Dividend Increase and Healthy AFFO Payout Ratio
COPT Defense increased its annual dividend by $0.04, marking the third consecutive year of dividend increases, while maintaining a healthy AFFO payout ratio of 65%.
Strong Leasing Activity
COPT Defense signed 179,000 square feet of vacancy leasing, which is 45% of their full-year target. They also executed 100,000 square feet of investment leasing year-to-date, and tenant retention was at a healthy 75%.
High Occupancy Rates
The company's Defense/IT portfolio occupancy rate exceeded 94% for 9 consecutive quarters, with 98.5% of their 2,500,000 square foot portfolio leased.
Positive FFO Per Share Growth
FFO per share increased by 4.8% year-over-year, marking the 19th consecutive quarter of year-over-year growth, and guidance implies a 3.5% growth for 2025.
Stable and Strong Balance Sheet
The company maintains a strong balance sheet with 98% of debt at fixed rates, and plans to fund investments with cash flow from operations on a leverage-neutral basis.