COPT Defense Executes 132,000 Square Foot Build-to-Suit Lease in San Antonio, Bringing New Investments in 2025 to $277 Million

Key Terms

build-to-suit lease financial

A build-to-suit lease is an agreement where a property owner or developer constructs a building or customizes space specifically to meet a tenant’s needs and then leases that finished space to the tenant under a long-term contract. Investors care because it locks in a tenant and steady rental income but also ties up construction costs and exposes the owner to risks if the tenant defaults or the custom asset is hard to re-let—think of a landlord building a custom house for a single renter.

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A real estate investment trust (REIT) is a company that owns, operates, or finances income-producing real estate, like shopping centers, apartments, or office buildings. For investors, REITs offer a way to invest in real estate without having to buy property directly, often providing regular income through dividends. They function like a mutual fund for real estate, making it easier for people to add property investments to their portfolio.

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Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

Exceeds Capital Commitment to New Investments Guidance in 2025

COLUMBIA, Md.--(BUSINESS WIRE)--

COPT Defense Properties (NYSE: CDP) (“COPT Defense” or the “Company”) executed a build-to-suit lease in December 2025 with a Fortune 100 Company in San Antonio, Texas. Construction is expected to commence on this 132,000 square foot, high-security specialized facility in the third quarter of 2026, with rent commencement expected in the fourth quarter of 2027. The anticipated capital commitment to this development project is $88 million, which densifies the Company’s existing campus in San Antonio.

In 2025, the Company committed $277 million of capital to five new investments totaling 640,000 square feet, all in its Defense/IT Portfolio, which exceeded the high end of the Company’s increased guidance range of $225 to $275 million, and was well above the initial guidance range of $200 to $250 million. The new investments consisted of:

Qtr	Project	Sub-Segment	% Leased	$ Commitment
Q1	8500 Advanced Gateway	Redstone Arsenal	20%	$52 million
Q3	7700 Advanced Gateway	Redstone Arsenal	100%	$27 million
Q4	Stonegate I	NoVA Defense/IT	100%	$45 million
Q4	4400 River Road	Fort Meade/BW Corridor	100%	$65 million
Q4	Project EL 2	Lackland Air Force Base	100%	$88 million
2025	Total Capital Committed to New Investments			$277 million

About COPT Defense

COPT Defense, an S&P MidCap 400 Company, is a self-managed REIT focused on owning, operating and developing properties in locations proximate to, or sometimes containing, key U.S. Government (“USG”) defense installations and missions (referred to as its Defense/IT Portfolio). The Company’s tenants include the USG and their defense contractors, who are primarily engaged in priority national security activities, and who generally require mission-critical and high security property enhancements. As of September 30, 2025, the Company’s Defense/IT Portfolio of 198 properties, including 24 owned through unconsolidated joint ventures, encompassed 22.6 million square feet and was 97.0% leased.

Forward-Looking Information

This press release may contain “forward-looking” statements, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that are based on the Company’s current expectations, estimates and projections about future events and financial trends affecting the Company. Forward-looking statements can be identified by the use of words such as “may,” “will,” “should,” “could,” “believe,” “anticipate,” “expect,” “estimate,” “plan” or other comparable terminology. Forward-looking statements are inherently subject to risks and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate. Although the Company believes that the expectations, estimates and projections reflected in such forward-looking statements are based on reasonable assumptions at the time made, the Company can give no assurance that these expectations, estimates and projections will be achieved. Future events and actual results may differ materially from those discussed in the forward-looking statements and the Company undertakes no obligation to update or supplement any forward-looking statements.

The areas of risk that may affect these expectations, estimates and projections include, but are not limited to, those risks described in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.

Source: COPT Defense Properties

View source version on businesswire.com: https://www.businesswire.com/news/home/20260108161697/en/

IR Contacts:

Venkat Kommineni, CFA

443.285.5587

venkat.kommineni@copt.com

Michelle Layne

443.285.5452

michelle.layne@copt.com

Source: COPT Defense Properties