COPT Defense Reports Third Quarter 2026 Results

Higher full-year guidance absorbs $0.03 per share of incremental dilution from exchangeable notes.

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EPS of $0.41
FFO per Share, As Adjusted for Comparability, of $0.71
2.9% FFO per Share Growth Year-over-Year
2-cents above the Midpoint of Guidance

Increased Midpoint of Guidance for 2026 FFO per Share, As Adjusted for Comparability, by 2-cents to $2.80
Implies 2.9% FFO per Share Growth for the Year

Same Property Cash NOI Increased 3.2% and 5.3% Year-to-Date
Increased Midpoint of 2026 Guidance by 25 basis points to 4.25%

Occupancy and Leased Levels
Total Portfolio 94.0% Occupied and 95.0% Leased
Defense/IT Portfolio 95.2% Occupied and 96.2% Leased 

Leasing Activity
Total Leasing in 3Q26 and YTD of 842,000 SF and 3.0 million SF

Vacancy Leasing in 3Q26 and YTD of 222,000 SF and 453,000 SF
Increased Annual Target to 625,000 SF from 475,000 SF

Renewal Leasing in 3Q26 and YTD of 545,000 SF and 2.1 million SF
Tenant Retention in 3Q26 and YTD of 70% and 80%

Decreased Midpoint of 2026 Guidance by 2.5% to 80% due to Strategic Space Recaptures
Investment Leasing in 3Q26 and YTD of 75,000 SF and 491,000 SF

Investment Activity
Committed $88 million of Capital to Two Inventory Developments in Huntsville, AL
Increased 2026 Guidance Target by $40 million to $375 million

COLUMBIA, Md.--(BUSINESS WIRE)-- COPT Defense Properties (“COPT Defense” or the “Company”) (NYSE: CDP) announced results for the third quarter ended September 30, 2026.

Management Comments

Stephen E. Budorick, COPT Defense’s President & Chief Executive Officer, commented, “Our track record of outperformance continued in the third quarter, as FFO per share exceeded the midpoint of our guidance by $0.02. The portfolio continues to benefit from strong tenant demand for specialized space across all of our markets, driven by growth in programs supporting the defense of our nation.

We increased the midpoint of guidance for 2026 FFO per share, as adjusted for comparability, by $0.02 to $2.80, which is $0.05 above our initial guidance, and absorbs $0.03 of incremental dilution from our Exchangeable Notes, resulting from our 20% share price increase over the first nine months of the year. We increased the midpoint of 2026 guidance for Same Property cash NOI growth by 25 basis points to 4.25%, capital commitment to new investments by $40 million to $375 million, and capital invested in development and acquisitions by $15 million to $240 million. We decreased the midpoint of tenant retention by 2.5%, to 80%, taking advantage of opportunities to re-lease space to high value tenants with a track record of strong growth. We raised our target for vacancy leasing by over 30% from 475,000 square feet to 625,000 square feet, which is over 50% higher than our initial target of 400,000 square feet. This increased leasing target is driven in part by our decision to proactively capture space to accommodate new higher growth tenancy in Columbia Gateway and in Huntsville, which impacts our retention guidance but de-risks future lease expirations.

We expect the FY 2026 defense budget, along with the FY 2027 base budget request in which a 28% year-over-year increase is proposed, will provide a very supportive backdrop for demand in our portfolio to support priority missions, including intelligence, cybersecurity, and missile defense.”

Financial Highlights

3rd Quarter Financial Results:

• Diluted earnings per share (“EPS”) was $0.41 for the quarter ended September 30, 2026, compared to $0.37 for the quarter ended September 30, 2025.
• Diluted funds from operations per share (“FFOPS”), as calculated in accordance with Nareit’s definition and as adjusted for comparability, was $0.71 for the quarter ended September 30, 2026, compared to $0.69 for the quarter ended September 30, 2025.

Operating Performance Highlights

Operating Portfolio Summary:

• At September 30, 2026, the Company’s 25.3 million square foot total portfolio was 94.0% occupied and 95.0% leased, which includes the 23.3 million square foot Defense/IT Portfolio that was 95.2% occupied and 96.2% leased.

Same Property Performance:

• At September 30, 2026, the Company’s 24.6 million square foot Same Property portfolio was 93.9% occupied and 94.9% leased.
• The Company’s Same Property cash NOI increased 3.2% in the quarter ended September 30, 2026 compared to the same period in 2025.

Leasing:

• Total Square Feet Leased: For the quarter ended September 30, 2026, the Company leased 842,000 square feet, including 545,000 square feet of renewals, 222,000 square feet of vacancy leasing, and 75,000 square feet of investment leasing. For the nine months ended September 30, 2026, the Company executed 3.0 million square feet of total leasing, including 2.1 million square feet of renewals, 453,000 square feet of vacancy leasing, and 491,000 square feet of investment leasing.
• Tenant Retention Rates: During the quarter ended September 30, 2026, the Company renewed 69.9% of expiring square feet in its total portfolio. During the nine months ended September 30, 2026, the Company renewed 80.0% of expiring square feet in its total portfolio.
• Rent Spreads and Average Escalations on Renewing Leases: For the quarter ended September 30, 2026, straight-line rents on renewals increased 20.3% and cash rents on renewed space increased 8.5%, while annual escalations on renewing leases averaged 2.2%. For the nine months ended September 30, 2026, straight-line rents on renewals increased 12.7% and cash rents on renewed space increased 4.3%, while annual escalations on renewing leases averaged 2.8%.
• Lease Terms: In the quarter ended September 30, 2026, lease terms averaged 4.3 years on renewing leases, 7.2 years on vacancy leasing, and 11.6 years on investment leasing. For the nine months ended September 30, 2026, lease terms averaged 4.2 years on renewing leases, 7.0 years on vacancy leasing, and 12.9 years on investment leasing.

Investment Activity Highlights

• Development Pipeline: The Company’s development pipeline consists of eight properties totaling 1.1 million square feet that were 64% leased as of September 30, 2026. These projects represent a total estimated investment of $528 million, of which $185 million was spent as of September 30, 2026.

Balance Sheet and Capital Transaction Highlights

• For the quarter ended September 30, 2026, the Company’s adjusted EBITDA fixed charge coverage ratio was 4.4x.
• At September 30, 2026, the Company’s net debt to in-place adjusted EBITDA ratio was 5.9x and its net debt adjusted for fully-leased investment properties to in-place adjusted EBITDA ratio was 5.6x.
• At September 30, 2026, the Company’s weighted average effective interest rate on its consolidated debt portfolio was 3.8% with a weighted average maturity of 4 years (assuming exercise of available extension options), and 83% of the Company’s debt was subject to fixed interest rates.

Associated Supplemental Presentation
Prior to the call, the Company will post a slide presentation to accompany management’s prepared remarks for its third quarter 2026 conference call; the presentation can be viewed and downloaded from the ‘Financial Info – Financial Results’ section of COPT Defense’s Investors website: https://investors.copt.com/financial-information/financial-results

2026 Guidance
Management is revising and increasing the midpoint of its full-year guidance and establishing fourth quarter guidance for diluted EPS, diluted FFOPS, per Nareit, and diluted FFOPS, as adjusted for comparability, as follows:

Reconciliation of Diluted EPS to FFOPS, per Nareit, and As Adjusted for Comparability		Quarter Ending December 31, 2026						Year Ending December 31, 2026
		Low			High			Low				High
Diluted EPS		$	0.29		$	0.31		$	1.43			$	1.45
Real estate-related depreciation and amortization			0.37			0.37			1.48				1.48
Gain on sales of real estate			—			—			(0.14	)			(0.14	)
Diluted FFOPS, Nareit definition			0.66			0.68			2.77				2.79
Demolition costs on nonrecurring improvements			0.02			0.02			0.02				0.02
Diluted FFOPS, as adjusted for comparability		$	0.68		$	0.70		$	2.79			$	2.81

The Company detailed its initial full year guidance, with supporting assumptions, in a separate press release issued February 5, 2026; that release can be found in the ‘News & Events – Press Releases’ section of COPT Defense’s Investors website: https://investors.copt.com/news-events/press-releases

Conference Call Information

Management will discuss third quarter 2026 results on its conference call tomorrow, details of which are listed below: 

Conference Call Date:				Friday, October 30, 2026
Time:				12:00 p.m. Eastern Time

Participants must register for the conference call at the link below to receive the dial-in number and personal pin. Registering only takes a few moments and provides direct access to the conference call without waiting for an operator. You may register at any time, including up to and after the call start time: https://register-conf.media-server.com/register/BI0a191ed3b81d41ebba9fb6ef7dec8896

The conference call will also be available via live webcast in the ‘News & Events – IR Calendar’ section of COPT Defense’s Investors website: https://investors.copt.com/news-events/ir-calendar

Replay Information
A replay of the conference call will be immediately available via webcast only on COPT Defense’s Investors website and will be maintained on the website for approximately 90 days after the conference call.

Definitions
For definitions of certain terms used in this press release, please refer to the information furnished in the Company’s Supplemental Information Package furnished on a Form 8-K which can be found on its website (www.copt.com). Reconciliations of non-GAAP measures to the most directly comparable GAAP measures are included in the attached tables.

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, 2026, the Company’s Defense/IT Portfolio of 202 properties, including 24 owned through unconsolidated joint ventures, encompassed 23.3 million square feet and was 96.2% 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, 2025.

Source: COPT Defense Properties

COPT Defense Properties Summary Financial Data (unaudited) (dollars and shares in thousands, except per share data)
	For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2026				2025				2026				2025
Revenues
Lease revenue	$	193,482			$	178,272			$	575,259			$	529,178
Other property revenue		1,853				2,038				5,298				6,186
Construction contract and other service revenues		13,424				8,485				26,231				31,202
Total revenues		208,759				188,795				606,788				566,566
Operating expenses
Property operating expenses		77,217				70,356				231,238				209,311
Depreciation and amortization associated with real estate operations		42,966				40,631				127,940				119,563
Construction contract and other service expenses		12,763				7,952				24,338				29,530
General and administrative expenses		9,047				8,483				26,740				24,833
Leasing expenses		2,780				2,449				8,863				8,061
Business development expenses and land carry costs		729				1,098				2,866				3,203
Total operating expenses		145,502				130,969				421,985				394,501
Interest expense		(24,439	)			(20,894	)			(72,879	)			(62,336	)
Interest and other income, net		2,984				2,591				9,912				5,382
Gain on sales of real estate		7,673				3,018				14,697				3,318
Income before equity in income of unconsolidated entities and income taxes		49,475				42,541				136,533				118,429
Equity in income of unconsolidated entities		415				1,815				2,213				2,541
Income tax expense		(96	)			(612	)			(254	)			(832	)
Net income		49,794				43,744				138,492				120,138
Net income attributable to noncontrolling interests
Common units in the Operating Partnership (“OP”)		(1,069	)			(924	)			(2,919	)			(2,496	)
Other consolidated entities		(984	)			(1,093	)			(2,839	)			(2,828	)
Net income attributable to common shareholders	$	47,741			$	41,727			$	132,734			$	114,814
Earnings per share (“EPS”) computation
Numerator for diluted EPS
Net income attributable to common shareholders	$	47,741			$	41,727			$	132,734			$	114,814
Amount allocable to share-based compensation awards		(183	)			(133	)			(525	)			(340	)
Numerator for diluted EPS	$	47,558			$	41,594			$	132,209			$	114,474
Denominator
Weighted average common shares - basic		112,886				112,485				112,855				112,442
Dilutive effect of share-based compensation awards		945				702				971				749
Dilutive exchangeable debt		2,088				—				1,183				—
Weighted average common shares - diluted		115,919				113,187				115,009				113,191
Diluted EPS	$	0.41			$	0.37			$	1.15			$	1.01

COPT Defense Properties Summary Financial Data (unaudited) (in thousands, except per share data)
	For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2026				2025				2026				2025
Net income	$	49,794			$	43,744			$	138,492			$	120,138
Real estate-related depreciation and amortization		42,966				40,631				127,940				119,563
Gain on sales of real estate		(7,673	)			(3,018	)			(14,697	)			(3,318	)
Depreciation and amortization on unconsolidated real estate JVs		718				733				2,186				2,206
Gain on sale of real estate on unconsolidated real estate JV		—				—				(1,276	)			—
Funds from operations (“FFO”)		85,805				82,090				252,645				238,589
FFO allocable to other noncontrolling interests		(1,342	)			(1,502	)			(3,906	)			(4,042	)
Basic FFO allocable to share-based compensation awards		(620	)			(548	)			(1,840	)			(1,628	)
Basic FFO available to common share and common unit holders (“Basic FFO”)		83,843				80,040				246,899				232,919
Diluted FFO adjustments allocable to share-based compensation awards		63				53				190				294
Diluted FFO available to common share and common unit holders (“Diluted FFO”)		83,906				80,093				247,089				233,213
Loss on early extinguishment of debt on unconsolidated real estate JVs		—				28				—				28
Demolition costs on nonrecurring improvements		97				—				97				—
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		84,002				80,121				247,185				233,241
Straight line rent adjustments and lease incentive amortization		(828	)			5,053				3,219				1,518
Amortization of intangibles and other assets included in net operating income (“NOI”)		(5	)			42				161				268
Sales-type lease adjustments		33				—				134				—
Share-based compensation, net of amounts capitalized		3,450				2,961				10,012				8,739
Amortization of deferred financing costs		778				657				2,404				1,981
Amortization of net debt discounts and commissions, net of amounts capitalized		1,087				1,070				3,380				3,181
Replacement capital expenditures		(22,997	)			(26,982	)			(67,319	)			(72,365	)
Other		(136	)			352				406				508
Diluted adjusted funds from operations available to common share and common unit holders (“Diluted AFFO”)	$	65,384			$	63,274			$	199,582			$	177,071
Diluted FFO per share	$	0.71			$	0.69			$	2.11			$	2.02
Diluted FFO per share, as adjusted for comparability	$	0.71			$	0.69			$	2.11			$	2.02
Dividends/distributions per common share/unit	$	0.32			$	0.305			$	0.96			$	0.915

COPT Defense Properties Summary Financial Data (unaudited) (dollars and shares in thousands, except per share data)
	September 30, 2026				December 31, 2025
Balance sheet data
Properties, net of accumulated depreciation	$	3,861,398			$	3,783,477
Total assets	$	4,573,242			$	4,701,790
Debt per balance sheet	$	2,579,733			$	2,767,834
Total liabilities	$	2,952,058			$	3,114,115
Redeemable noncontrolling interest	$	25,031			$	25,506
Total equity	$	1,596,153			$	1,562,169
Debt to assets		56.4	%			58.9	%
Net debt to adjusted book		39.9	%			40.5	%
Defense/IT Portfolio data (as of period end)
Number of operating properties		202				201
Total operational square feet (in thousands)		23,316				23,159
% Occupied		95.2	%			95.5	%
% Leased		96.2	%			96.5	%

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2026			2025			2026			2025
GAAP
Payout ratio
Net income	74.5	%		80.5	%		80.4	%		87.9	%
Debt ratios
Net income to interest expense ratio	2.0x			2.1x			1.9x			1.9x
Debt to net income ratio	13.0x			14.0x			N/A			N/A
Non-GAAP
Payout ratios
Diluted FFO	43.9	%		43.7	%		44.8	%		45.0	%
Diluted FFO, as adjusted for comparability	43.9	%		43.7	%		44.7	%		45.0	%
Diluted AFFO	56.4	%		55.3	%		55.4	%		59.3	%
Debt ratios
Adjusted EBITDA fixed charge coverage ratio	4.4x			4.8x			4.3x			4.8x
Net debt to in-place adjusted EBITDA ratio	5.9x			6.1x			N/A			N/A
Net debt adjusted for fully-leased investment properties to in-place adjusted EBITDA ratio	5.6x			5.8x			N/A			N/A
Reconciliation of denominators for per share measures
Denominator for diluted EPS	115,919			113,187			115,009			113,191
Weighted average common units	2,237			2,182			2,177			2,136
Denominator for diluted FFO per share and as adjusted for comparability	118,156			115,369			117,186			115,327

COPT Defense Properties Summary Financial Data (unaudited) (in thousands)
	For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2026				2025				2026				2025
Numerators for payout ratios
Dividends on unrestricted common and deferred shares	$	36,143			$	34,332			$	108,417			$	102,974
Distributions on unrestricted common units		715				658				2,143				1,985
Dividends and distributions on restricted shares and units		239				209				753				663
Total dividends and distributions for GAAP payout ratio		37,097				35,199				111,313				105,622
Dividends and distributions on antidilutive shares and units		(230	)			(202	)			(723	)			(592	)
Dividends and distributions for non-GAAP payout ratios	$	36,867			$	34,997			$	110,590			$	105,030
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	$	49,794			$	43,744			$	138,492			$	120,138
Interest expense		24,439				20,894				72,879				62,336
Income tax expense		96				612				254				832
Real estate-related depreciation and amortization		42,966				40,631				127,940				119,563
Other depreciation and amortization		482				428				1,364				1,438
Gain on sales of real estate		(7,673	)			(3,018	)			(14,697	)			(3,318	)
Adjustments from unconsolidated real estate JVs		1,797				1,758				4,105				4,791
EBITDAre		111,901				105,049				330,337				305,780
Credit loss (recoveries) expense		(1,096	)			(324	)			(2,443	)			1,378
Business development expenses		488				731				1,940				2,065
Demolition costs on nonrecurring improvements		97				—				97				—
Executive transition costs		—				—				—				78
Loss on early extinguishment of debt on unconsolidated real estate JVs		—				28				—				28
Net gain on other investments		—				(1,713	)			(29	)			(1,713	)
Adjusted EBITDA		111,390				103,771			$	329,902			$	307,616
Pro forma NOI adjustment for property changes within period		1,150				21
Change in collectability of deferred rental revenue		32				—
In-place adjusted EBITDA	$	112,572			$	103,792
Reconciliations of tenant improvements and incentives, building improvements, and leasing costs for operating properties to replacement capital expenditures
Tenant improvements and incentives	$	19,173			$	24,769			$	54,977			$	53,820
Building improvements		3,882				3,662				7,916				11,175
Leasing costs		4,946				2,240				7,913				10,630
Net exclusions from tenant improvements and incentives		(4,445	)			(3,390	)			(2,354	)			(93	)
Excluded building improvements		(559	)			(299	)			(1,133	)			(2,203	)
Excluded leasing costs		—				—				—				(964	)
Replacement capital expenditures	$	22,997			$	26,982			$	67,319			$	72,365

COPT Defense Properties Summary Financial Data (unaudited) (in thousands)
	For the Three Months Ended September 30,								For the Nine Months Ended September 30,
		2026				2025				2026				2025
Reconciliation of interest expense to the denominator for fixed charge coverage-Adjusted EBITDA
Interest expense	$	24,439			$	20,894			$	72,879			$	62,336
Less: Amortization of deferred financing costs		(778	)			(657	)			(2,404	)			(1,981	)
Less: Amortization of net debt discounts and commissions, net of amounts capitalized		(1,087	)			(1,070	)			(3,380	)			(3,181	)
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		971				898				2,875				2,409
Scheduled principal amortization		20				458				677				1,376
Capitalized interest, excluding amortization of deferred financing costs		2,031				1,292				5,284				3,345
Denominator for fixed charge coverage-Adjusted EBITDA	$	25,596			$	21,815			$	75,931			$	64,304
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	$	49,794			$	43,744			$	138,492			$	120,138
Construction contract and other service revenues		(13,424	)			(8,485	)			(26,231	)			(31,202	)
Depreciation and other amortization associated with real estate operations		42,966				40,631				127,940				119,563
Construction contract and other service expenses		12,763				7,952				24,338				29,530
General and administrative expenses		9,047				8,483				26,740				24,833
Leasing expenses		2,780				2,449				8,863				8,061
Business development expenses and land carry costs		729				1,098				2,866				3,203
Interest expense		24,439				20,894				72,879				62,336
Interest and other income, net		(2,984	)			(2,591	)			(9,912	)			(5,382	)
Gain on sales of real estate		(7,673	)			(3,018	)			(14,697	)			(3,318	)
Equity in income of unconsolidated entities		(415	)			(1,815	)			(2,213	)			(2,541	)
Unconsolidated real estate JVs NOI allocable to COPT Defense included in equity in income of unconsolidated entities		2,212				1,864				6,318				5,623
Income tax expense		96				612				254				832
NOI from real estate operations		120,330				111,818				355,637				331,676
Non-Same Property NOI from real estate operations		(6,050	)			(541	)			(16,009	)			(1,446	)
Same Property NOI from real estate operations		114,280				111,277				339,628				330,230
Straight line rent adjustments and lease incentive amortization		1,108				2,185				8,329				(908	)
Amortization of acquired above- and below-market rents		15				41				220				170
Lease termination fees, net		(1,901	)			(1,191	)			(3,921	)			(2,753	)
Tenant funded landlord assets and lease incentives		(3,054	)			(5,239	)			(14,900	)			(13,875	)
Cash NOI adjustments in unconsolidated real estate JVs		(421	)			(209	)			(1,063	)			(689	)
Sales-type lease adjustments		243				—				482				—
Same Property Cash NOI from real estate operations	$	110,270			$	106,864			$	328,775			$	312,175

COPT Defense Properties Summary Financial Data (unaudited) (in thousands)
		September 30, 2026				December 31, 2025
Reconciliation of total assets to adjusted book
Total assets		$	4,573,242			$	4,701,790
Accumulated depreciation			1,798,284				1,682,367
Accumulated amortization of intangibles on property acquisitions and deferred leasing costs			226,159				228,656
COPT Defense’s share of liabilities of unconsolidated real estate JVs			82,849				82,039
COPT Defense’s share of accumulated depreciation and amortization of unconsolidated real estate JVs			17,265				16,000
Less: Property - operating lease liabilities			(41,178	)			(45,012	)
Less: Property - finance lease liabilities			(1,090	)			(363	)
Less: Cash and cash equivalents			(24,262	)			(274,986	)
Less: COPT Defense’s share of cash of unconsolidated real estate JVs			(1,332	)			(1,898	)
Adjusted book		$	6,629,937			$	6,388,593

		September 30, 2026				December 31, 2025				September 30, 2025
Reconciliation of debt to net debt and net debt adjusted for fully-leased investment properties
Debt per balance sheet		$	2,579,733			$	2,767,834			$	2,443,518
Net discounts and commissions and deferred financing costs			19,267				23,466				19,123
COPT Defense’s share of unconsolidated JV gross secured debt			75,250				75,250				75,250
Gross debt			2,674,250				2,866,550				2,537,891
Less: Cash and cash equivalents			(24,262	)			(274,986	)			(23,687	)
Less: COPT Defense’s share of cash of unconsolidated real estate JVs			(1,332	)			(1,898	)			(2,080	)
Net debt			2,648,656				2,589,666				2,512,124
Costs incurred on fully-leased development properties			(112,988	)			(8,226	)			(83,794	)
Net debt adjusted for fully-leased investment properties		$	2,535,668			$	2,581,440			$	2,428,330

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20261029548923/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

Key Terms

ffo financial

Funds from operations (FFO) is a performance metric used mainly for real estate companies that measures the cash generated by their core rental and property-management activities, while removing accounting items such as building depreciation and one-time gains or losses from property sales. Investors rely on FFO to assess a real estate firm's ability to pay and sustain dividends and fund growth—similar to checking how much actual rent a landlord collects each month rather than paper profits.

noi financial

Net operating income (NOI) is the total profit a business makes from its core operations, after subtracting expenses directly related to running the business but before accounting for taxes, interest, or investments. It shows how well the company’s main activities generate earnings and helps investors assess its financial health and profitability without the influence of external factors. Think of it as the money a store earns from sales minus the costs to keep it open.

ebitda financial

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

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gaap financial

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

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