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COPT Defense Properties
(NYSE:CDP)
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Rating:67Neutral
Price Target:
$42.00
â–²(10.44% Upside)
Action:Reiterated
Date:07/28/26
The score is supported by improving profitability and a constructive earnings update with raised guidance and strong leasing/occupancy, alongside a technically positive price trend above key moving averages. These positives are tempered by elevated leverage and some cash-flow volatility, while valuation is only moderate given a relatively high P/E despite a ~3.27% dividend yield.
Positive Factors
High leasing and occupancy
Sustained high portfolio lease and occupancy rates indicate durable rental revenue and lower vacancy risk for a mission-critical landlord. Long-term leases to government and defense contractors support predictable cash flow and FFO, enhancing stability for distributions and reinvestment over the medium term.
Negative Factors
Elevated leverage
Consistently elevated debt-to-equity increases refinancing and interest-rate sensitivity for an office-focused REIT. In a higher-rate environment this constrains financial flexibility, raises cost of capital for growth, and heightens downside risk to FFO and dividend coverage if occupancy or rents weaken.
Read all positive and negative factors
Positive Factors
Negative Factors
High leasing and occupancy
Sustained high portfolio lease and occupancy rates indicate durable rental revenue and lower vacancy risk for a mission-critical landlord. Long-term leases to government and defense contractors support predictable cash flow and FFO, enhancing stability for distributions and reinvestment over the medium term.
Read all positive factors
COPT Defense Properties (CDP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.67B
Dividend Yield3.29%
Average Volume (3M)928.35K
Price to Earnings (P/E)26.2
Beta (1Y)0.31
Revenue Growth4.50%
EPS Growth13.67%
CountryUS
Employees430
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)1.45
Shares Outstanding113,376,884
10 Day Avg. Volume965,862
30 Day Avg. Volume928,354
Financial Highlights & Ratios
PEG Ratio2.11
Price to Book (P/B)2.06
Price to Sales (P/S)4.09
P/FCF Ratio12.33
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$37.83Price Target Upside-0.52% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)1.33
Revenue Forecast (FY)$766.06M
COPT Defense Properties Business Overview & Revenue Model
Company Description
COPT Defense Properties (CDP) is a U.S. real estate investment trust (REIT) focused on owning, operating, and developing office and data-center-adjacent real estate that supports U.S. national security and defense-related missions. The company’s p...
How the Company Makes Money
CDP primarily makes money by leasing its real estate to tenants and collecting contractual rent under long-term lease agreements. Its core revenue stream is base rental income from office properties (and related mission-support facilities) leased ...
COPT Defense Properties Earnings Call Summary
Earnings Call Date:Jul 27, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call was broadly positive: management reported outperformance in Q2 (FFO above midpoint), raised full-year guidance across multiple metrics, demonstrated strong leasing, high occupancy, robust tenant retention, and a growing prelease/development pipeline—supported by large anticipated increases in defense spending (FY2027 $1.1T base). Challenges disclosed were largely timing, modest near-term moderation in growth due to known move-outs and nonrecurring 2025 items, some financing cost/dilution pressure from exchangeable notes and refinancing, speculative inventory starts without preleases, and localized constraints (e.g., power for data centers). Overall, the positives (raised guidance, strong leasing/occupancy, pipeline acceleration, budget tailwinds) materially outweigh the disclosed headwinds.Positive Updates
FFO Per Share Outperformance and Continued Growth
Q2 FFO per share of $0.71 was $0.02 above midpoint guidance, a 4.4% year-over-year increase; this marks the 24th consecutive quarter of year-over-year FFO per share growth. Full-year midpoint FFO guidance increased $0.02 to $2.78, implying 2.2% growth over 2025.
Negative Updates
Expected Moderation in Back-Half Growth
Management expects same-property growth to moderate in H2 due to known move-outs/contractions and the lack of recurring real estate tax refunds that benefited H2 2025; same-property occupancy expected to end the year around ~94%.
Read all updates
Q2-2026 Updates
Positive
Negative
FFO Per Share Outperformance and Continued Growth
Q2 FFO per share of $0.71 was $0.02 above midpoint guidance, a 4.4% year-over-year increase; this marks the 24th consecutive quarter of year-over-year FFO per share growth. Full-year midpoint FFO guidance increased $0.02 to $2.78, implying 2.2% growth over 2025.
Read all positive updates
Company Guidance
Management raised 2026 guidance after a strong first half: full‑year FFO per share midpoint up $0.02 to $2.78 (implying ~2.2% growth over 2025) following Q2 FFO/sh of $0.71 (+$0.02 vs. prior midpoint; +4.4% YoY) and Q3–Q4 FFO/sh guidance of $0.68–$0.70; same‑property cash NOI midpoint +100 bps to 4% (Q2 same‑prop cash NOI +7.4%, 1H +6.4%); cash change in rents on renewals midpoint +100 bps to 3% (quarterly renewal cash‑rent spreads down 20 bps, GAAP rent spreads +4.4%); capital committed to new investments target raised to $335M (up roughly $40–45M); vacancy leasing target increased ~20% from 400k to 475k sq ft after executing 139k sq ft in Q2, 231k in 1H (290k YTD signed) and ~415k sq ft executed or in advanced negotiations; active development pipeline ≈900k sq ft (73% preleased; ≈$450M capital) with a 1.2M sq ft higher‑probability development leasing pipeline; expected year‑end same‑property occupancy ≈94%; and guidance reflects roughly $0.12 of higher financing costs year‑over‑year (≈$0.08 incremental net interest expense plus ≈$0.04 of dilution from exchangeable notes).COPT Defense Properties Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
54
Neutral
Cash Flow
61
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 784.18M | 763.92M | 753.27M | 684.98M | 739.03M | 664.45M |
| Gross Profit | 295.07M | 117.85M | 260.36M | 231.23M | 220.41M | 209.47M |
| EBITDA | 426.06M | 408.97M | 384.02M | 150.31M | 354.46M | 294.41M |
| Net Income | 164.08M | 152.31M | 138.93M | -73.47M | 173.03M | 76.54M |
Balance Sheet | ||||||
| Total Assets | 4.52B | 4.70B | 4.25B | 4.25B | 4.26B | 4.26B |
| Cash, Cash Equivalents and Short-Term Investments | 24.16M | 274.99M | 38.28M | 167.82M | 12.34M | 13.26M |
| Total Debt | 2.63B | 2.81B | 2.44B | 2.45B | 2.26B | 2.30B |
| Total Liabilities | 2.91B | 3.11B | 2.69B | 2.70B | 2.51B | 2.58B |
| Stockholders Equity | 1.53B | 1.51B | 1.49B | 1.48B | 1.68B | 1.62B |
Cash Flow | ||||||
| Free Cash Flow | 130.65M | 253.68M | 299.61M | 255.77M | 229.45M | 219.12M |
| Operating Cash Flow | 174.96M | 334.93M | 330.95M | 276.27M | 265.82M | 249.15M |
| Investing Cash Flow | -166.17M | -314.74M | -291.01M | -169.62M | -83.46M | -202.97M |
| Financing Cash Flow | 244.26M | 216.54M | -169.67M | 46.26M | -183.18M | -50.90M |
COPT Defense Properties Risk Analysis
COPT Defense Properties disclosed 39 risk factors in its most recent earnings report. COPT Defense Properties reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
COPT Defense Properties Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $8.67B | 26.18 | 10.74% | 3.29% | 4.50% | 13.67% | |
67 Neutral | $3.73B | 21.80 | 3.09% | 5.94% | 3.30% | 28.46% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | $5.25B | 767.64 | -0.11% | 3.98% | 11.89% | -89.22% | |
62 Neutral | $4.64B | 26.96 | 3.14% | 5.48% | -3.76% | -22.82% | |
61 Neutral | $4.10B | -20.68 | -4.61% | 4.62% | 7.51% | -386.65% | |
54 Neutral | $2.02B | -75.05 | -1.35% | 6.19% | 1.04% | -152.10% |
* Real Estate Sector Average
CDP
COPT Defense Properties
37.96
11.76
44.91%
CUZ
Cousins Properties
31.55
6.27
24.81%
DEI
Douglas Emmett
11.82
-2.14
-15.31%
HIW
Highwoods Properties
33.13
6.61
24.93%
KRC
Kilroy Realty
38.82
4.41
12.83%
SLG
SL Green Realty
52.93
-0.19
-0.37%
COPT Defense Properties Corporate Events
Executive/Board ChangesShareholder Meetings
COPT Defense Shareholders Back Governance and Leadership Slate
Positive
May 20, 2026
On May 14, 2026, COPT Defense Properties held its 2026 Annual Meeting of Shareholders, where investors approved the election of eight trustees to one-year terms, including incumbents and new leadership overseeing the company’s strategy in de...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.