COPT Defense Properties (CDP)
NYSE:CDP
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COPT Defense Properties
(NYSE:CDP)
Select Model
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Rating:71Outperform
Price Target:
$35.00
▲(10.34% Upside)
Action:ReiteratedDate:02/21/26
The score is driven primarily by solid operating fundamentals and a constructive earnings outlook supported by strong occupancy/leasing and a largely pre-leased pipeline, tempered by elevated leverage and financing-cost headwinds that limit near-term FFO growth. Technicals are supportive, while valuation looks fair-to-somewhat demanding despite a healthy dividend yield.
Positive Factors
High Occupancy and Tenant Quality
Sustained high occupancy—especially 95.5% in Defense/IT—reflects mission-critical tenancy and long lease terms with government and prime contractors. That tenant mix and occupancy stability support predictable rental cash flows, low vacancy risk, and durable revenue visibility over multiple years.
Negative Factors
Elevated Leverage
Higher leverage reduces financial flexibility and increases refinancing risk, especially in a higher-rate environment. With debt-to-equity near 1.9 and a trend of rising leverage, the company faces constrained capacity for opportunistic acquisitions and greater sensitivity to interest-cost shocks.
Read all positive and negative factors
Positive Factors
Negative Factors
High Occupancy and Tenant Quality
Sustained high occupancy—especially 95.5% in Defense/IT—reflects mission-critical tenancy and long lease terms with government and prime contractors. That tenant mix and occupancy stability support predictable rental cash flows, low vacancy risk, and durable revenue visibility over multiple years.
Read all positive factors
COPT Defense Properties (CDP) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$7.17B
Dividend Yield4.3%
Average Volume (3M)1.02M
Price to Earnings (P/E)20.5
Beta (1Y)0.37
Revenue Growth0.06%
EPS Growth8.88%
CountryUS
Employees427
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)0.33
Shares Outstanding113,207,660
10 Day Avg. Volume826,213
30 Day Avg. Volume1,018,859
Financial Highlights & Ratios
PEG Ratio2.10
Price to Book (P/B)2.06
Price to Sales (P/S)4.09
P/FCF Ratio12.33
Enterprise Value/Market Cap0.86
Enterprise Value/Revenue8.02
Enterprise Value/Gross Profit31.37
Enterprise Value/Ebitda15.10
Forecast
1Y Price Target
$35.50Price Target Upside11.92% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
EPS Forecast (FY)1.34
Revenue Forecast (FY)$748.79M
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 i...
How the Company Makes Money
COPT Defense Properties generates revenue primarily through leasing its properties to government and defense contractors under long-term agreements. The majority of its income comes from rental payments, which are often backed by government contra...
COPT Defense Properties Earnings Call Summary
Earnings Call Date:Feb 05, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 27, 2026
Earnings Call Sentiment Positive
The call conveyed a largely positive operational and strategic picture: strong 2025 results (FFO/share growth, same-property NOI growth, high occupancy and robust leasing), a healthy and largely pre-leased development pipeline, and supportive defense budget tailwinds. Headwinds include higher financing costs that compress near-term FFO growth, some government administrative delays that temporarily depressed renewal metrics, and modest near-term same-property NOI deceleration due to nonrecurring tax items. On balance, the company appears well-positioned financially and operationally to capitalize on defense demand, with manageable timing and financing challenges reflected in conservative 2026 guidance.Positive Updates
FFO Per Share Growth and Record Performance
Reported 2025 FFO per share of $2.72, up 5.8% year-over-year and $0.06 above initial guidance; marks seventh consecutive year of FFO/share growth and management expects 2026 midpoint FFO of $2.75 (1.1% growth) with an adjusted ex-financing midpoint of $2.84 (4.4% growth).
Negative Updates
Financing Cost Headwind to 2026 Guidance
2026 FFO guidance absorbs a $0.09 headwind from higher financing costs driven by the October bond offering and higher interest rate environment (new 5-year notes at 4.6% vs maturing 2.25% bond), materially constraining reported midpoint growth to 1.1%.
Read all updates
Q4-2025 Updates
Positive
Negative
FFO Per Share Growth and Record Performance
Reported 2025 FFO per share of $2.72, up 5.8% year-over-year and $0.06 above initial guidance; marks seventh consecutive year of FFO/share growth and management expects 2026 midpoint FFO of $2.75 (1.1% growth) with an adjusted ex-financing midpoint of $2.84 (4.4% growth).
Read all positive updates
Company Guidance
Management's 2026 guidance calls for FFO per share of $2.71–$2.79 (midpoint $2.75), implying $0.03 (1.1%) growth versus 2025; excluding a $0.09 financing‑cost headwind 2026 FFO/sh would be $2.84 (+4.4%). Same‑property cash NOI is guided to +2.5% at the midpoint (reduced ~100 bps by 2025 nonrecurring real‑estate tax benefits) and same‑property occupancy is expected to finish between 93.5%–94.5%. Operational targets include 400,000 sq ft of vacancy leasing (≈1/3 of beginning‑year availability), tenant retention midpoint of 80% with cash rent spreads +2% at midpoint, active/future project spend of $200–$250 million, and new investment commitments of $225–$275 million (management target $250M; $146M already committed). Financial assumptions include an AFFO payout ratio <65% (≈60% 2‑yr average), capitalized interest <8% of gross interest in 2026, and a $0.015 FFO/sh reduction from placing NBP 400 in service (with a temporary ~60 bp occupancy drag beginning in Q2).COPT Defense Properties Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
56
Neutral
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 763.92M | 753.27M | 684.98M | 739.03M | 664.45M |
| Gross Profit | 117.85M | 260.36M | 231.23M | 220.41M | 209.47M |
| EBITDA | 408.97M | 369.74M | 150.31M | 354.46M | 294.41M |
| Net Income | 152.31M | 138.93M | -73.47M | 173.03M | 76.54M |
Balance Sheet | |||||
| Total Assets | 4.70B | 4.25B | 4.25B | 4.26B | 4.26B |
| Cash, Cash Equivalents and Short-Term Investments | 274.99M | 38.28M | 167.82M | 12.34M | 13.26M |
| Total Debt | 2.81B | 2.44B | 2.45B | 2.26B | 2.30B |
| Total Liabilities | 3.11B | 2.69B | 2.70B | 2.51B | 2.58B |
| Stockholders Equity | 1.51B | 1.49B | 1.48B | 1.68B | 1.62B |
Cash Flow | |||||
| Free Cash Flow | 253.68M | 299.61M | 255.77M | 229.45M | 219.12M |
| Operating Cash Flow | 334.93M | 330.95M | 276.27M | 265.82M | 249.15M |
| Investing Cash Flow | -314.74M | -291.01M | -169.62M | -83.46M | -202.97M |
| Financing Cash Flow | 216.54M | -169.67M | 46.26M | -183.18M | -50.90M |
COPT Defense Properties Technical Analysis
Positive
31.72
Price Trends
31.28
Positive
30.05
Positive
28.90
Positive
Market Momentum
-0.09
Negative
52.42
Neutral
58.77
Neutral
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 31.72 is above the 20-day moving average (MA) of 31.17, above the 50-day MA of 31.28, and above the 200-day MA of 28.90, indicating a bullish trend. The MACD of -0.09 indicates Negative momentum. The RSI at 52.42 is Neutral, neither overbought nor oversold. The STOCH value of 58.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CDP.
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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $7.17B | 20.54 | 10.14% | 4.30% | 0.06% | 8.88% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
57 Neutral | $3.39B | 16.11 | 5.11% | 5.75% | 0.77% | 62.58% | |
56 Neutral | $2.44B | 24.27 | 6.69% | 7.83% | -2.10% | -13.30% | |
54 Neutral | $3.79B | 106.88 | 0.85% | 5.08% | 16.38% | 3.60% | |
51 Neutral | $2.93B | -38.62 | -2.25% | 6.95% | 8.60% | ― | |
45 Neutral | $1.61B | -67.23 | 0.82% | 6.45% | -0.12% | ― |
* Real Estate Sector Average
CDP
COPT Defense Properties
31.72
7.11
28.87%
CUZ
Cousins Properties
22.57
-3.10
-12.07%
DEI
Douglas Emmett
9.60
-3.72
-27.93%
HIW
Highwoods Properties
22.22
-2.81
-11.23%
KRC
Kilroy Realty
28.34
-0.70
-2.42%
SLG
SL Green Realty
38.61
-10.68
-21.67%
COPT Defense Properties Corporate Events
Business Operations and StrategyExecutive/Board Changes
COPT Defense Updates Executive Severance and Change-in-Control Plan
Neutral
Feb 4, 2026
On January 30, 2026, COPT Defense Properties and its operating partnership entered into new letter agreements with President and CEO Stephen E. Budorick, EVP and COO Britt A. Snider, and EVP and CFO Anthony Mifsud that govern their participation i...
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.