COPT Defense Exceeds Development Leasing Guidance and Vacancy Leasing Target in 2023
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Insights
The leasing achievements of COPT Defense Properties in the fourth quarter of 2023, including the significant 225,000 square foot build-to-suit development and the 26,500 square foot lease with a leading defense contractor, indicate a robust demand for specialized real estate in the defense sector. The company's ability to exceed its development leasing guidance by 47,000 square feet and vacancy leasing target by 52,000 square feet, particularly with a weighted-average lease term of over 9 years, reflects a strong market position and suggests a stable revenue stream for the near future.
These leasing activities, especially in the context of an overall challenging leasing environment, highlight COPT Defense's strategic focus on high-security defense and IT sectors. This focus likely provides resilience against broader market volatility, which could be attractive to investors seeking stability in their real estate portfolios. The company's specific alignment with defense and IT tenants provides a niche market advantage that may lead to sustained growth and potentially higher-than-average occupancy rates.
COPT Defense's publication of its Corporate Sustainability Report and Task Force on Climate-Related Financial Disclosures (TCFD) Report demonstrates a commitment to transparency and sustainability practices. These reports provide investors and stakeholders with critical information on the company's environmental, social and governance (ESG) performance and climate-related financial risks, which are increasingly important factors in investment decision-making.
The presence of these reports can enhance investor confidence by showcasing the company's proactive approach to sustainability and risk management. As ESG criteria become more integrated into investment strategies, COPT Defense's emphasis on sustainability reporting may lead to a competitive advantage. This can attract socially responsible investors and can potentially lead to a positive impact on the company's stock valuation over the long term.
Publishes 2023 Corporate Sustainability Report and TCFD Report
In 2023, COPT Defense executed 747,000 square feet of development leasing, which exceeded the midpoint of 2023 guidance of 700,000 square feet.
COPT Defense also completed 452,000 square feet of vacancy leasing during 2023, with a weighted-average lease term of over 9 years, which exceeded the target of 400,000 square feet and included 361,000 square feet of leasing in the Defense/IT Portfolio. The Company completed 115,000 square feet of vacancy leasing in the fourth quarter of 2023, which included 50,000 square feet of leasing in the Defense/IT Portfolio.
“We are pleased to announce that we have exceeded our expectations in terms of both development and vacancy leasing,” said Britt Snider, Executive Vice President and Chief Operating Officer. “The strength of our leasing team, coupled with the unique and strategic nature of our portfolio, allowed us to exceed our leasing targets despite an otherwise challenging leasing environment.”
ESG Update
COPT Defense published its eighth annual Corporate Sustainability Report for 2023, along with its second annual Task Force on Climate-Related Financial Disclosures (“TCFD”) Report for 2023. Both reports are available in the ‘Sustainability’ section of COPT Defense’s Investor Relations website (https://investors.copt.com/) and as follows:
2023 Corporate Sustainability Report:
2023 TCFD Report:
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
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, 2022.
Source: COPT Defense Properties
View source version on businesswire.com: https://www.businesswire.com/news/home/20240111813120/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
FAQ
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