COPT Defense Properties (CDP) AI Stock Analysis

• Market Cap: $6.27B
• Dividend Yield: 4.28%
• Average Volume (3M): 843.11K
• Price to Earnings (P/E): 22.9
• Beta (1Y): 0.48
• Revenue Growth: 5.22%
• EPS Growth: N/A
• Country: US
• Employees: 427
• Sector: Real Estate
• Sector Strength: 64
• Industry: REIT - Office
• EPS (TTM): 0.31
• Shares Outstanding: 112,880,920
• 10 Day Avg. Volume: 808,166
• 30 Day Avg. Volume: 843,109
• PEG Ratio: 13.95
• Price to Book (P/B): 2.15
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.20
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 1.90
• Enterprise Value/Gross Profit: 14.87
• Enterprise Value/Ebitda: 3.92
• 1Y Price Target: $31.00
• Price Target Upside: 11.51% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 75 Outperform
• Price Target: $32.00 ▲(15.11%Upside)

COPT Defense Properties holds a solid position due to strong financial performance and positive earnings call sentiment. While technical indicators show moderate bullishness, the high P/E ratio suggests a need for cautious valuation analysis. The robust dividend yield and operational efficiency further enhance its appeal in the REIT sector.

Positive Factors

Defense and Government Contracts

Policy changes, defense spending, and data center developments are expected to benefit CDP.

Growth Expectations

Management expresses confidence in achieving a +4% FFO CAGR target through 2026, indicating strong growth expectations.

Leasing Activity

Solid leasing activity and operations appear to be trending slightly ahead of prior expectations.

Negative Factors

Cash Rent Spreads

Cash rent spreads declined to -0.9% vs. -0.2% in Q4.

Construction Costs

Tariffs and supply chain issues could affect construction costs, posing a challenge for CDP's development projects.

Leasing Spreads

4Q leasing spreads were down (0.2%) on a cash basis.

COPT Defense Properties Business Overview & Revenue Model

Company Description

COPT is a REIT that owns, manages, leases, develops and selectively acquires office and data center properties. The majority of its portfolio is in locations that support the United States Government and its contractors, most of whom are engaged in national security, defense and information technology (IT) related activities servicing what the Company believes are growing, durable, priority missions (Defense/IT Locations). The Company also owns a portfolio of office properties located in select urban submarkets in the Greater Washington, DC/Baltimore region with durable Class-A office fundamentals and characteristics (Regional Office Properties). As of June 30, 2023, the Company derived 90% of its core portfolio annualized rental revenue from Defense/IT Locations and 10% from its Regional Office Properties. As of the same date and including 24 properties owned through unconsolidated joint ventures, COPT's core portfolio of 192 properties encompassed 22.9 million square feet and was 95% leased.

How the Company Makes Money

COPT Defense Properties generates revenue primarily through leasing its properties to government agencies and defense contractors. The company benefits from long-term leases and stable occupancy rates due to the specialized nature of its properties and the critical services provided by its tenants. Revenue streams include rental income from office and data center space, as well as property management fees. Significant partnerships with government entities and defense firms contribute to its earnings, providing a reliable and consistent cash flow.

COPT Defense Properties Financial Statement Overview

Summary

COPT Defense Properties demonstrates 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.

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	747.86M	753.27M	684.98M	739.03M	664.45M	609.37M
Gross Profit	380.01M	260.36M	231.23M	220.41M	209.47M	199.72M
EBITDA	380.38M	367.04M	337.49M	354.46M	320.44M	303.48M
Net Income	141.06M	138.93M	-73.47M	173.03M	76.54M	97.37M
Balance Sheet
Total Assets	4.25B	4.25B	4.25B	4.26B	4.26B	4.08B
Cash, Cash Equivalents and Short-Term Investments	24.29M	38.28M	167.82M	12.34M	13.26M	18.37M
Total Debt	2.46B	2.44B	2.45B	2.26B	2.30B	2.12B
Total Liabilities	2.69B	2.69B	2.70B	2.51B	2.58B	2.36B
Stockholders Equity	1.49B	1.49B	1.48B	1.68B	1.62B	1.66B
Cash Flow
Free Cash Flow	286.98M	299.61M	255.77M	229.45M	219.12M	205.67M
Operating Cash Flow	332.04M	330.95M	276.27M	265.82M	249.15M	238.42M
Investing Cash Flow	-281.64M	-291.01M	-169.62M	-83.46M	-202.97M	-325.79M
Financing Cash Flow	-149.43M	-169.67M	46.26M	-183.18M	-50.90M	91.27M

COPT Defense Properties Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 27.80
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CDP, the sentiment is Neutral. The current price of 27.8 is below the 20-day moving average (MA) of 28.14, above the 50-day MA of 27.24, and below the 200-day MA of 28.78, indicating a neutral trend. The MACD of 0.35 indicates Positive momentum. The RSI at 47.74 is Neutral, neither overbought nor oversold. The STOCH value of 38.65 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CDP.

COPT Defense Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CDP	75 Outperform	$6.27B	22.92	9.49%	4.28%	5.22%	―
KRC	72 Outperform	$8.07B	20.72	3.69%	6.21%	1.11%	-3.07%
CUZ	66 Neutral	$5.00B	90.35	1.15%	4.23%	10.93%	-31.07%
HIW	66 Neutral	$3.38B	19.65	7.21%	6.38%	-2.01%	31.64%
Sector *	63 Neutral	$6.83B	19.23	-1.11%	7.12%	4.74%	-22.06%
SLG	61 Neutral	$4.81B	663.10	-0.13%	4.99%	14.28%	94.75%
DEI	61 Neutral	$3.04B	47.30	2.49%	5.12%	-1.98%	―

COPT Defense Properties Corporate Events

COPT Defense Properties Holds Successful Shareholder Meeting

On May 20, 2025, COPT Defense Properties held its Annual Meeting of Shareholders, where key proposals were voted on, including the election of eight trustees, approval of executive compensation, and the ratification of PricewaterhouseCoopers LLP as the independent accounting firm. The results showed strong support for all proposals, indicating shareholder confidence in the company’s leadership and strategic direction.

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.