 | 630 | ||||||||||||||||||||||||
Executive transition costs | 57 | 58 | 69 | 81 | 430 | ||||||||||||||||||||||||
Net gain on other investments | — | — | (11) | — | (477) | ||||||||||||||||||||||||
Adjusted EBITDA (1) | 99,119 | 98,628 | 99,236 | 98,592 | 95,841 | ||||||||||||||||||||||||
Pro forma NOI adjustment for property changes within period | 786 | 528 | — | — | 813 | ||||||||||||||||||||||||
Change in collectability of deferred rental revenue | 1,232 | 1,646 | — | 27 | — | ||||||||||||||||||||||||
In-place adjusted EBITDA (1) | $ | 101,137 | $ | 100,802 | $ | 99,236 | $ | 98,619 | $ | 96,654 | |||||||||||||||||||
11 | 1Q 2025 Supplemental Information Package | ![]() |
# of Properties | Operational Square Feet | % Occupied | % Leased | |||||||||||||||||||||||
Defense/IT Portfolio: | ||||||||||||||||||||||||||
Fort Meade/Baltimore Washington (“BW”) Corridor: | ||||||||||||||||||||||||||
National Business Park (Annapolis Junction, MD) | 34 | 4,288 | 97.9% | 98.0% | ||||||||||||||||||||||
Howard County, MD | 36 | 3,063 | 90.5% | 93.0% | ||||||||||||||||||||||
Other (1) | 25 | 1,883 | 92.5% | 94.2% | ||||||||||||||||||||||
Total Fort Meade/BW Corridor | 95 | 9,234 | 94.4% | 95.6% | ||||||||||||||||||||||
Northern Virginia (“NoVA”) Defense/IT | 16 | 2,500 | 92.2% | 93.8% | ||||||||||||||||||||||
Lackland Air Force Base (San Antonio, Texas) | 9 | 1,142 | 100.0% | 100.0% | ||||||||||||||||||||||
Navy Support | 22 | 1,271 | 81.6% | 88.1% | ||||||||||||||||||||||
Redstone Arsenal (Huntsville, Alabama) | 25 | 2,485 | 95.3% | 97.9% | ||||||||||||||||||||||
Data Center Shells: | ||||||||||||||||||||||||||
Consolidated Properties | 7 | 1,633 | 100.0% | 100.0% | ||||||||||||||||||||||
Unconsolidated JV Properties (2) | 24 | 4,295 | 100.0% | 100.0% | ||||||||||||||||||||||
Total Defense/IT Portfolio | 198 | 22,560 | 95.3% | 96.6% | ||||||||||||||||||||||
Other (1) | 6 | 1,988 | 74.7% | 77.6% | ||||||||||||||||||||||
Total Portfolio | 204 | 24,548 | 93.6% | 95.1% | ||||||||||||||||||||||
Consolidated Portfolio | 180 | 20,253 | 92.3% | 94.0% |
12 | 1Q 2025 Supplemental Information Package | ![]() |
Three Months Ended | |||||||||||||||||||||||||||||
3/31/25 | 12/31/24 | 9/30/24 | 6/30/24 | 3/31/24 | |||||||||||||||||||||||||
Consolidated real estate revenues | |||||||||||||||||||||||||||||
Defense/IT Portfolio: | |||||||||||||||||||||||||||||
Fort Meade/BW Corridor | $ | 84,608 | $ | 79,307 | $ | 80,757 | $ | 78,419 | $ | 78,836 | |||||||||||||||||||
NoVA Defense/IT | 23,162 | 21,924 | 22,083 | 20,601 | 21,426 | ||||||||||||||||||||||||
Lackland Air Force Base | 16,410 | 18,100 | 16,879 | 16,447 | 16,411 | ||||||||||||||||||||||||
Navy Support | 7,960 | 8,094 | 8,068 | 8,240 | 8,226 | ||||||||||||||||||||||||
Redstone Arsenal | 16,422 | 17,160 | 18,332 | 17,017 | 16,808 | ||||||||||||||||||||||||
Data Center Shells-Consolidated | 10,865 | 10,104 | 9,029 | 9,600 | 8,457 | ||||||||||||||||||||||||
Total Defense/IT Portfolio | 159,427 | 154,689 | 155,148 | 150,324 | 150,164 | ||||||||||||||||||||||||
Other | 18,170 | 16,717 | 17,415 | 16,761 | 16,499 | ||||||||||||||||||||||||
Consolidated real estate revenues (1) | $ | 177,597 | $ | 171,406 | $ | 172,563 | $ | 167,085 | $ | 166,663 | |||||||||||||||||||
NOI from real estate operations (2) | |||||||||||||||||||||||||||||
Defense/IT Portfolio: | |||||||||||||||||||||||||||||
Fort Meade/BW Corridor | $ | 52,678 | $ | 52,236 | $ | 52,415 | $ | 53,420 | $ | 50,459 | |||||||||||||||||||
NoVA Defense/IT | 13,073 | 13,309 | 12,831 | 11,671 | 12,164 | ||||||||||||||||||||||||
Lackland Air Force Base | 7,411 | 7,576 | 7,719 | 7,650 | 7,723 | ||||||||||||||||||||||||
Navy Support | 3,794 | 4,291 | 3,984 | 4,607 | 4,600 | ||||||||||||||||||||||||
Redstone Arsenal | 10,128 | 10,951 | 11,869 | 11,296 | 11,016 | ||||||||||||||||||||||||
Data Center Shells: | |||||||||||||||||||||||||||||
Consolidated properties | 9,012 | 8,568 | 7,475 | 7,509 | 7,514 | ||||||||||||||||||||||||
COPT Defense’s share of unconsolidated real estate JVs | 1,889 | 1,898 | 1,844 | 1,735 | 1,740 | ||||||||||||||||||||||||
Total Defense/IT Portfolio | 97,985 | 98,829 | 98,137 | 97,888 | 95,216 | ||||||||||||||||||||||||
Other | 9,461 | 7,511 | 7,389 | 7,522 | 6,441 | ||||||||||||||||||||||||
NOI from real estate operations (1) | $ | 107,446 | $ | 106,340 | $ | 105,526 | $ | 105,410 | $ | 101,657 |
13 | 1Q 2025 Supplemental Information Package | ![]() |
Three Months Ended | |||||||||||||||||||||||||||||
3/31/25 | 12/31/24 | 9/30/24 | 6/30/24 | 3/31/24 | |||||||||||||||||||||||||
Cash NOI from real estate operations (1) | |||||||||||||||||||||||||||||
Defense/IT Portfolio: | |||||||||||||||||||||||||||||
Fort Meade/BW Corridor | $ | 50,104 | $ | 52,096 | $ | 50,314 | $ | 51,380 | $ | 47,396 | |||||||||||||||||||
NoVA Defense/IT | 12,263 | 13,308 | 13,223 | 12,452 | 12,933 | ||||||||||||||||||||||||
Lackland Air Force Base | 8,086 | 8,194 | 8,218 | 8,124 | 8,186 | ||||||||||||||||||||||||
Navy Support | 3,833 | 4,215 | 4,000 | 4,656 | 4,503 | ||||||||||||||||||||||||
Redstone Arsenal | 8,723 | 8,554 | 9,730 | 9,034 | 6,308 | ||||||||||||||||||||||||
Data Center Shells: | |||||||||||||||||||||||||||||
Consolidated properties | 7,002 | 6,783 | 6,739 | 6,748 | 6,688 | ||||||||||||||||||||||||
COPT Defense’s share of unconsolidated real estate JVs | 1,628 | 1,611 | 1,565 | 1,481 | 1,477 | ||||||||||||||||||||||||
Total Defense/IT Portfolio | 91,639 | 94,761 | 93,789 | 93,875 | 87,491 | ||||||||||||||||||||||||
Other | 9,586 | 7,815 | 7,340 | 7,506 | 6,444 | ||||||||||||||||||||||||
Cash NOI from real estate operations (2) | $ | 101,225 | $ | 102,576 | $ | 101,129 | $ | 101,381 | $ | 93,935 | |||||||||||||||||||
14 | 1Q 2025 Supplemental Information Package | ![]() |
As of Period End | NOI 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 Grouping | Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||
Defense/IT Portfolio: | ||||||||||||||||||||||||||||||||||||||||||||
Same Property: (2) | ||||||||||||||||||||||||||||||||||||||||||||
Consolidated properties | 168 | 17,573 | 94.9% | 96.0% | $ | 600,998 | 86.6 | % | $ | 93,308 | ||||||||||||||||||||||||||||||||||
Unconsolidated JV properties | 24 | 4,295 | 100.0% | 100.0% | 8,166 | 1.2 | % | 1,889 | ||||||||||||||||||||||||||||||||||||
Total Same Property in Defense/IT Portfolio | 192 | 21,868 | 95.9% | 96.8% | 609,164 | 87.8 | % | 95,197 | ||||||||||||||||||||||||||||||||||||
Properties Placed in Service (4) | 4 | 409 | 81.8% | 93.5% | 8,844 | 1.3 | % | 2,472 | ||||||||||||||||||||||||||||||||||||
Acquired properties | 2 | 283 | 67.4% | 84.4% | 6,845 | 1.0 | % | 316 | ||||||||||||||||||||||||||||||||||||
Total Defense/IT Portfolio | 198 | 22,560 | 95.3% | 96.6% | 624,853 | 90.1 | % | 97,985 | ||||||||||||||||||||||||||||||||||||
Other | 6 | 1,988 | 74.7% | 77.6% | 68,954 | 9.9 | % | 9,461 | ||||||||||||||||||||||||||||||||||||
Total Portfolio | 204 | 24,548 | 93.6% | 95.1% | $ | 693,807 | 100.0 | % | $ | 107,446 | ||||||||||||||||||||||||||||||||||
Consolidated Portfolio | 180 | 20,253 | 92.3% | 94.0% | $ | 685,641 | 98.8 | % | $ | 105,557 | ||||||||||||||||||||||||||||||||||
15 | 1Q 2025 Supplemental Information Package | ![]() |
# of Properties | Operational Square Feet | Three Months Ended | |||||||||||||||||||||||||||||||||||||||
3/31/25 | 12/31/24 | 9/30/24 | 6/30/24 | 3/31/24 | |||||||||||||||||||||||||||||||||||||
Defense/IT Portfolio: | |||||||||||||||||||||||||||||||||||||||||
Fort Meade/BW Corridor | 94 | 9,031 | 95.6 | % | 96.0 | % | 95.7 | % | 95.8 | % | 96.0 | % | |||||||||||||||||||||||||||||
NoVA Defense/IT | 16 | 2,500 | 92.3 | % | 91.1 | % | 90.7 | % | 88.5 | % | 87.9 | % | |||||||||||||||||||||||||||||
Lackland Air Force Base | 8 | 1,062 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||||||||||||||||
Navy Support | 22 | 1,271 | 82.1 | % | 82.9 | % | 83.1 | % | 85.1 | % | 85.1 | % | |||||||||||||||||||||||||||||
Redstone Arsenal | 22 | 2,301 | 97.6 | % | 97.5 | % | 97.4 | % | 96.7 | % | 97.5 | % | |||||||||||||||||||||||||||||
Data Center Shells: | |||||||||||||||||||||||||||||||||||||||||
Consolidated properties | 6 | 1,408 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||||||||||||||||
Unconsolidated JV properties | 24 | 4,295 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||||||||||||||||
Total Defense/IT Portfolio | 192 | 21,868 | 96.0 | % | 96.1 | % | 95.9 | % | 95.7 | % | 95.8 | % | |||||||||||||||||||||||||||||
Other | 6 | 1,988 | 73.3 | % | 72.7 | % | 73.1 | % | 72.5 | % | 71.7 | % | |||||||||||||||||||||||||||||
Total Same Property | 198 | 23,856 | 94.1 | % | 94.1 | % | 94.0 | % | 93.8 | % | 93.8 | % | |||||||||||||||||||||||||||||
Same Property (1) Period End Occupancy Rates by Segment (square feet in thousands) | |||||||||||||||||||||||||||||||||||||||||
# of Properties | Operational Square Feet | ||||||||||||||||||||||||||||||||||||||||
3/31/25 | 12/31/24 | 9/30/24 | 6/30/24 | 3/31/24 | |||||||||||||||||||||||||||||||||||||
Defense/IT Portfolio: | |||||||||||||||||||||||||||||||||||||||||
Fort Meade/BW Corridor | 94 | 9,031 | 95.3 | % | 96.7 | % | 95.4 | % | 95.7 | % | 95.9 | % | |||||||||||||||||||||||||||||
NoVA Defense/IT | 16 | 2,500 | 92.2 | % | 91.7 | % | 90.5 | % | 89.2 | % | 88.2 | % | |||||||||||||||||||||||||||||
Lackland Air Force Base | 8 | 1,062 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||||||||||||||||
Navy Support | 22 | 1,271 | 81.6 | % | 82.6 | % | 83.3 | % | 84.5 | % | 85.9 | % | |||||||||||||||||||||||||||||
Redstone Arsenal | 22 | 2,301 | 98.1 | % | 97.4 | % | 97.6 | % | 96.7 | % | 97.3 | % | |||||||||||||||||||||||||||||
Data Center Shells: | |||||||||||||||||||||||||||||||||||||||||
Consolidated properties | 6 | 1,408 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||||||||||||||||
Unconsolidated JV properties | 24 | 4,295 | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||||||||||||||||
Total Defense/IT Portfolio | 192 | 21,868 | 95.9 | % | 96.4 | % | 95.8 | % | 95.8 | % | 95.8 | % | |||||||||||||||||||||||||||||
Other | 6 | 1,988 | 74.7 | % | 72.7 | % | 73.4 | % | 73.1 | % | 72.2 | % | |||||||||||||||||||||||||||||
Total Same Property | 198 | 23,856 | 94.1 | % | 94.4 | % | 93.9 | % | 93.9 | % | 93.9 | % |
16 | 1Q 2025 Supplemental Information Package | ![]() |
Three Months Ended | |||||||||||||||||||||||||||||
3/31/25 | 12/31/24 | 9/30/24 | 6/30/24 | 3/31/24 | |||||||||||||||||||||||||
Same Property real estate revenues | |||||||||||||||||||||||||||||
Defense/IT Portfolio: | |||||||||||||||||||||||||||||
Fort Meade/BW Corridor | $ | 83,584 | $ | 78,371 | $ | 79,803 | $ | 77,448 | $ | 78,674 | |||||||||||||||||||
NoVA Defense/IT | 23,162 | 21,924 | 22,084 | 20,600 | 21,426 | ||||||||||||||||||||||||
Lackland Air Force Base | 16,416 | 18,098 | 16,879 | 16,447 | 16,411 | ||||||||||||||||||||||||
Navy Support | 7,960 | 8,095 | 8,067 | 8,240 | 8,227 | ||||||||||||||||||||||||
Redstone Arsenal | 15,096 | 15,876 | 17,127 | 16,078 | 16,411 | ||||||||||||||||||||||||
Data Center Shells-Consolidated | 9,304 | 9,044 | 9,033 | 9,600 | 8,457 | ||||||||||||||||||||||||
Total Defense/IT Portfolio | 155,522 | 151,408 | 152,993 | 148,413 | 149,606 | ||||||||||||||||||||||||
Other | 15,675 | 14,506 | 15,368 | 14,742 | 14,493 | ||||||||||||||||||||||||
Same Property real estate revenues | $ | 171,197 | $ | 165,914 | $ | 168,361 | $ | 163,155 | $ | 164,099 | |||||||||||||||||||
Same Property NOI from real estate operations (“NOI”) | |||||||||||||||||||||||||||||
Defense/IT Portfolio: | |||||||||||||||||||||||||||||
Fort Meade/BW Corridor | $ | 52,167 | $ | 51,773 | $ | 51,958 | $ | 53,050 | $ | 50,389 | |||||||||||||||||||
NoVA Defense/IT | 13,072 | 13,309 | 12,832 | 11,670 | 12,164 | ||||||||||||||||||||||||
Lackland Air Force Base | 7,607 | 7,740 | 7,724 | 7,650 | 7,723 | ||||||||||||||||||||||||
Navy Support | 3,794 | 4,292 | 3,984 | 4,607 | 4,600 | ||||||||||||||||||||||||
Redstone Arsenal | 9,180 | 9,995 | 10,964 | 10,452 | 10,754 | ||||||||||||||||||||||||
Data Center Shells: | |||||||||||||||||||||||||||||
Consolidated properties | 7,488 | 7,508 | 7,514 | 7,509 | 7,509 | ||||||||||||||||||||||||
COPT Defense’s share of unconsolidated real estate JVs | 1,889 | 1,898 | 1,844 | 1,735 | 1,740 | ||||||||||||||||||||||||
Total Defense/IT Portfolio | 95,197 | 96,515 | 96,820 | 96,673 | 94,879 | ||||||||||||||||||||||||
Other | 9,079 | 7,304 | 7,224 | 7,419 | 6,233 | ||||||||||||||||||||||||
Same Property NOI (1) | $ | 104,276 | $ | 103,819 | $ | 104,044 | $ | 104,092 | $ | 101,112 | |||||||||||||||||||
17 | 1Q 2025 Supplemental Information Package | ![]() |
Three Months Ended | |||||||||||||||||||||||||||||
3/31/25 | 12/31/24 | 9/30/24 | 6/30/24 | 3/31/24 | |||||||||||||||||||||||||
Same Property cash NOI from real estate operations (“cash NOI”) | |||||||||||||||||||||||||||||
Defense/IT Portfolio: | |||||||||||||||||||||||||||||
Fort Meade/BW Corridor | $ | 49,457 | $ | 51,525 | $ | 49,748 | $ | 50,899 | $ | 47,285 | |||||||||||||||||||
NoVA Defense/IT | 12,263 | 13,308 | 13,223 | 12,452 | 12,933 | ||||||||||||||||||||||||
Lackland Air Force Base | 8,283 | 8,357 | 8,223 | 8,124 | 8,186 | ||||||||||||||||||||||||
Navy Support | 3,833 | 4,215 | 4,000 | 4,656 | 4,503 | ||||||||||||||||||||||||
Redstone Arsenal | 8,509 | 8,315 | 9,532 | 8,790 | 6,327 | ||||||||||||||||||||||||
Data Center Shells: | |||||||||||||||||||||||||||||
Consolidated properties | 7,039 | 6,780 | 6,779 | 6,748 | 6,683 | ||||||||||||||||||||||||
COPT Defense’s share of unconsolidated real estate JVs | 1,628 | 1,611 | 1,565 | 1,481 | 1,477 | ||||||||||||||||||||||||
Total Defense/IT Portfolio | 91,012 | 94,111 | 93,070 | 93,150 | 87,394 | ||||||||||||||||||||||||
Other | 9,150 | 7,518 | 7,093 | 7,322 | 6,161 | ||||||||||||||||||||||||
Same Property cash NOI (1) | $ | 100,162 | $ | 101,629 | $ | 100,163 | $ | 100,472 | $ | 93,555 | |||||||||||||||||||
Percentage change in total Same Property cash NOI (1)(2) | 7.1% | ||||||||||||||||||||||||||||
Percentage change in Defense/IT Portfolio Same Property cash NOI (2) | 4.1% |
18 | 1Q 2025 Supplemental Information Package | ![]() |
Defense/IT Portfolio | |||||||||||||||||||||||||||||||||||||||||
Ft Meade/BW Corridor | NoVA Defense/IT | Navy Support | Redstone Arsenal | Total Defense/IT Portfolio | Other | Total | |||||||||||||||||||||||||||||||||||
Renewed Space | |||||||||||||||||||||||||||||||||||||||||
Leased Square Feet | 359 | — | 54 | 25 | 438 | — | 438 | ||||||||||||||||||||||||||||||||||
Expiring Square Feet | 473 | 6 | 81 | 25 | 585 | — | 585 | ||||||||||||||||||||||||||||||||||
Vacating Square Feet | 114 | 6 | 27 | — | 147 | — | 147 | ||||||||||||||||||||||||||||||||||
Retention Rate (% based upon square feet) | 75.8 | % | — | % | 67.1 | % | 100.0 | % | 74.9 | % | — | % | 74.9 | % | |||||||||||||||||||||||||||
Statistics for Completed Leasing: | |||||||||||||||||||||||||||||||||||||||||
Per Annum Average Committed Cost per Square Foot | $ | 2.22 | $ | — | $ | 3.01 | $ | 0.69 | $ | 2.23 | $ | — | $ | 2.23 | |||||||||||||||||||||||||||
Weighted Average Lease Term in Years | 3.2 | — | 5.4 | 1.9 | 3.4 | — | 3.4 | ||||||||||||||||||||||||||||||||||
Straight-line Rent Per Square Foot | |||||||||||||||||||||||||||||||||||||||||
Renewal Straight-line Rent | $ | 37.57 | $ | — | $ | 31.36 | $ | 29.80 | $ | 36.36 | $ | — | $ | 36.36 | |||||||||||||||||||||||||||
Expiring Straight-line Rent | $ | 34.38 | $ | — | $ | 31.49 | $ | 27.34 | $ | 33.62 | $ | — | $ | 33.62 | |||||||||||||||||||||||||||
Change in Straight-line Rent | 9.3 | % | — | % | (0.4 | %) | 9.0 | % | 8.2 | % | — | % | 8.2 | % | |||||||||||||||||||||||||||
Cash Rent Per Square Foot | |||||||||||||||||||||||||||||||||||||||||
Renewal Cash Rent | $ | 37.58 | $ | — | $ | 34.94 | $ | 29.43 | $ | 36.79 | $ | — | $ | 36.79 | |||||||||||||||||||||||||||
Expiring Cash Rent | $ | 38.04 | $ | — | $ | 34.85 | $ | 29.02 | $ | 37.13 | $ | — | $ | 37.13 | |||||||||||||||||||||||||||
Change in Cash Rent | (1.2 | %) | — | % | 0.3 | % | 1.4 | % | (0.9 | %) | — | % | (0.9 | %) | |||||||||||||||||||||||||||
Compound Annual Growth Rate | 2.2 | % | — | % | 3.7 | % | 2.5 | % | 2.4 | % | — | % | 2.4 | % | |||||||||||||||||||||||||||
Average Escalations Per Year | 2.6 | % | — | % | 2.3 | % | 2.8 | % | 2.6 | % | — | % | 2.6 | % | |||||||||||||||||||||||||||
New Leases | |||||||||||||||||||||||||||||||||||||||||
Investment Space | |||||||||||||||||||||||||||||||||||||||||
Leased Square Feet | 48 | — | — | 41 | 89 | — | 89 | ||||||||||||||||||||||||||||||||||
Statistics for Completed Leasing: | |||||||||||||||||||||||||||||||||||||||||
Per Annum Average Committed Cost per Square Foot | $ | 9.62 | $ | — | $ | — | $ | — | $ | 5.21 | $ | — | $ | 5.21 | |||||||||||||||||||||||||||
Weighted Average Lease Term in Years | 10.9 | — | — | 10.0 | 10.5 | — | 10.5 | ||||||||||||||||||||||||||||||||||
Straight-line Rent Per Square Foot | $ | 30.62 | $ | — | $ | — | $ | 22.09 | $ | 26.71 | $ | — | $ | 26.71 | |||||||||||||||||||||||||||
Cash Rent Per Square Foot | $ | 29.50 | $ | — | $ | — | $ | 22.75 | $ | 26.40 | $ | — | $ | 26.40 | |||||||||||||||||||||||||||
Vacant Space | |||||||||||||||||||||||||||||||||||||||||
Leased Square Feet | 58 | 9 | 22 | 20 | 109 | 12 | 120 | ||||||||||||||||||||||||||||||||||
Statistics for Completed Leasing: | |||||||||||||||||||||||||||||||||||||||||
Per Annum Average Committed Cost per Square Foot | $ | 8.21 | $ | 12.55 | $ | 8.72 | $ | 5.86 | $ | 8.27 | $ | 6.14 | $ | 8.06 | |||||||||||||||||||||||||||
Weighted Average Lease Term in Years | 9.4 | 8.1 | 4.0 | 4.2 | 7.3 | 5.7 | 7.1 | ||||||||||||||||||||||||||||||||||
Straight-line Rent Per Square Foot | $ | 31.28 | $ | 33.86 | $ | 36.27 | $ | 26.96 | $ | 31.73 | $ | 33.09 | $ | 31.86 | |||||||||||||||||||||||||||
Cash Rent Per Square Foot | $ | 29.47 | $ | 33.50 | $ | 37.23 | $ | 27.67 | $ | 31.06 | $ | 39.00 | $ | 31.83 | |||||||||||||||||||||||||||
Total Square Feet Leased | 465 | 9 | 76 | 86 | 636 | 12 | 647 | ||||||||||||||||||||||||||||||||||
Average Escalations Per Year | 2.8 | % | 2.5 | % | 2.3 | % | 2.1 | % | 2.6 | % | 2.8 | % | 2.6 | % | |||||||||||||||||||||||||||
19 | 1Q 2025 Supplemental Information Package | ![]() |
Segment of Lease and Year of Expiration (2) | Square Footage of Leases Expiring | Annualized 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 | ||||||||||||||||||||||||||
Fort Meade/BW Corridor | 1,383 | $ | 58,422 | 9.3 | % | $ | 42.20 | |||||||||||||||||||
NoVA Defense/IT | 64 | 2,195 | 0.4 | % | 34.41 | |||||||||||||||||||||
Lackland Air Force Base | 703 | 46,207 | 7.4 | % | 65.76 | |||||||||||||||||||||
Navy Support | 88 | 2,051 | 0.3 | % | 23.36 | |||||||||||||||||||||
Redstone Arsenal | 203 | 4,774 | 0.8 | % | 23.48 | |||||||||||||||||||||
2025 | 2,441 | 113,649 | 18.2 | % | 46.54 | |||||||||||||||||||||
Fort Meade/BW Corridor | 889 | 35,651 | 5.7 | % | 40.10 | |||||||||||||||||||||
NoVA Defense/IT | 68 | 2,397 | 0.4 | % | 35.29 | |||||||||||||||||||||
Lackland Air Force Base | 250 | 13,027 | 2.1 | % | 52.10 | |||||||||||||||||||||
Navy Support | 249 | 7,787 | 1.2 | % | 31.28 | |||||||||||||||||||||
Redstone Arsenal | 124 | 3,278 | 0.5 | % | 26.51 | |||||||||||||||||||||
Data Center Shells-Unconsolidated JV Properties | 446 | 860 | 0.1 | % | 19.29 | |||||||||||||||||||||
2026 | 2,026 | 63,000 | 10.1 | % | 38.79 | |||||||||||||||||||||
Fort Meade/BW Corridor | 1,002 | 38,886 | 6.2 | % | 38.76 | |||||||||||||||||||||
NoVA Defense/IT | 190 | 6,626 | 1.1 | % | 34.82 | |||||||||||||||||||||
Navy Support | 261 | 9,486 | 1.5 | % | 36.40 | |||||||||||||||||||||
Redstone Arsenal | 173 | 4,860 | 0.8 | % | 28.04 | |||||||||||||||||||||
Data Center Shells-Unconsolidated JV Properties | 364 | 540 | 0.1 | % | 14.81 | |||||||||||||||||||||
2027 | 1,990 | 60,397 | 9.7 | % | 36.30 | |||||||||||||||||||||
Fort Meade/BW Corridor | 2,041 | 75,852 | 12.1 | % | 37.11 | |||||||||||||||||||||
NoVA Defense/IT | 408 | 16,968 | 2.7 | % | 41.55 | |||||||||||||||||||||
Navy Support | 116 | 2,811 | 0.4 | % | 24.19 | |||||||||||||||||||||
Redstone Arsenal | 44 | 1,241 | 0.2 | % | 27.95 | |||||||||||||||||||||
Data Center Shells-Unconsolidated JV Properties | 515 | 906 | 0.1 | % | 17.58 | |||||||||||||||||||||
2028 | 3,124 | 97,779 | 15.6 | % | 36.70 | |||||||||||||||||||||
Fort Meade/BW Corridor | 970 | 31,523 | 5.0 | % | 32.47 | |||||||||||||||||||||
NoVA Defense/IT | 657 | 25,479 | 4.1 | % | 38.76 | |||||||||||||||||||||
Navy Support | 123 | 3,634 | 0.6 | % | 29.54 | |||||||||||||||||||||
Redstone Arsenal | 374 | 7,554 | 1.2 | % | 20.09 | |||||||||||||||||||||
Data Center Shells-Unconsolidated JV Properties | 992 | 2,325 | 0.4 | % | 23.45 | |||||||||||||||||||||
2029 | 3,116 | 70,515 | 11.3 | % | 31.68 | |||||||||||||||||||||
Thereafter | ||||||||||||||||||||||||||
Consolidated Properties | 6,818 | 215,978 | 34.6 | % | 30.88 | |||||||||||||||||||||
Unconsolidated JV Properties | 1,978 | 3,535 | 0.6 | % | 17.87 | |||||||||||||||||||||
Total Defense/IT Portfolio | 21,493 | $ | 624,853 | 100.0 | % | $ | 35.12 |
20 | 1Q 2025 Supplemental Information Package | ![]() |
Segment of Lease and Year of Expiration (2) | Square Footage of Leases Expiring | Annualized 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 Portfolio | 21,493 | $ | 624,853 | 90.1 | % | $ | 35.12 | |||||||||||||||||||
Other | ||||||||||||||||||||||||||
2025 | 84 | 2,058 | 0.3 | % | 24.35 | |||||||||||||||||||||
2026 | 163 | 6,156 | 0.9 | % | 37.82 | |||||||||||||||||||||
2027 | 88 | 3,939 | 0.6 | % | 44.35 | |||||||||||||||||||||
2028 | 244 | 16,187 | 2.3 | % | 37.57 | |||||||||||||||||||||
2029 | 157 | 6,563 | 0.9 | % | 41.74 | |||||||||||||||||||||
Thereafter | 750 | 34,051 | 4.9 | % | 45.38 | |||||||||||||||||||||
Total Other | 1,486 | 68,954 | 9.9 | % | 41.63 | |||||||||||||||||||||
Total Portfolio | 22,979 | $ | 693,807 | 100.0 | % | $ | 35.63 | |||||||||||||||||||
Consolidated Portfolio | 18,684 | $ | 685,641 | |||||||||||||||||||||||
Unconsolidated JV Properties | 4,295 | $ | 8,166 |
21 | 1Q 2025 Supplemental Information Package | ![]() |
Segment of Lease and Quarter of Expiration (2) | Square Footage of Leases Expiring | Annualized 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 | ||||||||||||||||||||||||||
Fort Meade/BW Corridor | 699 | $ | 31,539 | 5.0 | % | $ | 45.09 | |||||||||||||||||||
NoVA Defense/IT | 24 | 717 | 0.1 | % | 30.58 | |||||||||||||||||||||
Navy Support | 38 | 709 | 0.1 | % | 18.72 | |||||||||||||||||||||
Q2 2025 | 761 | 32,965 | 5.2 | % | 43.33 | |||||||||||||||||||||
Fort Meade/BW Corridor | 400 | 16,178 | 2.6 | % | 40.35 | |||||||||||||||||||||
NoVA Defense/IT | 2 | 71 | — | % | 34.66 | |||||||||||||||||||||
Lackland Air Force Base | 161 | 7,686 | 1.2 | % | 47.87 | |||||||||||||||||||||
Navy Support | 20 | 536 | 0.1 | % | 26.67 | |||||||||||||||||||||
Redstone Arsenal | 169 | 3,808 | 0.6 | % | 22.54 | |||||||||||||||||||||
Q3 2025 | 752 | 28,279 | 4.5 | % | 37.57 | |||||||||||||||||||||
Fort Meade/BW Corridor | 284 | 10,704 | 1.7 | % | 37.69 | |||||||||||||||||||||
NoVA Defense/IT | 38 | 1,408 | 0.2 | % | 36.74 | |||||||||||||||||||||
Lackland Air Force Base | 542 | 38,521 | 6.2 | % | 71.05 | |||||||||||||||||||||
Navy Support | 30 | 806 | 0.1 | % | 27.03 | |||||||||||||||||||||
Redstone Arsenal | 34 | 966 | 0.2 | % | 28.07 | |||||||||||||||||||||
Q4 2025 | 928 | 52,405 | 8.4 | % | 56.43 | |||||||||||||||||||||
2,441 | $ | 113,649 | 18.2 | % | $ | 46.54 | ||||||||||||||||||||
22 | 1Q 2025 Supplemental Information Package | ![]() |
Tenant | Total Annualized Rental Revenue (2) | % of Total Annualized Rental Revenue (2) | Occupied Square Feet | Weighted Average Remaining Lease Term (3) | ||||||||||||||||||||||
United States Government | (4) | $ | 250,513 | 36.1 | % | 5,644 | 3.2 | |||||||||||||||||||
Fortune 100 Company | 67,777 | 9.8 | % | 6,407 | 7.5 | |||||||||||||||||||||
General Dynamics Corporation | 32,987 | 4.8 | % | 674 | 3.6 | |||||||||||||||||||||
Northrop Grumman Corporation | 15,070 | 2.2 | % | 519 | 6.5 | |||||||||||||||||||||
The Boeing Company | 14,957 | 2.2 | % | 443 | 2.1 | |||||||||||||||||||||
CACI International Inc | 14,010 | 2.0 | % | 342 | 3.9 | |||||||||||||||||||||
Peraton Corp. | 13,701 | 2.0 | % | 346 | 4.5 | |||||||||||||||||||||
Fortune 100 Company | 12,003 | 1.7 | % | 183 | 9.5 | |||||||||||||||||||||
Booz Allen Hamilton, Inc. | 11,084 | 1.6 | % | 266 | 2.5 | |||||||||||||||||||||
Morrison & Foerster, LLP | 9,912 | 1.4 | % | 102 | 12.0 | |||||||||||||||||||||
KBR, Inc. | 7,794 | 1.1 | % | 287 | 8.8 | |||||||||||||||||||||
CareFirst, Inc. | 7,661 | 1.1 | % | 214 | 11.7 | |||||||||||||||||||||
Amentum Holdings, LLC | 7,485 | 1.1 | % | 202 | 4.0 | |||||||||||||||||||||
Yulista Holding, LLC | 7,258 | 1.0 | % | 368 | 4.7 | |||||||||||||||||||||
AT&T Corporation | 6,972 | 1.0 | % | 321 | 4.5 | |||||||||||||||||||||
Mantech International Corp. | 6,807 | 1.0 | % | 208 | 2.2 | |||||||||||||||||||||
University System of Maryland | 6,521 | 0.9 | % | 179 | 4.8 | |||||||||||||||||||||
Wells Fargo & Company | 5,964 | 0.9 | % | 138 | 3.8 | |||||||||||||||||||||
Lockheed Martin Corporation | 5,750 | 0.8 | % | 194 | 5.3 | |||||||||||||||||||||
Miles & Stockbridge, P.C. | 5,467 | 0.8 | % | 130 | 3.7 | |||||||||||||||||||||
Subtotal Top 20 Tenants | 509,693 | 73.5 | % | 17,167 | 5.3 | |||||||||||||||||||||
All remaining tenants | 184,114 | 26.5 | % | 5,812 | 4.3 | |||||||||||||||||||||
Total / Weighted Average | $ | 693,807 | 100.0 | % | 22,979 | 5.1 |
23 | 1Q 2025 Supplemental Information Package | ![]() |
Total Rentable Square Feet | % Leased as of 4/14/2025 | as of 3/31/25 (2) | Actual or Anticipated Shell Completion Date | Anticipated Operational Date (3) | |||||||||||||||||||||||||
Anticipated Total Cost | Cost to Date | Cost to Date Placed in Service | |||||||||||||||||||||||||||
Property and Segment/Sub-Segment | Location | ||||||||||||||||||||||||||||
Defense/IT Portfolio: | |||||||||||||||||||||||||||||
Fort Meade/BW Corridor: | |||||||||||||||||||||||||||||
400 National Business Parkway | Annapolis Junction, Maryland | 138 | 0% | $ | 65,100 | $ | 46,781 | $ | — | 2Q 25 | 2Q 26 | ||||||||||||||||||
Redstone Arsenal: | |||||||||||||||||||||||||||||
9700 Advanced Gateway (4) | Huntsville, Alabama | 50 | 100% | 14,600 | 10,998 | 2,171 | 1Q 25 | 3Q 25 | |||||||||||||||||||||
8500 Advanced Gateway | Huntsville, Alabama | 150 | 0% | 51,950 | 6,124 | — | 2Q 26 | 2Q 27 | |||||||||||||||||||||
Subtotal / Average | 200 | 25% | 66,550 | 17,122 | 2,171 | ||||||||||||||||||||||||
Data Center Shells: | |||||||||||||||||||||||||||||
MP 3 | Northern Virginia | 225 | 100% | 111,800 | 16,422 | — | 3Q 25 | 3Q 25 | |||||||||||||||||||||
Southpoint Phase 2 Bldg B | Northern Virginia | 193 | 100% | 65,000 | 11,077 | — | 4Q 25 | 4Q 25 | |||||||||||||||||||||
Data Center Shells Subtotal / Average | 418 | 100% | 176,800 | 27,499 | — | ||||||||||||||||||||||||
Total Defense/IT Portfolio Under Development | 756 | 62% | $ | 308,450 | $ | 91,402 | $ | 2,171 |
24 | 1Q 2025 Supplemental Information Package | ![]() |
Square Feet Placed in Service | Total Space Placed in Service % Leased as of 4/14/2025 | |||||||||||||||||||
Total Property | ||||||||||||||||||||
Property Segment/Sub-Segment | % Leased as of 4/14/2025 | Rentable Square Feet | 2025 | |||||||||||||||||
Property and Location | 1st Quarter | |||||||||||||||||||
9700 Advanced Gateway Huntsville, Alabama | Redstone Arsenal | 100% | 50 | 10 | 100% | |||||||||||||||
% Leased as of 4/14/2025 | 100% |
25 | 1Q 2025 Supplemental Information Package | ![]() |
Location | Acres | Estimated Developable Square Feet | Carrying Amount | ||||||||||||||
Defense/IT Portfolio land owned/controlled for future development: | |||||||||||||||||
Fort Meade/BW Corridor: | |||||||||||||||||
National Business Park (Annapolis Junction, MD) | 144 | 1,483 | |||||||||||||||
Howard County, MD | 19 | 290 | |||||||||||||||
Other | 126 | 1,338 | |||||||||||||||
Total Fort Meade/BW Corridor | 289 | 3,111 | |||||||||||||||
NoVA Defense/IT | 29 | 1,171 | |||||||||||||||
Navy Support | 38 | 64 | |||||||||||||||
Redstone Arsenal (2) | 287 | 3,200 | |||||||||||||||
Data Center Shells | 365 | 3,300 | |||||||||||||||
Total Defense/IT Portfolio land owned/controlled for future development | 1,008 | 10,846 | $ | 201,356 | |||||||||||||
Other land owned/controlled | 53 | 1,538 | 9,653 | ||||||||||||||
Land held, net | 1,061 | 12,384 | $ | 211,009 | |||||||||||||
26 | 1Q 2025 Supplemental Information Package | ![]() |
Wtd. Avg. Maturity (Years) (1) | Stated Rate | Effective Rate (2)(3) | Amount Outstanding at 3/31/25 | |||||||||||||||||||||||
Debt | ||||||||||||||||||||||||||
Secured debt | 1.1 | 4.81 | % | 4.40 | % | $ | 69,345 | |||||||||||||||||||
Unsecured debt | 4.6 | 3.19 | % | 3.35 | % | 2,365,211 | ||||||||||||||||||||
Total Consolidated Debt | 4.5 | 3.24 | % | 3.38 | % | $ | 2,434,556 | |||||||||||||||||||
Fixed-rate debt (3) | 4.7 | 2.96 | % | 3.34 | % | $ | 2,392,456 | |||||||||||||||||||
Variable-rate debt (3) | 2.5 | 5.66 | % | 5.74 | % | 42,100 | ||||||||||||||||||||
Total Consolidated Debt | $ | 2,434,556 | ||||||||||||||||||||||||
Common Equity | ||||||||||||||||||||||||||
Common Shares | 112,882 | |||||||||||||||||||||||||
Common Units (4) | 2,403 | |||||||||||||||||||||||||
Total Common Shares and Units | 115,285 | |||||||||||||||||||||||||
Closing Common Share Price on 3/31/25 | $ | 27.27 | ||||||||||||||||||||||||
Equity Market Capitalization (5) | $ | 3,143,822 | ||||||||||||||||||||||||
Total Market Capitalization (5) | $ | 5,578,378 | ||||||||||||||||||||||||
Investment Grade Ratings & Outlook | Latest Report | |||||||||||||||||||
Fitch | BBB- | Stable | 1/15/25 | |||||||||||||||||
Moody’s | Baa3 | Positive | 11/14/24 | |||||||||||||||||
S&P | BBB- | Stable | 4/11/25 |
27 | 1Q 2025 Supplemental Information Package | ![]() |
Unsecured Debt | Stated Rate | Amount Outstanding | Maturity Date | Secured Debt | Stated Rate | Amount Outstanding | Balloon Payment Due Upon Maturity | Maturity Date | |||||||||||||||||||||||||||||||||
Revolving Credit Facility | SOFR+ 0.10%+1.05% | $ | 95,000 | Oct-26 | (1)(2) | LW Redstone: | |||||||||||||||||||||||||||||||||||
4000 & 4100 Market Street and 8800 Redstone Gateway (2)(3) | SOFR +0.10%+1.55% | $ | 22,100 | $ | 21,800 | Mar-26 | (4) | ||||||||||||||||||||||||||||||||||
Senior Unsecured Notes | |||||||||||||||||||||||||||||||||||||||||
2.25% due 2026 | 2.25% | 400,000 | Mar-26 | M Square: | |||||||||||||||||||||||||||||||||||||
5.25% due 2028 | 5.25% | 345,000 | Sep-28 | (5) | 5825 & 5850 University Research Court (3) | 3.82% | 36,905 | $ | 35,603 | Jun-26 | |||||||||||||||||||||||||||||||
2.00% due 2029 | 2.00% | 400,000 | Jan-29 | ||||||||||||||||||||||||||||||||||||||
2.75% due 2031 | 2.75% | 600,000 | Apr-31 | 5801 University Research Court (2)(3) | SOFR +0.10%+1.45% | 10,340 | $ | 10,020 | Aug-26 | ||||||||||||||||||||||||||||||||
2.90% due 2033 | 2.90% | 400,000 | Dec-33 | ||||||||||||||||||||||||||||||||||||||
Subtotal - Senior Unsecured Notes | 2.95% | 2,145,000 | Total Secured Debt | 4.81% | $ | 69,345 | |||||||||||||||||||||||||||||||||||
Unsecured Bank Term Loan | SOFR+ 0.10%+1.30% | 125,000 | Jan-26 | (2)(6) | |||||||||||||||||||||||||||||||||||||
Other Unsecured Debt | 0.00% | 211 | May-26 | ||||||||||||||||||||||||||||||||||||||
Total Unsecured Debt | 3.19% | $ | 2,365,211 | ||||||||||||||||||||||||||||||||||||||
Debt Summary | |||||||||||||||||||||||||||||||||||||||||
Total Unsecured Debt | 3.19% | $ | 2,365,211 | ||||||||||||||||||||||||||||||||||||||
Total Secured Debt | 4.81% | 69,345 | |||||||||||||||||||||||||||||||||||||||
Consolidated Debt | 3.24% | $ | 2,434,556 | ||||||||||||||||||||||||||||||||||||||
Debt per balance sheet | $ | 2,412,670 | |||||||||||||||||||||||||||||||||||||||
Net discounts and deferred financing costs | 21,886 | ||||||||||||||||||||||||||||||||||||||||
Consolidated Debt | 2,434,556 | ||||||||||||||||||||||||||||||||||||||||
COPT Defense’s share of unconsolidated JV gross debt (7) | 53,750 | ||||||||||||||||||||||||||||||||||||||||
Gross debt | $ | 2,488,306 |
28 | 1Q 2025 Supplemental Information Package | ![]() |
29 | 1Q 2025 Supplemental Information Package | ![]() |
As of and for Three Months Ended 3/31/25 | As of and for Three Months Ended 3/31/25 | |||||||||||||||||||||||||||||||
Senior Note Covenants (1) | Required | Line of Credit & Term Loan Covenants (1) | Required | |||||||||||||||||||||||||||||
Total Debt / Total Assets | < 60% | 41.5% | Total Debt / Total Assets | < 60% | 37.8% | |||||||||||||||||||||||||||
Secured Debt / Total Assets | < 40% | 1.2% | Secured Debt / Total Assets | < 40% | 1.5% | |||||||||||||||||||||||||||
Debt Service Coverage | > 1.5x | 4.7x | Adjusted EBITDA / Fixed Charges | > 1.5x | 4.6x | |||||||||||||||||||||||||||
Unencumbered Assets / Unsecured Debt | > 150% | 241.1% | Unsecured Debt / Unencumbered Assets | < 60% | 37.8% | |||||||||||||||||||||||||||
Unencumbered Adjusted NOI / Unsecured Interest Expense | > 1.75x | 4.8x | ||||||||||||||||||||||||||||||
Debt Ratios | Page Refer. | Unencumbered Portfolio Analysis | ||||||||||||||||||||||||||||||
GAAP | # of unencumbered properties | 179 | ||||||||||||||||||||||||||||||
Debt per balance sheet | 6 | $ | 2,412,670 | % of total portfolio | 88 | % | ||||||||||||||||||||||||||
Total assets | 6 | $ | 4,250,311 | Unencumbered square feet in-service | 20,899 | |||||||||||||||||||||||||||
Debt to assets | 56.8 | % | % of total portfolio | 85 | % | |||||||||||||||||||||||||||
Net income | 7 | $ | 36,228 | NOI from unencumbered real estate operations | $ | 104,276 | ||||||||||||||||||||||||||
Debt to net income ratio (2) | 16.6 | x | % of total NOI from real estate operations | 97 | % | |||||||||||||||||||||||||||
Interest expense | 7 | $ | 20,504 | Adjusted EBITDA from unencumbered real estate operations | $ | 95,950 | ||||||||||||||||||||||||||
Net income to interest expense ratio (2) | 1.8 | x | % of total adjusted EBITDA from real estate operations | 97 | % | |||||||||||||||||||||||||||
Unencumbered adjusted book | $ | 5,848,887 | ||||||||||||||||||||||||||||||
Non-GAAP | % of total adjusted book | 97 | % | |||||||||||||||||||||||||||||
Net debt | 35 | $ | 2,462,248 | |||||||||||||||||||||||||||||
Adjusted book | 35 | $ | 6,050,003 | |||||||||||||||||||||||||||||
Net debt to adjusted book | 40.7 | % | ||||||||||||||||||||||||||||||
Net debt adj. for fully-leased investment properties | 35 | $ | 2,434,749 | |||||||||||||||||||||||||||||
In-place adjusted EBITDA | 11 | $ | 101,137 | |||||||||||||||||||||||||||||
Net debt to in-place adjusted EBITDA ratio | 6.1 | x | ||||||||||||||||||||||||||||||
Net debt adj. for fully-leased investment properties to in-place adj. EBITDA ratio | 6.0 | x | ||||||||||||||||||||||||||||||
Denominator for debt service coverage | 34 | $ | 19,999 | |||||||||||||||||||||||||||||
Denominator for fixed charge coverage | 34 | $ | 20,926 | |||||||||||||||||||||||||||||
Adjusted EBITDA | 11 | $ | 99,119 | |||||||||||||||||||||||||||||
Adjusted EBITDA debt service coverage ratio | 5.0 | x | ||||||||||||||||||||||||||||||
Adjusted EBITDA fixed charge coverage ratio | 4.7 | x |
30 | 1Q 2025 Supplemental Information Package | ![]() |
NOI from Real Estate Operations (1) | Venture Level Debt Outstanding (3) | COPT Defense Nominal Ownership % | ||||||||||||||||||||||||
Operating Properties | Operational Square Feet | % Occupied | % Leased | Three Months Ended | Total Assets (2) | |||||||||||||||||||||
Suburban Maryland: | ||||||||||||||||||||||||||
M Square Associates, LLC (4 properties) | 414 | 96.6% | 96.6% | $ | 1,900 | $ | 93,795 | $ | 47,245 | 50% | ||||||||||||||||
Huntsville, Alabama: | ||||||||||||||||||||||||||
LW Redstone Company, LLC (24 properties) | 2,348 | 95.9% | 98.2% | 9,610 | 618,755 | 22,100 | 85% | (4) | ||||||||||||||||||
Washington, D.C.: | ||||||||||||||||||||||||||
Stevens Place (1 property) | 188 | 83.5% | 92.2% | 1,466 | 141,648 | — | 95% | |||||||||||||||||||
Total / Average | 2,950 | 95.2% | 97.6% | $ | 12,976 | $ | 854,198 | $ | 69,345 | |||||||||||||||||
Non-Operating Properties | Estimated Developable Square Feet | Total Assets (2) | Venture Level Debt Outstanding | COPT Defense Nominal Ownership % | ||||||||||||||||
Suburban Maryland: | ||||||||||||||||||||
M Square Research Park | 348 | $ | 6,047 | $ | — | 50% | ||||||||||||||
Huntsville, Alabama: | ||||||||||||||||||||
Redstone Gateway (5) | 3,390 | 114,533 | — | 85% | (3) | |||||||||||||||
Total | 3,738 | $ | 120,580 | $ | — |
31 | 1Q 2025 Supplemental Information Package | ![]() |
Joint venture information | ||||||||||||||
COPT Defense ownership % | 10 | % | ||||||||||||
COPT Defense’s investment | $ | 35,065 | (2) | |||||||||||
# of Properties | 24 | |||||||||||||
Square Feet | 4,295 | |||||||||||||
% Occupied | 100 | % | ||||||||||||
COPT Defense’s share of ARR | $ | 8,166 | ||||||||||||
Balance sheet information | Total | COPT Defense’s Share (3) | ||||||||||||
Operating properties, net | $ | 932,868 | $ | 93,287 | ||||||||||
Total assets | $ | 1,028,040 | $ | 102,804 | ||||||||||
Debt (4) | $ | 536,205 | $ | 53,621 | ||||||||||
Total liabilities | $ | 611,902 | $ | 61,190 | ||||||||||
Three Months Ended | ||||||||||||||
Operating information | Total | COPT Defense’s Share (3) | ||||||||||||
Revenue | $ | 23,433 | $ | 2,344 | ||||||||||
Operating expenses | (4,548) | (455) | ||||||||||||
NOI from real estate operations and EBITDAre (5) | 18,885 | 1,889 | ||||||||||||
Interest expense | (7,769) | (777) | ||||||||||||
Depreciation and amortization | (7,873) | (741) | ||||||||||||
Net income | $ | 3,243 | $ | 371 | ||||||||||
NOI from real estate operations (per above) (5) | $ | 18,885 | $ | 1,889 | ||||||||||
Straight line rent adjustments | (768) | (77) | ||||||||||||
Amortization of acquired above- and below-market rents | (1,838) | (184) | ||||||||||||
Cash NOI from real estate operations (5) | $ | 16,279 | $ | 1,628 | ||||||||||
32 | 1Q 2025 Supplemental Information Package | ![]() |
Three Months Ended | |||||||||||||||||||||||||||||
3/31/25 | 12/31/24 | 9/30/24 | 6/30/24 | 3/31/24 | |||||||||||||||||||||||||
Net income | $ | 36,228 | $ | 36,467 | $ | 37,397 | $ | 36,407 | $ | 33,671 | |||||||||||||||||||
Construction contract and other service revenues | (10,259) | (12,027) | (16,662) | (20,258) | (26,603) | ||||||||||||||||||||||||
Depreciation and other amortization associated with real estate operations | 39,359 | 38,821 | 38,307 | 38,161 | 38,351 | ||||||||||||||||||||||||
Construction contract and other service expenses | 9,705 | 11,519 | 16,127 | 19,612 | 26,007 | ||||||||||||||||||||||||
General and administrative expenses | 8,148 | 8,429 | 8,157 | 8,591 | 8,378 | ||||||||||||||||||||||||
Leasing expenses | 2,999 | 2,243 | 2,341 | 2,462 | 2,187 | ||||||||||||||||||||||||
Business development expenses and land carry costs | 1,009 | 1,171 | 918 | 979 | 1,182 | ||||||||||||||||||||||||
Interest expense | 20,504 | 20,391 | 20,376 | 20,617 | 20,767 | ||||||||||||||||||||||||
Interest and other income, net | (1,568) | (2,331) | (3,324) | (2,884) | (4,122) | ||||||||||||||||||||||||
Gain on sales of real estate | (300) | — | — | — | — | ||||||||||||||||||||||||
Equity in income of unconsolidated entities | (371) | (217) | (85) | (26) | (69) | ||||||||||||||||||||||||
Unconsolidated real estate JVs NOI allocable to COPT Defense included in equity in income of unconsolidated entities (1) | 1,889 | 1,898 | 1,844 | 1,735 | 1,740 | ||||||||||||||||||||||||
Income tax expense (benefit) | 103 | (24) | 130 | 14 | 168 | ||||||||||||||||||||||||
NOI from real estate operations | 107,446 | 106,340 | 105,526 | 105,410 | 101,657 | ||||||||||||||||||||||||
Straight line rent adjustments and lease incentive amortization | (1,875) | 3,437 | 1,017 | 4,213 | 3,632 | ||||||||||||||||||||||||
Amortization of acquired above- and below-market rents | 64 | 65 | 64 | 64 | (24) | ||||||||||||||||||||||||
Amortization of intangibles and other assets to property operating expenses | 98 | 146 | 147 | 146 | 147 | ||||||||||||||||||||||||
Lease termination fees, net | (834) | (865) | (931) | (880) | (775) | ||||||||||||||||||||||||
Tenant funded landlord assets and lease incentives | (3,413) | (6,260) | (4,415) | (7,318) | (10,439) | ||||||||||||||||||||||||
Cash NOI adjustments in unconsolidated real estate JVs | (261) | (287) | (279) | (254) | (263) | ||||||||||||||||||||||||
Cash NOI from real estate operations | $ | 101,225 | $ | 102,576 | $ | 101,129 | $ | 101,381 | $ | 93,935 | |||||||||||||||||||
NOI from real estate operations (from above) | $ | 107,446 | $ | 106,340 | $ | 105,526 | $ | 105,410 | $ | 101,657 | |||||||||||||||||||
Non-Same Property NOI from real estate operations | (3,170) | (2,521) | (1,482) | (1,318) | (545) | ||||||||||||||||||||||||
Same Property NOI from real estate operations | 104,276 | 103,819 | 104,044 | 104,092 | 101,112 | ||||||||||||||||||||||||
Straight line rent adjustments and lease incentive amortization | 154 | 5,065 | (498) | 182 | 3,913 | ||||||||||||||||||||||||
Amortization of acquired above- and below-market rents | (69) | (69) | (69) | (69) | (69) | ||||||||||||||||||||||||
Lease termination fees, net | (834) | (864) | (931) | (881) | (775) | ||||||||||||||||||||||||
Tenant funded landlord assets and lease incentives | (3,105) | (6,035) | (2,103) | (2,598) | (10,364) | ||||||||||||||||||||||||
Cash NOI adjustments in unconsolidated real estate JVs | (260) | (287) | (280) | (254) | (262) | ||||||||||||||||||||||||
Same Property Cash NOI from real estate operations | $ | 100,162 | $ | 101,629 | $ | 100,163 | $ | 100,472 | $ | 93,555 | |||||||||||||||||||
33 | 1Q 2025 Supplemental Information Package | ![]() |
Three Months Ended | |||||||||||||||||||||||||||||
3/31/25 | 12/31/24 | 9/30/24 | 6/30/24 | 3/31/24 | |||||||||||||||||||||||||
Real estate revenues | |||||||||||||||||||||||||||||
Lease revenue | |||||||||||||||||||||||||||||
Fixed contractual payments | $ | 131,691 | $ | 130,543 | $ | 129,357 | $ | 127,363 | $ | 126,198 | |||||||||||||||||||
Variable lease payments (1) | 43,617 | 39,222 | 41,192 | 38,256 | 39,235 | ||||||||||||||||||||||||
Lease revenue | 175,308 | 169,765 | 170,549 | 165,619 | 165,433 | ||||||||||||||||||||||||
Other property revenue | 2,289 | 1,641 | 2,014 | 1,466 | 1,230 | ||||||||||||||||||||||||
Real estate revenues | $ | 177,597 | $ | 171,406 | $ | 172,563 | $ | 167,085 | $ | 166,663 | |||||||||||||||||||
Provision for credit losses (recoveries) on billed lease revenue | $ | 903 | $ | 1,604 | $ | 25 | $ | (24) | $ | (109) | |||||||||||||||||||
Total revenues | $ | 187,856 | $ | 183,433 | $ | 189,225 | $ | 187,343 | $ | 193,266 | |||||||||||||||||||
Construction contract and other service revenues | (10,259) | (12,027) | (16,662) | (20,258) | (26,603) | ||||||||||||||||||||||||
Real estate revenues | $ | 177,597 | $ | 171,406 | $ | 172,563 | $ | 167,085 | $ | 166,663 | |||||||||||||||||||
Total interest expense | $ | 20,504 | $ | 20,391 | $ | 20,376 | $ | 20,617 | $ | 20,767 | |||||||||||||||||||
Less: Amortization of deferred financing costs | (667) | (671) | (671) | (681) | (685) | ||||||||||||||||||||||||
Less: Amortization of net debt discounts, net of amounts capitalized | (1,051) | (1,041) | (1,032) | (1,023) | (1,014) | ||||||||||||||||||||||||
COPT Defense’s share of interest expense of unconsolidated real estate JVs, excluding amortization of deferred financing costs and net debt premium and gain or loss on interest rate derivatives | 752 | 872 | 821 | 808 | 804 | ||||||||||||||||||||||||
Denominator for interest coverage | 19,538 | 19,551 | 19,494 | 19,721 | 19,872 | ||||||||||||||||||||||||
Scheduled principal amortization | 461 | 455 | 448 | 662 | 769 | ||||||||||||||||||||||||
Denominator for debt service coverage | 19,999 | 20,006 | 19,942 | 20,383 | 20,641 | ||||||||||||||||||||||||
Capitalized interest | 927 | 928 | 712 | 643 | 589 | ||||||||||||||||||||||||
Denominator for fixed charge coverage | $ | 20,926 | $ | 20,934 | $ | 20,654 | $ | 21,026 | $ | 21,230 | |||||||||||||||||||
Dividends on unrestricted common and deferred shares | $ | 34,318 | $ | 33,167 | $ | 33,165 | $ | 33,153 | $ | 33,143 | |||||||||||||||||||
Distributions on unrestricted common units | 661 | 491 | 491 | 505 | 500 | ||||||||||||||||||||||||
Dividends and distributions on restricted shares and units | 236 | 248 | 247 | 238 | 267 | ||||||||||||||||||||||||
Total dividends and distributions for GAAP payout ratio | 35,215 | 33,906 | 33,903 | 33,896 | 33,910 | ||||||||||||||||||||||||
Dividends and distributions on antidilutive shares and units | (237) | (250) | (249) | (241) | (266) | ||||||||||||||||||||||||
Dividends and distributions for non-GAAP payout ratios | $ | 34,978 | $ | 33,656 | $ | 33,654 | $ | 33,655 | $ | 33,644 |
34 | 1Q 2025 Supplemental Information Package | ![]() |
3/31/25 | 12/31/24 | 9/30/24 | 6/30/24 | 3/31/24 | |||||||||||||||||||||||||
Total assets | $ | 4,250,311 | $ | 4,254,191 | $ | 4,234,302 | $ | 4,219,338 | $ | 4,232,895 | |||||||||||||||||||
Accumulated depreciation | 1,572,422 | 1,537,293 | 1,502,730 | 1,468,595 | 1,434,621 | ||||||||||||||||||||||||
Accumulated amortization of intangibles on property acquisitions and deferred leasing costs | 227,122 | 228,154 | 227,281 | 226,739 | 225,443 | ||||||||||||||||||||||||
COPT Defense’s share of liabilities of unconsolidated real estate JVs | 61,190 | 61,294 | 61,118 | 60,922 | 60,904 | ||||||||||||||||||||||||
COPT Defense’s share of accumulated depreciation and amortization of unconsolidated real estate JVs | 13,616 | 12,817 | 12,014 | 11,199 | 10,364 | ||||||||||||||||||||||||
Less: Property - operating lease liabilities | (48,216) | (49,240) | (33,615) | (33,818) | (33,141) | ||||||||||||||||||||||||
Less: Property - finance lease liabilities | (384) | (391) | (397) | (403) | (409) | ||||||||||||||||||||||||
Less: Cash and cash equivalents | (24,292) | (38,284) | (34,478) | (100,443) | (123,144) | ||||||||||||||||||||||||
Less: COPT Defense’s share of cash of unconsolidated real estate JVs | (1,766) | (2,053) | (1,575) | (1,278) | (1,159) | ||||||||||||||||||||||||
Adjusted book | $ | 6,050,003 | $ | 6,003,781 | $ | 5,967,380 | $ | 5,850,851 | $ | 5,806,374 | |||||||||||||||||||
Gross debt (page 28) | $ | 2,488,306 | $ | 2,468,767 | $ | 2,468,620 | $ | 2,468,901 | $ | 2,497,050 | |||||||||||||||||||
Less: Cash and cash equivalents | (24,292) | (38,284) | (34,478) | (100,443) | (123,144) | ||||||||||||||||||||||||
Less: COPT Defense’s share of cash of unconsolidated real estate JVs | (1,766) | (2,053) | (1,575) | (1,278) | (1,159) | ||||||||||||||||||||||||
Net debt | 2,462,248 | 2,428,430 | 2,432,567 | 2,367,180 | 2,372,747 | ||||||||||||||||||||||||
Costs incurred on fully-leased development properties | (27,499) | (18,774) | (70,954) | (56,646) | (43,034) | ||||||||||||||||||||||||
Costs incurred on fully-leased operating property acquisitions | — | (17,034) | (17,034) | — | — | ||||||||||||||||||||||||
Net debt adjusted for fully-leased investment properties | $ | 2,434,749 | $ | 2,392,622 | $ | 2,344,579 | $ | 2,310,534 | $ | 2,329,713 | |||||||||||||||||||
35 | 1Q 2025 Supplemental Information Package | ![]() |
Adjusted book |
Adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”) |
Adjusted EBITDA debt service coverage ratio |
Amortization of acquisition intangibles included in NOI |
Basic FFO available to common share and common unit holders (“Basic FFO”) |
Cash net operating income (“Cash NOI”) |
36 | 1Q 2025 Supplemental Information Package | ![]() |
COPT Defense’s share of NOI from unconsolidated real estate JVs |
Diluted adjusted funds from operations available to common share and common unit holders (“Diluted AFFO”) |
Diluted FFO available to common share and common unit holders (“Diluted FFO”) |
Diluted FFO available to common share and common unit holders, as adjusted for comparability (“Diluted FFO, as adjusted for comparability”) |
Diluted FFO per share |
Diluted FFO per share, as adjusted for comparability |
37 | 1Q 2025 Supplemental Information Package | ![]() |
Earnings before interest, income taxes, depreciation and amortization for real estate (“EBITDAre”) |
Funds from operations (“FFO” or “FFO per Nareit”) |
Gross debt |
In-place adjusted EBITDA |
Net debt |
Net debt adjusted for fully-leased investment properties |
Net debt to Adjusted book |
38 | 1Q 2025 Supplemental Information Package | ![]() |
Net debt to in-place adjusted EBITDA ratio and Net debt adjusted for fully-leased investment properties to in-place adjusted EBITDA ratio |
Net operating income from real estate operations (“NOI”) |
NOI fixed charge coverage ratio and Adjusted EBITDA fixed charge coverage ratio |
NOI interest coverage ratio and Adjusted EBITDA interest coverage ratio |
Payout ratios based on: Diluted FFO; Diluted FFO, as adjusted for comparability; and Diluted AFFO |
Replacement capital expenditures |
Same Property NOI from real estate operations and Same Property cash NOI from real estate operations |
39 | 1Q 2025 Supplemental Information Package | ![]() |
40 | 1Q 2025 Supplemental Information Package | ![]() |
NEWS RELEASE | |||||||||||
IR Contacts: | |||||||||||
Venkat Kommineni, CFA | Michelle Layne | ||||||||||
443.285.5587 | 443.285.5452 | ||||||||||
venkat.kommineni@copt.com | michelle.layne@copt.com |
Reconciliation of Diluted EPS to FFOPS, per Nareit, and As Adjusted for Comparability | Quarter Ending June 30, 2025 | Year Ending December 31, 2025 | ||||||||||||||||||||||||
Low | High | Low | High | |||||||||||||||||||||||
Diluted EPS | $ | 0.31 | $ | 0.33 | $ | 1.28 | $ | 1.34 | ||||||||||||||||||
Real estate-related depreciation and amortization | 0.34 | 0.34 | 1.35 | 1.35 | ||||||||||||||||||||||
Diluted FFOPS, Nareit definition and as adjusted for comparability | $ | 0.65 | $ | 0.67 | $ | 2.63 | $ | 2.69 |
For the Three Months Ended March 31, | |||||||||||
2025 | 2024 | ||||||||||
Revenues | |||||||||||
Lease revenue | $ | 175,308 | $ | 165,433 | |||||||
Other property revenue | 2,289 | 1,230 | |||||||||
Construction contract and other service revenues | 10,259 | 26,603 | |||||||||
Total revenues | 187,856 | 193,266 | |||||||||
Operating expenses | |||||||||||
Property operating expenses | 72,040 | 66,746 | |||||||||
Depreciation and amortization associated with real estate operations | 39,359 | 38,351 | |||||||||
Construction contract and other service expenses | 9,705 | 26,007 | |||||||||
General and administrative expenses | 8,148 | 8,378 | |||||||||
Leasing expenses | 2,999 | 2,187 | |||||||||
Business development expenses and land carry costs | 1,009 | 1,182 | |||||||||
Total operating expenses | 133,260 | 142,851 | |||||||||
Interest expense | (20,504) | (20,767) | |||||||||
Interest and other income, net | 1,568 | 4,122 | |||||||||
Gain on sales of real estate | 300 | — | |||||||||
Income before equity in income of unconsolidated entities and income taxes | 35,960 | 33,770 | |||||||||
Equity in income of unconsolidated entities | 371 | 69 | |||||||||
Income tax expense | (103) | (168) | |||||||||
Net income | 36,228 | 33,671 | |||||||||
Net income attributable to noncontrolling interests | |||||||||||
Common units in the Operating Partnership (“OP”) | (726) | (608) | |||||||||
Other consolidated entities | (762) | (454) | |||||||||
Net income attributable to common shareholders | $ | 34,740 | $ | 32,609 | |||||||
Earnings per share (“EPS”) computation | |||||||||||
Numerator for diluted EPS | |||||||||||
Net income attributable to common shareholders | $ | 34,740 | $ | 32,609 | |||||||
Amount allocable to share-based compensation awards | (143) | (129) | |||||||||
Numerator for diluted EPS | $ | 34,597 | $ | 32,480 | |||||||
Denominator | |||||||||||
Weighted average common shares - basic | 112,383 | 112,231 | |||||||||
Dilutive effect of share-based compensation awards | 643 | 509 | |||||||||
Weighted average common shares - diluted | 113,026 | 112,740 | |||||||||
Diluted EPS | $ | 0.31 | $ | 0.29 |
For the Three Months Ended March 31, | |||||||||||
2025 | 2024 | ||||||||||
Net income | $ | 36,228 | $ | 33,671 | |||||||
Real estate-related depreciation and amortization | 39,359 | 38,351 | |||||||||
Gain on sales of real estate | (300) | — | |||||||||
Depreciation and amortization on unconsolidated real estate JVs | 741 | 777 | |||||||||
Funds from operations (“FFO”) | 76,028 | 72,799 | |||||||||
FFO allocable to other noncontrolling interests | (1,158) | (836) | |||||||||
Basic FFO allocable to share-based compensation awards | (530) | (587) | |||||||||
Basic FFO available to common share and common unit holders (“Basic FFO”) | 74,340 | 71,376 | |||||||||
Redeemable noncontrolling interest | — | 469 | |||||||||
Diluted FFO adjustments allocable to share-based compensation awards | 53 | 47 | |||||||||
Diluted FFO available to common share and common unit holders (“Diluted FFO”) | 74,393 | 71,892 | |||||||||
Executive transition costs | — | 77 | |||||||||
Diluted FFO available to common share and common unit holders, as adjusted for comparability | 74,393 | 71,969 | |||||||||
Straight line rent adjustments and lease incentive amortization | (1,699) | 3,473 | |||||||||
Amortization of intangibles and other assets included in net operating income (“NOI”) | 162 | 122 | |||||||||
Share-based compensation, net of amounts capitalized | 2,854 | 2,645 | |||||||||
Amortization of deferred financing costs | 667 | 685 | |||||||||
Amortization of net debt discounts, net of amounts capitalized | 1,051 | 1,014 | |||||||||
Replacement capital expenditures | (21,464) | (20,776) | |||||||||
Other | 81 | 137 | |||||||||
Diluted adjusted funds from operations available to common share and common unit holders (“Diluted AFFO”) | $ | 56,045 | $ | 59,269 | |||||||
Diluted FFO per share | $ | 0.65 | $ | 0.62 | |||||||
Diluted FFO per share, as adjusted for comparability | $ | 0.65 | $ | 0.62 | |||||||
Dividends/distributions per common share/unit | $ | 0.305 | $ | 0.295 |
March 31, 2025 | December 31, 2024 | ||||||||||
Balance Sheet Data | |||||||||||
Properties, net of accumulated depreciation | $ | 3,643,482 | $ | 3,630,526 | |||||||
Total assets | $ | 4,250,311 | $ | 4,254,191 | |||||||
Debt per balance sheet | $ | 2,412,670 | $ | 2,391,755 | |||||||
Total liabilities | $ | 2,688,481 | $ | 2,693,624 | |||||||
Redeemable noncontrolling interest | $ | 23,539 | $ | 23,974 | |||||||
Total equity | $ | 1,538,291 | $ | 1,536,593 | |||||||
Debt to assets | 56.8 | % | 56.2 | % | |||||||
Net debt to adjusted book | 40.7 | % | 40.4 | % | |||||||
Defense/IT Portfolio Data (as of period end) | |||||||||||
Number of operating properties | 198 | 197 | |||||||||
Total operational square feet (in thousands) | 22,560 | 22,549 | |||||||||
% Occupied | 95.3 | % | 95.4 | % | |||||||
% Leased | 96.6 | % | 96.7 | % | |||||||
For the Three Months Ended March 31, | |||||||||||
2025 | 2024 | ||||||||||
GAAP | |||||||||||
Payout ratio | |||||||||||
Net income | 97.2 | % | 100.7 | % | |||||||
Debt ratios | |||||||||||
Net income to interest expense ratio | 1.8 | x | 1.6 | x | |||||||
Debt to net income ratio | 16.6 | x | 17.9 | x | |||||||
Non-GAAP | |||||||||||
Payout ratios | |||||||||||
Diluted FFO | 47.0 | % | 46.8 | % | |||||||
Diluted FFO, as adjusted for comparability | 47.0 | % | 46.7 | % | |||||||
Diluted AFFO | 62.4 | % | 56.8 | % | |||||||
Debt ratios | |||||||||||
Adjusted EBITDA fixed charge coverage ratio | 4.7 | x | 4.5 | x | |||||||
Net debt to in-place adjusted EBITDA ratio | 6.1 | x | 6.1 | x | |||||||
Net debt adj. for fully-leased investment properties to in-place adj. EBITDA ratio | 6.0 | x | 6.0 | x | |||||||
Reconciliation of denominators for per share measures | |||||||||||
Denominator for diluted EPS | 113,026 | 112,740 | |||||||||
Weighted average common units | 2,047 | 1,625 | |||||||||
Redeemable noncontrolling interest | — | 947 | |||||||||
Denominator for diluted FFO per share and as adjusted for comparability | 115,073 | 115,312 | |||||||||
For the Three Months Ended March 31, | |||||||||||
2025 | 2024 | ||||||||||
Numerators for Payout Ratios | |||||||||||
Dividends on unrestricted common and deferred shares | $ | 34,318 | $ | 33,143 | |||||||
Distributions on unrestricted common units | 661 | 500 | |||||||||
Dividends and distributions on restricted shares and units | 236 | 267 | |||||||||
Total dividends and distributions for GAAP payout ratio | 35,215 | 33,910 | |||||||||
Dividends and distributions on antidilutive shares and units | (237) | (266) | |||||||||
Dividends and distributions for non-GAAP payout ratios | $ | 34,978 | $ | 33,644 | |||||||
Reconciliation of net income to earnings before interest, income taxes, depreciation and amortization for real estate (“EBITDAre”), adjusted EBITDA and in-place adjusted EBITDA | |||||||||||
Net income | $ | 36,228 | $ | 33,671 | |||||||
Interest expense | 20,504 | 20,767 | |||||||||
Income tax expense | 103 | 168 | |||||||||
Real estate-related depreciation and amortization | 39,359 | 38,351 | |||||||||
Other depreciation and amortization | 542 | 608 | |||||||||
Gain on sales of real estate | (300) | — | |||||||||
Adjustments from unconsolidated real estate JVs | 1,518 | 1,671 | |||||||||
EBITDAre | 97,954 | 95,236 | |||||||||
Credit loss expense | 515 | 22 | |||||||||
Business development expenses | 593 | 630 | |||||||||
Executive transition costs | 57 | 430 | |||||||||
Net gain on other investments | — | (477) | |||||||||
Adjusted EBITDA | 99,119 | 95,841 | |||||||||
Pro forma NOI adjustment for property changes within period | 786 | 813 | |||||||||
Change in collectability of deferred rental revenue | 1,232 | — | |||||||||
In-place adjusted EBITDA | $ | 101,137 | $ | 96,654 | |||||||
Reconciliations of tenant improvements and incentives, building improvements and leasing costs for operating properties to replacement capital expenditures | |||||||||||
Tenant improvements and incentives | $ | 13,758 | $ | 12,776 | |||||||
Building improvements | 1,872 | 4,953 | |||||||||
Leasing costs | 3,461 | 3,590 | |||||||||
Net additions to tenant improvements and incentives | 3,538 | 316 | |||||||||
Excluded building improvements | (201) | (818) | |||||||||
Excluded leasing costs | (964) | (41) | |||||||||
Replacement capital expenditures | $ | 21,464 | $ | 20,776 |
For the Three Months Ended March 31, | |||||||||||
2025 | 2024 | ||||||||||
Reconciliation of interest expense to the denominator for fixed charge coverage-Adjusted EBITDA | |||||||||||
Interest expense | $ | 20,504 | $ | 20,767 | |||||||
Less: Amortization of deferred financing costs | (667) | (685) | |||||||||
Less: Amortization of net debt discounts, net of amounts capitalized | (1,051) | (1,014) | |||||||||
COPT Defense’s share of interest expense of unconsolidated real estate JVs, excluding amortization of deferred financing costs and net debt premium and gain or loss on interest rate derivatives | 752 | 804 | |||||||||
Scheduled principal amortization | 461 | 769 | |||||||||
Capitalized interest | 927 | 589 | |||||||||
Denominator for fixed charge coverage-Adjusted EBITDA | $ | 20,926 | $ | 21,230 | |||||||
Reconciliation of net income to NOI from real estate operations, same property NOI from real estate operations and same property cash NOI from real estate operations | |||||||||||
Net income | $ | 36,228 | $ | 33,671 | |||||||
Construction contract and other service revenues | (10,259) | (26,603) | |||||||||
Depreciation and other amortization associated with real estate operations | 39,359 | 38,351 | |||||||||
Construction contract and other service expenses | 9,705 | 26,007 | |||||||||
General and administrative expenses | 8,148 | 8,378 | |||||||||
Leasing expenses | 2,999 | 2,187 | |||||||||
Business development expenses and land carry costs | 1,009 | 1,182 | |||||||||
Interest expense | 20,504 | 20,767 | |||||||||
Interest and other income, net | (1,568) | (4,122) | |||||||||
Gain on sales of real estate | (300) | — | |||||||||
Equity in income of unconsolidated entities | (371) | (69) | |||||||||
Unconsolidated real estate JVs NOI allocable to COPT Defense included in equity in income of unconsolidated entities | 1,889 | 1,740 | |||||||||
Income tax expense | 103 | 168 | |||||||||
NOI from real estate operations | 107,446 | 101,657 | |||||||||
Non-Same Property NOI from real estate operations | (3,170) | (545) | |||||||||
Same Property NOI from real estate operations | 104,276 | 101,112 | |||||||||
Straight line rent adjustments and lease incentive amortization | 154 | 3,913 | |||||||||
Amortization of acquired above- and below-market rents | (69) | (69) | |||||||||
Lease termination fees, net | (834) | (775) | |||||||||
Tenant funded landlord assets and lease incentives | (3,105) | (10,364) | |||||||||
Cash NOI adjustments in unconsolidated real estate JVs | (260) | (262) | |||||||||
Same Property Cash NOI from real estate operations | $ | 100,162 | $ | 93,555 |
March 31, 2025 | December 31, 2024 | |||||||||||||
Reconciliation of total assets to adjusted book | ||||||||||||||
Total assets | $ | 4,250,311 | $ | 4,254,191 | ||||||||||
Accumulated depreciation | 1,572,422 | 1,537,293 | ||||||||||||
Accumulated amortization of intangibles on property acquisitions and deferred leasing costs | 227,122 | 228,154 | ||||||||||||
COPT Defense’s share of liabilities of unconsolidated real estate JVs | 61,190 | 61,294 | ||||||||||||
COPT Defense’s share of accumulated depreciation and amortization of unconsolidated real estate JVs | 13,616 | 12,817 | ||||||||||||
Less: Property - operating lease liabilities | (48,216) | (49,240) | ||||||||||||
Less: Property - finance lease liabilities | (384) | (391) | ||||||||||||
Less: Cash and cash equivalents | (24,292) | (38,284) | ||||||||||||
Less: COPT Defense’s share of cash of unconsolidated real estate JVs | (1,766) | (2,053) | ||||||||||||
Adjusted book | $ | 6,050,003 | $ | 6,003,781 | ||||||||||
March 31, 2025 | December 31, 2024 | March 31, 2024 | ||||||||||||||||||
Reconciliation of debt to net debt and net debt adjusted for fully-leased investment properties | ||||||||||||||||||||
Debt per balance sheet | $ | 2,412,670 | $ | 2,391,755 | $ | 2,416,873 | ||||||||||||||
Net discounts and deferred financing costs | 21,886 | 23,262 | 27,358 | |||||||||||||||||
COPT Defense’s share of unconsolidated JV gross debt | 53,750 | 53,750 | 52,819 | |||||||||||||||||
Gross debt | 2,488,306 | 2,468,767 | 2,497,050 | |||||||||||||||||
Less: Cash and cash equivalents | (24,292) | (38,284) | (123,144) | |||||||||||||||||
Less: COPT Defense’s share of cash of unconsolidated real estate JVs | (1,766) | (2,053) | (1,159) | |||||||||||||||||
Net debt | 2,462,248 | 2,428,430 | 2,372,747 | |||||||||||||||||
Costs incurred on fully-leased development properties | (27,499) | (18,774) | (43,034) | |||||||||||||||||
Costs incurred on fully-leased operating property acquisitions | — | (17,034) | — | |||||||||||||||||
Net debt adjusted for fully-leased investment properties | $ | 2,434,749 | $ | 2,392,622 | $ | 2,329,713 | ||||||||||||||