COPT Defense Properties Reports Strong Q1 2025 Results

Copt Defense Properties ( (CDP) ) has released its Q1 earnings. Here is a breakdown of the information Copt Defense Properties presented to its investors.

COPT Defense Properties is a self-managed real estate investment trust (REIT) focused on owning, operating, and developing properties near key U.S. Government defense installations, catering primarily to defense contractors engaged in national security activities.

In its first quarter of 2025, COPT Defense Properties reported a diluted earnings per share (EPS) of $0.31 and funds from operations (FFO) per share of $0.65, marking a 4.8% growth year-over-year. The company maintained strong occupancy rates in its Defense/IT portfolio and continued to meet its financial guidance.

Key highlights from the quarter include a 7.1% increase in same property cash net operating income (NOI) and a total leasing activity of 647,000 square feet. The company also committed $52 million to new investments in Huntsville and reported a development pipeline of 756,000 square feet, which is 62% leased.

COPT Defense Properties remains optimistic about its growth prospects, with management reiterating its FFO per share guidance for 2025 and projecting a 3.5% growth for the year. The company also announced a 3.4% increase in its quarterly dividend, reflecting confidence in its ongoing performance.

Looking ahead, COPT Defense Properties anticipates a compound annual growth rate of approximately 4% in FFO per share from 2023 to 2026, driven by its strategic focus on high-security, mission-critical properties near U.S. defense installations.