COPT Defense Reports Strong Full Year 2024 Results
COPT Defense (NYSE: CDP) reported strong financial results for 2024, with EPS of $1.23 and FFO per share of $2.57, marking a 6.2% increase over 2023. The company achieved its highest-ever Same Property Cash NOI increase of 9.1% for the year. The total portfolio maintained high occupancy at 93.6% and was 95.1% leased, with the Defense/IT Portfolio showing even stronger metrics at 95.6% occupied and 96.8% leased.
Notable achievements include total leasing of 3.2 million SF, exceeding vacancy leasing targets with 500,000 SF, and achieving an 86% tenant retention rate - the highest in over 20 years. The company committed $212 million to new investments and completed 124,000 SF of investment leasing. The development pipeline consists of four properties totaling 606,000 SF, 75% leased, representing a total estimated investment of $252.9 million.
COPT Defense (NYSE: CDP) ha riportato risultati finanziari solidi per il 2024, con un utile per azione (EPS) di $1,23 e un flusso di cassa operativo (FFO) per azione di $2,57, segnando un aumento del 6,2% rispetto al 2023. L'azienda ha raggiunto il più alto incremento mai registrato di Same Property Cash NOI, del 9,1% per l'anno. L'intero portafoglio ha mantenuto un'alta occupazione del 93,6% ed era affittato al 95,1%, con il portafoglio Difesa/IT che ha mostrato metriche ancora più forti, con una occupazione del 95,6% e un tasso di affitto del 96,8%.
Tra i risultati notevoli vi è stata una locazione totale di 3,2 milioni di piedi quadrati, superando gli obiettivi di locazione delle aree vacanti di 500.000 piedi quadrati, e raggiungendo un tasso di retention degli inquilini dell'86% - il più alto in oltre 20 anni. L'azienda ha impegnato $212 milioni in nuovi investimenti e ha completato 124.000 piedi quadrati di leasing per investimenti. Il pipeline di sviluppo consiste in quattro proprietà per un totale di 606.000 piedi quadrati, con il 75% affittato, rappresentando un investimento totale stimato di $252,9 milioni.
COPT Defense (NYSE: CDP) informó resultados financieros sólidos para 2024, con un EPS de $1,23 y un FFO por acción de $2,57, marcando un aumento del 6,2% en comparación con 2023. La compañía logró el mayor incremento de Same Property Cash NOI de su historia, con un 9,1% para el año. Todo el portafolio mantuvo una alta ocupación del 93,6% y fue arrendado al 95,1%, con el portafolio de Defensa/TI mostrando métricas aún más fuertes al 95,6% ocupado y 96,8% arrendado.
Logros notables incluyen un arrendamiento total de 3,2 millones de pies cuadrados, superando los objetivos de arrendamiento de vacantes en 500,000 pies cuadrados, y alcanzando una tasa de retención de inquilinos del 86% - la más alta en más de 20 años. La compañía comprometió $212 millones en nuevas inversiones y completó 124,000 pies cuadrados de arrendamiento de inversión. La cartera de desarrollo consta de cuatro propiedades con un total de 606,000 pies cuadrados, 75% arrendadas, representando una inversión total estimada de $252.9 millones.
COPT Defense (NYSE: CDP)는 2024년 강력한 재무 실적을 발표했으며, 주당 순이익(EPS)은 $1.23, 주당 운용자산흐름(FFO)은 $2.57로 2023년 대비 6.2% 증가했습니다. 회사는 올해 역사상 가장 높은 동일 자산 현금 NOI 증가율인 9.1%를 달성했습니다. 전체 포트폴리오는 93.6%의 높은 점유율을 유지했으며, 95.1% 임대되었습니다. 방어/IT 포트폴리오는 95.6% 임대와 96.8% 임대되며 더욱 강력한 지표를 보여주었습니다.
주목할 만한 성과에는 총 320만 평방피트 임대가 포함되어 있으며, 빈 공실 임대 목표를 50만 평방피트 초과 달성하였고, 86%의 세입자 재임대율을 기록하였습니다 - 이는 20년 이상 중 가장 높은 수준입니다. 회사는 새로운 투자에 $212 백만을 약정하였고, 124,000 평방피트의 투자 임대를 완료했습니다. 개발 파이프라인은 총 606,000 평방피트의 네 개의 자산으로 구성되어 있으며, 75%가 임대되어 있으며, 총 예상 투자는 $252.9 백만입니다.
COPT Defense (NYSE: CDP) a annoncé des résultats financiers solides pour 2024, avec un EPS de 1,23 $ et un FFO par action de 2,57 $, marquant une augmentation de 6,2 % par rapport à 2023. L'entreprise a atteint la plus forte augmentation jamais enregistrée du Same Property Cash NOI de 9,1 % pour l'année. L'ensemble du portefeuille a maintenu un taux d'occupation élevé de 93,6 % et était loué à 95,1 %, le portefeuille Défense/TI montrant des indicateurs encore plus solides avec 95,6 % d'occupés et 96,8 % de loués.
Parmi les réalisations notables figurent une location totale de 3,2 millions de pieds carrés, dépassant les objectifs de location de vacance de 500 000 pieds carrés, et atteignant un taux de fidélisation des locataires de 86 % - le plus élevé depuis plus de 20 ans. L'entreprise a engagé 212 millions de dollars dans de nouveaux investissements et a complété 124 000 pieds carrés de location d'investissement. Le pipeline de développement se compose de quatre propriétés totalisant 606 000 pieds carrés, louées à 75 %, représentant un investissement total estimé à 252,9 millions de dollars.
COPT Defense (NYSE: CDP) berichtete über starke Finanzergebnisse für 2024, mit einem EPS von 1,23 $ und einem FFO pro Aktie von 2,57 $, was einen Anstieg von 6,2 % gegenüber 2023 markiert. Das Unternehmen erzielte den höchsten jemals verzeichneten Anstieg des Same Property Cash NOI von 9,1 % für das Jahr. Das gesamte Portfolio hielt eine hohe Belegungsrate von 93,6 % und war zu 95,1 % vermietet, wobei das Verteidigungs-/IT-Portfolio noch stärkere Kennzahlen mit 95,6 % Belegung und 96,8 % Vermietung aufwies.
Bemerkenswerte Erfolge umfassen die Gesamtvermietung von 3,2 Millionen Quadratfuß, die die Leerstandsvermietungsziele um 500.000 Quadratfuß übertraf, sowie eine Mieterbindungsrate von 86 % - die höchste in über 20 Jahren. Das Unternehmen verpflichtete 212 Millionen Dollar für neue Investitionen und schloss 124.000 Quadratfuß an Investitionsvermietungen ab. Die Entwicklungs-Pipeline besteht aus vier Grundstücken mit insgesamt 606.000 Quadratfuß, die zu 75 % vermietet sind, was einer geschätzten Gesamtinvestition von 252,9 Millionen Dollar entspricht.
- FFO per share increased 6.2% to $2.57 in 2024
- Record 9.1% increase in Same Property Cash NOI
- 86% tenant retention rate - highest in over 20 years
- Defense/IT Portfolio showing strong 95.6% occupancy
- 3.2 million SF of total leasing achieved
- 100% of debt subject to fixed interest rates at 3.3% average
- Cash rents on renewed space decreased 0.2% in Q4 2024
- Net debt to adjusted EBITDA ratio at 6.0x
Insights
COPT Defense's FY2024 results demonstrate exceptional operational execution and strategic positioning in the defense real estate sector. The 6.2% FFO per share growth to
Three key metrics stand out: First, the 9.1% Same Property NOI growth marks a historic high, indicating strong pricing power and operational efficiency. Second, the 86% tenant retention rate, their best in two decades, reflects both the strategic location value of their properties and the high switching costs for defense-related tenants. Third, their 95.6% Defense/IT Portfolio occupancy significantly outperforms the broader office sector by approximately 700 basis points, validating their niche market focus.
The company's financial position remains robust with a 3.3% weighted average interest rate and 4.7x fixed charge coverage ratio. Their return to acquisitions after an eight-year hiatus, deploying
The 6.8x compound annual FFO growth from 2019-2024 demonstrates the durability of their business model, while their guided 3.5% FFO growth for 2025 suggests continued momentum, supported by their 75% pre-leased development pipeline of 606,000 square feet.
_______________________________________________________________
EPS of
FFO per Share, as Adjusted for Comparability, of
Increased
Total Portfolio
Defense/IT Portfolio
For the year, Same Property Cash NOI Increased
The Company’s Highest Increase Ever Reported
_______________________________________________________________
Exceeded Leasing Goals in 2024
Total Leasing of 3.2 million SF
500,000 SF of Vacancy Leasing
Exceeded Annual Target of 400,000 SF
Tenant Retention of
Highest Annual Retention Rate in Over 20 Years
_______________________________________________________________
Solid Investment Activity
Committed
124,000 SF of Investment Leasing
_______________________________________________________________
Management Comments
Stephen E. Budorick, COPT Defense’s President & Chief Executive Officer, commented, “Our Defense/IT investment strategy, which concentrates our portfolio near priority
We achieved a milestone in 2024 as we executed on our first acquisitions since 2015. We leveraged our investment-grade rated balance sheet to execute on several strategic and opportunistic investments, which serve to strengthen our relationship with the
We have generated FFO per share growth in each of the past six years, which amounts to a compound annual growth rate of
Financial Highlights
4th Quarter Financial Results:
> Diluted earnings per share (“EPS”) was
> Diluted funds from operations per share (“FFOPS”), as calculated in accordance with Nareit’s definition was
> FFOPS, as adjusted for comparability, was
Full Year 2024 Financial Results:
> EPS for the year ended December 31, 2024 was
> Per Nareit’s definition, FFOPS for 2024 was
> FFOPS, as adjusted for comparability, for 2024 was
Operating Performance Highlights
Operating Portfolio Summary:
> At December 31, 2024, the Company’s 24.5 million square foot total portfolio was
> During the quarter and year ended December 31, 2024, the Company placed into service 225,000 and 399,000 square feet, respectively, of developments that were
Same Property Performance:
> At December 31, 2024, the Company’s 22.2 million square foot Same Property portfolio was
> The Company’s Same Property cash NOI increased
Leasing:
> Total Square Feet Leased: For the quarter ended December 31, 2024, the Company leased 709,000 square feet, including 561,000 square feet of renewals, 114,000 square feet of vacancy leasing, and 34,000 square feet of investment leasing. For the year ended December 31, 2024, the Company executed 3.2 million square feet of total leasing, including 2.6 million square feet of renewals, 500,000 square feet of vacancy leasing, and 124,000 square feet of investment leasing.
> Tenant Retention Rates: During the quarter and year ended December 31, 2024, the Company renewed
> Rent Spreads and Average Escalations on Renewing Leases: For the quarter and year ended December 31, 2024, straight-line rents on renewals increased
> Lease Terms: In the quarter ended December 31, 2024, lease terms averaged 3.5 years on renewing leases, 7.4 years on vacancy leasing, and 5.9 years on investment leasing. For the year ended December 31, 2024, lease terms averaged 3.9 years on renewing leases, 7.7 years on vacancy leasing, and 8.2 years on investment leasing.
Investment Activity Highlights
> Development Pipeline: The Company’s development pipeline consists of four properties totaling 606,000 square feet that were
Balance Sheet and Capital Transaction Highlights
> For the quarter ended December 31, 2024, the Company’s adjusted EBITDA fixed charge coverage ratio was 4.7x.
> At December 31, 2024, 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 December 31, 2024, and including the effect of interest rate swaps, the Company’s weighted average effective interest rate on its consolidated debt portfolio was
Associated Supplemental Presentation
Prior to the call, the Company will post a slide presentation to accompany management’s prepared remarks for its fourth quarter and full year 2024 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
2025 Guidance
The Company details its initial full year and first quarter guidance, with supporting assumptions, in a separate press release issued concurrently with this press release; 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 fourth quarter and full year 2024 results on its conference call tomorrow at 12:00 p.m. Eastern Time, details of which are listed below:
| Conference Call Date: | Friday, February 7, 2025 |
||
| 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.vevent.com/register/BI959f6e09b0064c679a6d9d437eec49c7
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
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, 2023.
Source: COPT Defense Properties
COPT Defense Properties |
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Summary Financial Data |
|||||||||||||||
(unaudited) |
|||||||||||||||
(dollars and shares in thousands, except per share data) |
|||||||||||||||
|
|||||||||||||||
|
For the Three Months Ended
|
|
For the Years Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Revenues |
|
|
|
|
|
|
|
||||||||
Lease revenue |
$ |
169,765 |
|
|
$ |
160,337 |
|
|
$ |
671,366 |
|
|
$ |
619,847 |
|
Other property revenue |
|
1,641 |
|
|
|
1,225 |
|
|
|
6,351 |
|
|
|
4,956 |
|
Construction contract and other service revenues |
|
12,027 |
|
|
|
18,167 |
|
|
|
75,550 |
|
|
|
60,179 |
|
Total revenues |
|
183,433 |
|
|
|
179,729 |
|
|
|
753,267 |
|
|
|
684,982 |
|
Operating expenses |
|
|
|
|
|
|
|
||||||||
Property operating expenses |
|
66,964 |
|
|
|
64,577 |
|
|
|
266,001 |
|
|
|
247,385 |
|
Depreciation and amortization associated with real estate operations |
|
38,821 |
|
|
|
36,735 |
|
|
|
153,640 |
|
|
|
148,950 |
|
Construction contract and other service expenses |
|
11,519 |
|
|
|
17,167 |
|
|
|
73,265 |
|
|
|
57,416 |
|
Impairment losses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
252,797 |
|
General and administrative expenses |
|
8,429 |
|
|
|
8,240 |
|
|
|
33,555 |
|
|
|
31,105 |
|
Leasing expenses |
|
2,243 |
|
|
|
2,308 |
|
|
|
9,233 |
|
|
|
8,932 |
|
Business development expenses and land carry costs |
|
1,171 |
|
|
|
797 |
|
|
|
4,250 |
|
|
|
2,732 |
|
Total operating expenses |
|
129,147 |
|
|
|
129,824 |
|
|
|
539,944 |
|
|
|
749,317 |
|
Interest expense |
|
(20,391 |
) |
|
|
(20,383 |
) |
|
|
(82,151 |
) |
|
|
(71,142 |
) |
Interest and other income, net |
|
2,331 |
|
|
|
5,659 |
|
|
|
12,661 |
|
|
|
12,587 |
|
Gain on sales of real estate |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
49,392 |
|
Income (loss) before equity in income (loss) of unconsolidated entities and income taxes |
|
36,226 |
|
|
|
35,181 |
|
|
|
143,833 |
|
|
|
(73,498 |
) |
Equity in income (loss) of unconsolidated entities |
|
217 |
|
|
|
(240 |
) |
|
|
397 |
|
|
|
(261 |
) |
Income tax benefit (expense) |
|
24 |
|
|
|
(121 |
) |
|
|
(288 |
) |
|
|
(588 |
) |
Net income (loss) |
|
36,467 |
|
|
|
34,820 |
|
|
|
143,942 |
|
|
|
(74,347 |
) |
Net (income) loss attributable to noncontrolling interests: |
|
|
|
|
|
|
|
||||||||
Common units in the Operating Partnership (“OP”) |
|
(681 |
) |
|
|
(576 |
) |
|
|
(2,694 |
) |
|
|
1,306 |
|
Other consolidated entities |
|
(665 |
) |
|
|
(592 |
) |
|
|
(2,319 |
) |
|
|
(428 |
) |
Net income (loss) attributable to common shareholders |
$ |
35,121 |
|
|
$ |
33,652 |
|
|
$ |
138,929 |
|
|
$ |
(73,469 |
) |
|
|
|
|
|
|
|
|
||||||||
Earnings per share (“EPS”) computation: |
|
|
|
|
|
|
|
||||||||
Numerator for diluted EPS: |
|
|
|
|
|
|
|
||||||||
Net income (loss) attributable to common shareholders |
$ |
35,121 |
|
|
$ |
33,652 |
|
|
$ |
138,929 |
|
|
$ |
(73,469 |
) |
Amount allocable to share-based compensation awards |
|
(103 |
) |
|
|
(100 |
) |
|
|
(421 |
) |
|
|
(1,199 |
) |
Numerator for diluted EPS |
$ |
35,018 |
|
|
$ |
33,552 |
|
|
$ |
138,508 |
|
|
$ |
(74,668 |
) |
Denominator: |
|
|
|
|
|
|
|
||||||||
Weighted average common shares - basic |
|
112,347 |
|
|
|
112,199 |
|
|
|
112,296 |
|
|
|
112,178 |
|
Dilutive effect of share-based compensation awards |
|
711 |
|
|
|
432 |
|
|
|
603 |
|
|
|
— |
|
Dilutive exchangeable debt |
|
664 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Weighted average common shares - diluted |
|
113,722 |
|
|
|
112,631 |
|
|
|
112,899 |
|
|
|
112,178 |
|
Diluted EPS |
$ |
0.31 |
|
|
$ |
0.30 |
|
|
$ |
1.23 |
|
|
$ |
(0.67 |
) |
COPT Defense Properties |
|||||||||||||||
Summary Financial Data |
|||||||||||||||
(unaudited) |
|||||||||||||||
(in thousands, except per share data) |
|||||||||||||||
|
|||||||||||||||
|
For the Three Months Ended
|
|
For the Years Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Net income (loss) |
$ |
36,467 |
|
|
$ |
34,820 |
|
|
$ |
143,942 |
|
|
$ |
(74,347 |
) |
Real estate-related depreciation and amortization |
|
38,821 |
|
|
|
36,735 |
|
|
|
153,640 |
|
|
|
148,950 |
|
Impairment losses on real estate |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
252,797 |
|
Gain on sales of real estate |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(49,392 |
) |
Depreciation and amortization on unconsolidated real estate JVs |
|
745 |
|
|
|
805 |
|
|
|
3,056 |
|
|
|
3,217 |
|
Funds from operations (“FFO”) |
|
76,033 |
|
|
|
72,360 |
|
|
|
300,638 |
|
|
|
281,225 |
|
FFO allocable to other noncontrolling interests |
|
(1,050 |
) |
|
|
(972 |
) |
|
|
(3,855 |
) |
|
|
(3,978 |
) |
Basic FFO allocable to share-based compensation awards |
|
(614 |
) |
|
|
(513 |
) |
|
|
(2,417 |
) |
|
|
(1,940 |
) |
Basic FFO available to common share and common unit holders (“Basic FFO”) |
|
74,369 |
|
|
|
70,875 |
|
|
|
294,366 |
|
|
|
275,307 |
|
Redeemable noncontrolling interests |
|
— |
|
|
|
— |
|
|
|
1,963 |
|
|
|
(58 |
) |
Diluted FFO adjustments allocable to share-based compensation awards |
|
47 |
|
|
|
38 |
|
|
|
188 |
|
|
|
150 |
|
Diluted FFO available to common share and common unit holders (“Diluted FFO”) |
|
74,416 |
|
|
|
70,913 |
|
|
|
296,517 |
|
|
|
275,399 |
|
Executive transition costs |
|
58 |
|
|
|
188 |
|
|
|
285 |
|
|
|
518 |
|
Diluted FFO comparability adjustments allocable to share-based compensation awards |
|
(1 |
) |
|
|
(1 |
) |
|
|
(2 |
) |
|
|
(4 |
) |
Diluted FFO available to common share and common unit holders, as adjusted for comparability |
|
74,473 |
|
|
|
71,100 |
|
|
|
296,800 |
|
|
|
275,913 |
|
Straight line rent adjustments and lease incentive amortization |
|
2,950 |
|
|
|
313 |
|
|
|
10,824 |
|
|
|
6,518 |
|
Amortization of intangibles and other assets included in net operating income (“NOI”) |
|
211 |
|
|
|
26 |
|
|
|
755 |
|
|
|
50 |
|
Share-based compensation, net of amounts capitalized |
|
2,617 |
|
|
|
2,318 |
|
|
|
10,443 |
|
|
|
8,544 |
|
Amortization of deferred financing costs |
|
671 |
|
|
|
681 |
|
|
|
2,708 |
|
|
|
2,580 |
|
Amortization of net debt discounts, net of amounts capitalized |
|
1,041 |
|
|
|
1,004 |
|
|
|
4,110 |
|
|
|
2,994 |
|
Replacement capital expenditures |
|
(34,134 |
) |
|
|
(21,498 |
) |
|
|
(103,984 |
) |
|
|
(93,494 |
) |
Other |
|
73 |
|
|
|
336 |
|
|
|
566 |
|
|
|
(84 |
) |
Diluted adjusted funds from operations available to common share and common unit holders (“Diluted AFFO”) |
$ |
47,902 |
|
|
$ |
54,280 |
|
|
$ |
222,222 |
|
|
$ |
203,021 |
|
Diluted FFO per share |
$ |
0.64 |
|
|
$ |
0.62 |
|
|
$ |
2.57 |
|
|
$ |
2.41 |
|
Diluted FFO per share, as adjusted for comparability |
$ |
0.65 |
|
|
$ |
0.62 |
|
|
$ |
2.57 |
|
|
$ |
2.42 |
|
Dividends/distributions per common share/unit |
$ |
0.295 |
|
|
$ |
0.285 |
|
|
$ |
1.18 |
|
|
$ |
1.14 |
|
COPT Defense Properties |
|||||||
Summary Financial Data |
|||||||
(unaudited) |
|||||||
(Dollars and shares in thousands, except per share data) |
|||||||
|
|||||||
|
December 31,
|
|
December 31,
|
||||
Balance Sheet Data |
|
|
|
||||
Properties, net of accumulated depreciation |
$ |
3,630,526 |
|
|
$ |
3,503,678 |
|
Total assets |
$ |
4,254,191 |
|
|
$ |
4,246,966 |
|
Debt per balance sheet |
$ |
2,391,755 |
|
|
$ |
2,416,287 |
|
Total liabilities |
$ |
2,693,624 |
|
|
$ |
2,699,631 |
|
Redeemable noncontrolling interests |
$ |
23,974 |
|
|
$ |
23,580 |
|
Total equity |
$ |
1,536,593 |
|
|
$ |
1,523,755 |
|
Debt to assets |
|
56.2 |
% |
|
|
56.9 |
% |
Net debt to adjusted book |
|
40.4 |
% |
|
|
40.6 |
% |
|
|
|
|
||||
Defense/IT Portfolio Data (as of period end) |
|
|
|
||||
Number of operating properties |
|
195 |
|
|
|
190 |
|
Total operational square feet (in thousands) |
|
22,391 |
|
|
|
21,719 |
|
% Occupied |
|
95.6 |
% |
|
|
96.2 |
% |
% Leased |
|
96.8 |
% |
|
|
97.2 |
% |
|
For the Three Months Ended
|
|
For the Years Ended
|
||||||||
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
GAAP |
|
|
|
|
|
|
|
||||
Payout ratio: |
|
|
|
|
|
|
|
||||
Net income |
93.0 |
% |
|
93.7 |
% |
|
94.2 |
% |
|
N/A |
|
Debt ratios: |
|
|
|
|
|
|
|
||||
Net income to interest expense ratio |
1.8x |
|
1.7x |
|
1.8x |
|
N/A |
|
|||
Debt to net income ratio |
16.4x |
|
17.3x |
|
N/A |
|
|
N/A |
|
||
Non-GAAP |
|
|
|
|
|
|
|
||||
Payout ratios: |
|
|
|
|
|
|
|
||||
Diluted FFO |
45.2 |
% |
|
45.7 |
% |
|
45.4 |
% |
|
47.1 |
% |
Diluted FFO, as adjusted for comparability |
45.2 |
% |
|
45.6 |
% |
|
45.4 |
% |
|
47.0 |
% |
Diluted AFFO |
70.3 |
% |
|
59.7 |
% |
|
60.6 |
% |
|
63.9 |
% |
Debt ratios: |
|
|
|
|
|
|
|
||||
Adjusted EBITDA fixed charge coverage ratio |
4.7x |
|
4.4x |
|
4.7x |
|
4.7x |
||||
Net debt to in-place adjusted EBITDA ratio |
6.0x |
|
6.1x |
|
N/A |
|
|
N/A |
|
||
Net debt adj. for fully-leased investment properties to in-place adj. EBITDA ratio |
5.9x |
|
6.0x |
|
N/A |
|
|
N/A |
|
||
|
|
|
|
|
|
|
|
||||
Reconciliation of denominators for per share measures |
|
|
|
|
|
|
|||||
Denominator for diluted EPS |
113,722 |
|
|
112,631 |
|
|
112,899 |
|
|
112,178 |
|
Weighted average common units |
1,664 |
|
|
1,514 |
|
|
1,672 |
|
|
1,509 |
|
Dilutive effect of additional share-based compensation awards |
— |
|
|
— |
|
|
— |
|
|
424 |
|
Redeemable noncontrolling interests |
— |
|
|
— |
|
|
842 |
|
|
38 |
|
Denominator for diluted FFO per share and as adjusted for comparability |
115,386 |
|
|
114,145 |
|
|
115,413 |
|
|
114,149 |
|
COPT Defense Properties |
|||||||||||||||
Summary Financial Data |
|||||||||||||||
(unaudited) |
|||||||||||||||
(in thousands) |
|||||||||||||||
|
|||||||||||||||
|
For the Three Months Ended
|
|
For the Years Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Numerators for Payout Ratios |
|
|
|
|
|
|
|
||||||||
Dividends on unrestricted common and deferred shares |
$ |
33,167 |
|
|
$ |
31,998 |
|
|
$ |
132,628 |
|
|
$ |
127,978 |
|
Distributions on unrestricted common units |
|
491 |
|
|
|
430 |
|
|
|
1,987 |
|
|
|
1,725 |
|
Dividends and distributions on restricted shares and units |
|
248 |
|
|
|
209 |
|
|
|
1,000 |
|
|
|
828 |
|
Total dividends and distributions for GAAP payout ratio |
|
33,906 |
|
|
|
32,637 |
|
|
|
135,615 |
|
|
|
130,531 |
|
Dividends and distributions on antidilutive shares and units |
|
(250 |
) |
|
|
(212 |
) |
|
|
(1,006 |
) |
|
|
(835 |
) |
Dividends and distributions for non-GAAP payout ratios |
$ |
33,656 |
|
|
$ |
32,425 |
|
|
$ |
134,609 |
|
|
$ |
129,696 |
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of net income (loss) to earnings before interest, income taxes, depreciation and amortization for real estate (“EBITDAre”), adjusted EBITDA and in-place adjusted EBITDA |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
36,467 |
|
|
$ |
34,820 |
|
|
$ |
143,942 |
|
|
$ |
(74,347 |
) |
Interest expense |
|
20,391 |
|
|
|
20,383 |
|
|
|
82,151 |
|
|
|
71,142 |
|
Income tax (benefit) expense |
|
(24 |
) |
|
|
121 |
|
|
|
288 |
|
|
|
588 |
|
Real estate-related depreciation and amortization |
|
38,821 |
|
|
|
36,735 |
|
|
|
153,640 |
|
|
|
148,950 |
|
Other depreciation and amortization |
|
589 |
|
|
|
619 |
|
|
|
2,375 |
|
|
|
2,445 |
|
Impairment losses on real estate |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
252,797 |
|
Gain on sales of real estate |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(49,392 |
) |
Adjustments from unconsolidated real estate JVs |
|
1,681 |
|
|
|
1,911 |
|
|
|
6,820 |
|
|
|
6,917 |
|
EBITDAre |
|
97,925 |
|
|
|
94,589 |
|
|
|
389,216 |
|
|
|
359,100 |
|
Credit loss (recoveries) expense |
|
(113 |
) |
|
|
(1,288 |
) |
|
|
383 |
|
|
|
(611 |
) |
Business development expenses |
|
758 |
|
|
|
445 |
|
|
|
2,548 |
|
|
|
1,393 |
|
Executive transition costs |
|
58 |
|
|
|
188 |
|
|
|
638 |
|
|
|
824 |
|
Net gain on other investments |
|
— |
|
|
|
— |
|
|
|
(488 |
) |
|
|
(25 |
) |
Adjusted EBITDA |
|
98,628 |
|
|
|
93,934 |
|
|
$ |
392,297 |
|
|
$ |
360,681 |
|
Pro forma NOI adjustment for property changes within period |
|
528 |
|
|
|
1,341 |
|
|
|
|
|
||||
Change in collectability of deferred rental revenue |
|
1,646 |
|
|
|
(198 |
) |
|
|
|
|
||||
In-place adjusted EBITDA |
$ |
100,802 |
|
|
$ |
95,077 |
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Reconciliations of tenant improvements and incentives, building improvements and leasing costs for operating properties to replacement capital expenditures |
|
|
|
|
|
|
|
||||||||
Tenant improvements and incentives |
$ |
22,912 |
|
|
$ |
7,850 |
|
|
$ |
69,505 |
|
|
$ |
74,912 |
|
Building improvements |
|
10,942 |
|
|
|
14,762 |
|
|
|
28,294 |
|
|
|
25,976 |
|
Leasing costs |
|
2,629 |
|
|
|
2,440 |
|
|
|
12,342 |
|
|
|
9,634 |
|
Net exclusions from tenant improvements and incentives |
|
(7 |
) |
|
|
(189 |
) |
|
|
(3 |
) |
|
|
(12,170 |
) |
Excluded building improvements and leasing costs |
|
(2,342 |
) |
|
|
(3,365 |
) |
|
|
(6,154 |
) |
|
|
(4,858 |
) |
Replacement capital expenditures |
$ |
34,134 |
|
|
$ |
21,498 |
|
|
$ |
103,984 |
|
|
$ |
93,494 |
|
COPT Defense Properties |
|||||||||||||||
Summary Financial Data |
|||||||||||||||
(unaudited) |
|||||||||||||||
(in thousands) |
|||||||||||||||
|
|||||||||||||||
|
For the Three Months Ended
|
|
For the Years Ended
|
||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
Reconciliation of interest expense to the denominator for fixed charge coverage-Adjusted EBITDA |
|
|
|
|
|
|
|
||||||||
Interest expense |
$ |
20,391 |
|
|
$ |
20,383 |
|
|
$ |
82,151 |
|
|
$ |
71,142 |
|
Less: Amortization of deferred financing costs |
|
(671 |
) |
|
|
(681 |
) |
|
|
(2,708 |
) |
|
|
(2,580 |
) |
Less: Amortization of net debt discounts, net of amounts capitalized |
|
(1,041 |
) |
|
|
(1,004 |
) |
|
|
(4,110 |
) |
|
|
(2,994 |
) |
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 |
|
872 |
|
|
|
819 |
|
|
|
3,305 |
|
|
|
3,188 |
|
Scheduled principal amortization |
|
455 |
|
|
|
763 |
|
|
|
2,334 |
|
|
|
3,052 |
|
Capitalized interest |
|
928 |
|
|
|
1,028 |
|
|
|
2,872 |
|
|
|
4,479 |
|
Denominator for fixed charge coverage-Adjusted EBITDA |
$ |
20,934 |
|
|
$ |
21,308 |
|
|
$ |
83,844 |
|
|
$ |
76,287 |
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation of net income (loss) to NOI from real estate operations, same property NOI from real estate operations and same property cash NOI from real estate operations |
|
|
|
|
|
|
|
||||||||
Net income (loss) |
$ |
36,467 |
|
|
$ |
34,820 |
|
|
$ |
143,942 |
|
|
$ |
(74,347 |
) |
Construction contract and other service revenues |
|
(12,027 |
) |
|
|
(18,167 |
) |
|
|
(75,550 |
) |
|
|
(60,179 |
) |
Depreciation and other amortization associated with real estate operations |
|
38,821 |
|
|
|
36,735 |
|
|
|
153,640 |
|
|
|
148,950 |
|
Construction contract and other service expenses |
|
11,519 |
|
|
|
17,167 |
|
|
|
73,265 |
|
|
|
57,416 |
|
Impairment losses |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
252,797 |
|
General and administrative expenses |
|
8,429 |
|
|
|
8,240 |
|
|
|
33,555 |
|
|
|
31,105 |
|
Leasing expenses |
|
2,243 |
|
|
|
2,308 |
|
|
|
9,233 |
|
|
|
8,932 |
|
Business development expenses and land carry costs |
|
1,171 |
|
|
|
797 |
|
|
|
4,250 |
|
|
|
2,732 |
|
Interest expense |
|
20,391 |
|
|
|
20,383 |
|
|
|
82,151 |
|
|
|
71,142 |
|
Interest and other income, net |
|
(2,331 |
) |
|
|
(5,659 |
) |
|
|
(12,661 |
) |
|
|
(12,587 |
) |
Gain on sales of real estate |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(49,392 |
) |
Equity in (income) loss of unconsolidated entities |
|
(217 |
) |
|
|
240 |
|
|
|
(397 |
) |
|
|
261 |
|
Unconsolidated real estate JVs NOI allocable to COPT Defense included in equity in income (loss) of unconsolidated entities |
|
1,898 |
|
|
|
1,671 |
|
|
|
7,217 |
|
|
|
6,659 |
|
Income tax (benefit) expense |
|
(24 |
) |
|
|
121 |
|
|
|
288 |
|
|
|
588 |
|
NOI from real estate operations |
|
106,340 |
|
|
|
98,656 |
|
|
|
418,933 |
|
|
|
384,077 |
|
Non-Same Property NOI from real estate operations |
|
(7,997 |
) |
|
|
(3,802 |
) |
|
|
(27,864 |
) |
|
|
(7,238 |
) |
Same Property NOI from real estate operations |
|
98,343 |
|
|
|
94,854 |
|
|
|
391,069 |
|
|
|
376,839 |
|
Straight line rent adjustments and lease incentive amortization |
|
7,093 |
|
|
|
3,142 |
|
|
|
16,492 |
|
|
|
7,030 |
|
Amortization of acquired above- and below-market rents |
|
(69 |
) |
|
|
(121 |
) |
|
|
(276 |
) |
|
|
(536 |
) |
Lease termination fees, net |
|
(864 |
) |
|
|
(717 |
) |
|
|
(3,451 |
) |
|
|
(3,745 |
) |
Tenant funded landlord assets and lease incentives |
|
(5,871 |
) |
|
|
(7,541 |
) |
|
|
(18,501 |
) |
|
|
(26,378 |
) |
Cash NOI adjustments in unconsolidated real estate JVs |
|
(147 |
) |
|
|
(124 |
) |
|
|
(511 |
) |
|
|
(544 |
) |
Same Property Cash NOI from real estate operations |
$ |
98,485 |
|
|
$ |
89,493 |
|
|
$ |
384,822 |
|
|
$ |
352,666 |
|
COPT Defense Properties |
||||||||
Summary Financial Data |
||||||||
(unaudited) |
||||||||
(in thousands) |
||||||||
|
||||||||
|
|
December 31,
|
|
December 31,
|
||||
Reconciliation of total assets to adjusted book |
|
|
|
|
||||
Total assets |
|
$ |
4,254,191 |
|
|
$ |
4,246,966 |
|
Accumulated depreciation |
|
|
1,537,293 |
|
|
|
1,400,162 |
|
Accumulated amortization of intangibles on property acquisitions and deferred leasing costs |
|
|
228,154 |
|
|
|
228,484 |
|
COPT Defense’s share of liabilities of unconsolidated real estate JVs |
|
|
61,294 |
|
|
|
60,583 |
|
COPT Defense’s share of accumulated depreciation and amortization of unconsolidated real estate JVs |
|
|
12,817 |
|
|
|
9,528 |
|
Less: Property - operating lease liabilities |
|
|
(49,240 |
) |
|
|
(33,931 |
) |
Less: Property - finance lease liabilities |
|
|
(391 |
) |
|
|
(415 |
) |
Less: Cash and cash equivalents |
|
|
(38,284 |
) |
|
|
(167,820 |
) |
Less: COPT Defense’s share of cash of unconsolidated real estate JVs |
|
|
(2,053 |
) |
|
|
(852 |
) |
Adjusted book |
|
$ |
6,003,781 |
|
|
$ |
5,742,705 |
|
|
|
December 31,
|
|
December 31,
|
||||
Reconciliation of debt to net debt and net debt adjusted for fully-leased investment properties |
|
|
|
|
||||
Debt per balance sheet |
|
$ |
2,391,755 |
|
|
$ |
2,416,287 |
|
Net discounts and deferred financing costs |
|
|
23,262 |
|
|
|
28,713 |
|
COPT Defense’s share of unconsolidated JV gross debt |
|
|
53,750 |
|
|
|
52,613 |
|
Gross debt |
|
|
2,468,767 |
|
|
|
2,497,613 |
|
Less: Cash and cash equivalents |
|
|
(38,284 |
) |
|
|
(167,820 |
) |
Less: COPT Defense’s share of cash of unconsolidated real estate JVs |
|
|
(2,053 |
) |
|
|
(852 |
) |
Net debt |
|
|
2,428,430 |
|
|
|
2,328,941 |
|
Costs incurred on fully-leased development properties |
|
|
(18,774 |
) |
|
|
(53,914 |
) |
Costs incurred on fully-leased operating property acquisitions |
|
|
(17,034 |
) |
|
|
— |
|
Net debt adjusted for fully-leased investment properties |
|
$ |
2,392,622 |
|
|
$ |
2,275,027 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20250206735525/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
What was COPT Defense's (CDP) FFO per share growth in 2024?
How much total leasing did CDP achieve in 2024?
What was CDP's tenant retention rate in 2024?
What is the occupancy rate of CDP's Defense/IT Portfolio as of December 2024?
What was CDP's Same Property Cash NOI growth in 2024?
