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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.  20549
____________________________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of report (Date of earliest event reported): October 28, 2024
____________________________________________

COPT DEFENSE PROPERTIES
(Exact name of registrant as specified in its charter)
Maryland   1-14023 23-2947217
(State or other jurisdiction   (Commission File (IRS Employer
of incorporation)   Number) Identification No.)

6711 Columbia Gateway Drive, Suite 300, Columbia, MD
 21046
(Address of principal executive offices) (Zip Code)
        
Registrant’s telephone number, including area code:  (443) 285-5400

____________________________________________

Not applicable
(Former name or former address, if changed since last report.)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐   Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐   Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐   Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐   Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Shares of beneficial interest, $0.01 par value CDP New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging Growth Company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02.             Results of Operations and Financial Condition
 
On October 28, 2024, COPT Defense Properties (the “Company”) issued a press release relating to its financial results for the period ended September 30, 2024 and, in connection with this release, is making available certain supplemental information pertaining to its properties and operations.  The earnings release and supplemental information are included as Exhibit 99.1 to this report and are incorporated herein by reference.
 
The information included herein, including the exhibits, shall not be deemed “filed” for any purpose, including the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or subject to liabilities of that Section.  The information included herein, including the exhibits, shall also not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended (the “Securities Act”), or the Exchange Act regardless of any general incorporation language in such filing.

Item 9.01.             Financial Statements and Exhibits

(d)     Exhibits.

Exhibit Number   Exhibit Title
 
104 Cover Page Interactive Data File (embedded within the Inline XBRL document).


SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
  COPT DEFENSE PROPERTIES
/s/ Anthony Mifsud
  Anthony Mifsud
  Executive Vice President and Chief Financial Officer
Date: October 28, 2024



EX-99.1 2 cdp09302024ex991.htm EX-99.1 Document
Exhibit 99.1

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COPT Defense Properties
Supplemental Information + Earnings Release - Unaudited
For the Period Ended 9/30/24
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Please refer to the section entitled “Definitions” for definitions of non-GAAP measures
and other terms we use herein that may not be customary or commonly known.

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COPT Defense Properties
Summary Description
THE COMPANY
COPT Defense Properties (the “Company” or “COPT Defense”), an S&P MidCap 400 Company, is a self-managed real estate investment trust (“REIT”) focused on owning, operating and developing properties in locations proximate to, or sometimes containing, key U.S. Government (“USG”) defense installations and missions (which we refer to herein as our Defense/IT Portfolio). Our tenants include the USG and their defense contractors, who are primarily engaged in priority national security activities, and who generally require mission-critical and high security property enhancements. The ticker symbol under which our common shares are publicly traded on the New York Stock Exchange is “CDP”. As of September 30, 2024, our Defense/IT Portfolio of 194 properties, including 24 owned through unconsolidated joint ventures, encompassed 22.2 million square feet and was 96.5% leased.


MANAGEMENT Stephen E. Budorick, President + CEO INVESTOR RELATIONS Venkat Kommineni, VP
Britt A. Snider, EVP + COO
443.285.5587 | venkat.kommineni@copt.com
Anthony Mifsud, EVP + CFO
Michelle Layne, Manager
443.285.5452 | michelle.layne@copt.com


CORPORATE CREDIT RATING
Fitch: BBB- Stable | Moody’s: Baa3 Stable | S&P: BBB- Stable


DISCLOSURE STATEMENT
This supplemental package contains forward-looking statements within the meaning of the Federal securities laws. Forward-looking statements can be identified by the use of words such as “may,” “will,” “should,” “could,” “believe,” “anticipate,” “expect,” “estimate,” “plan” or other comparable terminology.  Forward-looking statements are inherently subject to risks and uncertainties, many of which we cannot predict with accuracy and some of which we might not even anticipate.  Although we believe that the expectations, estimates and projections reflected in such forward-looking statements are based on reasonable assumptions at the time made, we can give no assurance that these expectations, estimates and projections will be achieved.  Future events and actual results may differ materially from those discussed in the forward-looking statements and we undertake no obligation to update or supplement any forward-looking statements.  The areas of risk that may affect these expectations, estimates and projections include, but are not limited to, those risks described in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023.
1
3Q 2024 Supplemental Information Package
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COPT Defense Properties
Equity Research Coverage
Firm   Senior Analyst Phone   Email
BTIG Tom Catherwood 212.738.6410 tcatherwood@btig.com
Citigroup Global Markets   Michael Griffin   212.816.5871   michael.a.griffin@citi.com
Evercore ISI Steve Sakwa 212.446.9462 steve.sakwa@evercoreisi.com
Green Street   Dylan Burzinski   949.640.8780   dburzinski@greenstreet.com
Jefferies & Co.   Peter Abramowitz   212.336.7241   pabramowitz@jefferies.com
JP Morgan   Tony Paolone   212.622.6682   anthony.paolone@jpmorgan.com
Truist Securities   Michael Lewis   212.319.5659   michael.r.lewis@truist.com
Wedbush Securities Richard Anderson 212.938.9949 richard.anderson@wedbush.com
Wells Fargo Securities Blaine Heck 410.662.2556 blaine.heck@wellsfargo.com
 
With the exception of Green Street, the above-listed firms are those whose analysts publish research material on the Company and whose estimates of our FFO per share can be tracked through FactSet. Any opinions, estimates or forecasts the above analysts make regarding COPT Defense’s future performance are their own and do not represent the views, estimates or forecasts of COPT Defense’s management.
2
3Q 2024 Supplemental Information Package
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COPT Defense Properties
Selected Financial Summary Data
(in thousands, except per share data)
  Page Three Months Ended Nine Months Ended
SUMMARY OF RESULTS  Refer. 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23
Net income (loss) 7 $ 37,397  $ 36,407  $ 33,671  $ 34,820  $ (221,207) $ 107,475  $ (109,167)
NOI from real estate operations 13 $ 105,526  $ 105,410  $ 101,657  $ 98,656  $ 96,494  $ 312,593  $ 285,421 
Same Property NOI 17 $ 98,651  $ 98,672  $ 95,403  $ 94,854  $ 95,039  $ 292,726  $ 281,985 
Same Property cash NOI 18 $ 97,104  $ 97,614  $ 91,619  $ 89,493  $ 88,793  $ 286,337  $ 263,173 
Adjusted EBITDA 11 $ 99,236  $ 98,592  $ 95,841  $ 93,934  $ 90,260  $ 293,669  $ 266,747 
FFO per NAREIT 8 $ 76,460  $ 75,346  $ 72,799  $ 72,360  $ 70,016  $ 224,605  $ 208,865 
Diluted AFFO avail. to common share and unit holders 10 $ 52,592  $ 61,435  $ 59,269  $ 54,280  $ 64,122  $ 173,803  $ 148,741 
Dividend per common share N/A $ 0.295  $ 0.295  $ 0.295  $ 0.285  $ 0.285  $ 0.885  $ 0.855 
Per share - diluted:            
EPS 9 $ 0.32  $ 0.31  $ 0.29  $ 0.30  $ (1.94) $ 0.92  $ (0.96)
FFO - Nareit 9 $ 0.65  $ 0.64  $ 0.62  $ 0.62  $ 0.60  $ 1.92  $ 1.79 
FFO - as adjusted for comparability 9 $ 0.65  $ 0.64  $ 0.62  $ 0.62  $ 0.60  $ 1.92  $ 1.79 
Numerators for diluted per share amounts:
Diluted EPS 7 $ 35,981  $ 35,022  $ 32,480  $ 33,552  $ (217,179) $ 103,489  $ (108,214)
Diluted FFO available to common share and unit holders 8 $ 74,905  $ 74,280  $ 71,892  $ 70,913  $ 68,512  $ 221,584  $ 204,486 
Diluted FFO available to common share and unit holders, as adjusted for comparability 8 $ 74,974  $ 74,360  $ 71,969  $ 71,100  $ 68,593  $ 221,810  $ 204,813 

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3Q 2024 Supplemental Information Package
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COPT Defense Properties
Selected Financial Summary Data (continued)
(in thousands, except ratios)
  Page As of or for Three Months Ended
As of and for Nine Months Ended
PAYOUT RATIOS AND CAPITALIZATION Refer. 9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23
GAAP
Payout ratio:
Net income N/A 90.7% 93.1% 100.7% 93.7% N/A 94.6% N/A
Capitalization and debt ratios:
Total assets 6 $ 4,234,302  $ 4,219,338  $ 4,232,895  $ 4,246,966  $ 4,239,257 
Total equity 6 $ 1,532,595  $ 1,530,506  $ 1,526,046  $ 1,523,755  $ 1,525,873 
Debt per balance sheet 6 $ 2,390,839  $ 2,389,925  $ 2,416,873  $ 2,416,287  $ 2,415,783 
Debt to assets 32 56.5% 56.6% 57.1% 56.9% 57.0% N/A N/A
Net income to interest expense ratio 32 1.8x 1.8x 1.6x 1.7x N/A 1.7x N/A
Debt to net income ratio 32 16.0x 16.4x 17.9x 17.3x N/A N/A N/A
Non-GAAP
Payout ratios:            
Diluted FFO N/A 44.9% 45.3% 46.8% 45.7% 47.3% 45.6% 47.6%
Diluted FFO - as adjusted for comparability N/A 44.9% 45.3% 46.7% 45.6% 47.3% 45.5% 47.5%
Diluted AFFO N/A 64.0% 54.8% 56.8% 59.7% 50.6% 58.1% 65.4%
Capitalization and debt ratios:          
Total Market Capitalization 29 $ 5,897,659  $ 5,289,664  $ 5,218,681  $ 5,377,815  $ 5,172,058 
Total Equity Market Capitalization 29 $ 3,482,187  $ 2,873,744  $ 2,774,450  $ 2,932,815  $ 2,726,295 
Net debt 37 $ 2,432,567  $ 2,367,180  $ 2,372,747  $ 2,328,941  $ 2,293,005 
Net debt to adjusted book 32 40.8% 40.5% 40.9% 40.6% 40.5% N/A N/A
Adjusted EBITDA fixed charge coverage ratio 32 4.8x 4.7x 4.5x 4.4x 4.6x 4.7x 4.9x
Net debt to in-place adj. EBITDA ratio 32 6.1x 6.0x 6.1x 6.1x 6.2x N/A N/A
Net debt adjusted for fully-leased investment properties to in-place adj. EBITDA ratio 32 5.9x 5.9x 6.0x 6.0x 5.9x N/A N/A

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3Q 2024 Supplemental Information Package
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COPT Defense Properties
Selected Portfolio Data (1)
  9/30/24 6/30/24 3/31/24 12/31/23 9/30/23
# of Properties
Total Portfolio 202 201 201 198 196
Consolidated Portfolio 178 177 177 174 172
Defense/IT Portfolio 194 193 193 190 188
Same Property 189 189 189 189 189
% Occupied
Total Portfolio 93.1  % 93.6  % 93.6  % 94.2  % 94.1  %
Consolidated Portfolio 91.6  % 92.2  % 92.2  % 92.9  % 92.7  %
Defense/IT Portfolio 95.0  % 95.5  % 95.6  % 96.2  % 95.9  %
Same Property 93.6  % 93.5  % 93.5  % 93.8  % 93.8  %
% Leased
Total Portfolio 94.8  % 94.9  % 94.9  % 95.3  % 95.1  %
Consolidated Portfolio 93.6  % 93.8  % 93.8  % 94.3  % 94.0  %
Defense/IT Portfolio 96.5  % 96.7  % 96.8  % 97.2  % 97.0  %
Same Property 95.1  % 95.0  % 95.0  % 95.1  % 94.9  %
Square Feet (in thousands)
Total Portfolio 24,316 24,135 24,137 23,859 23,479
Consolidated Portfolio 20,021 19,839 19,841 19,563 19,184
Defense/IT Portfolio 22,174 21,993 21,993 21,719 21,339
Same Property 22,224 22,224 22,224 22,224 22,224
(1)Except for the Consolidated Portfolio, includes properties owned through unconsolidated real estate joint ventures (see page 34).

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3Q 2024 Supplemental Information Package
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COPT Defense Properties
Consolidated Balance Sheets
(in thousands)
  9/30/24 6/30/24 3/31/24 12/31/23 9/30/23
Assets          
Properties, net:          
Operating properties, net $ 3,289,959  $ 3,257,822  $ 3,272,452  $ 3,246,806  $ 3,148,434 
Development and redevelopment in progress, including land (1) 108,077  106,709  76,931  82,972  141,854 
Land held (1) 206,652  171,062  168,495  173,900  177,909 
Total properties, net 3,604,688  3,535,593  3,517,878  3,503,678  3,468,197 
Property - operating right-of-use assets 40,523  40,899  40,368  41,296  40,487 
Cash and cash equivalents 34,478  100,443  123,144  167,820  204,238 
Investment in unconsolidated real estate joint ventures 39,720  40,148  40,597  41,052  41,495 
Accounts receivable, net 42,240  46,963  50,088  48,946  40,211 
Deferred rent receivable 159,182  156,123  153,788  149,237  142,041 
Lease incentives, net 63,034  63,744  61,150  61,331  60,506 
Deferred leasing costs, net 71,815  72,156  70,902  70,057  68,033 
Investing receivables, net 83,536  84,087  82,523  81,512  87,535 
Prepaid expenses and other assets, net 95,086  79,182  92,457  82,037  86,514 
Total assets $ 4,234,302  $ 4,219,338  $ 4,232,895  $ 4,246,966  $ 4,239,257 
Liabilities and equity          
Liabilities:          
Debt $ 2,390,839  $ 2,389,925  $ 2,416,873  $ 2,416,287  $ 2,415,783 
Accounts payable and accrued expenses 134,112  122,202  111,981  133,315  135,605 
Rents received in advance and security deposits 33,213  33,485  37,557  35,409  32,063 
Dividends and distributions payable 33,915  33,908  33,906  32,644  32,645 
Deferred revenue associated with operating leases 37,660  37,199  34,019  29,049  24,590 
Property - operating lease liabilities 33,615  33,818  33,141  33,931  32,940 
Other liabilities 15,917  15,530  16,406  18,996  17,936 
Total liabilities 2,679,271  2,666,067  2,683,883  2,699,631  2,691,562 
Redeemable noncontrolling interests 22,436  22,765  22,966  23,580  21,822 
Equity:      
COPT Defense’s shareholders’ equity:      
Common shares 1,127  1,127  1,126  1,126  1,125 
Additional paid-in capital 2,493,340  2,489,931  2,487,468  2,489,989  2,489,717 
Cumulative distributions in excess of net income (1,005,260) (1,008,087) (1,009,964) (1,009,318) (1,010,885)
Accumulated other comprehensive income 58  3,614  3,849  2,115  6,094 
Total COPT Defense’s shareholders’ equity 1,489,265  1,486,585  1,482,479  1,483,912  1,486,051 
Noncontrolling interests in subsidiaries:          
Common units in the Operating Partnership 28,918  29,470  29,214  25,502  25,337 
Other consolidated entities 14,412  14,451  14,353  14,341  14,485 
Total noncontrolling interests in subsidiaries 43,330  43,921  43,567  39,843  39,822 
Total equity 1,532,595  1,530,506  1,526,046  1,523,755  1,525,873 
Total liabilities, redeemable noncontrolling interests and equity $ 4,234,302  $ 4,219,338  $ 4,232,895  $ 4,246,966  $ 4,239,257 
(1)Refer to pages 26 and 28 for detail.


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3Q 2024 Supplemental Information Package
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COPT Defense Properties
Consolidated Statements of Operations
(in thousands)
  Three Months Ended Nine Months Ended
  9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23
Revenues          
Lease revenue $ 170,549  $ 165,619  $ 165,433  $ 160,337  $ 155,268  $ 501,601  $ 459,510 
Other property revenue 2,014  1,466  1,230  1,225  1,339  4,710  3,731 
Construction contract and other service revenues 16,662  20,258  26,603  18,167  11,949  63,523  42,012 
Total revenues 189,225  187,343  193,266  179,729  168,556  569,834  505,253 
Operating expenses          
Property operating expenses 68,881  63,410  66,746  64,577  61,788  199,037  182,808 
Depreciation and amortization associated with real estate operations 38,307  38,161  38,351  36,735  37,620  114,819  112,215 
Construction contract and other service expenses 16,127  19,612  26,007  17,167  11,493  61,746  40,249 
Impairment losses —  —  —  —  252,797  —  252,797 
General and administrative expenses 8,157  8,591  8,378  8,240  7,582  25,126  22,865 
Leasing expenses 2,341  2,462  2,187  2,308  2,280  6,990  6,624 
Business development expenses and land carry costs 918  979  1,182  797  714  3,079  1,935 
Total operating expenses 134,731  133,215  142,851  129,824  374,274  410,797  619,493 
Interest expense (20,376) (20,617) (20,767) (20,383) (17,798) (61,760) (50,759)
Interest and other income, net 3,324  2,884  4,122  5,659  2,529  10,330  6,928 
Gain on sales of real estate —  —  —  —  —  —  49,392 
Income (loss) before equity in income (loss) of unconsolidated entities and income taxes 37,442  36,395  33,770  35,181  (220,987) 107,607  (108,679)
Equity in income (loss) of unconsolidated entities 85  26  69  (240) (68) 180  (21)
Income tax expense (130) (14) (168) (121) (152) (312) (467)
Net income (loss) 37,397  36,407  33,671  34,820  (221,207) 107,475  (109,167)
Net (income) loss attributable to noncontrolling interests:          
Common units in the Operating Partnership (711) (694) (608) (576) 3,691  (2,013) 1,882 
Other consolidated entities (601) (599) (454) (592) 1,329  (1,654) 164 
Net income (loss) attributable to common shareholders $ 36,085  $ 35,114  $ 32,609  $ 33,652  $ (216,187) $ 103,808  $ (107,121)
Amount allocable to share-based compensation awards (104) (92) (129) (100) (992) (319) (1,093)
Numerator for diluted EPS $ 35,981  $ 35,022  $ 32,480  $ 33,552  $ (217,179) $ 103,489  $ (108,214)
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3Q 2024 Supplemental Information Package
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COPT Defense Properties
Funds from Operations
(in thousands)
  Three Months Ended Nine Months Ended
  9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23
Net income (loss) $ 37,397  $ 36,407  $ 33,671  $ 34,820  $ (221,207) $ 107,475  $ (109,167)
Real estate-related depreciation and amortization 38,307  38,161  38,351  36,735  37,620  114,819  112,215 
Impairment losses on real estate —  —  —  —  252,797  —  252,797 
Gain on sales of real estate —  —  —  —  —  —  (49,392)
Depreciation and amortization on unconsolidated real estate JVs (1) 756  778  777  805  806  2,311  2,412 
FFO - per Nareit (2) 76,460  75,346  72,799  72,360  70,016  224,605  208,865 
FFO allocable to other noncontrolling interests (3) (985) (984) (836) (972) (1,059) (2,805) (3,006)
Basic FFO allocable to share-based compensation awards (617) (599) (587) (513) (481) (1,803) (1,427)
Basic FFO available to common share and common unit holders (2) 74,858  73,763  71,376  70,875  68,476  219,997  204,432 
Redeemable noncontrolling interests —  471  469  —  —  1,446  (58)
Diluted FFO adjustments allocable to share-based compensation awards 47  46  47  38  36  141  112 
Diluted FFO available to common share and common unit holders - per Nareit (2) 74,905  74,280  71,892  70,913  68,512  221,584  204,486 
Executive transition costs 69  81  77  188  82  227  330 
Diluted FFO comparability adjustments allocable to share-based compensation awards —  (1) —  (1) (1) (1) (3)
Diluted FFO available to common share and common unit holders, as adjusted for comparability (2) $ 74,974  $ 74,360  $ 71,969  $ 71,100  $ 68,593  $ 221,810  $ 204,813 

(1)See page 34 for additional disclosure regarding our unconsolidated real estate JVs.
(2)Refer to the section entitled “Definitions” for a definition of this measure.
(3)Pertains to noncontrolling interests in consolidated real estate JVs reported on page 33.

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3Q 2024 Supplemental Information Package
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COPT Defense Properties
Diluted Share + Unit Computations
(in thousands, except per share data)

  Three Months Ended Nine Months Ended
  9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23
EPS Denominator:          
Weighted average common shares - basic 112,314  112,293  112,231  112,199  112,196  112,279  112,170 
Dilutive effect of share-based compensation awards 696  492  509  432  —  566  — 
Weighted average common shares - diluted 113,010  112,785  112,740  112,631  112,196  112,845  112,170 
Diluted EPS $ 0.32  $ 0.31  $ 0.29  $ 0.30  $ (1.94) $ 0.92  $ (0.96)
Weighted Average Shares for period ended:              
Common shares 112,314  112,293  112,231  112,199  112,196  112,279  112,170 
Dilutive effect of share-based compensation awards 696  492  509  432  429  566  422 
Common units 1,696  1,703  1,625  1,514  1,520  1,675  1,508 
Redeemable noncontrolling interests —  926  947  —  —  873  51 
Denominator for diluted FFO per share and as adjusted for comparability 114,706  115,414  115,312  114,145  114,145  115,393  114,151 
Weighted average common units (1,696) (1,703) (1,625) (1,514) (1,520) (1,675) (1,508)
Redeemable noncontrolling interests —  (926) (947) —  —  (873) (51)
Dilutive effect of additional share-based compensation awards —  —  —  —  (429) —  (422)
Denominator for diluted EPS 113,010  112,785  112,740  112,631  112,196  112,845  112,170 
Diluted FFO per share - Nareit (1) $ 0.65  $ 0.64  $ 0.62  $ 0.62  $ 0.60  $ 1.92  $ 1.79 
Diluted FFO per share - as adjusted for comparability (1) $ 0.65  $ 0.64  $ 0.62  $ 0.62  $ 0.60  $ 1.92  $ 1.79 
(1)Refer to the section entitled “Definitions” for a definition of this measure.
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3Q 2024 Supplemental Information Package
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COPT Defense Properties
Adjusted Funds from Operations
(in thousands)
  Three Months Ended Nine Months Ended
  9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23
Diluted FFO available to common share and common unit holders, as adjusted for comparability (1) $ 74,974  $ 74,360  $ 71,969  $ 71,100  $ 68,593  $ 221,810  $ 204,813 
Straight line rent adjustments and lease incentive amortization 613  3,788  3,473  313  12,882  7,874  6,205 
Amortization of intangibles and other assets included in NOI 211  211  122  26  26  544  24 
Share-based compensation, net of amounts capitalized 2,617  2,564  2,645  2,318  2,280  7,826  6,226 
Amortization of deferred financing costs 671  681  685  681  639  2,037  1,899 
Amortization of net debt discounts, net of amounts capitalized 1,032  1,023  1,014  1,004  750  3,069  1,990 
Replacement capital expenditures (1) (27,824) (21,250) (20,776) (21,498) (21,122) (69,850) (71,996)
Other 298  58  137  336  74  493  (420)
Diluted AFFO available to common share and common unit holders (“diluted AFFO”) (1) $ 52,592  $ 61,435  $ 59,269  $ 54,280  $ 64,122  $ 173,803  $ 148,741 
Replacement capital expenditures (1)          
Tenant improvements and incentives $ 18,772  $ 15,045  $ 12,776  $ 7,850  $ 14,457  $ 46,593  $ 67,062 
Building improvements 6,694  5,705  4,953  14,762  6,307  17,352  11,214 
Leasing costs 3,013  3,110  3,590  2,440  1,902  9,713  7,194 
Net additions to (exclusions from) tenant improvements and incentives 728  (1,040) 316  (189) (813) 4  (11,981)
Excluded building improvements and leasing costs (1,383) (1,570) (859) (3,365) (731) (3,812) (1,493)
Replacement capital expenditures $ 27,824  $ 21,250  $ 20,776  $ 21,498  $ 21,122  $ 69,850  $ 71,996 
(1)Refer to the section entitled “Definitions” for a definition of this measure.
10
3Q 2024 Supplemental Information Package
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COPT Defense Properties
EBITDAre + Adjusted EBITDA
(in thousands)
  Three Months Ended Nine Months Ended
  9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23
Net income (loss) $ 37,397  $ 36,407  $ 33,671  $ 34,820  $ (221,207) $ 107,475  $ (109,167)
Interest expense 20,376  20,617  20,767  20,383  17,798  61,760  50,759 
Income tax expense 130  14  168  121  152  312  467 
Real estate-related depreciation and amortization 38,307  38,161  38,351  36,735  37,620  114,819  112,215 
Other depreciation and amortization 614  564  608  619  615  1,786  1,826 
Impairment losses on real estate —  —  —  —  252,797  —  252,797 
Gain on sales of real estate —  —  —  —  —  —  (49,392)
Adjustments from unconsolidated real estate JVs 1,759  1,709  1,671  1,911  1,743  5,139  5,006 
EBITDAre (1) 98,583  97,472  95,236  94,589  89,518  291,291  264,511 
Credit loss expense (recoveries) 38  436  22  (1,288) 372  496  677 
Business development expenses 557  603  630  445  313  1,790  948 
Executive transition costs 69  81  430  188  82  580  636 
Net gain on other investments (11) —  (477) —  (25) (488) (25)
Adjusted EBITDA (1) 99,236  98,592  95,841  93,934  90,260  $ 293,669  $ 266,747 
Pro forma NOI adjustment for property changes within period —  —  813  1,341  1,647 
Change in collectability of deferred rental revenue —  27  —  (198) — 
In-place adjusted EBITDA (1) $ 99,236  $ 98,619  $ 96,654  $ 95,077  $ 91,907 
(1)Refer to the section entitled “Definitions” for a definition of this measure.

11
3Q 2024 Supplemental Information Package
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COPT Defense Properties
Properties by Segment - 9/30/24
(square feet in thousands)
# of
Properties		 Operational
Square Feet		 % Occupied % Leased
Defense/IT Portfolio:
Fort Meade/Baltimore Washington (“BW”) Corridor:        
National Business Park 34  4,292  98.9% 99.4%
Howard County 36  3,063  91.0% 92.3%
Other 23  1,725  92.0% 95.4%
Total Fort Meade/BW Corridor 93  9,080  94.9% 96.2%
Northern Virginia (“NoVA”) Defense/IT 16  2,500  90.5% 92.9%
Lackland AFB (San Antonio, Texas) 9  1,143  93.0% 100.0%
Navy Support 22  1,273  83.3% 89.3%
Redstone Arsenal (Huntsville, Alabama) 24  2,475  94.7% 95.6%
Data Center Shells:
Consolidated Properties 6  1,408  100.0% 100.0%
Unconsolidated JV Properties (1) 24  4,295  100.0% 100.0%
Total Defense/IT Portfolio 194  22,174  95.0% 96.5%
Other 8  2,142  73.4% 76.2%
Total Portfolio 202  24,316  93.1% 94.8%
Consolidated Portfolio 178  20,021  91.6% 93.6%
(1)See page 34 for additional disclosure regarding our unconsolidated real estate JVs.

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(2)Refer to the section entitled “Definitions” for a definition of this measure.
12
3Q 2024 Supplemental Information Package
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COPT Defense Properties
Consolidated Real Estate Revenues + NOI by Segment
(in thousands)
  Three Months Ended Nine Months Ended
  9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23
Consolidated real estate revenues          
Defense/IT Portfolio:
Fort Meade/BW Corridor $ 80,056  $ 77,715  $ 78,068  $ 74,758  $ 73,350  $ 235,839  $ 215,303 
NoVA Defense/IT 22,083  20,601  21,426  20,410  20,333  64,110  60,003 
Lackland Air Force Base 16,879  16,447  16,411  17,861  16,193  49,737  49,393 
Navy Support 8,068  8,240  8,226  8,405  8,190  24,534  24,233 
Redstone Arsenal 18,332  17,017  16,808  14,971  13,768  52,157  40,160 
Data Center Shells-Consolidated 9,029  9,600  8,457  7,654  6,811  27,086  19,790 
Total Defense/IT Portfolio 154,447  149,620  149,396  144,059  138,645  453,463  408,882 
Other 18,116  17,465  17,267  17,503  17,962  52,848  54,359 
Consolidated real estate revenues (1) $ 172,563  $ 167,085  $ 166,663  $ 161,562  $ 156,607  $ 506,311  $ 463,241 
NOI from real estate operations (2)          
Defense/IT Portfolio:
Fort Meade/BW Corridor $ 52,127  $ 53,078  $ 50,178  $ 48,894  $ 48,134  $ 155,383  $ 141,379 
NoVA Defense/IT 12,831  11,671  12,164  11,972  12,433  36,666  36,848 
Lackland Air Force Base 7,719  7,650  7,723  7,708  7,626  23,092  22,930 
Navy Support 3,984  4,607  4,600  4,783  4,257  13,191  13,241 
Redstone Arsenal 11,869  11,296  11,016  10,157  8,820  34,181  25,826 
Data Center Shells:
Consolidated properties 7,475  7,509  7,514  6,966  6,133  22,498  17,775 
COPT Defense’s share of unconsolidated real estate JVs 1,844  1,735  1,740  1,671  1,675  5,319  4,988 
Total Defense/IT Portfolio 97,849  97,546  94,935  92,151  89,078  290,330  262,987 
Other 7,677  7,864  6,722  6,505  7,416  22,263  22,434 
NOI from real estate operations (1) $ 105,526  $ 105,410  $ 101,657  $ 98,656  $ 96,494  $ 312,593  $ 285,421 
(1)Refer to the section entitled “Supplementary Reconciliations of Non-GAAP Measures” for reconciliation.
(2)Refer to the section entitled “Definitions” for a definition of this measure.
13
3Q 2024 Supplemental Information Package
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COPT Defense Properties
Cash NOI by Segment
(in thousands)
  Three Months Ended Nine Months Ended
  9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23
Cash NOI from real estate operations (1)          
Defense/IT Portfolio:
Fort Meade/BW Corridor $ 49,998  $ 51,017  $ 47,117  $ 46,173  $ 45,513  $ 148,132  $ 134,902 
NoVA Defense/IT 13,223  12,452  12,933  12,881  12,765  38,608  36,830 
Lackland Air Force Base 8,218  8,124  8,186  8,114  7,913  24,528  23,747 
Navy Support 4,000  4,656  4,503  5,008  4,621  13,159  14,555 
Redstone Arsenal 9,730  9,034  6,308  4,869  4,861  25,072  13,556 
Data Center Shells:
Consolidated properties 6,739  6,748  6,688  5,868  4,904  20,175  15,201 
COPT Defense’s share of unconsolidated real estate JVs 1,565  1,481  1,477  1,400  1,396  4,523  4,132 
Total Defense/IT Portfolio 93,473  93,512  87,212  84,313  81,973  274,197  242,923 
Other 7,656  7,869  6,723  6,536  7,400  22,248  22,333 
Cash NOI from real estate operations (2) $ 101,129  $ 101,381  $ 93,935  $ 90,849  $ 89,373  $ 296,445  $ 265,256 
(1)Refer to the section entitled “Definitions” for a definition of this measure.
(2)Refer to the section entitled “Supplementary Reconciliations of Non-GAAP Measures” for reconciliation.
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14
3Q 2024 Supplemental Information Package
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COPT Defense Properties
NOI from Real Estate Operations + Occupancy by Property Grouping - 9/30/24
(dollars and square feet in thousands)
  As of Period End NOI from Real Estate Operations (3)
# of
Properties		 Operational Square Feet % Occupied (1) % Leased (1) Annualized
Rental Revenue (2)		 % of Total
Annualized
Rental Revenue (2)
Property Grouping Three Months Ended Nine Months Ended
Defense/IT Portfolio:
Same Property: (2)
Consolidated properties 160  16,535  94.8% 96.5% $ 569,703  84.4  % $ 89,733  $ 266,937 
Unconsolidated real estate JV 21  3,547  100.0% 100.0% 6,414  0.9  % 1,405  4,001 
Total Same Property in Defense/IT Portfolio 181  20,082  95.8% 97.1% 576,117  85.3  % 91,138  270,938 
Properties Placed in Service (4) 8  1,062  90.9% 91.3% 26,979  4.0  % 5,860  17,216 
Other unconsolidated JV properties (5) 3  748  100.0% 100.0% 1,414  0.2  % 399  1,283 
Acquired properties (6) 2  282  39.8% 68.3% 4,074  0.6  % 452  893 
Total Defense/IT Portfolio 194  22,174  95.0% 96.5% 608,584  90.1  % 97,849  290,330 
Other 8  2,142  73.4% 76.2% 66,816  9.9  % 7,677  22,263 
Total Portfolio 202  24,316  93.1% 94.8% $ 675,400  100.0  % $ 105,526  $ 312,593 
Consolidated Portfolio 178  20,021  91.6% 93.6% $ 667,572  98.8  % $ 103,682  $ 307,274 
(1)Percentages calculated based on operational square feet.
(2)Refer to the section entitled “Definitions” for a definition of this measure.
(3)Refer to the section entitled “Supplementary Reconciliations of Non-GAAP Measures” for reconciliation.
(4)Newly developed or redeveloped properties placed in service that were not fully operational by 1/1/23.
(5)Includes three data center shell properties in which we sold ownership interests and retained 10% interests through unconsolidated real estate JVs in 2023.
(6)Includes office properties acquired in 2024 (see page 25).

15
3Q 2024 Supplemental Information Package
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COPT Defense Properties
Same Property (1) Average Occupancy Rates by Segment 
(square feet in thousands)
  # of Properties Operational Square Feet Three Months Ended Nine Months Ended
  9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23
Defense/IT Portfolio:
Fort Meade/BW Corridor 91  8,692  96.0  % 96.1  % 96.2  % 96.2  % 95.8  % 96.1  % 94.5  %
NoVA Defense/IT 16  2,500  90.7  % 88.5  % 87.9  % 88.5  % 89.8  % 89.0  % 90.1  %
Lackland Air Force Base 8  1,062  100.0  % 100.0  % 100.0  % 100.0  % 100.0  % 100.0  % 100.0  %
Navy Support 21  1,244  83.7  % 85.6  % 85.6  % 87.8  % 87.2  % 85.0  % 87.9  %
Redstone Arsenal 20  2,049  97.6  % 96.8  % 97.7  % 97.4  % 93.5  % 97.4  % 91.3  %
Data Center Shells:
Consolidated properties 4  988  100.0  % 100.0  % 100.0  % 100.0  % 100.0  % 100.0  % 100.0  %
Unconsolidated JV properties 21  3,547  100.0  % 100.0  % 100.0  % 100.0  % 100.0  % 100.0  % 100.0  %
Total Defense/IT Portfolio 181  20,082  95.8  % 95.6  % 95.7  % 95.9  % 95.5  % 95.7  % 94.8  %
Other 8  2,142  73.1  % 72.9  % 72.0  % 73.9  % 75.2  % 72.7  % 76.3  %
Total Same Property 189  22,224  93.6  % 93.4  % 93.4  % 93.8  % 93.5  % 93.5  % 93.0  %

Same Property (1) Period End Occupancy Rates by Segment 
(square feet in thousands)
# of Properties Operational Square Feet
  9/30/24 6/30/24 3/31/24 12/31/23 9/30/23
Defense/IT Portfolio:
Fort Meade/BW Corridor 91  8,692  95.7  % 96.0  % 96.1  % 96.3  % 96.1  %
NoVA Defense/IT 16  2,500  90.5  % 89.2  % 88.2  % 88.9  % 89.5  %
Lackland Air Force Base 8  1,062  100.0  % 100.0  % 100.0  % 100.0  % 100.0  %
Navy Support 21  1,244  83.9  % 85.2  % 86.4  % 88.0  % 87.4  %
Redstone Arsenal 20  2,049  97.8  % 96.8  % 97.5  % 97.7  % 95.7  %
Data Center Shells:
Consolidated properties 4  988  100.0  % 100.0  % 100.0  % 100.0  % 100.0  %
Unconsolidated JV properties 21  3,547  100.0  % 100.0  % 100.0  % 100.0  % 100.0  %
Total Defense/IT Portfolio 181  20,082  95.8  % 95.7  % 95.8  % 96.0  % 95.8  %
Other 8  2,142  73.4  % 73.4  % 72.5  % 73.2  % 75.4  %
Total Same Property 189  22,224  93.6  % 93.5  % 93.5  % 93.8  % 93.8  %
(1)Includes properties stably owned and 100% operational since at least 1/1/23.

16
3Q 2024 Supplemental Information Package
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COPT Defense Properties
Same Property Real Estate Revenues + NOI by Segment
(in thousands)
  Three Months Ended Nine Months Ended
  9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23
Same Property real estate revenues          
Defense/IT Portfolio:
Fort Meade/BW Corridor $ 77,279  $ 74,921  $ 76,082  $ 74,008  $ 73,350  $ 228,282  $ 215,296 
NoVA Defense/IT 22,084  20,600  21,426  20,411  20,333  64,110  60,002 
Lackland Air Force Base 16,879  16,447  16,411  17,860  16,193  49,737  49,394 
Navy Support 7,913  8,085  8,073  8,251  8,035  24,071  23,770 
Redstone Arsenal 15,214  14,317  14,311  13,861  13,520  43,842  39,632 
Data Center Shells-Consolidated 6,543  6,658  6,427  6,186  6,205  19,628  18,783 
Total Defense/IT Portfolio 145,912  141,028  142,730  140,577  137,636  429,670  406,877 
Other 16,069  15,446  15,262  15,500  15,953  46,777  48,707 
Same Property real estate revenues $ 161,981  $ 156,474  $ 157,992  $ 156,077  $ 153,589  $ 476,447  $ 455,584 
Same Property NOI from real estate operations (“NOI”)          
Defense/IT Portfolio:
Fort Meade/BW Corridor $ 50,090  $ 50,953  $ 48,330  $ 48,239  $ 48,134  $ 149,373  $ 141,379 
NoVA Defense/IT 12,832  11,670  12,164  11,972  12,433  36,666  36,848 
Lackland Air Force Base 7,724  7,650  7,723  7,708  7,625  23,097  22,930 
Navy Support 3,903  4,536  4,522  4,702  4,177  12,961  12,980 
Redstone Arsenal 9,661  9,281  9,321  9,148  8,665  28,263  25,481 
Data Center Shells:
Consolidated properties 5,523  5,527  5,527  5,538  5,539  16,577  16,836 
COPT Defense’s share of unconsolidated real estate JVs 1,405  1,295  1,301  1,233  1,236  4,001  3,713 
Total Defense/IT Portfolio 91,138  90,912  88,888  88,540  87,809  270,938  260,167 
Other 7,513  7,760  6,515  6,314  7,230  21,788  21,818 
Same Property NOI (1) $ 98,651  $ 98,672  $ 95,403  $ 94,854  $ 95,039  $ 292,726  $ 281,985 
(1)Refer to the section entitled “Supplementary Reconciliations of Non-GAAP Measures” for reconciliation.



17
3Q 2024 Supplemental Information Package
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COPT Defense Properties
Same Property Cash NOI by Segment
(dollars in thousands)
  Three Months Ended Nine Months Ended
  9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23
Same Property cash NOI from real estate operations (“cash NOI”)          
Defense/IT Portfolio:
Fort Meade/BW Corridor $ 49,676  $ 50,605  $ 47,052  $ 46,267  $ 45,513  $ 147,333  $ 134,902 
NoVA Defense/IT 13,223  12,452  12,933  12,882  12,764  38,608  36,829 
Lackland Air Force Base 8,223  8,124  8,186  8,114  7,913  24,533  23,747 
Navy Support 3,922  4,589  4,429  4,932  4,545  12,940  14,310 
Redstone Arsenal 8,353  7,962  6,412  4,966  4,953  22,727  13,739 
Data Center Shells:
Consolidated properties 5,029  5,013  4,984  4,960  4,865  15,026  14,884 
COPT Defense’s share of unconsolidated real estate JVs 1,268  1,185  1,183  1,108  1,106  3,636  3,293 
Total Defense/IT Portfolio 89,694  89,930  85,179  83,229  81,659  264,803  241,704 
Other 7,410  7,684  6,440  6,264  7,134  21,534  21,469 
Same Property cash NOI (1) $ 97,104  $ 97,614  $ 91,619  $ 89,493  $ 88,793  $ 286,337  $ 263,173 
Percentage change in total Same Property cash NOI (1)(2) 9.4% 8.8%
Percentage change in Defense/IT Portfolio Same Property cash NOI (2) 9.8% 9.6%

(1)Refer to the section entitled “Supplementary Reconciliations of Non-GAAP Measures” for reconciliation.
(2)Represents the change between the current period and the same period in the prior year.

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18
3Q 2024 Supplemental Information Package
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COPT Defense Properties
Leasing (1)(2)
Three Months Ended 9/30/24
(square feet in thousands)
Defense/IT Portfolio
  Ft Meade/BW Corridor NoVA Defense/IT Lackland Air Force Base Navy Support Redstone Arsenal Data Center Shells Total Defense/IT Portfolio Other  Total
Renewed Space          
Leased Square Feet 435  16  —  84  40  43  618  8  626 
Expiring Square Feet 449  34  —  116  48  43  690  25  715 
Vacating Square Feet 15  17  —  32  8  —  72  16  88 
Retention Rate (% based upon square feet) 96.7  % 47.9  % —  % 72.3  % 83.8  % 100.0  % 89.6  % 33.7  % 87.6  %
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot $ 1.70  $ 2.78  $ —  $ 2.80  $ 8.45  $ 0.56  $ 2.24  $ 2.96  $ 2.25 
Weighted Average Lease Term in Years 4.1  4.7  —  3.4  4.1  5.0  4.1  6.1  4.1 
Straight-line Rent Per Square Foot
Renewal Straight-line Rent $ 37.03  $ 34.06  $ —  $ 24.47  $ 27.57  $ 34.64  $ 34.46  $ 45.47  $ 34.61 
Expiring Straight-line Rent $ 32.78  $ 32.68  $ —  $ 21.57  $ 24.94  $ 13.15  $ 29.37  $ 41.12  $ 29.53 
Change in Straight-line Rent 13.0  % 4.2  % —  % 13.5  % 10.5  % 163.4  % 17.3  % 10.6  % 17.2  %
Cash Rent Per Square Foot
Renewal Cash Rent $ 36.12  $ 36.42  $ —  $ 24.37  $ 26.83  $ 33.01  $ 33.70  $ 45.85  $ 33.87 
Expiring Cash Rent $ 36.05  $ 37.90  $ —  $ 24.00  $ 26.63  $ 14.36  $ 32.34  $ 47.76  $ 32.54 
Change in Cash Rent 0.2  % (3.9  %) —  % 1.5  % 0.8  % 129.9  % 4.2  % (4.0  %) 4.1  %
Compound Annual Growth Rate 2.2  % 2.4  % —  % 3.8  % 1.0  % 11.7  % 3.0  % 2.2  % 3.0  %
Average Escalations Per Year 2.6  % 2.5  % —  % 2.5  % 2.4  % 3.0  % 2.6  % 2.8  % 2.6  %
New Leases
Investment Space (3)
Leased Square Feet —  —  80  —  —  —  80  —  80 
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot $ —  $ —  $ 4.21  $ —  $ —  $ —  $ 4.21  $ —  $ 4.21 
Weighted Average Lease Term in Years —  —  9.5  —  —  —  9.5  —  9.5 
Straight-line Rent Per Square Foot $ —  $ —  $ 47.80  $ —  $ —  $ —  $ 47.80  $ —  $ 47.80 
Cash Rent Per Square Foot $ —  $ —  $ 44.32  $ —  $ —  $ —  $ 44.32  $ —  $ 44.32 
Vacant Space
Leased Square Feet 23  16  —  59  20  —  119  4  123 
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot $ 6.18  $ 12.42  $ —  $ 36.29  $ 6.47  $ —  $ 22.14  $ 12.34  $ 21.83 
Weighted Average Lease Term in Years 12.1  9.2  —  5.2  4.9  —  7.0  8.7  7.1 
Straight-line Rent Per Square Foot $ 32.71  $ 33.16  $ —  $ 60.29  $ 28.08  $ —  $ 45.79  $ 44.27  $ 45.74 
Cash Rent Per Square Foot $ 31.93  $ 32.85  $ —  $ 59.79  $ 26.96  $ —  $ 45.16  $ 42.75  $ 45.08 
Total Square Feet Leased 458  32  80  143  60  43  817  12  829 
Average Escalations Per Year 2.4  % 2.6  % 3.0  % 2.0  % 2.5  % 3.0  % 2.5  % 2.8  % 2.5  %
Average Escalations Excl. Data Center Shells 2.3  %
(1)Activity excludes owner occupied space, leases with less than a one-year term and expirations associated with space removed from service. Weighted average lease term is based on the term defined in the lease assuming no exercise of early termination rights. Committed costs for leasing are reported above in the period of lease execution. Actual capital expenditures for leasing are reported on page 10 in the period such costs are incurred.
(2)Refer to the section entitled “Definitions” for definitions of certain terms on this schedule.
(3)Includes leasing associated with development properties and operating property acquisitions (see definition on page 42).
19
3Q 2024 Supplemental Information Package
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COPT Defense Properties
Leasing (1)(2)
Nine Months Ended 9/30/24
(square feet in thousands)
Defense/IT Portfolio
  Ft Meade/BW Corridor NoVA Defense/IT Lackland Air Force Base Navy Support Redstone Arsenal Data Center Shells Total Defense/IT Portfolio Other Total
Renewed Space          
Leased Square Feet 1,141  404  —  260  132  43  1,981  78  2,058 
Expiring Square Feet 1,280  434  —  366  158  43  2,281  161  2,442 
Vacating Square Feet 139  30  —  105  25  —  300  84  383 
Retention Rate (% based upon square feet) 89.1  % 93.0  % —  % 71.2  % 83.9  % 100.0  % 86.9  % 48.1  % 84.3  %
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot $ 2.61  $ 3.52  $ —  $ 1.86  $ 3.45  $ 0.56  $ 2.71  $ 4.04  $ 2.76 
Weighted Average Lease Term in Years 4.0  4.1  —  3.1  2.7  5.0  3.9  7.7  4.0 
Straight-line Rent Per Square Foot
Renewal Straight-line Rent $ 39.36  $ 40.29  $ —  $ 25.92  $ 26.54  $ 34.64  $ 36.82  $ 34.32  $ 36.73 
Expiring Straight-line Rent $ 35.37  $ 40.22  $ —  $ 23.49  $ 24.83  $ 13.15  $ 33.61  $ 33.50  $ 33.61 
Change in Straight-line Rent 11.3  % 0.2  % —  % 10.3  % 6.9  % 163.4  % 9.6  % 2.5  % 9.3  %
Cash Rent Per Square Foot
Renewal Cash Rent $ 38.50  $ 41.06  $ —  $ 26.07  $ 26.11  $ 33.01  $ 36.44  $ 34.34  $ 36.36 
Expiring Cash Rent $ 38.16  $ 41.93  $ —  $ 26.00  $ 25.85  $ 14.36  $ 35.99  $ 38.16  $ 36.07 
Change in Cash Rent 0.9  % (2.1  %) —  % 0.3  % 1.0  % 129.9  % 1.3  % (10.0  %) 0.8  %
Compound Annual Growth Rate 2.6  % 2.3  % —  % 0.6  % 1.5  % 11.7  % 2.4  % 2.0  % 2.4  %
Average Escalations Per Year 2.6  % 1.8  % —  % 2.5  % 2.5  % 3.0  % 2.4  % 1.8  % 2.4  %
New Leases
Investment Space (3)
Leased Square Feet —  —  80  —  10  —  90  —  90 
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot $ —  $ —  $ 4.21  $ —  $ 3.14  $ —  $ 4.09  $ —  $ 4.09 
Weighted Average Lease Term in Years —  —  9.5  —  5.3  —  9.0  —  9.0 
Straight-line Rent Per Square Foot $ —  $ —  $ 47.80  $ —  $ 23.81  $ —  $ 45.13  $ —  $ 45.13 
Cash Rent Per Square Foot $ —  $ —  $ 44.32  $ —  $ 23.50  $ —  $ 42.00  $ —  $ 42.00 
Vacant Space
Leased Square Feet 148  62  —  86  22  —  319  68  387 
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot $ 7.39  $ 11.31  $ —  $ 27.62  $ 7.61  $ —  $ 13.66  $ 7.94  $ 12.66 
Weighted Average Lease Term in Years 8.6  7.5  —  5.2  5.1  —  7.2  10.5  7.8 
Straight-line Rent Per Square Foot $ 32.65  $ 33.24  $ —  $ 50.11  $ 28.76  $ —  $ 37.24  $ 42.98  $ 38.25 
Cash Rent Per Square Foot $ 31.37  $ 33.43  $ —  $ 49.76  $ 27.63  $ —  $ 36.51  $ 40.34  $ 37.18 
Total Square Feet Leased 1,289  466  80  346  164  43  2,390  146  2,535 
Average Escalations Per Year 2.5  % 2.0  % 3.0  % 2.3  % 2.6  % 3.0  % 2.4  % 2.2  % 2.4  %
Average Escalations Excl. Data Center Shells 2.4  %
(1)Activity excludes owner occupied space, leases with less than a one-year term and expirations associated with space removed from service. Weighted average lease term is based on the term defined in the lease assuming no exercise of early termination rights. Committed costs for leasing are reported above in the period of lease execution. Actual capital expenditures for leasing are reported on page 10 in the period such costs are incurred.
(2)Refer to the section entitled “Definitions” for definitions of certain terms on this schedule.
(3)Includes leasing associated with development properties and operating property acquisitions (see definition on page 42).
20
3Q 2024 Supplemental Information Package
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COPT Defense Properties
Lease Expiration Analysis as of 9/30/24 (1)
(dollars and square feet in thousands, except per square foot amounts)
Segment of Lease and Year of Expiration (2) Square Footage of Leases Expiring Annualized Rental
Revenue of Expiring Leases (3)		 % of Defense/IT
Annualized 
Rental
Revenue
Expiring (3)		 Annualized Rental
Revenue of
Expiring Leases per Occupied Sq. Foot (3)
Defense/IT Portfolio
Ft Meade/BW Corridor (a) 441  $ 19,575  3.2  % $ 44.39 
NoVA Defense/IT 10  351  0.1  % 33.78 
Navy Support 58  1,052  0.2  % 18.02 
Redstone Arsenal 10  259  —  % 26.46 
2024 519  21,238  3.5  % 40.87 
Ft Meade/BW Corridor 1,609  62,406  10.3  % 38.73 
NoVA Defense/IT 88  3,072  0.5  % 35.05 
Lackland Air Force Base 703  45,916  7.5  % 65.34 
Navy Support 199  4,980  0.8  % 25.05 
Redstone Arsenal 265  6,371  1.0  % 24.07 
2025 2,864  122,745  20.2  % 42.84 
Ft Meade/BW Corridor 974  39,187  6.4  % 40.20 
NoVA Defense/IT 68  2,321  0.4  % 34.28 
Lackland Air Force Base 250  12,793  2.1  % 51.17 
Navy Support 199  6,946  1.1  % 34.99 
Redstone Arsenal 105  3,067  0.5  % 29.14 
Data Center Shells-Unconsolidated JV Properties 446  850  0.1  % 19.07 
2026 2,042  65,164  10.7  % 39.72 
Ft Meade/BW Corridor 935  36,008  5.9  % 38.52 
NoVA Defense/IT 190  6,487  1.1  % 34.09 
Navy Support 258  9,298  1.5  % 35.97 
Redstone Arsenal 171  4,681  0.8  % 27.33 
Data Center Shells-Unconsolidated JV Properties 364  523  0.1  % 14.37 
2027 1,918  56,997  9.4  % 35.82 
Ft Meade/BW Corridor 1,672  60,320  9.9  % 36.03 
NoVA Defense/IT 383  15,832  2.6  % 41.36 
Navy Support 113  2,674  0.4  % 23.60 
Data Center Shells-Unconsolidated JV Properties 515  889  0.1  % 17.25 
2028 2,683  79,715  13.1  % 35.87 
Thereafter
Consolidated Properties 8,059  257,159  42.3  % 31.23 
Unconsolidated JV Properties 2,970  5,566  0.9  % 18.74 
Total Defense/IT Portfolio 21,055  $ 608,584  100.0  % $ 35.08 
(a)Subsequent to quarter end, we executed standstill agreements with the USG extending the expiration of 115,000 square feet within the Ft Meade/BW Corridor into 2025.
21
3Q 2024 Supplemental Information Package
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COPT Defense Properties
Lease Expiration Analysis as of 9/30/24 (1) (continued)
(dollars and square feet in thousands, except per square foot amounts)
Segment of Lease and Year of Expiration (2) Square Footage of Leases Expiring Annualized Rental
Revenue of Expiring Leases (3)		 % of Total
Annualized 
Rental
Revenue
Expiring (3)		 Annualized Rental
Revenue of
Expiring Leases per Occupied Sq. Foot (3)
Total Defense/IT Portfolio 21,055  $ 608,584  90.1  % $ 35.08 
Other
         2024 14  445  0.1  % 32.47 
         2025 156  10,381  1.5  % 28.30 
         2026 167  6,152  0.9  % 36.75 
         2027 116  4,295  0.6  % 36.75 
         2028 247  9,215  1.4  % 37.13 
Thereafter 871  36,328  5.4  % 41.46 
Total Other 1,571  66,816  9.9  % 38.54 
Total Portfolio 22,626  $ 675,400  100.0  % $ 35.37 
Consolidated Portfolio 18,331  $ 667,572 
Unconsolidated JV Properties 4,295  $ 7,828 
Note: As of 9/30/24, the weighted average lease term was 5.2 years for the total portfolio, 5.1 years for the Defense/IT portfolio and 5.0 years for the consolidated portfolio.

(1)This expiration analysis reflects consolidated and unconsolidated properties and includes the effect of early renewals completed on existing leases but excludes the effect of new tenant leases on square feet yet to commence as of 9/30/24. With regard to properties owned through unconsolidated real estate joint ventures, the amounts reported above reflect 100% of the properties’ square footage but only reflect the portion of Annualized Rental Revenue that was allocable to COPT Defense’s ownership interest.
(2)The year of lease expiration is based on the lease term determined in accordance with GAAP.
(3)Refer to the section entitled “Definitions” for a definition of annualized rental revenue.
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22
3Q 2024 Supplemental Information Package
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COPT Defense Properties
2025 Defense/IT Portfolio Quarterly Lease Expiration Analysis as of 9/30/24 (1)
(dollars and square feet in thousands, except per square foot amounts)
Segment of Lease and Quarter of Expiration (2) Square Footage of Leases Expiring Annualized Rental
Revenue of Expiring Leases (3)		 % of Defense/IT
Annualized
Rental
Revenue Expiring (3)		 Annualized Rental Revenue of Expiring Leases per Occupied Sq. Foot (3)
Defense IT Portfolio
Ft Meade/BW Corridor 674  $ 28,632  4.7  % $ 42.45 
NoVA Defense/IT 9  295  —  % 34.01 
Navy Support 58  810  0.1  % 13.90 
Redstone Arsenal 6  173  —  % 27.90 
Q1 2025 747  29,910  4.8  % 40.01 
Ft Meade/BW Corridor 347  11,331  1.9  % 32.63 
NoVA Defense/IT 23  710  0.1  % 30.28 
Navy Support 66  2,289  0.4  % 34.43 
Redstone Arsenal 41  1,090  0.2  % 26.64 
Q2 2025 477  15,420  2.6  % 32.26 
Ft Meade/BW Corridor 257  10,586  1.7  % 41.10 
NoVA Defense/IT 28  1,027  0.2  % 37.19 
Lackland Air Force Base 161  7,686  1.3  % 47.87 
Navy Support 23  597  0.1  % 25.99 
Redstone Arsenal 185  4,197  0.7  % 22.73 
Q3 2025 654  24,093  4.0  % 36.87 
Ft Meade/BW Corridor 332  11,856  1.9  % 35.69
NoVA Defense/IT 28  1,040  0.2  % 37.26 
Lackland Air Force Base 542  38,230  6.3  % 70.52 
Navy Support 51  1,285  0.2  % 25.13 
Redstone Arsenal 33  911  0.1  % 27.65 
Q4 2025 986  53,322  8.7  % 54.06 
2,864  $ 122,745  20.2  % $ 42.84 
(1)This expiration analysis reflects consolidated and unconsolidated properties and includes the effect of early renewals completed on existing leases but excludes the effect of new tenant leases on square feet yet to commence as of 9/30/24.
(2)The period of lease expiration is based on the lease term determined in accordance with GAAP.
(3)Refer to the section entitled “Definitions” for a definition of annualized rental revenue.

23
3Q 2024 Supplemental Information Package
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COPT Defense Properties
Top 20 Tenants as of 9/30/24 (1)
(dollars and square feet in thousands)
Tenant Total
Annualized
Rental Revenue (2)		 %
of Total
Annualized 
Rental Revenue (2)		 Occupied Square Feet Weighted Average Remaining Lease Term (3)
United States Government (4) $ 244,675  36.2  % 5,533  3.5 
Fortune 100 Company 61,261  9.1  % 6,182  7.7 
General Dynamics Corporation 33,282  4.9  % 703  3.1 
Northrop Grumman Corporation 15,112  2.2  % 519  6.5 
The Boeing Company 14,958  2.2  % 443  2.4 
CACI International Inc   14,043  2.1  % 350  3.9 
Peraton Corp.   13,602  2.0  % 346  5.0 
Booz Allen Hamilton, Inc.   12,224  1.8  % 297  1.8 
Fortune 100 Company   12,003  1.8  % 183  10.0 
Morrison & Foerster, LLP   9,631  1.4  % 102  12.5 
CareFirst, Inc. 9,067  1.3  % 264  9.9 
KBR, Inc.   7,791  1.2  % 309  8.6 
Amentum Holdings, LLC   7,206  1.1  % 202  4.3 
Yulista Holding, LLC   7,193  1.1  % 368  5.2 
AT&T Corporation   6,906  1.0  % 321  5.0 
Mantech International Corp.   6,716  1.0  % 208  2.7 
The University System of Maryland   6,302  0.9  % 176  5.3 
Wells Fargo & Company   5,855  0.9  % 134  4.3 
Lockheed Martin Corporation   5,789  0.9  % 194  5.9 
Miles & Stockbridge, P.C.   5,440  0.8  % 130  4.2 
Subtotal Top 20 Tenants   499,056  73.9  % 16,964  5.5 
All remaining tenants   176,344  26.1  % 5,662  4.3 
Total / Weighted Average   $ 675,400  100.0  % 22,626  5.2 

(1)For properties owned through unconsolidated real estate JVs, includes COPT Defense’s share of those properties’ ARR of $7.8 million (see page 34 for additional information).
(2)Refer to the section entitled “Definitions” for a definition of annualized rental revenue.
(3)Weighted average remaining lease term is based on the lease term determined in accordance with GAAP. The weighting of the lease term was computed based on occupied square feet (excluding leases not associated with square feet, such as ground leases).
(4)Substantially all of our government leases are subject to early termination provisions which are customary in government leases. As of 9/30/24, $5.7 million of our ARR was through the General Services Administration (GSA), representing 2.3% of our ARR from the United States Government and 0.8% of our total ARR.






24
3Q 2024 Supplemental Information Package
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COPT Defense Properties
Operating Property Acquisitions
(square feet in thousands)
% Leased
Property Property Segment/Sub-Segment Location # of Properties Operational Square Feet Transaction
Date		 As of Transaction Date
As of 9/30/24
 Transaction Value
(in millions)
Quarter Ended 3/31/24
6841 Benjamin Franklin Drive Fort Meade/BW Corridor Columbia, Maryland 1 202  3/15/24 55.6% 55.6% $ 15 
Quarter Ended 9/30/24
3900 Rogers Road Lackland Air Force Base San Antonio, Texas 1 80  9/26/24 —% 100.0% 17 
Year to date acquisitions through 9/30/24
 2 282  $ 32 


25
3Q 2024 Supplemental Information Package
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COPT Defense Properties
Summary of Development Projects as of 9/30/24 (1)
(dollars and square feet in thousands) 
Total Rentable Square Feet
% Leased as of 9/30/24
as of 9/30/24 (2)
 Actual or Anticipated Shell Completion Date Anticipated Operational Date (3)
Anticipated Total Cost Cost to Date Cost to Date Placed in Service
Property and Segment/Sub-Segment Location
Defense/IT Portfolio:
Fort Meade/BW Corridor:
400 National Business Parkway Annapolis Junction, Maryland 138  0% $ 65,100  $ 33,469  $ —  1Q 25 1Q 26
Redstone Arsenal:
9700 Advanced Gateway Huntsville, Alabama 50  20% 11,038  3,654  —  1Q 25 1Q 26
Data Center Shells:
Southpoint Phase 2 Bldg A Northern Virginia 225  100% 82,500  53,389  —  4Q 24 4Q 24
MP 3 Northern Virginia 225  100% 111,800  11,222  —  3Q 25 3Q 25
Southpoint Phase 2 Bldg B Northern Virginia 193  100% 65,000  6,343  —  4Q 25 4Q 25
Data Center Shells Subtotal / Average 643  100% 259,300  70,954  — 
Total Defense/IT Portfolio Under Development 831  79% $ 335,438  $ 108,077  $ —     
(1)Includes properties under, or contractually committed for, development as of 9/30/24.
(2)Cost includes land, development, leasing costs and allocated portion of structured parking and other shared infrastructure, if applicable.
(3)Anticipated operational date is the earlier of the estimated date when leases have commenced on 100% of a property’s space or one year from the cessation of major construction activities.





26
3Q 2024 Supplemental Information Package
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COPT Defense Properties
Development Placed in Service as of 9/30/24
(square feet in thousands)
 
Square Feet Placed in Service
Total Space Placed in Service % Leased as of 9/30/24
Total Property
Property Segment/Sub-Segment
% Leased as of 9/30/24
 Rentable Square Feet 2024
Property and Location 1st Quarter 2nd Quarter 3rd Quarter
Total 2024
5300 Redstone Gateway
Huntsville, Alabama
 Redstone Arsenal 100% 46  46  —  —  46  100%
8100 Rideout Road
Huntsville, Alabama
 Redstone Arsenal 42% 128  27  —  101  128  42%
Total Development Placed in Service 57% 174  73  —  101  174  57%
% Leased as of 9/30/24
 100% N/A 26% 57%

27
3Q 2024 Supplemental Information Package
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COPT Defense Properties
Summary of Land Owned/Controlled as of 9/30/24 (1)
(dollars and square feet in thousands)
Location Acres   Estimated Developable Square Feet Carrying Amount
Defense/IT Portfolio land owned/controlled for future development:      
Fort Meade/BW Corridor:
National Business Park 144 1,483
Howard County 19 290
Other 126 1,338
Total Fort Meade/BW Corridor 289   3,111
NoVA Defense/IT 29   1,171
Navy Support 38 64
Redstone Arsenal (2) 295 3,350
Data Center Shells (3) 365 3,300
Total Defense/IT Portfolio land owned/controlled for future development 1,016 10,996 $ 196,999 
Other land owned/controlled 53   1,538 9,653 
Land held, net 1,069 12,534 $ 206,652 

(1)This land inventory schedule includes properties under ground lease to us and excludes all properties listed as development as detailed on page 26. The costs associated with the land included on this summary are reported on our consolidated balance sheet in the line entitled “land held.”
(2)This land is controlled under a long-term master lease agreement to LW Redstone Company, LLC, a consolidated JV (see page 33). As this land is developed in the future, the JV will execute site-specific leases under the master lease agreement. Lease payments will commence under the site-specific leases as cash rents under tenant leases commence at the respective properties.
(3)Represents land acquired in September 2024.
28
3Q 2024 Supplemental Information Package
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COPT Defense Properties
Capitalization Overview
(dollars, shares and units in thousands)
Wtd. Avg. Maturity (Years) (1) Stated Rate Effective Rate
(2)(3)
Amount Outstanding at 9/30/24
Debt
Secured debt 1.3 5.24  % 3.18  % $ 70,161 
Unsecured debt 5.1 3.25  % 3.34  % 2,345,311 
Total Consolidated Debt 5.0 3.31  % 3.33  % $ 2,415,472 
Fixed-rate debt (3) 5.2 2.96  % 3.33  % $ 2,415,472 
Variable-rate debt (3) 2.9 6.56  % N/A — 
Total Consolidated Debt $ 2,415,472 
Common Equity
Common Shares 112,693 
Common Units (4) 2,117 
Total Common Shares and Units 114,810 
Closing Common Share Price on 9/30/24
 $ 30.33 
Equity Market Capitalization (5) $ 3,482,187 
Total Market Capitalization (5) $ 5,897,659 
(1)Calculated assuming exercise of extension options on our Revolving Credit Facility and term loan.
(2)Excludes the effect of deferred financing cost amortization.
(3)Includes the effect of interest rate swaps with notional amounts totaling $232.7 million that hedge the risk of changes in interest rates on variable-rate debt. We had swaps in place for all of our variable-rate debt balances as of 9/30/24.
(4)Includes certain unvested share-based compensation awards in the form of profit interest units.
(5)Refer to the section entitled “Definitions” for a definition of this measure.











Investment Grade Ratings & Outlook Latest Report
Fitch BBB- Stable 11/22/23
Moody’s Baa3 Stable 1/22/24
S&P BBB- Stable 5/9/24
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29
3Q 2024 Supplemental Information Package
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COPT Defense Properties
Summary of Outstanding Debt as of 9/30/24
(dollars in thousands)
Unsecured Debt Stated Rate Amount Outstanding Maturity Date Secured Debt Stated Rate Amount Outstanding Balloon Payment Due Upon Maturity Maturity Date
Revolving Credit Facility SOFR+
0.10%+1.05%		 $ 75,000  Oct-26 (1)(2) LW Redstone:
4000 & 4100 Market Street and 8800 Redstone Gateway (2)(3) SOFR
+0.10%+1.55%		 $ 22,250  $ 22,100  Mar-25 (5)
Senior Unsecured Notes
2.25% due 2026 2.25% 400,000  Mar-26 M Square:
5.25% due 2028 5.25% 345,000  Sep-28 (4) 5825 & 5850 University Research Court (3) 3.82% 37,451  $ 35,603  Jun-26
2.00% due 2029 2.00% 400,000  Jan-29
2.75% due 2031 2.75% 600,000  Apr-31 5801 University Research Court (2)(3) SOFR
+0.10%+1.45%		 10,460  $ 10,020  Aug-26
2.90% due 2033 2.90% 400,000  Dec-33
Subtotal - Senior Unsecured Notes 2.95% $ 2,145,000  Total Secured Debt 5.24% $ 70,161 
Unsecured Bank Term Loans
2026 Maturity SOFR+
0.10%+1.30%		 $ 125,000  Jan-26 (2)(6)
Other Unsecured Debt 0.00% 311  May-26
Total Unsecured Debt 3.25% $ 2,345,311 
Debt Summary
Total Unsecured Debt 3.25% $ 2,345,311 
Total Secured Debt 5.24% 70,161 
Consolidated Debt 3.31% $ 2,415,472 
Debt per balance sheet $ 2,390,839 
Net discounts and deferred financing costs 24,633 
Consolidated Debt 2,415,472 
COPT Defense’s share of unconsolidated JV gross debt (7) 53,148 
Gross debt $ 2,468,620 
(1)The Company’s $600.0 million Revolving Credit Facility matures in October 2026 and may be extended by two six-month periods at our option.
(2)Pre-payable anytime without penalty.
(3)These properties are owned through consolidated joint ventures.
(4)These notes are due in 2028 unless earlier exchanged, redeemed or repurchased only in the event of certain circumstances and during certain periods defined under the terms of the notes. Upon exchange of the notes, the principal amount of notes exchanged is payable in cash, with the remainder of the exchange obligation, if any, payable in cash, common shares or a combination thereof at our election.
(5)The loan maturity may be extended for two one-year periods, provided certain conditions are met.
(6)The Company’s term loan matures in January 2026 and may be extended by two 12-month periods at our option.
(7)See page 34 for additional disclosure regarding our unconsolidated real estate joint ventures.

30
3Q 2024 Supplemental Information Package
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COPT Defense Properties
Summary of Outstanding Debt as of 9/30/24 (continued)

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(1)Revolving Credit Facility maturity of $75.0 million is included above in 2027 assuming our exercise of two six-month extension options.
(2)Term loan balance of $125.0 million is included in 2028 assuming our exercise of two 12-month extension options. Also includes $345.0 million principal amount of exchangeable senior notes due in 2028 unless earlier exchanged, redeemed or repurchased only in the event of certain circumstances and during certain periods defined under the terms of the notes.
(3)Includes the effect of interest rate swaps with notional amounts totaling $232.7 million that hedge the risk of changes in interest rates on variable-rate debt.
31
3Q 2024 Supplemental Information Package
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COPT Defense Properties
Debt Analysis
(dollars and square feet in thousands)
As of and for Three Months Ended
9/30/24
As of and for Three Months Ended
9/30/24
Senior Note Covenants (1) Required Line of Credit & Term Loan Covenants (1)(2) Required
Total Debt / Total Assets < 60% 41.6% Total Debt / Total Assets < 60% 37.2%
Secured Debt / Total Assets < 40% 1.2% Secured Debt / Total Assets < 40% 1.5%
Debt Service Coverage > 1.5x 4.7x Adjusted EBITDA / Fixed Charges > 1.5x 4.8x
Unencumbered Assets / Unsecured Debt > 150% 240.7% Unsecured Debt / Unencumbered Assets < 60% 37.2%
Unencumbered Adjusted NOI / Unsecured Interest Expense > 1.75x 4.9x
Debt Ratios Page Refer. Unencumbered Portfolio Analysis
GAAP # of unencumbered properties 177 
Debt per balance sheet 6 $ 2,390,839  % of total portfolio 88  %
Total assets 6 $ 4,234,302  Unencumbered square feet in-service 20,667 
Debt to assets 56.5  % % of total portfolio 85  %
Net income 7 $ 37,397  NOI from unencumbered real estate operations $ 102,253 
Debt to net income ratio (2) 16.0  x % of total NOI from real estate operations 97  %
Interest expense 7 $ 20,376  Adjusted EBITDA from unencumbered real estate operations $ 95,963 
Net income to interest expense ratio (2) 1.8  x % of total adjusted EBITDA from real estate operations 97  %
Unencumbered adjusted book $ 5,766,845 
Non-GAAP % of total adjusted book 97  %
Net debt 37 $ 2,432,567 
Adjusted book 37 $ 5,967,380 
Net debt to adjusted book 40.8  %
Net debt adj. for fully-leased investment properties 37 $ 2,344,579 
In-place adjusted EBITDA 11 $ 99,236 
Net debt to in-place adjusted EBITDA ratio 6.1  x
Net debt adj. for fully-leased investment properties to in-place adj. EBITDA ratio 5.9  x
Denominator for debt service coverage 36 $ 19,942 
Denominator for fixed charge coverage 36 $ 20,654 
Adjusted EBITDA 11 $ 99,236 
Adjusted EBITDA debt service coverage ratio 5.0  x
Adjusted EBITDA fixed charge coverage ratio 4.8  x
(1)The covenants are calculated as defined in the applicable agreements, and the calculations differ between those agreements.
(2)Refer to the section entitled “Definitions” for a definition of this measure.
32
3Q 2024 Supplemental Information Package
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COPT Defense Properties
Consolidated Real Estate Joint Ventures as of 9/30/24
(dollars and square feet in thousands)

NOI from Real Estate Operations (1) Venture Level Debt Outstanding (3) COPT Defense Nominal
Ownership %
Operating Properties Operational
Square Feet		 % Occupied % Leased Three Months Ended Nine Months Ended Total Assets (2)
Suburban Maryland:            
M Square Associates, LLC (4 properties)
 414  88.8% 95.5% $ 1,812  $ 5,227  $ 91,351  $ 47,911  50%
Huntsville, Alabama:
LW Redstone Company, LLC (23 properties)
 2,338  95.9% 96.2% 11,413  32,980  621,035  22,250  85% (4)
Washington, D.C.:
Stevens Place (1 property)
 188  61.9% 92.2% 1,319  4,068  130,342  —  95%
Total / Average 2,940  92.8% 95.8% $ 14,544  $ 42,275  $ 842,728  $ 70,161 
 
        
Non-Operating Properties Estimated Developable Square Feet Total Assets (2) Venture Level Debt Outstanding COPT Defense Nominal Ownership %
Suburban Maryland:        
M Square Research Park 348  $ 5,922  $ —  50%
Huntsville, Alabama:        
Redstone Gateway (5) 3,400  119,683  —  85% (3)
Total 3,748  $ 125,605  $ —   
 
(1)Represents NOI from real estate operations of the JV operating properties before allocation to JV partners.
(2)Total assets includes the assets of the consolidated JV plus any outside investment basis.
(3)Excludes debt from us to the JV, which is eliminated in the presentation of our consolidated financial statements.
(4)Our partner receives an annual priority return of 13.5% on its $9.0 million in contributed equity, plus certain fees for leasing and development, and we expect to receive all other distributions from the JV.
(5)Total assets include $83.2 million in notes receivable due from the City of Huntsville (including accrued interest and excluding allowance for credit losses) in connection with infrastructure costs funded by the JV.
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3Q 2024 Supplemental Information Package
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COPT Defense Properties
Unconsolidated Real Estate Joint Ventures as of 9/30/24 (1)
(dollars and square feet in thousands) 
Joint venture information
COPT Defense ownership %
 10  %
COPT Defense’s investment
 $ 36,350  (2)
# of Properties 24 
Square Feet 4,295 
% Occupied 100  %
COPT Defense’s share of ARR $ 7,828 
Balance sheet information Total COPT Defense’s Share (4)
Operating properties, net $ 943,209  $ 94,321 
Total assets $ 1,041,128  $ 104,113 
Debt (3) $ 530,015  $ 53,002 
Total liabilities $ 611,178  $ 61,118 
Three Months Ended Nine Months Ended
Operating information Total COPT Defense’s Share (4) Total COPT Defense’s Share (4)
Revenue $ 21,819  $ 2,182  $ 63,594  $ 6,360 
Operating expenses (3,377) (338) (10,406) (1,041)
NOI from real estate operations and EBITDAre (5) 18,442  1,844  53,188  5,319 
Interest expense (10,038) (1,003) (28,284) (2,828)
Depreciation and amortization (8,022) (756) (24,497) (2,311)
Net income $ 382  $ 85  $ 407  $ 180 
NOI from real estate operations (per above) (5) $ 18,442  $ 1,844  $ 53,188  $ 5,319 
Straight line rent adjustments (892) (89) (2,081) (208)
Amortization of acquired above- and below-market rents (1,899) (190) (5,876) (588)
Cash NOI from real estate operations (5) $ 15,651  $ 1,565  $ 45,231  $ 4,523 
(1)Includes equity method investments in five JVs that own and operate data center shell properties.
(2)Includes $39.7 million reported in “Investment in unconsolidated real estate joint ventures” and $3.4 million for investments with deficit balances reported in “other liabilities” on our consolidated balance sheet.
(3)Maturities on JV debt range from 2027 (assuming exercise of three one-year extension options) to 2030.
(4)Represents the portion allocable to our ownership interest.
(5)Refer to the section entitled “Definitions” for definitions of these measures.



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3Q 2024 Supplemental Information Package
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COPT Defense Properties
Supplementary Reconciliations of Non-GAAP Measures
(in thousands)
  Three Months Ended Nine Months Ended
  9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23
Net income (loss) $ 37,397  $ 36,407  $ 33,671  $ 34,820  $ (221,207) $ 107,475  $ (109,167)
Construction contract and other service revenues (16,662) (20,258) (26,603) (18,167) (11,949) (63,523) (42,012)
Depreciation and other amortization associated with real estate operations 38,307  38,161  38,351  36,735  37,620  114,819  112,215 
Construction contract and other service expenses 16,127  19,612  26,007  17,167  11,493  61,746  40,249 
Impairment losses —  —  —  —  252,797  —  252,797 
General and administrative expenses 8,157  8,591  8,378  8,240  7,582  25,126  22,865 
Leasing expenses 2,341  2,462  2,187  2,308  2,280  6,990  6,624 
Business development expenses and land carry costs 918  979  1,182  797  714  3,079  1,935 
Interest expense 20,376  20,617  20,767  20,383  17,798  61,760  50,759 
Interest and other income, net (3,324) (2,884) (4,122) (5,659) (2,529) (10,330) (6,928)
Gain on sales of real estate —  —  —  —  —  —  (49,392)
Equity in (income) loss of unconsolidated entities (85) (26) (69) 240  68  (180) 21 
Unconsolidated real estate JVs NOI allocable to COPT Defense included in equity in income (loss) of unconsolidated entities (1) 1,844  1,735  1,740  1,671  1,675  5,319  4,988 
Income tax expense 130  14  168  121  152  312  467 
NOI from real estate operations 105,526  105,410  101,657  98,656  96,494  312,593  285,421 
Straight line rent adjustments and lease incentive amortization 1,017  4,213  3,632  703  13,262  8,862  6,528 
Amortization of acquired above- and below-market rents 64  64  (24) (121) (120) 104  (415)
Amortization of intangibles and other assets to property operating expenses 147  146  147  146  147  440  440 
Lease termination fees, net (931) (880) (775) (716) (748) (2,586) (3,028)
Tenant funded landlord assets and lease incentives (4,415) (7,318) (10,439) (7,548) (19,383) (22,172) (22,834)
Cash NOI adjustments in unconsolidated real estate JVs (279) (254) (263) (271) (279) (796) (856)
Cash NOI from real estate operations $ 101,129  $ 101,381  $ 93,935  $ 90,849  $ 89,373  $ 296,445  $ 265,256 
NOI from real estate operations (from above) $ 105,526  $ 105,410  $ 101,657  $ 98,656  $ 96,494  $ 312,593  $ 285,421 
Non-Same Property NOI from real estate operations (6,875) (6,738) (6,254) (3,802) (1,455) (19,867) (3,436)
Same Property NOI from real estate operations 98,651  98,672  95,403  94,854  95,039  292,726  281,985 
Straight line rent adjustments and lease incentive amortization 1,531  2,501  5,367  3,142  10,154  9,399  3,888 
Amortization of acquired above- and below-market rents (69) (69) (69) (121) (120) (207) (415)
Lease termination fees, net (931) (881) (775) (717) (748) (2,587) (3,028)
Tenant funded landlord assets and lease incentives (1,942) (2,498) (8,190) (7,541) (15,402) (12,630) (18,837)
Cash NOI adjustments in unconsolidated real estate JVs (136) (111) (117) (124) (130) (364) (420)
Same Property Cash NOI from real estate operations $ 97,104  $ 97,614  $ 91,619  $ 89,493  $ 88,793  $ 286,337  $ 263,173 
(1)See page 34 for additional disclosure regarding our unconsolidated real estate JVs.
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3Q 2024 Supplemental Information Package
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COPT Defense Properties
Supplementary Reconciliations of Non-GAAP Measures (continued)
(in thousands)
  Three Months Ended Nine Months Ended
  9/30/24 6/30/24 3/31/24 12/31/23 9/30/23 9/30/24 9/30/23
Real estate revenues
Lease revenue
Fixed contractual payments $ 129,357  $ 127,363  $ 126,198  $ 123,677  $ 120,408  $ 382,918  $ 354,908 
Variable lease payments (1) 41,192  38,256  39,235  36,660  34,860  118,683  104,602 
Lease revenue 170,549  165,619  165,433  160,337  155,268  501,601  459,510 
Other property revenue 2,014  1,466  1,230  1,225  1,339  4,710  3,731 
Real estate revenues $ 172,563  $ 167,085  $ 166,663  $ 161,562  $ 156,607  $ 506,311  $ 463,241 
Provision for credit losses (recoveries) on billed lease revenue $ 25  $ (24) $ (109) $ 498  $ 13  $ (108) $ 86 
Total revenues $ 189,225  $ 187,343  $ 193,266  $ 179,729  $ 168,556  $ 569,834  $ 505,253 
Construction contract and other service revenues (16,662) (20,258) (26,603) (18,167) (11,949) (63,523) (42,012)
Real estate revenues $ 172,563  $ 167,085  $ 166,663  $ 161,562  $ 156,607  $ 506,311  $ 463,241 
Total interest expense $ 20,376  $ 20,617  $ 20,767  $ 20,383  $ 17,798  $ 61,760  $ 50,759 
Less: Amortization of deferred financing costs (671) (681) (685) (681) (639) (2,037) (1,899)
Less: Amortization of net debt discounts, net of amounts capitalized (1,032) (1,023) (1,014) (1,004) (750) (3,069) (1,990)
COPT Defense’s share of interest expense of unconsolidated real estate JVs, excluding amortization of deferred financing costs and net debt premium and gain or loss on interest rate derivatives 821  808  804  819  805  2,433  2,369 
Denominator for interest coverage 19,494  19,721  19,872  19,517  17,214  59,087  49,239 
Scheduled principal amortization 448  662  769  763  753  1,879  2,289 
Denominator for debt service coverage 19,942  20,383  20,641  20,280  17,967  60,966  51,528 
Capitalized interest 712  643  589  1,028  1,487  1,944  3,451 
Denominator for fixed charge coverage $ 20,654  $ 21,026  $ 21,230  $ 21,308  $ 19,454  $ 62,910  $ 54,979 
Dividends on unrestricted common and deferred shares $ 33,165  $ 33,153  $ 33,143  $ 31,998  $ 31,996  $ 99,461  $ 95,980 
Distributions on unrestricted common units 491  505  500  430  432  1,496  1,295 
Dividends and distributions on restricted shares and units 247  238  267  209  200  752  619 
Total dividends and distributions for GAAP payout ratio 33,903  33,896  33,910  32,637  32,628  101,709  97,894 
Dividends and distributions on antidilutive shares and units (249) (241) (266) (212) (202) (756) (623)
Dividends and distributions for non-GAAP payout ratios $ 33,654  $ 33,655  $ 33,644  $ 32,425  $ 32,426  $ 100,953  $ 97,271 
(1)Represents primarily lease revenue associated with property operating expense reimbursements from tenants.
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3Q 2024 Supplemental Information Package
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COPT Defense Properties
Supplementary Reconciliations of Non-GAAP Measures (continued)
(in thousands)
9/30/24 6/30/24 3/31/24 12/31/23 9/30/23
Total assets $ 4,234,302  $ 4,219,338  $ 4,232,895  $ 4,246,966  $ 4,239,257 
Accumulated depreciation 1,502,730  1,468,595  1,434,621  1,400,162  1,367,473 
Accumulated amortization of intangibles on property acquisitions and deferred leasing costs 227,281  226,739  225,443  228,484  228,334 
COPT Defense’s share of liabilities of unconsolidated real estate JVs 61,118  60,922  60,904  60,583  60,762 
COPT Defense’s share of accumulated depreciation and amortization of unconsolidated real estate JVs 12,014  11,199  10,364  9,528  8,664 
Less: Property - operating lease liabilities (33,615) (33,818) (33,141) (33,931) (32,940)
Less: Property - finance lease liabilities (397) (403) (409) (415) (420)
Less: Cash and cash equivalents (34,478) (100,443) (123,144) (167,820) (204,238)
Less: COPT Defense’s share of cash of unconsolidated real estate JVs (1,575) (1,278) (1,159) (852) (1,031)
Adjusted book $ 5,967,380  $ 5,850,851  $ 5,806,374  $ 5,742,705  $ 5,665,861 
Gross debt (page 30)
$ 2,468,620  $ 2,468,901  $ 2,497,050  $ 2,497,613  $ 2,498,274 
Less: Cash and cash equivalents (34,478) (100,443) (123,144) (167,820) (204,238)
Less: COPT Defense’s share of cash of unconsolidated real estate JVs (1,575) (1,278) (1,159) (852) (1,031)
Net debt 2,432,567  2,367,180  2,372,747  2,328,941  2,293,005 
Costs incurred on fully-leased development properties (70,954) (56,646) (43,034) (53,914) (124,038)
Costs incurred on fully-leased operating property acquisitions (17,034) —  —  —  — 
Net debt adjusted for fully-leased investment properties $ 2,344,579  $ 2,310,534  $ 2,329,713  $ 2,275,027  $ 2,168,967 

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3Q 2024 Supplemental Information Package
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COPT Defense Properties
Definitions
Non-GAAP Measures

We believe that the measures defined below that are not determined in accordance with generally accepted accounting principles (“GAAP”) are helpful to investors in measuring our performance and comparing it to that of other real estate investment trusts (“REITs”).  Since these measures exclude certain items includable in their respective most comparable GAAP measures, reliance on the measures has limitations; management compensates for these limitations by using the measures simply as supplemental measures that are weighed in balance with other GAAP and non-GAAP measures.  These measures should not be used as an alternative to the respective most comparable GAAP measures when evaluating our financial performance or to cash flow from operating, investing and financing activities when evaluating our liquidity or ability to make cash distributions or pay debt service.
 
Adjusted book
Defined as total assets presented on our consolidated balance sheet, net of lease liabilities associated with property right-of-use assets, and excluding the effect of cash and cash equivalents, accumulated depreciation on real estate properties, accumulated amortization of intangible assets on real estate acquisitions, accumulated amortization of deferred leasing costs and unconsolidated real estate joint ventures (“JVs”) cash and cash equivalents, liabilities and accumulated depreciation and amortization (of intangibles on property acquisitions and deferred leasing costs) allocable to our ownership interest in the JVs. We use adjusted book for purposes of calculating our net debt to adjusted book, which we believe is a useful supplemental measure for investors to use in further understanding the relationship of our outstanding debt to our assets available to service such debt. We believe that total assets is the most directly comparable GAAP measure to this non-GAAP measure.

Adjusted earnings before interest, income taxes, depreciation and amortization (“Adjusted EBITDA”)
Adjusted EBITDA is net income or loss adjusted for the effects of interest expense, depreciation and amortization, gain on sales and impairment losses of real estate and investments in unconsolidated real estate JVs, gain or loss on early extinguishment of debt, loss on interest rate derivatives, net gain or loss on other investments, credit loss expense or recoveries, operating property acquisition costs, income taxes, business development expenses, demolition costs on redevelopment and nonrecurring improvements, executive transition costs and certain other expenses that we believe are not relevant to an investor’s evaluation of our ability to repay debt.  Adjusted EBITDA also includes adjustments to net income or loss for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. While EBITDA (earnings before interest, taxes, depreciation and amortization) is a universally-defined supplemental measure, Adjusted EBITDA incorporates additional adjustments for gains and losses from investing and financing activities and certain other items that we believe represent costs that are not closely correlated to (or associated with) our operating performance and are not relevant to an
investor’s evaluation of our ability to repay debt. We believe that adjusted EBITDA is a useful supplemental measure for assessing our un-levered performance and ability to repay outstanding debt from operations.  We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.
 
Adjusted EBITDA debt service coverage ratio 
This measure divides Adjusted EBITDA by the sum of interest expense (excluding amortization of deferred financing costs and amortization of debt discounts and premiums, net of amounts capitalized, and gains or losses on interest rate derivatives) and scheduled principal amortization on mortgage loans.

Amortization of acquisition intangibles included in NOI
Represents the amortization of intangible asset and liability categories that is included in net operating income, including amortization of above- or below-market leases and above- or below-market cost arrangements.

Basic FFO available to common share and common unit holders (“Basic FFO”) 
This measure is FFO adjusted to subtract (1) preferred share dividends, (2) income or loss attributable to noncontrolling interests through ownership of preferred units in COPT Defense Properties, L.P. (the “Operating Partnership”) or interests in other consolidated entities not owned by us, (3) depreciation and amortization allocable to noncontrolling interests in other consolidated entities, (4) Basic FFO allocable to share-based compensation awards and (5) issuance costs associated with redeemed preferred shares.  With these adjustments, Basic FFO represents FFO available to common shareholders and holders of common units in the Operating Partnership (“common units”).  Common units are substantially similar to our common shares of beneficial interest (“common shares”) and are exchangeable into common shares, subject to certain conditions.  We believe that Basic FFO is useful to investors due to the close correlation of common units to common shares.  We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

Cash net operating income (“Cash NOI”) 
Defined as NOI from real estate operations adjusted to eliminate the effects of: straight-line rental adjustments, amortization of tenant incentives, amortization of intangibles and other assets included in FFO and NOI, lease termination fees from tenants to terminate their lease obligations prior to the end of the agreed upon lease terms and rental revenue recognized under GAAP resulting from landlord assets and lease incentives funded by tenants.  Cash NOI also includes adjustments to NOI from real estate operations for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. Under GAAP, rental revenue is recognized evenly over the term of tenant leases (through straight-line rental adjustments and amortization of tenant incentives), which, given the long term nature of our leases, does not align with the economics of when tenant payments are due to us under the arrangements.  Also under GAAP, when a property is acquired, we allocate the
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3Q 2024 Supplemental Information Package
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COPT Defense Properties
Definitions
acquisition to certain intangible components, which are then amortized into NOI over their estimated lives, even though the resulting revenue adjustments are not reflective of our lease economics.  In addition, revenue from lease termination fees and tenant-funded landlord improvements, absent an adjustment from us, would result in large one-time lump sum amounts in Cash NOI that we do not believe are reflective of a property’s long-term value.  We believe that Cash NOI is a useful supplemental measure of operating performance for a REIT’s operating real estate because it makes adjustments to NOI for the above stated items to be more reflective of the economics of when tenant payments are due to us under our leases and the value of our properties.  As is the case with NOI, the measure is useful in our opinion in evaluating and comparing the performance of reportable segments, Same Property groupings and individual properties.  We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

COPT Defense’s share of NOI from unconsolidated real estate JVs
Represents the net of revenues and property operating expenses of real estate operations owned through unconsolidated JVs that are allocable to COPT Defense’s ownership interest. This measure is included in the computation of NOI, our segment performance measure, as discussed below.

Diluted adjusted funds from operations available to common share and common unit holders (“Diluted AFFO”) 
Defined as Diluted FFO, as adjusted for comparability, adjusted for the following: (1) the elimination of the effect of (a) noncash rental revenues and property operating expenses (comprised of straight-line rental adjustments, which includes the amortization of recurring tenant incentives, and amortization of acquisition intangibles included in FFO and NOI, both of which are described under “Cash NOI” above), (b) share-based compensation, net of amounts capitalized, (c) amortization of deferred financing costs, (d) amortization of debt discounts and premiums and (e) amortization of settlements of debt hedges; and (2) replacement capital expenditures (defined below).  Diluted AFFO also includes adjustments to Diluted FFO, as adjusted for comparability for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We believe that Diluted AFFO is a useful supplemental measure of operating performance for a REIT because it incorporates adjustments for: certain revenue and expenses that are not associated with cash to or from us during the period; and certain capital expenditures for operating properties incurred during the period that do require cash outlays.  We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

Diluted FFO available to common share and common unit holders (“Diluted FFO”) 
Diluted FFO is Basic FFO adjusted to add back any changes in Basic FFO that would result from the assumed conversion of securities that are convertible or exchangeable into common shares.  The computation of Diluted FFO assumes the conversion of common units but does not assume the conversion of other securities that are
convertible into common shares if the conversion of those securities would increase Diluted FFO per share in a given period.  We believe that Diluted FFO (which includes discontinued operations, if any) is useful to investors because it is the numerator used to compute Diluted FFO per share, discussed below.  We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

Diluted FFO available to common share and common unit holders, as adjusted for comparability (“Diluted FFO, as adjusted for comparability”)
Defined as Diluted FFO or FFO adjusted to exclude: operating property acquisition costs (for acquisitions classified as business combinations); gain or loss on early extinguishment of debt; FFO associated with properties that secured non-recourse debt on which we defaulted and, subsequently, extinguished via conveyance of such properties (including property NOI, interest expense and gains on debt extinguishment); loss on interest rate derivatives; executive transition costs associated with named executive officers; and, for periods prior to 10/1/22, demolition costs on redevelopment and nonrecurring improvements and executive transition costs associated with other senior management team members.  Diluted FFO, as adjusted for comparability also includes adjustments to Diluted FFO for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We believe this to be a useful supplemental measure alongside Diluted FFO as it excludes gains and losses from certain investing and financing activities and certain other items that we believe are not closely correlated to (or associated with) our operating performance. We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

Diluted FFO per share
Diluted FFO per share is (1) Diluted FFO divided by (2) the sum of the (a) weighted average common shares outstanding during a period, (b) weighted average common units outstanding during a period and (c) weighted average number of potential additional common shares that would have been outstanding during a period if other securities that are convertible or exchangeable into common shares were converted or exchanged.  The computation of Diluted FFO per share assumes the conversion of common units but does not assume the conversion of other securities that are convertible into common shares if the conversion of those securities would increase Diluted FFO per share in a given period.  We believe that Diluted FFO per share is useful to investors because it provides investors with a further context for evaluating our FFO results in the same manner that investors use earnings per share (“EPS”) in evaluating net income or loss available to common shareholders.  We believe that diluted EPS is the most directly comparable GAAP measure to this non-GAAP measure.

Diluted FFO per share, as adjusted for comparability 
Defined as (1) Diluted FFO available to common share and common unit holders, as adjusted for comparability divided by (2) the sum of the (a) weighted average common shares outstanding during a period, (b) weighted average common units outstanding during a period and (c) weighted average number of potential additional common shares
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COPT Defense Properties
Definitions
that would have been outstanding during a period if other securities that are convertible or exchangeable into common shares were converted or exchanged.  The computation of this measure assumes the conversion of common units but does not assume the conversion of other securities that are convertible into common shares if the conversion of those securities would increase the per share measure in a given period.  We believe this to be a useful supplemental measure alongside Diluted FFO per share as it excludes gains and losses from investing and financing activities and certain other items that we believe are not closely correlated to (or associated with) our operating performance. We believe that diluted EPS is the most directly comparable GAAP measure to this non-GAAP measure.
 
Earnings before interest, income taxes, depreciation and amortization for real estate (“EBITDAre”)
Defined as net income or loss adjusted for the effects of interest expense, depreciation and amortization, gains on sales and impairment losses of real estate and investments in unconsolidated real estate JVs, and income taxes. EBITDAre also includes adjustments to net income or loss for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. While EBITDA (earnings before interest, taxes, depreciation and amortization) is a universally-defined supplemental measure, EBITDAre incorporates additional adjustments for gains and losses from investing activities related to our investments in operating properties. We believe that EBITDAre is a useful supplemental measure for assessing our un-levered performance. We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

Funds from operations (“FFO” or “FFO per Nareit”)
Defined as net income or loss computed using GAAP, excluding gains on sales and impairment losses of real estate and investments in unconsolidated real estate JVs (net of associated income tax) and real estate-related depreciation and amortization. FFO also includes adjustments to net income or loss for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We believe that we use the National Association of Real Estate Investment Trust’s (“Nareit”) definition of FFO, although others may interpret the definition differently and, accordingly, our presentation of FFO may differ from those of other REITs.  We believe that FFO is useful to management and investors as a supplemental measure of operating performance because, by excluding gains on sales and impairment losses of real estate (net of associated income tax) and real estate-related depreciation and amortization, FFO can help one compare our operating performance between periods.  We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

Gross debt
Defined as debt reported on our consolidated balance sheet adjusted to exclude net discounts and premiums and deferred financing costs, as further adjusted to include outstanding debt of unconsolidated real estate JVs that were allocable to our ownership
interest in the JVs. We believe that this measure is useful to investors as it represents our total outstanding debt, including our share of unconsolidated joint venture debt. We believe that debt reported on our consolidated balance sheet is the most directly comparable GAAP measure to this non-GAAP measure.

In-place adjusted EBITDA
Defined as Adjusted EBITDA, as further adjusted for: (1) certain events occurring in a three month period to reflect Adjusted EBITDA as if the events occurred at the beginning of such period, including: (a) properties acquired, placed in service or expanded upon subsequent to the commencement of a period made in order to reflect a full period of ownership/operations; (b) properties removed from service or in which we disposed of interests; (c) significant mid-period occupancy changes associated with properties recently placed in service as if such occupancy changes occurred at the beginning of such period; and (2) adjustments to deferred rental revenue associated with changes in our assessment of collectability. The measure also includes adjustments for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We believe that the pro forma adjustments described above are consistent with the requirements for preparation of amounts presented on a pro forma basis in accordance with Article 11 of Regulation S-X. We believe that in-place adjusted EBITDA is a useful supplemental measure of performance for assessing our un-levered performance and ability to repay outstanding debt from operations, as further adjusted for changes in operating properties subsequent to the commencement of a quarter and for the other items noted above that we believe are not closely correlated with our operating performance and are not relevant to an investor’s evaluation of our ability to repay debt.  We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

Net debt
Defined as Gross debt (total outstanding debt reported per our balance sheet as adjusted to exclude net discounts and premiums and deferred financing costs), as adjusted to subtract cash and cash equivalents as of the end of the period. The measure also includes adjustments to Gross debt for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We use net debt for purposes of calculating our net debt to adjusted book, which we believe is a useful supplemental measure for investors to use in further understanding the relationship of our outstanding debt to our assets available to service such debt. We believe that debt reported on our consolidated balance sheet is the most directly comparable GAAP measure to this non-GAAP measure.

Net debt adjusted for fully-leased investment properties
Defined as Net debt less costs incurred on properties under development and on operating property acquisitions that were 100% leased. We believe that this supplemental measure is useful in providing investors the impact to our debt of these fully leased properties that are not yet contributing to our adjusted EBITDA. We believe
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COPT Defense Properties
Definitions
that debt reported on our consolidated balance sheet is the most directly comparable GAAP measure to this non-GAAP measure.

Net debt to Adjusted book
Defined as Net debt divided by Adjusted book (defined above).

Net debt to in-place adjusted EBITDA ratio and Net debt adjusted for fully-leased investment properties to in-place adjusted EBITDA ratio
Defined as Net debt or Net debt adjusted for fully-leased investment properties divided by in-place adjusted EBITDA (defined above) for the three month period that is annualized by multiplying by four.

Net operating income from real estate operations (“NOI”)
NOI, which is our segment performance measure, includes: consolidated real estate revenues; consolidated property operating expenses; and the net of revenues and property operating expenses of real estate operations owned through unconsolidated real estate JVs that are allocable to COPT Defense’s ownership interest in the JVs. We believe that NOI is an important supplemental measure of operating performance for a REIT’s operating real estate because it provides a measure of the core real estate operations that is unaffected by depreciation, amortization, financing and general, administrative and leasing expenses; we believe this measure is particularly useful in evaluating the performance of reportable segments, Same Property groupings and individual properties.  We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

NOI fixed charge coverage ratio and Adjusted EBITDA fixed charge coverage ratio 
These measures divide either NOI from real estate operations or Adjusted EBITDA by the sum of (1) interest expense (excluding amortization of deferred financing costs and amortization of debt discounts and premiums, net of amounts capitalized, and gains or losses on interest rate derivatives), (2) scheduled principal amortization on mortgage loans, (3) capitalized interest, (4) dividends on preferred shares and (5) distributions on preferred units in the Operating Partnership not owned by us.
 
NOI interest coverage ratio and Adjusted EBITDA interest coverage ratio 
These measures divide either NOI from real estate operations or Adjusted EBITDA by interest expense (excluding amortization of deferred financing costs and amortization of debt discounts and premiums, net of amounts capitalized, gains on losses on interest rate derivatives and interest expense on debt in default to be extinguished via conveyance of properties).


Payout ratios based on: Diluted FFO; Diluted FFO, as adjusted for comparability; and Diluted AFFO
These payout ratios are defined as (1) the sum of dividends on common and deferred shares and distributions to holders of interests in the Operating Partnership to the extent they are dilutive in the respective FFO per share numerators divided by (2) the respective non-GAAP measures.

Replacement capital expenditures 
Replacement capital expenditures are defined as tenant improvements and incentives, building improvements and leasing costs incurred during the period for operating properties that are not (1) items contemplated prior to the acquisition of a property, (2) improvements associated with the expansion of a building or its improvements, (3) renovations to a building which change the underlying classification of the building (for example, from industrial to office or Class C office to Class B office), (4) capital improvements that represent the addition of something new to the property rather than the replacement of something (for example, the addition of a new heating and air conditioning unit that is not replacing one that was previously there) or (5) replacements of significant components of a building after the building has reached the end of its original useful life. Replacement capital expenditures excludes expenditures of operating properties included in disposition plans during the period that were already sold or are held for future disposition. For cash tenant incentives not due to the tenant for a period exceeding three months past the date on which such incentives were incurred, we recognize such incentives as replacement capital expenditures in the periods such incentives are due to the tenant. Replacement capital expenditures, which is included in the computation of Diluted AFFO, is intended to represent non-transformative capital expenditures of existing properties held for long-term investment. We believe that the excluded expenditures are more closely associated with our investing activities than the performance of our operating portfolio.

Same Property NOI from real estate operations and Same Property cash NOI from real estate operations
Defined as NOI, or Cash NOI, from real estate operations of Same Property groupings.  We believe that these are important supplemental measures of Same Property operating performance for the same reasons discussed above for NOI from real estate operations and Cash NOI from real estate operations.
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3Q 2024 Supplemental Information Package
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COPT Defense Properties
Definitions
Other Definitions
Acquisition Costs — Transaction costs expensed in connection with executed or anticipated acquisitions of operating properties.
Annualized Rental Revenue (“ARR”) — The monthly contractual base rent as of the reporting date (ignoring free rent then in effect and rent associated with tenant funded landlord assets) multiplied by 12, plus the estimated annualized expense reimbursements under existing leases for occupied space. With regard to properties owned through unconsolidated real estate JVs, we include the portion of ARR allocable to COPT Defense’s ownership interest. We consider ARR to be a useful measure for analyzing revenue sources because, since it is point-in-time based, it does not contain increases and decreases in revenue associated with periods in which lease terms were not in effect; historical revenue under GAAP does contain such fluctuations. We find the measure particularly useful for leasing, tenant, segment and industry analysis.
Average Escalations — Leasing statistic used to report average increase in rental rates over lease terms for leases with a term of greater than one-year.
Cash Rent — Includes monthly contractual base rent (ignoring rent abatements and rent associated with tenant funded landlord assets) multiplied by 12, plus estimated annualized expense reimbursements (average for first 12 months of term for new or renewed leases or as of lease expiration for expiring leases). We believe that cash rent is a useful measure for evaluating the rental rates at the time rent payments commence for our leasing activity, including changes in such rates relative to rates that may have been previously in place.
Committed Cost per Square Foot — Includes tenant improvement allowance (excluding tenant funded landlord assets), leasing commissions and estimated turn key costs and excludes lease incentives. We believe this is a useful measure for evaluating our costs associated with obtaining new leases.
Compound Annual Growth Rate — For renewed space, represents the compound annual growth rate between the first year cash rent of the expired lease and the first year cash rent of the renewal lease.
Debt to Net Income Ratio — Represents debt reported on our consolidated balance sheet divided by net income for the three month period that is annualized by multiplying by four. We do not present this ratio for periods with a net loss.
Defense/IT Portfolio — Represents properties in locations proximate to, or sometimes containing, key U.S. Government (“USG”) defense installations and missions.
Development Properties — Properties under, or contractually committed for, development.
Equity Market Capitalization — Defined as the sum of: (1) the product of the closing price of our common shares on the NYSE and the sum of (a) common shares outstanding and (b) common units outstanding; and (2) the liquidation value of preferred shares and preferred units in our operating partnership.
First Generation Space — Newly-developed or redeveloped space that has never been occupied.
Investment Space Leased — Includes vacant space leased within two years of the shell completion date for development properties or acquisition date for operating property acquisitions.
Net Income to Interest Expense Ratio — Represents net income reported on our consolidated statements of operations divided by interest expense. We do not present this ratio for periods with a net loss.
Net Income Payout Ratio — Defined as (1) the sum of dividends on common and deferred shares and distributions to holders of interests in the Operating Partnership divided by (2) net income. We do not present this ratio for periods with a net loss.
Operational Space — The portion of a property in operations (excludes portion under development or redevelopment).
Redevelopment Properties — Properties previously in operations on which activities to substantially renovate such properties were underway or approved.
Same Property — Operating properties stably owned and 100% operational since at least 1/1/23.
Second Generation Space — Space leased that has been previously occupied.
Straight-line Rent — Includes annual minimum base rents, net of abatements and lease incentives and excluding rent associated with tenant funded landlord assets, on a straight-line basis over the term of the lease, and estimated annual expense reimbursements (as of lease commencement for new or renewed leases or as of lease expiration for expiring leases). We believe that straight-line rent is a useful measures for evaluating the rental rates over the related lease terms for our leasing activity, including changes in such rates relative to rates that may have been previously in place.
Total Market Capitalization — Defined as the sum of: (1) consolidated outstanding debt, excluding discounts, premiums and deferred financing costs; (2) the product of the closing price of our common shares on the NYSE and the sum of (a) common shares outstanding and (b) common units outstanding; and (3) the liquidation value of preferred shares and preferred units in our operating partnership.
Total Portfolio — Operating properties, including ones owned through unconsolidated real estate JVs.
Vacancy Leasing Activity Ratio — Square footage associated with prospective tenants for vacant square feet in service divided by total vacant square feet in service.
Vacant Space Leased — Includes leasing of vacated second-generation space and vacant space leased in development properties and operating property acquisitions after two years from such properties’ shell completion or acquisition date.
42
3Q 2024 Supplemental Information Package
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NEWS RELEASE
IR Contacts:
Venkat Kommineni, CFA Michelle Layne
443.285.5587 443.285.5452
venkat.kommineni@copt.com michelle.layne@copt.com


COPT Defense Reports Strong Third Quarter 2024 Results
_______________________________________________________________

EPS of $0.32
FFO per Share, as Adjusted for Comparability, of $0.65
1-cent above the Midpoint of Guidance

Increased Midpoint of 2024 FFO per Share Guidance by 1-cent to $2.57
Implies 6.2% FFO per Share Growth for the Year

Defense/IT Portfolio 95.0% Occupied and 96.5% Leased

Same Property Cash NOI Increased 9.4% in 3Q24 and 8.8% Year-to-Date
Raised Midpoint of Same Property Cash NOI Guidance for the Year by 50 Basis Points to 8.5%
_______________________________________________________________

Strong Leasing Volume and Retention YTD
Total Leasing of 829,000 SF in 3Q24 and 2.5 million SF Year-to-Date

123,000 SF in 3Q24 and 387,000 SF Year-to-Date of Vacancy Leasing
Exceeded Annual Target of 400,000 SF, with 4Q24 Progress To-Date

Tenant Retention of 88% in 3Q24 and 84% Year-to-Date
Raised Midpoint of Guidance for the Year by 250 Basis Points to 85%

80,000 SF in 3Q24 and 90,000 SF Year-to-Date of Investment Leasing
_______________________________________________________________

Active on External Growth
Acquired 365-acres in Des Moines, Iowa and 80,000 SF building in San Antonio, Texas
_______________________________________________________________


COLUMBIA, MD (BUSINESS WIRE) October 28, 2024 - COPT Defense Properties (“COPT Defense” or the “Company”) (NYSE: CDP) announced results for the third quarter ended September 30, 2024.



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Management Comments

Stephen E. Budorick, COPT Defense’s President & Chief Executive Officer, commented, “Our Defense/IT investment strategy, which concentrates our portfolio near priority U.S. defense installations, continued to generate strong results during the third quarter. FFO per share exceeded the midpoint of our guidance range and based on this outperformance, and our forecast for the remainder of the year, we increased the midpoint of 2024 FFO per share guidance by $0.01 to $2.57, which implies over 6% year-over-year growth. This marks our third increase for the year and a total of $0.06 of outperformance compared to the midpoint of our initial guidance. Looking forward, we continue to anticipate compound annual FFO per share growth of at least 4% between 2023 and 2026.

We are exceeding our plan in several areas and raised 2024 guidance on a group of key metrics. We increased the midpoint of 2024 guidance for same property cash NOI growth by 50 basis points to 8.5%, and increased tenant retention by 250 basis points to 85%. Based on our updated guidance, same property cash NOI growth would be the highest level in over a decade, and tenant retention would be the highest level in over two decades.

We are especially excited to announce the acquisition of a 365-acre land parcel near Des Moines, Iowa, which is a significant opportunity for us to expand our data center shell program to a new market. Des Moines, the 5th largest hyperscale market in the country, is home to several of the largest hyperscalers, which are drawn to the market given attractive land values, power availability with abundant access to renewable energy and long-haul fiber lines, and tax incentives enacted by supportive state and local governments. We expect this investment to fuel our development pipeline in the medium to long-term, and result in long-term accretion to FFO, AFFO, and NAV per share. As we build out the parcel in phases, we plan to self-fund development of the site on a leverage-neutral basis.

Additionally, we acquired a vacant office property in San Antonio, then subsequently leased the full building to the U.S. Government. With this transaction, our U.S. Government portfolio, which now includes 35 fully leased buildings and on a pro forma basis as of September 30, 2024, accounts for 36.5% of our annualized rental revenue. This acquisition provides additional operational scale given our nearby campus in San Antonio, will be accretive when rent commences in 2Q25, and reinforces our reputation as a trusted partner in supporting mission critical U.S. Government and defense contractor tenant requirements.”

Financial Highlights

3rd Quarter Financial Results:
>Diluted earnings per share (“EPS”) was $0.32 for the quarter ended September 30, 2024, compared to $(1.94) for the quarter ended September 30, 2023.

>Diluted funds from operations per share (“FFOPS”), as calculated in accordance with Nareit’s definition and as adjusted for comparability, was $0.65 for the quarter ended September 30, 2024, compared to $0.60 for the quarter ended September 30, 2023.

Operating Performance Highlights

Operating Portfolio Summary:
>At September 30, 2024, the Company’s 24.3 million square foot Total Portfolio was 93.1% occupied and 94.8% leased, which includes the 22.2 million square foot Defense/IT Portfolio that was 95.0% occupied and 96.5% leased.



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Same Property Performance:
>At September 30, 2024, the Company’s 22.2 million square foot same property portfolio was 93.6% occupied and 95.1% leased.

>The Company’s same property cash NOI increased 9.4% for the three months ended September 30, 2024 compared to the same period in 2023.

Leasing:
>Total Square Feet Leased: For the quarter ended September 30, 2024, the Company leased 829,000 square feet, including 626,000 square feet of renewals, 123,000 square feet of vacancy leasing, and 80,000 square feet of investment leasing. For the nine months ended September 30, 2024, the Company executed 2.5 million square feet of total leasing, including 2.1 million square feet of renewals, 387,000 square feet of vacancy leasing, and 90,000 square feet of investment leasing.

>Tenant Retention Rates: During the quarter ended September 30, 2024, the Company renewed 87.6% of expiring square feet in its Total Portfolio and 89.6% in its Defense/IT Portfolio. During the nine months ended September 30, 2024, the Company renewed 84.3% of expiring square feet in its Total Portfolio and 86.9% in its Defense/IT Portfolio.

>Rent Spreads & Average Escalations on Renewing Leases: For the quarter and nine months ended September 30, 2024, straight-line rents on renewals increased 17.2% and 9.3%, respectively, and cash rents on renewed space increased 4.1% and 0.8%, respectively, while annual escalations on renewing leases averaged 2.6% and 2.4%, respectively.

>Lease Terms: In the quarter ended September 30, 2024, lease terms averaged 4.1 years on renewing leases, 7.1 years on vacancy leasing, and 9.5 years on investment leasing. For the nine months ended September 30, 2024, lease terms averaged 4.0 years on renewing leases, 7.8 years on vacancy leasing, and 9.0 years on investment leasing.

Investment Activity Highlights
>Development Pipeline: The Company’s development pipeline consists of five properties totaling 831,000 square feet that were 79% leased as of September 30, 2024. These projects represent a total estimated investment of $335.4 million, of which $108.1 million has been spent.

>Acquisitions:
During the quarter, the Company acquired:
>A 365-acre land parcel near Des Moines, Iowa for $32 million that we plan to develop into approximately 3.3 million square feet of data center shell space.
>An 80,000 square foot Class A office building at 3900 Rogers Road in San Antonio, Texas for $17 million. The building was vacant upon acquisition, and the Company subsequently executed two leases with the U.S. Government to occupy the entire building.
>Please see the Company’s acquisition press release dated October 28, 2024 and pages 8-22 of the Company’s 3Q24 Results Presentation (refer to the ‘Associated Supplemental Presentation’ section below).

Balance Sheet and Capital Transaction Highlights
>For the quarter ended September 30, 2024, the Company’s adjusted EBITDA fixed charge coverage ratio was 4.8x.



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>At September 30, 2024, the Company’s net debt to in-place adjusted EBITDA ratio was 6.1x and its net debt adjusted for fully-leased investment properties to in-place adjusted EBITDA ratio was 5.9x.

>At September 30, 2024, and including the effect of interest rate swaps, the Company’s weighted average effective interest rate on its consolidated debt portfolio was 3.3% with a weighted average maturity of 5 years, and 100% of the Company’s debt was subject to fixed interest rates.

Associated Supplemental Presentation
Prior to the call, the Company will post a slide presentation to accompany management’s prepared remarks for its third quarter 2024 conference call; the presentation can be viewed and downloaded from the ‘Financial Info – Financial Results’ section of COPT Defense’s Investors website: https://investors.copt.com/financial-information/financial-results

2024 Guidance
Management is revising its full-year guidance for diluted EPS and diluted FFOPS, per Nareit and as adjusted for comparability, from the prior range of $1.22-$1.26, and $2.54-$2.58, respectively, to new ranges of $1.24-$1.26, and $2.56-$2.58, respectively. Management is establishing fourth quarter guidance for diluted EPS and diluted FFOPS per Nareit and as adjusted for comparability at $0.31-$0.33 and $0.64-$0.66, respectively. Reconciliations of projected diluted EPS to projected diluted FFOPS, in accordance with Nareit and as adjusted for comparability are as follows:

Reconciliation of Diluted EPS to FFOPS, per Nareit,
and As Adjusted for Comparability
Quarter Ending December 31, 2024
Year Ending December 31, 2024
Low High Low High
Diluted EPS $ 0.31  $ 0.33  $ 1.24  $ 1.26 
Real estate-related depreciation and amortization 0.33  0.33  1.32  1.32 
Diluted FFOPS, Nareit definition and as adjusted for comparability $ 0.64  $ 0.66  $ 2.56  $ 2.58 

Conference Call Information
Management will discuss third quarter 2024 results on its conference call tomorrow at 12:00 p.m. Eastern Time, details of which are listed below:

Conference Call Date: Tuesday, October 29, 2024
Time: 12:00 p.m. Eastern Time

Participants must register for the conference call at the link below to receive the dial-in number and personal pin. Registering only takes a few moments and provides direct access to the conference call without waiting for an operator. You may register at any time, including up to and after the call start time:
https://register.vevent.com/register/BI9796486f46f6424aa012b44d48ca9ae6

The conference call will also be available via live webcast in the ‘News & Events – IR Calendar’ section of COPT Defense’s Investors website: https://investors.copt.com/news-events/ir-calendar

Replay Information
A replay of the conference call will be immediately available via webcast only on COPT Defense’s Investors website and will be maintained on the website for approximately 90 days after the conference call.



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Definitions
For definitions of certain terms used in this press release, please refer to the information furnished in the Company’s Supplemental Information Package furnished on a Form 8-K which can be found on its website (www.copt.com). Reconciliations of non-GAAP measures to the most directly comparable GAAP measures are included in the attached tables.

About COPT Defense
COPT Defense, an S&P MidCap 400 Company, is a self-managed REIT focused on owning, operating and developing properties in locations proximate to, or sometimes containing, key U.S. Government (“USG”) defense installations and missions (referred to as its Defense/IT Portfolio). The Company’s tenants include the USG and their defense contractors, who are primarily engaged in priority national security activities, and who generally require mission-critical and high security property enhancements. As of September 30, 2024, the Company’s Defense/IT Portfolio of 194 properties, including 24 owned through unconsolidated joint ventures, encompassed 22.2 million square feet and was 96.5% leased.

Forward-Looking Information
This press release may contain “forward-looking” statements, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that are based on the Company’s current expectations, estimates and projections about future events and financial trends affecting the Company. Forward-looking statements can be identified by the use of words such as “may,” “will,” “should,” “could,” “believe,” “anticipate,” “expect,” “estimate,” “plan” or other comparable terminology. Forward-looking statements are inherently subject to risks and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate. Although the Company believes that the expectations, estimates and projections reflected in such forward-looking statements are based on reasonable assumptions at the time made, the Company can give no assurance that these expectations, estimates and projections will be achieved. Future events and actual results may differ materially from those discussed in the forward-looking statements and the Company undertakes no obligation to update or supplement any forward-looking statements.

The areas of risk that may affect these expectations, estimates and projections include, but are not limited to, those risks described in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023.


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COPT Defense Properties
Summary Financial Data
(unaudited)
(dollars and shares in thousands, except per share data)
  For the Three Months Ended September 30, For the Nine Months Ended September 30,
  2024 2023 2024 2023
Revenues    
Lease revenue $ 170,549  $ 155,268  $ 501,601  $ 459,510 
Other property revenue 2,014  1,339  4,710  3,731 
Construction contract and other service revenues 16,662  11,949  63,523  42,012 
Total revenues 189,225  168,556  569,834  505,253 
Operating expenses    
Property operating expenses 68,881  61,788  199,037  182,808 
Depreciation and amortization associated with real estate operations 38,307  37,620  114,819  112,215 
Construction contract and other service expenses 16,127  11,493  61,746  40,249 
Impairment losses —  252,797  —  252,797 
General and administrative expenses 8,157  7,582  25,126  22,865 
Leasing expenses 2,341  2,280  6,990  6,624 
Business development expenses and land carry costs 918  714  3,079  1,935 
Total operating expenses 134,731  374,274  410,797  619,493 
Interest expense (20,376) (17,798) (61,760) (50,759)
Interest and other income, net 3,324  2,529  10,330  6,928 
Gain on sales of real estate —  —  —  49,392 
Income (loss) before equity in income (loss) of unconsolidated entities and income taxes 37,442  (220,987) 107,607  (108,679)
Equity in income (loss) of unconsolidated entities 85  (68) 180  (21)
Income tax expense (130) (152) (312) (467)
Net income (loss) 37,397  (221,207) 107,475  (109,167)
Net (income) loss attributable to noncontrolling interests:    
Common units in the Operating Partnership (“OP”) (711) 3,691  (2,013) 1,882 
Other consolidated entities (601) 1,329  (1,654) 164 
Net income (loss) attributable to common shareholders $ 36,085  $ (216,187) $ 103,808  $ (107,121)
Earnings per share (“EPS”) computation:    
Numerator for diluted EPS:    
Net income (loss) attributable to common shareholders $ 36,085  $ (216,187) $ 103,808  $ (107,121)
Amount allocable to share-based compensation awards (104) (992) (319) (1,093)
Numerator for diluted EPS $ 35,981  $ (217,179) $ 103,489  $ (108,214)
Denominator:    
Weighted average common shares - basic 112,314  112,196  112,279  112,170 
Dilutive effect of share-based compensation awards 696  —  566  — 
Weighted average common shares - diluted 113,010  112,196  112,845  112,170 
Diluted EPS $ 0.32  $ (1.94) $ 0.92  $ (0.96)
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COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands, except per share data)
  For the Three Months Ended September 30, For the Nine Months Ended September 30,
  2024 2023 2024 2023
Net income (loss) $ 37,397  $ (221,207) $ 107,475  $ (109,167)
Real estate-related depreciation and amortization 38,307  37,620  114,819  112,215 
Impairment losses on real estate —  252,797  —  252,797 
Gain on sales of real estate —  —  —  (49,392)
Depreciation and amortization on unconsolidated real estate JVs 756  806  2,311  2,412 
Funds from operations (“FFO”) 76,460  70,016  224,605  208,865 
FFO allocable to other noncontrolling interests (985) (1,059) (2,805) (3,006)
Basic FFO allocable to share-based compensation awards (617) (481) (1,803) (1,427)
Basic FFO available to common share and common unit holders (“Basic FFO”) 74,858  68,476  219,997  204,432 
Redeemable noncontrolling interests —  —  1,446  (58)
Diluted FFO adjustments allocable to share-based compensation awards 47  36  141  112 
Diluted FFO available to common share and common unit holders (“Diluted FFO”) 74,905  68,512  221,584  204,486 
Executive transition costs 69  82  227  330 
Diluted FFO comparability adjustments allocable to share-based compensation awards —  (1) (1) (3)
Diluted FFO available to common share and common unit holders, as adjusted for comparability 74,974  68,593  221,810  204,813 
Straight line rent adjustments and lease incentive amortization 613  12,882  7,874  6,205 
Amortization of intangibles and other assets included in net operating income (“NOI”) 211  26  544  24 
Share-based compensation, net of amounts capitalized 2,617  2,280  7,826  6,226 
Amortization of deferred financing costs 671  639  2,037  1,899 
Amortization of net debt discounts, net of amounts capitalized 1,032  750  3,069  1,990 
Replacement capital expenditures (27,824) (21,122) (69,850) (71,996)
Other 298  74  493  (420)
Diluted adjusted funds from operations available to common share and common unit holders (“Diluted AFFO”) $ 52,592  $ 64,122  $ 173,803  $ 148,741 
Diluted FFO per share $ 0.65  $ 0.60  $ 1.92  $ 1.79 
Diluted FFO per share, as adjusted for comparability $ 0.65  $ 0.60  $ 1.92  $ 1.79 
Dividends/distributions per common share/unit $ 0.295  $ 0.285  $ 0.885  $ 0.855 

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COPT Defense Properties
Summary Financial Data
(unaudited)
(Dollars and shares in thousands, except per share data)
September 30,
2024		 December 31,
2023
Balance Sheet Data    
Properties, net of accumulated depreciation $ 3,604,688  $ 3,503,678 
Total assets $ 4,234,302  $ 4,246,966 
Debt per balance sheet $ 2,390,839  $ 2,416,287 
Total liabilities $ 2,679,271  $ 2,699,631 
Redeemable noncontrolling interests $ 22,436  $ 23,580 
Total equity $ 1,532,595  $ 1,523,755 
Debt to assets 56.5  % 56.9  %
Net debt to adjusted book 40.8  % 40.6  %
Defense/IT Portfolio Data (as of period end)    
Number of operating properties 194  190 
Total operational square feet (in thousands) 22,174  21,719 
% Occupied 95.0  % 96.2  %
% Leased 96.5  % 97.2  %
For the Three Months Ended September 30, For the Nine Months Ended September 30,
2024 2023 2024 2023
GAAP        
Payout ratio:
Net income 90.7  % N/A 94.6  % N/A
Debt ratios:
Net income to interest expense ratio 1.8  x  N/A 1.7  x  N/A
Debt to net income ratio 16.0  x  N/A N/A N/A
Non-GAAP
Payout ratios:
Diluted FFO 44.9  % 47.3  % 45.6  % 47.6  %
Diluted FFO, as adjusted for comparability 44.9  % 47.3  % 45.5  % 47.5  %
Diluted AFFO 64.0  % 50.6  % 58.1  % 65.4  %
Debt ratios:
Adjusted EBITDA fixed charge coverage ratio 4.8  x  4.6  x  4.7  x  4.9  x 
Net debt to in-place adjusted EBITDA ratio 6.1  x  6.2  x  N/A N/A
Net debt adj. for fully-leased investment properties to in-place adj. EBITDA ratio 5.9  x  5.9  x  N/A N/A
Reconciliation of denominators for per share measures  
Denominator for diluted EPS 113,010  112,196  112,845  112,170 
Weighted average common units 1,696  1,520  1,675  1,508 
Dilutive effect of additional share-based compensation awards —  429  —  422 
Redeemable noncontrolling interests —  —  873  51 
Denominator for diluted FFO per share and as adjusted for comparability 114,706  114,145  115,393  114,151 




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COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)
For the Three Months Ended September 30, For the Nine Months Ended September 30,
  2024 2023 2024 2023
Numerators for Payout Ratios
Dividends on unrestricted common and deferred shares $ 33,165  $ 31,996  $ 99,461  $ 95,980 
Distributions on unrestricted common units 491  432  1,496  1,295 
Dividends and distributions on restricted shares and units 247  200  752  619 
Total dividends and distributions for GAAP payout ratio 33,903  32,628  101,709  97,894 
Dividends and distributions on antidilutive shares and units (249) (202) (756) (623)
Dividends and distributions for non-GAAP payout ratios $ 33,654  $ 32,426  $ 100,953  $ 97,271 
Reconciliation of net income (loss) to earnings before interest, income taxes, depreciation and amortization for real estate (“EBITDAre”), adjusted EBITDA and in-place adjusted EBITDA        
Net income (loss) $ 37,397  $ (221,207) $ 107,475  $ (109,167)
Interest expense 20,376  17,798  61,760  50,759 
Income tax expense 130  152  312  467 
Real estate-related depreciation and amortization 38,307  37,620  114,819  112,215 
Other depreciation and amortization 614  615  1,786  1,826 
Impairment losses on real estate —  252,797  —  252,797 
Gain on sales of real estate —  —  —  (49,392)
Adjustments from unconsolidated real estate JVs 1,759  1,743  5,139  5,006 
EBITDAre 98,583  89,518  291,291  264,511 
Credit loss expense 38  372  496  677 
Business development expenses 557  313  1,790  948 
Executive transition costs 69  82  580  636 
Net gain on other investments (11) (25) (488) (25)
Adjusted EBITDA 99,236  90,260  $ 293,669  $ 266,747 
Pro forma NOI adjustment for property changes within period —  1,647 
In-place adjusted EBITDA $ 99,236  $ 91,907 
Reconciliations of tenant improvements and incentives, building improvements and leasing costs for operating properties to replacement capital expenditures
Tenant improvements and incentives $ 18,772  $ 14,457  $ 46,593  $ 67,062 
Building improvements 6,694  6,307  17,352  11,214 
Leasing costs 3,013  1,902  9,713  7,194 
Net additions to (exclusions from) tenant improvements and incentives 728  (813) 4  (11,981)
Excluded building improvements and leasing costs (1,383) (731) (3,812) (1,493)
Replacement capital expenditures $ 27,824  $ 21,122  $ 69,850  $ 71,996 
ix


COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)
For the Three Months Ended September 30, For the Nine Months Ended September 30,
  2024 2023 2024 2023
Reconciliation of interest expense to the denominator for fixed charge coverage-Adjusted EBITDA        
Interest expense $ 20,376  $ 17,798  $ 61,760  $ 50,759 
Less: Amortization of deferred financing costs (671) (639) (2,037) (1,899)
Less: Amortization of net debt discounts, net of amounts capitalized (1,032) (750) (3,069) (1,990)
COPT Defense’s share of interest expense of unconsolidated real estate JVs, excluding amortization of deferred financing costs and net debt premium and gain or loss on interest rate derivatives 821  805  2,433  2,369 
Scheduled principal amortization 448  753  1,879  2,289 
Capitalized interest 712  1,487  1,944  3,451 
Denominator for fixed charge coverage-Adjusted EBITDA $ 20,654  $ 19,454  $ 62,910  $ 54,979 
Reconciliation of net income (loss) to NOI from real estate operations, same property NOI from real estate operations and same property cash NOI from real estate operations
Net income (loss) $ 37,397  $ (221,207) $ 107,475  $ (109,167)
Construction contract and other service revenues (16,662) (11,949) (63,523) (42,012)
Depreciation and other amortization associated with real estate operations 38,307  37,620  114,819  112,215 
Construction contract and other service expenses 16,127  11,493  61,746  40,249 
Impairment losses —  252,797  —  252,797 
General and administrative expenses 8,157  7,582  25,126  22,865 
Leasing expenses 2,341  2,280  6,990  6,624 
Business development expenses and land carry costs 918  714  3,079  1,935 
Interest expense 20,376  17,798  61,760  50,759 
Interest and other income, net (3,324) (2,529) (10,330) (6,928)
Gain on sales of real estate —  —  —  (49,392)
Equity in (income) loss of unconsolidated entities (85) 68  (180) 21 
Unconsolidated real estate JVs NOI allocable to COPT Defense included in equity in income (loss) of unconsolidated entities 1,844  1,675  5,319  4,988 
Income tax expense 130  152  312  467 
NOI from real estate operations 105,526  96,494  312,593  285,421 
Non-Same Property NOI from real estate operations (6,875) (1,455) (19,867) (3,436)
Same Property NOI from real estate operations 98,651  95,039  292,726  281,985 
Straight line rent adjustments and lease incentive amortization 1,531  10,154  9,399  3,888 
Amortization of acquired above- and below-market rents (69) (120) (207) (415)
Lease termination fees, net (931) (748) (2,587) (3,028)
Tenant funded landlord assets and lease incentives (1,942) (15,402) (12,630) (18,837)
Cash NOI adjustments in unconsolidated real estate JVs (136) (130) (364) (420)
Same Property Cash NOI from real estate operations $ 97,104  $ 88,793  $ 286,337  $ 263,173 

x


COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)
September 30,
2024		 December 31,
2023
Reconciliation of total assets to adjusted book    
Total assets $ 4,234,302  $ 4,246,966 
Accumulated depreciation 1,502,730  1,400,162 
Accumulated amortization of intangibles on property acquisitions and deferred leasing costs 227,281  228,484 
COPT Defense’s share of liabilities of unconsolidated real estate JVs 61,118  60,583 
COPT Defense’s share of accumulated depreciation and amortization of unconsolidated real estate JVs 12,014  9,528 
Less: Property - operating lease liabilities (33,615) (33,931)
Less: Property - finance lease liabilities (397) (415)
Less: Cash and cash equivalents (34,478) (167,820)
Less: COPT Defense’s share of cash of unconsolidated real estate JVs (1,575) (852)
Adjusted book $ 5,967,380  $ 5,742,705 

September 30,
2024		 December 31,
2023		 September 30,
2023
Reconciliation of debt to net debt and net debt adjusted for fully-leased investment properties
Debt per balance sheet $ 2,390,839  $ 2,416,287  $ 2,415,783 
Net discounts and deferred financing costs 24,633  28,713  29,980 
COPT Defense’s share of unconsolidated JV gross debt 53,148  52,613  52,511 
Gross debt 2,468,620  2,497,613  2,498,274 
Less: Cash and cash equivalents (34,478) (167,820) (204,238)
Less: COPT Defense’s share of cash of unconsolidated real estate JVs (1,575) (852) (1,031)
Net debt 2,432,567  2,328,941  2,293,005 
Costs incurred on fully-leased development properties (70,954) (53,914) (124,038)
Costs incurred on fully-leased operating property acquisitions (17,034) —  — 
Net debt adjusted for fully-leased investment properties $ 2,344,579  $ 2,275,027  $ 2,168,967 
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