{"id":985233,"date":"2026-07-27T16:21:28","date_gmt":"2026-07-27T20:21:28","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/copt-defense-reports-second-quarter-2026-results\/"},"modified":"2026-07-27T16:21:28","modified_gmt":"2026-07-27T20:21:28","slug":"copt-defense-reports-second-quarter-2026-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/copt-defense-reports-second-quarter-2026-results\/","title":{"rendered":"COPT Defense Reports Second Quarter 2026 Results"},"content":{"rendered":"

<\/p>\n

COPT Defense Reports Second Quarter 2026 Results<\/b><\/p>\n

EPS of $0.40
\n
FFO per Share, As Adjusted for Comparability, of $0.71
\n
<\/b>4.4% FFO per Share Growth Year-over-Year
\n
2-cents above the Midpoint of Guidance<\/i><\/p>\n

Increased Midpoint of 2026 FFO per Share Guidance by 2-cents to $2.78
\n
<\/b>Implies 2.2% FFO per Share Growth for the Year<\/i><\/p>\n

Same Property Cash NOI Increased 7.4%
\n
<\/b>Increased Midpoint of 2026 Guidance by 100 basis points to 4%<\/i><\/p>\n

Occupancy and Leased Levels
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<\/b>Total Portfolio 94.1% Occupied and 95.6% Leased
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Defense\/IT Portfolio 95.1% Occupied and 96.4% Leased<\/i><\/p>\n

Leasing Activity
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<\/b>Total Leasing in 2Q26 and 1H26 of 518,000 SF and 2.2 million SF, respectively<\/i><\/p>\n

Vacancy Leasing in 2Q26 and 1H26 of 139,000 SF and 231,000 SF, respectively
\n
Increased Annual Target to 475,000 SF from 400,000 SF<\/i><\/p>\n

Renewal Leasing in 2Q26 and 1H26 of 347,000 SF and 1.5 million SF, respectively<\/i><\/p>\n

Tenant Retention in 2Q26 and 1H26 of 68% and 84%, respectively<\/i><\/p>\n

Investment Leasing in 2Q26 and 1H26 of 32,000 SF and 416,000 SF, respectively<\/i><\/p>\n

Investment Activity<\/b><\/p>\n

Committed $43 million of Capital to a Land and Ground Lease Acquisition in Chantilly, VA
\n
Increased 2026 Guidance Target by $45 million to $335 million<\/i><\/p>\n

COLUMBIA, Md.–(BUSINESS WIRE<\/a>)–
\nCOPT Defense Properties (\u201cCOPT Defense\u201d or the \u201cCompany\u201d) (NYSE: CDP) announced results for the second quarter ended June 30, 2026.<\/p>\n

Management Comments<\/span><\/b><\/p>\n

\nStephen E. Budorick, COPT Defense\u2019s President & Chief Executive Officer, commented, \u201cOur 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.<\/p>\n

\nWe 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.<\/p>\n

\nWe 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.”<\/p>\n

Financial Highlights<\/span><\/b><\/p>\n

2nd Quarter Financial Results:<\/b><\/p>\n