COPT Defense Properties (CDP) AI Stock Analysis

• Market Cap: $6.45B
• Dividend Yield: 4.2%
• Average Volume (3M): 807.52K
• Price to Earnings (P/E): 22.6
• Beta (1Y): 0.43
• Revenue Growth: 2.95%
• EPS Growth: N/A
• Country: US
• Employees: 427
• Sector: Real Estate
• Sector Strength: 50
• Industry: REIT - Office
• EPS (TTM): 0.34
• Shares Outstanding: 112,927,510
• 10 Day Avg. Volume: 829,290
• 30 Day Avg. Volume: 807,525
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.88
• Enterprise Value/Revenue: 7.54
• Enterprise Value/Gross Profit: 11.22
• Enterprise Value/Ebitda: 18.85
• 1Y Price Target: $32.33
• Price Target Upside: 13.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6

• Rating: 76 Outperform
• Price Target: $32.00 ▲(12.01% Upside)

COPT Defense Properties demonstrates strong financial performance and positive future prospects, driven by increased defense spending and robust operational metrics. While technical indicators are neutral, the company's valuation and earnings call results support a favorable outlook. Challenges in specific areas, such as cash rent spreads and property vacancies, are noted but do not significantly detract from the overall positive assessment.

Positive Factors

Defense Spending

Higher defense spending allocations directly align with missions at CDP's core clusters.

Leasing Performance

Management continues to under-promise and over-deliver, boosting FY vacancy leasing by 12.5% to 450k SF.

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.

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 robust Gross Profit and steady profitability metrics. The negative revenue growth and moderate leverage are offset by solid cash flow and operational efficiency.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	753.27M	684.98M	739.03M	664.45M	609.37M
Gross Profit	260.36M	231.23M	220.41M	209.47M	199.72M
EBITDA	367.04M	337.49M	354.46M	320.44M	303.48M
Net Income	138.93M	-73.47M	173.03M	76.54M	97.37M
Balance Sheet
Total Assets	4.25B	4.25B	4.26B	4.26B	4.08B
Cash, Cash Equivalents and Short-Term Investments	38.28M	167.82M	12.34M	13.26M	18.37M
Total Debt	2.44B	2.45B	2.26B	2.30B	2.12B
Total Liabilities	2.69B	2.70B	2.51B	2.58B	2.36B
Stockholders Equity	1.49B	1.48B	1.68B	1.62B	1.66B
Cash Flow
Free Cash Flow	299.61M	255.77M	229.45M	219.12M	205.67M
Operating Cash Flow	330.95M	276.27M	265.82M	249.15M	238.42M
Investing Cash Flow	-291.01M	-169.62M	-83.46M	-202.97M	-325.79M
Financing Cash Flow	-169.67M	46.26M	-183.18M	-50.90M	91.27M

COPT Defense Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.57
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CDP, the sentiment is Positive. The current price of 28.57 is above the 20-day moving average (MA) of 27.91, above the 50-day MA of 28.01, and above the 200-day MA of 28.04, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 60.28 is Neutral, neither overbought nor oversold. The STOCH value of 81.49 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CDP.

COPT Defense Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CDP	76 Outperform	$6.45B	22.62	9.67%	4.20%	2.95%	―
KRC	74 Outperform	$4.84B	21.80	4.06%	5.33%	2.26%	10.15%
CUZ	69 Neutral	$4.76B	77.14	1.30%	4.53%	13.07%	-4.94%
HIW	68 Neutral	$3.24B	25.68	5.39%	6.68%	-2.16%	-16.41%
DEI	63 Neutral	$3.15B	71.77	1.74%	4.91%	-0.57%	―
Sector *	63 Neutral	$7.00B	13.54	-0.52%	7.07%	3.61%	-22.78%
SLG	58 Neutral	$4.22B	663.10	-0.37%	5.50%	15.25%	79.18%

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.