EPS of $0.40
FFO per Share, As Adjusted for Comparability, of $0.71
4.4% FFO per Share Growth Year-over-Year
2-cents above the Midpoint of Guidance
Increased Midpoint of 2026 FFO per Share Guidance by 2-cents to $2.78
Implies 2.2% FFO per Share Growth for the Year
Same Property Cash NOI Increased 7.4%
Increased Midpoint of 2026 Guidance by 100 basis points to 4%
Occupancy and Leased Levels
Total Portfolio 94.1% Occupied and 95.6% Leased
Defense/IT Portfolio 95.1% Occupied and 96.4% Leased
Leasing Activity
Total Leasing in 2Q26 and 1H26 of 518,000 SF and 2.2 million SF, respectively
Vacancy Leasing in 2Q26 and 1H26 of 139,000 SF and 231,000 SF, respectively
Increased Annual Target to 475,000 SF from 400,000 SF
Renewal Leasing in 2Q26 and 1H26 of 347,000 SF and 1.5 million SF, respectively
Tenant Retention in 2Q26 and 1H26 of 68% and 84%, respectively
Investment Leasing in 2Q26 and 1H26 of 32,000 SF and 416,000 SF, respectively
Investment Activity
Committed $43 million of Capital to a Land and Ground Lease Acquisition in Chantilly, VA
Increased 2026 Guidance Target by $45 million to $335 million
COLUMBIA, Md.--(BUSINESS WIRE)--July 27, 2026--
COPT Defense Properties ("COPT Defense" or the "Company") $(CDP)$ announced results for the second quarter ended June 30, 2026.
Management Comments
Stephen E. Budorick, COPT Defense's President & Chief Executive Officer, commented, "Our performance during the first half of the year exceeded our plan and expectations in every respect. Our financial results, occupancy, leasing activity, and capital commitments to new investments continue to illustrate the benefits and opportunities from the strong demand for our portfolio, as FFO per share exceeded the midpoint of our guidance by $0.02 in the second quarter.
We increased the midpoint of 2026 FFO per share guidance by $0.02 to $2.78, which is $0.03 above our initial guidance. This is even more impressive considering this overcomes roughly $0.035 of incremental dilution from our Exchangeable Notes relative to our initial guidance, resulting from our 37% share price increase year-to-date. We also increased the midpoint of 2026 guidance for same property cash NOI growth by 100 basis points to 4.0%, the change in cash rents on renewals by 100 basis points to 3.0%, and capital commitment to new investments by $45 million to $335 million. Additionally, we raised our target for vacancy leasing by nearly 20% from 400,000 square feet to 475,000 square feet, based on the 231,000 square feet signed in the first half of the year, and our strong pipeline of deals in advanced negotiations.
We expect bipartisan support for growth in defense spending will continue, as the FY 2027 Budget Request calls for a 28% increase in the base budget to nearly $1.1 trillion, which excludes any additional funding from reconciliation. The FY 2027 Budget Requests also calls for meaningful increases in funding for the priority missions our portfolio supports, which includes intelligence, cybersecurity, and missile defense, thereby creating a favorable environment for continued demand in our portfolio."
Financial Highlights
2nd Quarter Financial Results:
-- Diluted earnings per share ("EPS") was $0.40 for the quarter ended June
30, 2026, compared to $0.34 for the quarter ended June 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 June 30, 2026, compared to $0.68 for the
quarter ended June 30, 2025.
Operating Performance Highlights
Operating Portfolio Summary:
-- At June 30, 2026, the Company's 25.3 million square foot total
portfolio was 94.1% occupied and 95.6% leased, which includes the 23.3
million square foot Defense/IT Portfolio that was 95.1% occupied and
96.4% leased.
Same Property Performance:
-- At June 30, 2026, the Company's 24.6 million square foot Same Property
portfolio was 94.5% occupied and 95.4% leased.
-- The Company's Same Property cash NOI increased 7.4% in the quarter
ended June 30, 2026 compared to the same period in 2025.
Leasing:
-- Total Square Feet Leased: For the quarter ended June 30, 2026, the Company leased 518,000 square feet, including 347,000 square feet of renewals, 139,000 square feet of vacancy leasing, and 32,000 square feet of investment leasing. For the six months ended June 30, 2026, the Company executed 2.2 million square feet of total leasing, including 1.5 million square feet of renewals, 231,000 square feet of vacancy leasing, and 416,000 square feet of investment leasing. -- Tenant Retention Rates: During the quarter ended June 30, 2026, the Company renewed 68.4% of expiring square feet in its total portfolio. During the six months ended June 30, 2026, the Company renewed 84.4% of expiring square feet in its total portfolio. -- Rent Spreads and Average Escalations on Renewing Leases: For the quarter and six months ended June 30, 2026, straight-line rents on renewals increased 4.4% and 10.9%, respectively, and cash rents on renewed space decreased 0.2% and increased 3.2%, respectively, while annual escalations on renewing leases averaged 2.5% and 3.0%, respectively. -- Lease Terms: In the quarter ended June 30, 2026, lease terms averaged 2.9 years on renewing leases, 7.0 years on vacancy leasing, and 10.0 years on investment leasing. For the six months ended June 30, 2026, lease terms averaged 4.1 years on renewing leases, 6.8 years on vacancy leasing, and 13.1 years on investment leasing.
Investment Activity Highlights
-- Development Pipeline: The Company's development pipeline consists of
six properties totaling 885,000 square feet that were 73% leased as of
June 30, 2026. These projects represent a total estimated investment of
$440 million, of which $115 million was spent as of June 30, 2026.
-- Acquisition: On April 23, 2026, the Company acquired approximately 17
acres of land for approximately $43 million, subject to a ground lease on
which two buildings at Mission Ridge 1 + 2, located at 15020 and 15030
Conference Center Drive in Chantilly, Virginia, were developed. The
buildings are fully leased to the U.S. Government and defense
contractors.
-- Please see pages 25-27 of the Company's 2Q26 Results
Presentation (refer to the 'Associated Supplemental Presentation'
section below).
Balance Sheet and Capital Transaction Highlights
-- For the quarter ended June 30, 2026, the Company's adjusted EBITDA
fixed charge coverage ratio was 4.4x.
-- At June 30, 2026, the Company's net debt to in-place adjusted EBITDA
ratio was 6.0x and its net debt adjusted for fully-leased investment
properties to in-place adjusted EBITDA ratio was 5.9x.
-- At June 30, 2026, and including the effect of interest rate swaps, the
Company's weighted average effective interest rate on its consolidated
debt portfolio was 3.8% with a weighted average maturity of 4.3 years
(assuming exercise of available extension options), and 82% 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 second 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 for diluted EPS and diluted FFOPS, per Nareit and as adjusted for comparability of $1.24-$1.30 and $2.73-$2.79, respectively, to new ranges of $1.39-$1.43 and $2.76-$2.80, respectively. Management is establishing third quarter guidance for diluted EPS and diluted FFOPS per Nareit and as adjusted for comparability at $0.37-$0.39 and $0.68-$0.70, respectively. Reconciliations of projected diluted EPS to projected diluted FFOPS, in accordance with Nareit and as adjusted for comparability, are as follows:
Quarter Ending Year Ending
September 30, 2026 December 31, 2026
------------------- ---------------------
Reconciliation
of Diluted EPS
to FFOPS, per
Nareit, and As
Adjusted for
Comparability Low High Low High
Diluted EPS $ 0.37 $ 0.39 $ 1.39 $ 1.43
Real
estate-related
depreciation
and
amortization 0.37 0.37 1.50 1.50
Gain on sales of
real estate (0.06) (0.06) (0.13) (0.13)
----- ----- ----- -----
Diluted FFOPS,
Nareit
definition and
as adjusted for
comparability $ 0.68 $ 0.70 $ 2.76 $ 2.80
===== ===== ===== =====
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 second quarter 2026 results on its conference call tomorrow, details of which are listed below:
Conference Call Date: Tuesday, July 28, 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/BI747d6d14370a47ff9a560c5239e7db6a
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 June 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 96.4% 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)
(in thousands)
For the Three Months For the Six Months Ended
Ended June 30, June 30,
----------------------- -------------------------
2026 2025 2026 2025
Revenues
Lease revenue $188,806 $175,598 $381,777 $350,906
Other property
revenue 1,820 1,859 3,445 4,148
Construction
contract and
other service
revenues 6,766 12,458 12,807 22,717
------- ------- ------- -------
Total
revenues 197,392 189,915 398,029 377,771
Operating expenses
Property
operating
expenses 72,586 66,915 154,021 138,955
Depreciation and
amortization
associated with
real estate
operations 42,289 39,573 84,974 78,932
Construction
contract and
other service
expenses 6,023 11,873 11,575 21,578
General and
administrative
expenses 9,237 8,202 17,693 16,350
Leasing expenses 3,089 2,613 6,083 5,612
Business
development
expenses and
land carry
costs 938 1,096 2,137 2,105
------- ------- ------- -------
Total
operating
expenses 134,162 130,272 276,483 263,532
Interest expense (24,444) (20,938) (48,440) (41,442)
Interest and other
income, net 2,973 1,223 6,928 2,791
Gain on sales of
real estate 6,442 -- 7,024 300
------- ------- ------- -------
Income before
equity in income
of unconsolidated
entities and
income taxes 48,201 39,928 87,058 75,888
Equity in income of
unconsolidated
entities 392 355 1,798 726
Income tax expense (34) (117) (158) (220)
------- ------- ------- -------
Net income 48,559 40,166 88,698 76,394
Net income
attributable to
noncontrolling
interests
Common units in
the Operating
Partnership
("OP") (1,038) (846) (1,850) (1,572)
Other
consolidated
entities (1,084) (973) (1,855) (1,735)
------- ------- ------- -------
Net income
attributable to
common
shareholders $ 46,437 $ 38,347 $ 84,993 $ 73,087
======= ======= ======= =======
Earnings per share
("EPS")
computation
Numerator for
diluted EPS
Net income
attributable
to common
shareholders $ 46,437 $ 38,347 $ 84,993 $ 73,087
Amount
allocable to
share-based
compensation
awards (183) (112) (343) (229)
------- ------- ------- -------
Numerator for
diluted EPS $ 46,254 $ 38,235 $ 84,650 $ 72,858
======= ======= ======= =======
Denominator
Weighted
average
common
shares -
basic 112,871 112,459 112,839 112,421
Dilutive
effect of
share-based
compensation
awards 938 765 984 744
Dilutive
exchangeable
debt 1,087 -- 763 --
------- ------- ------- -------
Weighted
average
common
shares -
diluted 114,896 113,224 114,586 113,165
======= ======= ======= =======
Diluted EPS $ 0.40 $ 0.34 $ 0.74 $ 0.64
======= ======= ======= =======
COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands, except per share data)
For the Three Months For the Six Months Ended
Ended June 30, June 30,
----------------------- -------------------------
2026 2025 2026 2025
Net income $ 48,559 $ 40,166 $ 88,698 $ 76,394
Real estate-related
depreciation and
amortization 42,289 39,573 84,974 78,932
Gain on sales of real
estate (6,442) -- (7,024) (300)
Depreciation and
amortization on
unconsolidated real
estate JVs 726 732 1,468 1,473
Gain on sale of real
estate on
unconsolidated real
estate JV (130) -- (1,276) --
------- ------- ------- -------
Funds from operations
("FFO") 85,002 80,471 166,840 156,499
FFO allocable to other
noncontrolling
interests (1,433) (1,382) (2,564) (2,540)
Basic FFO allocable to
share-based
compensation awards (617) (550) (1,220) (1,080)
------- ------- ------- -------
Basic FFO available to
common share and common
unit holders ("Basic
FFO") 82,952 78,539 163,056 152,879
Diluted FFO adjustments
allocable to
share-based
compensation awards 63 96 127 201
------- ------- ------- -------
Diluted FFO available to
common share and common
unit holders and as
adjusted for
comparability 83,015 78,635 163,183 153,080
Straight line rent
adjustments and lease
incentive amortization 5,377 (1,836) 4,047 (3,535)
Amortization of
intangibles and other
assets included in net
operating income
("NOI") 106 64 166 226
Sales-type lease
adjustments 101 -- 101 --
Share-based
compensation, net of
amounts capitalized 3,376 2,924 6,562 5,778
Amortization of deferred
financing costs 794 657 1,626 1,324
Amortization of net debt
discounts and
commissions, net of
amounts capitalized 1,076 1,060 2,293 2,111
Replacement capital
expenditures (25,117) (23,919) (44,322) (45,383)
Other 386 75 542 156
------- ------- ------- -------
Diluted adjusted funds
from operations
available to common
share and common unit
holders ("Diluted
AFFO") $ 69,114 $ 57,660 $134,198 $113,757
======= ======= ======= =======
Diluted FFO per share $ 0.71 $ 0.68 $ 1.40 $ 1.33
======= ======= ======= =======
Diluted FFO per share,
as adjusted for
comparability $ 0.71 $ 0.68 $ 1.40 $ 1.33
======= ======= ======= =======
Dividends/distributions
per common share/unit $ 0.32 $ 0.305 $ 0.64 $ 0.61
COPT Defense Properties
Summary Financial Data
(unaudited)
(dollars and shares in thousands, except per share data)
June 30, December 31,
2026 2025
Balance sheet data
Properties, net of accumulated
depreciation $3,813,468 $ 3,783,477
Total assets $4,515,281 $ 4,701,790
Debt per balance sheet $2,592,436 $ 2,767,834
Total liabilities $2,909,439 $ 3,114,115
Redeemable noncontrolling interest $ 24,881 $ 25,506
Total equity $1,580,961 $ 1,562,169
Debt to assets 57.4% 58.9%
Net debt to adjusted book 40.8% 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 95.1% 95.5%
% Leased 96.4% 96.5%
For the Three Months Ended For the Six Months Ended
June 30, June 30,
--------------------------- ---------------------------
2026 2025 2026 2025
GAAP
Payout ratio
Net income 76.4% 87.7% 83.7% 92.2%
Debt ratios
Net income to
interest
expense ratio 2.0x 1.9x 1.8x 1.8x
Debt to net
income ratio 13.3x 15.2x N/A N/A
Non-GAAP
Payout ratios
Diluted FFO 44.4% 44.5% 45.2% 45.7%
Diluted FFO,
as adjusted
for
comparability 44.4% 44.5% 45.2% 45.7%
Diluted AFFO 53.3% 60.7% 54.9% 61.5%
Debt ratios
Adjusted
EBITDA fixed
charge
coverage
ratio 4.4x 4.9x 4.3x 4.8x
Net debt to
in-place
adjusted
EBITDA ratio 6.0x 5.9x N/A N/A
Net debt
adjusted for
fully-leased
investment
properties to
in-place
adjusted
EBITDA ratio 5.9x 5.8x N/A N/A
Reconciliation of
denominators for
per share
measures
Denominator for
diluted EPS 114,896 113,224 114,586 113,165
Weighted average
common units 2,231 2,177 2,147 2,113
------- ---- ------- --- ------- ---- ------- ---
Denominator for
diluted FFO per
share and as
adjusted for
comparability 117,127 115,401 116,733 115,278
======= ==== ======= === ======= ==== ======= ===
COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)
For the Three Months For the Six Months Ended
Ended June 30, June 30,
----------------------- -------------------------
2026 2025 2026 2025
Numerators for
payout ratios
Dividends on
unrestricted
common and
deferred shares $ 36,140 $ 34,324 $ 72,274 $ 68,642
Distributions on
unrestricted
common units 717 666 1,428 1,327
Dividends and
distributions on
restricted shares
and units 247 218 514 454
------- ------- ------- -------
Total dividends
and distributions
for GAAP payout
ratio 37,104 35,208 74,216 70,423
Dividends and
distributions on
antidilutive
shares and units (236) (194) (493) (407)
------- ------- ------- -------
Dividends and
distributions for
non-GAAP payout
ratios $ 36,868 $ 35,014 $ 73,723 $ 70,016
======= ======= ======= =======
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 $ 48,559 $ 40,166 $ 88,698 $ 76,394
Interest expense 24,444 20,938 48,440 41,442
Income tax expense 34 117 158 220
Real
estate-related
depreciation and
amortization 42,289 39,573 84,974 78,932
Other depreciation
and amortization 466 468 882 1,010
Gain on sales of
real estate (6,442) -- (7,024) (300)
Adjustments from
unconsolidated
real estate JVs 1,658 1,515 2,308 3,033
------- ------- ------- -------
EBITDAre 111,008 102,777 218,436 200,731
Credit loss
(recoveries)
expense (978) 1,187 (1,347) 1,702
Business
development
expenses 650 741 1,452 1,334
Executive
transition costs -- 21 -- 78
Net gain on other
investments -- -- (29) --
------- ------- ------- -------
Adjusted EBITDA 110,680 104,726 $218,512 $203,845
======= =======
Pro forma NOI
adjustment for
property changes
within period -- 57
Change in
collectability of
deferred rental
revenue -- 20
------- -------
In-place adjusted
EBITDA $110,680 $104,803
======= =======
Reconciliations of
tenant
improvements and
incentives,
building
improvements, and
leasing costs for
operating
properties to
replacement
capital
expenditures
Tenant
improvements and
incentives $ 19,905 $ 15,293 $ 35,804 $ 29,051
Building
improvements 2,892 5,641 4,034 7,513
Leasing costs 1,420 4,929 2,967 8,390
Net additions to
(exclusions from)
tenant
improvements and
incentives 1,167 (241) 2,091 3,297
Excluded building
improvements (267) (1,703) (574) (1,904)
Excluded leasing
costs -- -- -- (964)
------- ------- ------- -------
Replacement
capital
expenditures $ 25,117 $ 23,919 $ 44,322 $ 45,383
======= ======= ======= =======
COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)
For the Three Months For the Six Months Ended
Ended June 30, June 30,
----------------------- -------------------------
2026 2025 2026 2025
Reconciliation of
interest expense
to the denominator
for fixed charge
coverage-Adjusted
EBITDA
Interest expense $ 24,444 $ 20,938 $ 48,440 $ 41,442
Less: Amortization
of deferred
financing costs (794) (657) (1,626) (1,324)
Less: Amortization
of net debt
discounts and
commissions, net
of amounts
capitalized (1,076) (1,060) (2,293) (2,111)
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 957 759 1,904 1,511
Scheduled
principal
amortization 260 457 657 918
Capitalized
interest,
excluding
amortization of
deferred
financing costs 1,574 1,126 3,253 2,053
------- ------- ------- -------
Denominator for
fixed charge
coverage-Adjusted
EBITDA $ 25,365 $ 21,563 $ 50,335 $ 42,489
======= ======= ======= =======
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 $ 48,559 $ 40,166 $ 88,698 $ 76,394
Construction
contract and
other service
revenues (6,766) (12,458) (12,807) (22,717)
Depreciation and
other
amortization
associated with
real estate
operations 42,289 39,573 84,974 78,932
Construction
contract and
other service
expenses 6,023 11,873 11,575 21,578
General and
administrative
expenses 9,237 8,202 17,693 16,350
Leasing expenses 3,089 2,613 6,083 5,612
Business
development
expenses and land
carry costs 938 1,096 2,137 2,105
Interest expense 24,444 20,938 48,440 41,442
Interest and other
income, net (2,973) (1,223) (6,928) (2,791)
Gain on sales of
real estate (6,442) -- (7,024) (300)
Equity in income
of unconsolidated
entities (392) (355) (1,798) (726)
Unconsolidated
real estate JVs
NOI allocable to
COPT Defense
included in
equity in income
of unconsolidated
entities 2,050 1,870 4,106 3,759
Income tax expense 34 117 158 220
------- ------- ------- -------
NOI from real
estate
operations 120,090 112,412 235,307 219,858
Non-Same Property
NOI from real
estate
operations (5,123) (505) (9,959) (905)
------- ------- ------- -------
Same Property NOI
from real estate
operations 114,967 111,907 225,348 218,953
Straight line rent
adjustments and
lease incentive
amortization 6,544 (1,282) 7,221 (3,093)
Amortization of
acquired above-
and below-market
rents 125 65 205 129
Lease termination
fees, net (808) (728) (2,020) (1,562)
Tenant funded
landlord assets
and lease
incentives (8,528) (5,223) (11,846) (8,636)
Cash NOI
adjustments in
unconsolidated
real estate JVs (287) (220) (642) (480)
Sales-type lease
adjustments 239 -- 239 --
------- ------- ------- -------
Same Property Cash
NOI from real
estate
operations $112,252 $104,519 $218,505 $205,311
======= ======= ======= =======
COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)
June 30, December 31,
2026 2025
Reconciliation of total assets to
adjusted book
Total assets $4,515,281 $ 4,701,790
Accumulated depreciation 1,759,411 1,682,367
Accumulated amortization of
intangibles on property acquisitions
and deferred leasing costs 224,598 228,656
COPT Defense's share of liabilities of
unconsolidated real estate JVs 82,420 82,039
COPT Defense's share of accumulated
depreciation and amortization of
unconsolidated real estate JVs 16,497 16,000
Less: Property - operating lease
liabilities (42,485) (45,012)
Less: Property - finance lease
liabilities (1,070) (363)
Less: Cash and cash equivalents (24,157) (274,986)
Less: COPT Defense's share of cash of
unconsolidated real estate JVs (1,332) (1,898)
--------- ----------
Adjusted book $6,529,163 $ 6,388,593
========= ==========
June 30, December 31, June 30,
2026 2025 2025
Reconciliation of
debt to net debt
and net debt
adjusted for
fully-leased
investment
properties
Debt per balance
sheet $2,592,436 $ 2,767,834 $2,438,591
Net discounts and
commissions and
deferred financing
costs 20,604 23,466 20,509
COPT Defense's
share of
unconsolidated JV
gross debt 75,250 75,250 53,750
--------- ---------- ---------
Gross debt 2,688,290 2,866,550 2,512,850
Less: Cash and cash
equivalents (24,157) (274,986) (21,288)
Less: COPT
Defense's share of
cash of
unconsolidated
real estate JVs (1,332) (1,898) (1,944)
--------- ---------- ---------
Net debt 2,662,801 2,589,666 2,489,618
Costs incurred on
fully-leased
development
properties (62,558) (8,226) (60,302)
--------- ---------- ---------
Net debt adjusted
for fully-leased
investment
properties $2,600,243 $ 2,581,440 $2,429,316
========= ========== =========
View source version on businesswire.com: https://www.businesswire.com/news/home/20260727622831/en/
CONTACT: IR Contacts:
Venkat Kommineni, CFA
443.285.5587
venkat.kommineni@copt.com
Michelle Layne
443.285.5452
michelle.layne@copt.com
(END) Dow Jones Newswires
July 27, 2026 16:16 ET