COPT Defense Properties (CDP) AI Stock Analysis

• Market Cap: $6.40B
• Dividend Yield: 4.28%
• Average Volume (3M): 776.16K
• Price to Earnings (P/E): 22.3
• Beta (1Y): 0.40
• Revenue Growth: 2.95%
• EPS Growth: N/A
• Country: US
• Employees: 427
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 0.34
• Shares Outstanding: 112,927,510
• 10 Day Avg. Volume: 601,067
• 30 Day Avg. Volume: 776,158
• PEG Ratio: -0.09
• Price to Book (P/B): 2.33
• Price to Sales (P/S): 4.61
• P/FCF Ratio: 11.60
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 7.54
• Enterprise Value/Gross Profit: 11.22
• Enterprise Value/Ebitda: 14.74
• 1Y Price Target: $33.43
• Price Target Upside: 18.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 69 Neutral
• Price Target: $31.00 ▲(9.66% Upside)

COPT Defense Properties demonstrates strong financial performance and positive future prospects, driven by increased defense spending and leasing achievements. However, high leverage and technical indicators suggest caution. The valuation is reasonable, but not particularly attractive, limiting upside potential.

Positive Factors

Strong Leasing Performance

Achieving 88% of the annual leasing target with a high tenant retention rate indicates robust demand and effective property management, ensuring stable future revenue streams.

Defense Budget Impact

Increased defense spending provides a favorable outlook for COPT, enhancing opportunities in intelligence and cybersecurity sectors, which are core to their business model.

High Portfolio Occupancy

High occupancy rates reflect strong demand for COPT's properties, ensuring consistent rental income and reducing the risk of revenue volatility.

Negative Factors

High Leverage

Significant leverage could pose risks, especially if interest rates rise, potentially straining financial flexibility and increasing financial risk.

Challenges with Cash Rent Spreads

Declining cash rent spreads on renewals could impact profitability, indicating potential challenges in maintaining rental income growth.

High Vacancy at Specific Properties

High vacancy in key properties could lead to revenue loss and increased costs, affecting overall portfolio performance and cash flow.

COPT Defense Properties Business Overview & Revenue Model

Company Description

COPT Defense Properties (CDP) is a real estate investment trust (REIT) focusing on the acquisition, development, and management of office and specialized properties that primarily serve the defense and intelligence sectors of the U.S. government. With a portfolio that includes properties located in key defense markets, CDP aims to provide mission-critical facilities that support national security objectives, leveraging its expertise in real estate to meet the unique needs of government tenants.

How the Company Makes Money

COPT Defense Properties generates revenue primarily through long-term leases with government agencies and defense contractors, ensuring stable cash flow. The company's revenue model is largely based on rental income from its diversified portfolio of properties, which includes office buildings, specialized facilities, and data centers tailored for defense-related operations. Key revenue streams include lease payments, tenant reimbursements for operating expenses, and potential income from property sales or development projects. Additionally, CDP benefits from strategic partnerships with government entities and contractors that enhance its leasing opportunities and provide insights into sector-specific demands, further solidifying its earnings base.

COPT Defense Properties Financial Statement Overview

Summary

COPT Defense Properties exhibits strong operational margins and cash flow efficiency, with a robust Gross Profit and steady profitability metrics. Despite a small decline in revenue growth and moderate leverage, the company maintains healthy financial standings, suitable for its industry. The balance between debt and equity remains a key area to watch for future stability.

Income Statement

COPT Defense Properties shows a solid revenue base with a TTM (Trailing-Twelve-Months) Gross Profit Margin of approximately 50.8% and a Net Profit Margin of 18.9%. However, the Revenue Growth Rate is negative at -0.7% in the latest period, indicating a slight decline. The EBIT and EBITDA margins remain strong at 29.1% and 50.9% respectively, showcasing operational efficiency despite revenue challenges.

Balance Sheet

The company maintains a Debt-to-Equity Ratio of 1.65, which implies moderate leverage typical for the REIT industry. The Return on Equity (ROE) is healthy at 9.5%, reflecting reasonable profitability. The Equity Ratio stands at 35.1%, indicating a balanced approach between debt and equity financing, although slightly lower than ideal for risk mitigation.

Cash Flow

Free Cash Flow remains robust with a TTM Free Cash Flow of $286.98M, though it has seen a slight decline from the previous year's $299.61M, resulting in a -4.2% growth rate. The Operating Cash Flow to Net Income Ratio is strong at 2.35, indicating efficient cash conversion. The Free Cash Flow to Net Income Ratio is also solid at 2.04, suggesting good cash flow generation relative to profits.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	750.43M	753.27M	684.98M	739.03M	664.45M	609.37M
Gross Profit	504.20M	260.36M	231.23M	220.41M	209.47M	199.72M
EBITDA	383.84M	369.74M	337.49M	354.46M	320.44M	303.48M
Net Income	144.29M	138.93M	-73.47M	173.03M	76.54M	97.37M
Balance Sheet
Total Assets	4.29B	4.25B	4.25B	4.26B	4.26B	4.08B
Cash, Cash Equivalents and Short-Term Investments	21.29M	38.28M	167.82M	12.34M	13.26M	18.37M
Total Debt	2.49B	2.44B	2.45B	2.26B	2.30B	2.12B
Total Liabilities	2.72B	2.69B	2.70B	2.51B	2.58B	2.36B
Stockholders Equity	1.55B	1.49B	1.48B	1.68B	1.62B	1.66B
Cash Flow
Free Cash Flow	303.01M	299.61M	255.77M	229.45M	219.12M	205.67M
Operating Cash Flow	326.10M	330.95M	276.27M	265.82M	249.15M	238.42M
Investing Cash Flow	-307.34M	-291.01M	-169.62M	-83.46M	-202.97M	-325.79M
Financing Cash Flow	-97.98M	-169.67M	46.26M	-183.18M	-50.90M	91.27M

COPT Defense Properties Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 28.27
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CDP, the sentiment is Negative. The current price of 28.27 is below the 20-day moving average (MA) of 28.35, below the 50-day MA of 28.91, and above the 200-day MA of 27.46, indicating a neutral trend. The MACD of -0.20 indicates Negative momentum. The RSI at 44.95 is Neutral, neither overbought nor oversold. The STOCH value of 73.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CDP.

COPT Defense Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CDP	―	$6.40B	22.34	9.67%	4.28%	2.95%	―
KRC	―	$4.88B	22.19	4.06%	5.24%	2.26%	10.15%
CUZ	―	$4.47B	72.07	1.30%	4.79%	13.07%	-4.94%
Sector *	―	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
HIW	―	$3.21B	25.39	5.39%	6.75%	-2.16%	-16.41%
DEI	―	$2.71B	61.69	1.74%	5.71%	-0.57%	―
SLG	―	$3.93B	-8,503.23	0.63%	5.83%	7.66%	―

COPT Defense Properties Corporate Events

COPT Defense Properties Expands Credit Facility Agreement

On October 6, 2025, COPT Defense Properties entered into a second amendment to its credit agreement with several lenders, increasing the revolving credit facility from $600 million to $800 million and extending the maturity date to October 5, 2029. The amendment also allows for future increases in the aggregate commitment and introduces changes to interest terms based on credit ratings, impacting the company’s financial flexibility and potentially enhancing its market position.

The most recent analyst rating on (CDP) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on COPT Defense Properties stock, see the CDP Stock Forecast page.

COPT Defense Properties Completes $400M Senior Notes Offering

On October 2, 2025, COPT Defense Properties‘ operating partnership, CDPLP, completed a $400 million offering of 4.500% Senior Notes due in 2030, which are fully guaranteed by CDP. This financial move, registered under the Securities Act of 1933, is expected to strengthen the company’s financial position and enhance its ability to serve its niche market of defense and government tenants.

The most recent analyst rating on (CDP) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on COPT Defense Properties stock, see the CDP Stock Forecast page.

COPT Defense Properties Announces $400M Senior Notes Offering

On September 23, 2025, COPT Defense Properties announced that its operating partnership, COPT Defense Properties, L.P., entered into an underwriting agreement for the issuance and sale of $400 million in 4.500% Senior Notes due 2030. The offering is expected to close on October 2, 2025, and the proceeds will be used for general corporate purposes, including repaying existing debt. This strategic financial move is anticipated to strengthen the company’s financial position and support its ongoing operations, potentially enhancing its market presence in the defense property sector.

The most recent analyst rating on (CDP) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on COPT Defense Properties stock, see the CDP Stock Forecast page.

COPT Defense Properties Sees Strong Q2 2025 Growth

COPT Defense Properties has reported strong financial and operational performance, with a 94% occupancy rate across its portfolio as of June 30, 2025. The company benefits from increased Department of Defense spending, driven by the One Big Beautiful Bill Act, which has led to a 13% increase in the FY 2026 budget over the previous year. This growth is supported by consistent internal and external development investments, resulting in a stable tenant base with significant government and Fortune 100 company leases. The company’s strategic positioning in defense and IT sectors ensures continued demand and low-risk occupancy, contributing to a 6.6% increase in net operating income in the second quarter of 2025 compared to the same period in 2024.

The most recent analyst rating on (CDP) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on COPT Defense Properties stock, see the CDP Stock Forecast page.

COPT Defense Properties’ Optimistic Earnings Call Highlights

COPT Defense Properties recently held its earnings call, revealing a positive sentiment throughout the discussion. The company showcased strong leasing performance, increased defense spending, and improved financial metrics. While challenges such as declining cash rent spreads and project delays were acknowledged, the overall outlook remains optimistic with promising opportunities in defense-related projects.

COPT Defense Properties Reports Strong Q2 2025 Results

COPT Defense Properties is a real estate investment trust (REIT) that specializes in owning, operating, and developing properties near key U.S. Government defense installations, focusing on high-security and mission-critical enhancements for defense and IT tenants.