Quarterly report [Sections 13 or 15(d)]

Debt, Net

v3.26.1
Debt, Net
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Debt, Net Debt, Net
 
Our debt consisted of the following (dollars in thousands):
June 30,
2026		 December 31,
2025		 June 30, 2026
Effective Interest Rates Scheduled Maturity
Mortgage and Other Secured Debt
Variable-rate secured debt $ 10,040  $ 10,160 
SOFR + 0.10%
+ 1.45% (1)
 August 2026
Revolving Development Facility 136,000  96,000 
SOFR
+ 1.25% to 1.90% (2)
 October 2029 (3)
Fixed-rate mortgage debt —  36,079  N/A N/A
Total mortgage and other secured debt 146,040  142,239 
Revolving Credit Facility 272,000  54,000 
SOFR
+ 0.725% to 1.400% (4)
 October 2029 (5)
Term loan facility 50,000  50,000 
SOFR
+ 0.850% to 1.700% (6)
 January 2027 (7)
Unsecured Senior Notes
5.25%, $345,000 aggregate principal (8)
 345,000  345,000  5.8%  September 2028
2.00%, $400,000 aggregate principal
 400,000  400,000  2.1% January 2029
4.50%, $400,000 aggregate principal
 400,000  400,000  4.8% October 2030
2.75%, $600,000 aggregate principal
 600,000  600,000  2.9% April 2031
2.90%, $400,000 aggregate principal
 400,000  400,000  3.0% December 2033
2.25%, $400,000 aggregate principal
 —  400,000  N/A N/A
Unsecured note payable —  61  N/A N/A
Total debt 2,613,040  2,791,300 
Net unamortized discounts and commissions (17,089) (19,382)
Net deferred financing costs (3,515) (4,084)
Total debt, net $ 2,592,436  $ 2,767,834 
(1)Including the effect of an interest rate swap that hedges the risk of interest rate changes, the weighted average interest rate on our variable-rate secured debt as of June 30, 2026 was 3.1%; excluding the effect of this swap, the weighted average interest rate on this debt as of June 30, 2026 was 5.2%.
(2)The weighted average interest rate on the Revolving Development Facility was 5.0% as of June 30, 2026.
(3)The facility matures in October 2029, with the ability to extend such maturity by a 12-month period at our option, provided that there is no default under the facility and we pay an extension fee of 0.250% of the total amount available under the facility.
(4)The weighted average interest rate on the Revolving Credit Facility was 4.5% as of June 30, 2026.
(5)The facility matures in October 2029, with the ability for us to extend such maturity by two six-month periods at our option, provided that there is no default under the facility and we pay an extension fee of 0.0625% of the total availability under the facility for each extension period.
(6)The interest rate on this loan was 4.7% as of June 30, 2026.
(7)This facility matures in January 2027, with the ability for us to extend such maturity by a 12-month period at our option, provided that there is no default under the facility and we pay an extension fee of 0.125% of the outstanding term loans under the facility.
(8)These notes have an exchange settlement feature under which the notes may, under certain circumstances, be exchangeable at the option of the holders. Upon exchange, the principal amount of notes is payable in cash, with the remainder of the exchange obligation, if any, as determined based on the exchange price per common share at the time of settlement, payable in cash, common shares, or a combination thereof at our election. As of June 30, 2026, the exchange rate of the notes equaled 33.5907 of our common shares per $1,000 principal amount of notes (equivalent to an exchange price of approximately $29.77 per common share).
 
All debt is owed by the Operating Partnership. While COPT Defense is not directly obligated by any debt, it has guaranteed CDPLP’s Revolving Development Facility, Revolving Credit Facility, term loan facility, and Unsecured Senior Notes. As of June 30, 2026, all of our mortgage and other secured debt was for consolidated real estate joint ventures (see Note 6), except for our Revolving Development Facility.

Certain of our debt instruments require that we comply with a number of restrictive financial covenants. As of June 30, 2026, we were compliant with these financial covenants.

On March 16, 2026, we repaid at maturity $400.0 million in 2.25% Senior Notes due 2026 (the “2.25% Notes”).
The table below presents interest expense recognized on the 5.25% Exchangeable Senior Notes due 2028 (the “5.25% Notes”) (in thousands):
For the Three Months Ended June 30, For the Six Months Ended June 30,
2026 2025 2026 2025
Interest expense at stated interest rate $ 4,528  $ 4,528  $ 9,056  $ 9,056 
Interest expense associated with amortization of debt discount and issuance costs 435  410  864  815 
Total $ 4,963  $ 4,938  $ 9,920  $ 9,871 

Our debt matures on the following schedule (in thousands):
Year Ending December 31, June 30, 2026
2026 (1)
 $ 10,040 
2027 50,000 
2028
 345,000 
2029 808,000 
2030 400,000 
Thereafter 1,000,000 
Total $ 2,613,040  (2)
(1)Represents the six months ending December 31, 2026.
(2)Represents scheduled principal amortization and maturities only and therefore excludes net discounts and deferred financing costs of $20.6 million.

We capitalized interest costs of $1.7 million in the three months ended June 30, 2026, $1.1 million in the three months ended June 30, 2025, $3.5 million in the six months ended June 30, 2026, and $2.1 million in the six months ended June 30, 2025.

The table below presents information pertaining to the fair value of our debt (in thousands): 
June 30, 2026 December 31, 2025
Carrying Amount Estimated Fair Value Carrying Amount Estimated Fair Value
Fixed-rate debt
Unsecured Senior Notes $ 2,124,448  $ 2,031,086  $ 2,521,673  $ 2,438,332 
Other fixed-rate debt —  —  36,125  35,649 
Variable-rate debt 467,988  468,523  210,036  211,505 
$ 2,592,436  $ 2,499,609  $ 2,767,834  $ 2,685,486