COPT Defense Properties Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

Debt, Net (Tables)

Debt, Net (Tables)

9 Months Ended

Sep. 30, 2026

Our debt consisted of the following (dollars in thousands):


	September 30, 2026		December 31, 2025		September 30, 2026
					Effective Interest Rates	Scheduled Maturity
Mortgage and Other Secured Debt
Revolving Development Facility	$	170,000	$	96,000	SOFR + 1.25% to 1.90% (1)	October 2029 (2)
Variable-rate secured debt	—		10,160		N/A	N/A
Fixed-rate mortgage debt	—		36,079		N/A	N/A
Total mortgage and other secured debt	170,000		142,239
Revolving Credit Facility	234,000		54,000		SOFR + 0.725% to 1.400% (3)	October 2029 (4)
Term loan facility	50,000		50,000		SOFR + 0.850% to 1.700% (5)	January 2027 (6)
Unsecured Senior Notes
5.25%, $345,000 aggregate principal (7)	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	2,599,000		2,791,300
Net unamortized discounts and commissions	(16,002)		(19,382)
Net deferred financing costs	(3,265)		(4,084)
Total debt, net	$	2,579,733	$	2,767,834

(1)The weighted average interest rate on the Revolving Development Facility was 5.2% as of September 30, 2026.

(2)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.

(3)The weighted average interest rate on the Revolving Credit Facility was 4.8% as of September 30, 2026.

(4)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.

(5)The interest rate on this loan was 4.8% as of September 30, 2026.

(6)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.

(7)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 September 30, 2026, the exchange rate of the notes equaled 33.6253 of our common shares per $1,000 principal amount of notes (equivalent to an exchange price of approximately $29.74 per common share).

Schedule of Interest Expense

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 September 30,				For the Nine Months Ended September 30,
	2026		2025		2026		2025
Interest expense at stated interest rate	$	4,529	$	4,529	$	13,585	$	13,585
Interest expense associated with amortization of debt discount and issuance costs	441		416		1,305		1,231
Total	$	4,970	$	4,945	$	14,890	$	14,816

Schedule of Debt Maturities

Our debt matures on the following schedule (in thousands):


Year Ending December 31,	September 30, 2026
2026 (1)	$	—
2027	50,000
2028	345,000
2029	804,000
2030	400,000
Thereafter	1,000,000
Total	$	2,599,000	(2)

(1)Represents the three months ending December 31, 2026.

(2)Represents scheduled principal amortization and maturities only and therefore excludes net discounts and commissions and deferred financing costs of $19.3 million.

Schedule of Fair Value of Debt

The table below presents information pertaining to the fair value of our debt (in thousands):


	September 30, 2026				December 31, 2025
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Fixed-rate debt
Unsecured Senior Notes	$	2,125,760	$	1,982,991	$	2,521,673	$	2,438,332
Other fixed-rate debt	—		—		36,125		35,649
Variable-rate debt	453,973		454,144		210,036		211,505
	$	2,579,733	$	2,437,135	$	2,767,834	$	2,685,486