Annual report [Section 13 and 15(d), not S-K Item 405]

Summary of Significant Accounting Policies (Tables)

v3.25.4
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2025
Accounting Policies [Abstract]  
Schedule of Estimated Useful Lives of Fixed Assets
We depreciate our fixed assets using the straight-line method over their estimated useful lives as follows:
Estimated Useful Lives
Buildings and building improvements
10-40 years
Land improvements
10-20 years
Tenant improvements on operating properties Shorter of remaining useful lives of assets or related lease term
Equipment and personal property
3-10 years
Operating properties, net consisted of the following (in thousands): 
December 31,
2025 2024
Land $ 519,256  $ 495,707 
Buildings and improvements 4,663,198  4,395,063 
Less: Accumulated depreciation (1,682,367) (1,537,293)
Operating properties, net $ 3,500,087  $ 3,353,477 
Schedule of Amortization of Intangible Assets and Deferred Revenue
We amortize intangible assets and deferred revenue on property acquisitions as follows:
Asset Type Amortization Period Statement of Operations Location
Above- and below-market leases Related lease terms Lease revenue
In-place lease value Related lease terms Depreciation and amortization associated with real estate operations
Tenant relationship value Estimated period of time that tenant will lease space in property Depreciation and amortization associated with real estate operations
Schedule of Intangible Assets
Intangible assets on property acquisitions consisted of the following (in thousands):
December 31, 2025 December 31, 2024
Gross Carrying Amount Accumulated Amortization Net
 Carrying Amount		 Gross Carrying Amount Accumulated Amortization Net
Carrying Amount
In-place lease value $ 137,274  $ 122,897  $ 14,377  $ 124,806  $ 121,091  $ 3,715 
Tenant relationship value 51,462  46,453  5,009  53,788  48,008  5,780 
Above-market leases 14,806  14,419  387  14,865  13,914  951 
Other 759  759  —  1,333  1,081  252 
$ 204,301  $ 184,528  $ 19,773  $ 194,792  $ 184,094  $ 10,698 
Schedule of Characterization of Dividends Declared on Common and Preferred shares The characterization of dividends paid on COPT Defense’s common shares during each of the last three years was as follows:
For the Years Ended December 31,
2025 2024 2023
Ordinary income 97.6 % 100.0 % 51.0 %
Long-term capital gain 2.4 % — % 49.0 %