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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC  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): February 6, 2025
____________________________________________

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 February 6, 2025, COPT Defense Properties (the “Company”) issued a press release relating to its financial results for the period ended December 31, 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: February 6, 2025



EX-99.1 2 cdp12312024ex991.htm EX-99.1 Document
EXHIBIT 99.1

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COPT Defense Properties
Supplemental Information + Earnings Release - Unaudited
For the Period Ended 12/31/24
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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 December 31, 2024, our Defense/IT Portfolio of 195 properties, including 24 owned through unconsolidated joint ventures, encompassed 22.4 million square feet and was 96.8% 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 Positive | 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.
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4Q 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
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
4Q 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 Years Ended
SUMMARY OF RESULTS  Refer. 12/31/24 9/30/24 6/30/24 3/31/24 12/31/23 12/31/24 12/31/23
Net income (loss) 7 $ 36,467  $ 37,397  $ 36,407  $ 33,671  $ 34,820  $ 143,942  $ (74,347)
NOI from real estate operations 13 $ 106,340  $ 105,526  $ 105,410  $ 101,657  $ 98,656  $ 418,933  $ 384,077 
Same Property NOI 17 $ 98,343  $ 98,651  $ 98,672  $ 95,403  $ 94,854  $ 391,069  $ 376,839 
Same Property cash NOI 18 $ 98,485  $ 97,104  $ 97,614  $ 91,619  $ 89,493  $ 384,822  $ 352,666 
Adjusted EBITDA 11 $ 98,628  $ 99,236  $ 98,592  $ 95,841  $ 93,934  $ 392,297  $ 360,681 
FFO per NAREIT 8 $ 76,033  $ 76,460  $ 75,346  $ 72,799  $ 72,360  $ 300,638  $ 281,225 
Diluted AFFO avail. to common share and unit holders 10 $ 47,902  $ 52,592  $ 61,435  $ 59,269  $ 54,280  $ 222,222  $ 203,021 
Dividend per common share N/A $ 0.295  $ 0.295  $ 0.295  $ 0.295  $ 0.285  $ 1.18  $ 1.14 
Per share - diluted:            
EPS 9 $ 0.31  $ 0.32  $ 0.31  $ 0.29  $ 0.30  $ 1.23  $ (0.67)
FFO - Nareit 9 $ 0.64  $ 0.65  $ 0.64  $ 0.62  $ 0.62  $ 2.57  $ 2.41 
FFO - as adjusted for comparability 9 $ 0.65  $ 0.65  $ 0.64  $ 0.62  $ 0.62  $ 2.57  $ 2.42 
Numerators for diluted per share amounts:
Diluted EPS 7 $ 35,018  $ 35,981  $ 35,022  $ 32,480  $ 33,552  $ 138,508  $ (74,668)
Diluted FFO available to common share and unit holders 8 $ 74,416  $ 74,905  $ 74,280  $ 71,892  $ 70,913  $ 296,517  $ 275,399 
Diluted FFO available to common share and unit holders, as adjusted for comparability 8 $ 74,473  $ 74,974  $ 74,360  $ 71,969  $ 71,100  $ 296,800  $ 275,913 

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4Q 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 Years Ended
PAYOUT RATIOS AND CAPITALIZATION Refer. 12/31/24 9/30/24 6/30/24 3/31/24 12/31/23 12/31/24 12/31/23
GAAP
Payout ratio:
Net income N/A 93.0% 90.7% 93.1% 100.7% 93.7% 94.2% N/A
Capitalization and debt ratios:
Total assets 6 $ 4,254,191  $ 4,234,302  $ 4,219,338  $ 4,232,895  $ 4,246,966 
Total equity 6 $ 1,536,593  $ 1,532,595  $ 1,530,506  $ 1,526,046  $ 1,523,755 
Debt per balance sheet 6 $ 2,391,755  $ 2,390,839  $ 2,389,925  $ 2,416,873  $ 2,416,287 
Debt to assets 32 56.2% 56.5% 56.6% 57.1% 56.9% N/A N/A
Net income to interest expense ratio 32 1.8x 1.8x 1.8x 1.6x 1.7x 1.8x N/A
Debt to net income ratio 32 16.4x 16.0x 16.4x 17.9x 17.3x N/A N/A
Non-GAAP
Payout ratios:            
Diluted FFO N/A 45.2% 44.9% 45.3% 46.8% 45.7% 45.4% 47.1%
Diluted FFO - as adjusted for comparability N/A 45.2% 44.9% 45.3% 46.7% 45.6% 45.4% 47.0%
Diluted AFFO N/A 70.3% 64.0% 54.8% 56.8% 59.7% 60.6% 63.9%
Capitalization and debt ratios:          
Total Market Capitalization 29 $ 5,968,572  $ 5,897,659  $ 5,289,664  $ 5,218,681  $ 5,377,815 
Total Equity Market Capitalization 29 $ 3,553,555  $ 3,482,187  $ 2,873,744  $ 2,774,450  $ 2,932,815 
Net debt 37 $ 2,428,430  $ 2,432,567  $ 2,367,180  $ 2,372,747  $ 2,328,941 
Net debt to adjusted book 32 40.4% 40.8% 40.5% 40.9% 40.6% N/A N/A
Adjusted EBITDA fixed charge coverage ratio 32 4.7x 4.8x 4.7x 4.5x 4.4x 4.7x 4.7x
Net debt to in-place adj. EBITDA ratio 32 6.0x 6.1x 6.0x 6.1x 6.1x N/A N/A
Net debt adjusted for fully-leased investment properties to in-place adj. EBITDA ratio 32 5.9x 5.9x 5.9x 6.0x 6.0x N/A N/A

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4Q 2024 Supplemental Information Package
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COPT Defense Properties
Selected Portfolio Data (1)
  12/31/24 9/30/24 6/30/24 3/31/24 12/31/23
# of Properties
Total Portfolio 203 202 201 201 198
Consolidated Portfolio 179 178 177 177 174
Defense/IT Portfolio 195 194 193 193 190
Same Property 189 189 189 189 189
% Occupied
Total Portfolio 93.6  % 93.1  % 93.6  % 93.6  % 94.2  %
Consolidated Portfolio 92.2  % 91.6  % 92.2  % 92.2  % 92.9  %
Defense/IT Portfolio 95.6  % 95.0  % 95.5  % 95.6  % 96.2  %
Same Property 94.1  % 93.6  % 93.5  % 93.5  % 93.8  %
% Leased
Total Portfolio 95.1  % 94.8  % 94.9  % 94.9  % 95.3  %
Consolidated Portfolio 94.1  % 93.6  % 93.8  % 93.8  % 94.3  %
Defense/IT Portfolio 96.8  % 96.5  % 96.7  % 96.8  % 97.2  %
Same Property 95.4  % 95.1  % 95.0  % 95.0  % 95.1  %
Square Feet (in thousands)
Total Portfolio 24,537 24,316 24,135 24,137 23,859
Consolidated Portfolio 20,242 20,021 19,839 19,841 19,563
Defense/IT Portfolio 22,391 22,174 21,993 21,993 21,719
Same Property 22,220 22,220 22,220 22,220 22,220
(1)Except for the Consolidated Portfolio, includes properties owned through unconsolidated real estate joint ventures (see page 34).

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4Q 2024 Supplemental Information Package
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COPT Defense Properties
Consolidated Balance Sheets
(in thousands)
  12/31/24 9/30/24 6/30/24 3/31/24 12/31/23
Assets          
Properties, net:          
Operating properties, net $ 3,353,477  $ 3,289,959  $ 3,257,822  $ 3,272,452  $ 3,246,806 
Development and redevelopment in progress, including land (1) 67,342  108,077  106,709  76,931  82,972 
Land held (1) 209,707  206,652  171,062  168,495  173,900 
Total properties, net 3,630,526  3,604,688  3,535,593  3,517,878  3,503,678 
Property - operating right-of-use assets 55,760  40,523  40,899  40,368  41,296 
Cash and cash equivalents 38,284  34,478  100,443  123,144  167,820 
Investment in unconsolidated real estate joint ventures 39,360  39,720  40,148  40,597  41,052 
Accounts receivable, net 42,234  42,240  46,963  50,088  48,946 
Deferred rent receivable 161,438  159,182  156,123  153,788  149,237 
Lease incentives, net 64,013  63,034  63,744  61,150  61,331 
Deferred leasing costs, net 71,268  71,815  72,156  70,902  70,057 
Investing receivables, net 69,680  83,536  84,087  82,523  81,512 
Prepaid expenses and other assets, net 81,628  95,086  79,182  92,457  82,037 
Total assets $ 4,254,191  $ 4,234,302  $ 4,219,338  $ 4,232,895  $ 4,246,966 
Liabilities and equity          
Liabilities:          
Debt $ 2,391,755  $ 2,390,839  $ 2,389,925  $ 2,416,873  $ 2,416,287 
Accounts payable and accrued expenses 126,031  134,112  122,202  111,981  133,315 
Rents received in advance and security deposits 38,560  33,213  33,485  37,557  35,409 
Dividends and distributions payable 33,909  33,915  33,908  33,906  32,644 
Deferred revenue associated with operating leases 39,752  37,660  37,199  34,019  29,049 
Property - operating lease liabilities 49,240  33,615  33,818  33,141  33,931 
Other liabilities 14,377  15,917  15,530  16,406  18,996 
Total liabilities 2,693,624  2,679,271  2,666,067  2,683,883  2,699,631 
Redeemable noncontrolling interests 23,974  22,436  22,765  22,966  23,580 
Equity:      
COPT Defense’s shareholders’ equity:      
Common shares 1,127  1,127  1,127  1,126  1,126 
Additional paid-in capital 2,494,369  2,493,340  2,489,931  2,487,468  2,489,989 
Cumulative distributions in excess of net income (1,003,401) (1,005,260) (1,008,087) (1,009,964) (1,009,318)
Accumulated other comprehensive income 988  58  3,614  3,849  2,115 
Total COPT Defense’s shareholders’ equity 1,493,083  1,489,265  1,486,585  1,482,479  1,483,912 
Noncontrolling interests in subsidiaries:          
Common units in the Operating Partnership 28,935  28,918  29,470  29,214  25,502 
Other consolidated entities 14,575  14,412  14,451  14,353  14,341 
Total noncontrolling interests in subsidiaries 43,510  43,330  43,921  43,567  39,843 
Total equity 1,536,593  1,532,595  1,530,506  1,526,046  1,523,755 
Total liabilities, redeemable noncontrolling interests and equity $ 4,254,191  $ 4,234,302  $ 4,219,338  $ 4,232,895  $ 4,246,966 
(1)Refer to pages 26 and 28 for detail.


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4Q 2024 Supplemental Information Package
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COPT Defense Properties
Consolidated Statements of Operations
(in thousands)

  Three Months Ended Years Ended
  12/31/24 9/30/24 6/30/24 3/31/24 12/31/23 12/31/24 12/31/23
Revenues          
Lease revenue $ 169,765  $ 170,549  $ 165,619  $ 165,433  $ 160,337  $ 671,366  $ 619,847 
Other property revenue 1,641  2,014  1,466  1,230  1,225  6,351  4,956 
Construction contract and other service revenues 12,027  16,662  20,258  26,603  18,167  75,550  60,179 
Total revenues 183,433  189,225  187,343  193,266  179,729  753,267  684,982 
Operating expenses          
Property operating expenses 66,964  68,881  63,410  66,746  64,577  266,001  247,385 
Depreciation and amortization associated with real estate operations 38,821  38,307  38,161  38,351  36,735  153,640  148,950 
Construction contract and other service expenses 11,519  16,127  19,612  26,007  17,167  73,265  57,416 
Impairment losses —  —  —  —  —  —  252,797 
General and administrative expenses 8,429  8,157  8,591  8,378  8,240  33,555  31,105 
Leasing expenses 2,243  2,341  2,462  2,187  2,308  9,233  8,932 
Business development expenses and land carry costs 1,171  918  979  1,182  797  4,250  2,732 
Total operating expenses 129,147  134,731  133,215  142,851  129,824  539,944  749,317 
Interest expense (20,391) (20,376) (20,617) (20,767) (20,383) (82,151) (71,142)
Interest and other income, net 2,331  3,324  2,884  4,122  5,659  12,661  12,587 
Gain on sales of real estate —  —  —  —  —  —  49,392 
Income (loss) before equity in income (loss) of unconsolidated entities and income taxes 36,226  37,442  36,395  33,770  35,181  143,833  (73,498)
Equity in income (loss) of unconsolidated entities 217  85  26  69  (240) 397  (261)
Income tax benefit (expense) 24  (130) (14) (168) (121) (288) (588)
Net income (loss) 36,467  37,397  36,407  33,671  34,820  143,942  (74,347)
Net (income) loss attributable to noncontrolling interests:          
Common units in the Operating Partnership (681) (711) (694) (608) (576) (2,694) 1,306 
Other consolidated entities (665) (601) (599) (454) (592) (2,319) (428)
Net income (loss) attributable to common shareholders $ 35,121  $ 36,085  $ 35,114  $ 32,609  $ 33,652  $ 138,929  $ (73,469)
Amount allocable to share-based compensation awards (103) (104) (92) (129) (100) (421) (1,199)
Numerator for diluted EPS $ 35,018  $ 35,981  $ 35,022  $ 32,480  $ 33,552  $ 138,508  $ (74,668)
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4Q 2024 Supplemental Information Package
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COPT Defense Properties
Funds from Operations
(in thousands)
  Three Months Ended Years Ended
  12/31/24 9/30/24 6/30/24 3/31/24 12/31/23 12/31/24 12/31/23
Net income (loss) $ 36,467  $ 37,397  $ 36,407  $ 33,671  $ 34,820  $ 143,942  $ (74,347)
Real estate-related depreciation and amortization 38,821  38,307  38,161  38,351  36,735  153,640  148,950 
Impairment losses on real estate —  —  —  —  —  —  252,797 
Gain on sales of real estate —  —  —  —  —  —  (49,392)
Depreciation and amortization on unconsolidated real estate JVs (1) 745  756  778  777  805  3,056  3,217 
FFO - per Nareit (2) 76,033  76,460  75,346  72,799  72,360  300,638  281,225 
FFO allocable to other noncontrolling interests (3) (1,050) (985) (984) (836) (972) (3,855) (3,978)
Basic FFO allocable to share-based compensation awards (614) (617) (599) (587) (513) (2,417) (1,940)
Basic FFO available to common share and common unit holders (2) 74,369  74,858  73,763  71,376  70,875  294,366  275,307 
Redeemable noncontrolling interests —  —  471  469  —  1,963  (58)
Diluted FFO adjustments allocable to share-based compensation awards 47  47  46  47  38  188  150 
Diluted FFO available to common share and common unit holders - per Nareit (2) 74,416  74,905  74,280  71,892  70,913  296,517  275,399 
Executive transition costs 58  69  81  77  188  285  518 
Diluted FFO comparability adjustments allocable to share-based compensation awards (1) —  (1) —  (1) (2) (4)
Diluted FFO available to common share and common unit holders, as adjusted for comparability (2) $ 74,473  $ 74,974  $ 74,360  $ 71,969  $ 71,100  $ 296,800  $ 275,913 

(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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4Q 2024 Supplemental Information Package
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COPT Defense Properties
Diluted Share + Unit Computations
(in thousands, except per share data)

  Three Months Ended Years Ended
  12/31/24 9/30/24 6/30/24 3/31/24 12/31/23 12/31/24 12/31/23
EPS Denominator:          
Weighted average common shares - basic 112,347  112,314  112,293  112,231  112,199  112,296  112,178 
Dilutive effect of share-based compensation awards 711  696  492  509  432  603  — 
Dilutive exchangeable debt 664  —  —  —  —  —  — 
Weighted average common shares - diluted 113,722  113,010  112,785  112,740  112,631  112,899  112,178 
Diluted EPS $ 0.31  $ 0.32  $ 0.31  $ 0.29  $ 0.30  $ 1.23  $ (0.67)
Weighted Average Shares for period ended:              
Common shares 112,347  112,314  112,293  112,231  112,199  112,296  112,178 
Dilutive effect of share-based compensation awards 711  696  492  509  432  603  424 
Common units 1,664  1,696  1,703  1,625  1,514  1,672  1,509 
Redeemable noncontrolling interests —  —  926  947  —  842  38 
Dilutive exchangeable debt 664  —  —  —  —  —  — 
Denominator for diluted FFO per share and as adjusted for comparability 115,386  114,706  115,414  115,312  114,145  115,413  114,149 
Weighted average common units (1,664) (1,696) (1,703) (1,625) (1,514) (1,672) (1,509)
Redeemable noncontrolling interests —  —  (926) (947) —  (842) (38)
Dilutive effect of additional share-based compensation awards —  —  —  —  —  —  (424)
Denominator for diluted EPS 113,722  113,010  112,785  112,740  112,631  112,899  112,178 
Diluted FFO per share - Nareit (1) $ 0.64  $ 0.65  $ 0.64  $ 0.62  $ 0.62  $ 2.57  $ 2.41 
Diluted FFO per share - as adjusted for comparability (1) $ 0.65  $ 0.65  $ 0.64  $ 0.62  $ 0.62  $ 2.57  $ 2.42 
(1)Refer to the section entitled “Definitions” for a definition of this measure.
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4Q 2024 Supplemental Information Package
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COPT Defense Properties
Adjusted Funds from Operations
(in thousands)
  Three Months Ended Years Ended
  12/31/24 9/30/24 6/30/24 3/31/24 12/31/23 12/31/24 12/31/23
Diluted FFO available to common share and common unit holders, as adjusted for comparability (1) $ 74,473  $ 74,974  $ 74,360  $ 71,969  $ 71,100  $ 296,800  $ 275,913 
Straight line rent adjustments and lease incentive amortization 2,950  613  3,788  3,473  313  10,824  6,518 
Amortization of intangibles and other assets included in NOI 211  211  211  122  26  755  50 
Share-based compensation, net of amounts capitalized 2,617  2,617  2,564  2,645  2,318  10,443  8,544 
Amortization of deferred financing costs 671  671  681  685  681  2,708  2,580 
Amortization of net debt discounts, net of amounts capitalized 1,041  1,032  1,023  1,014  1,004  4,110  2,994 
Replacement capital expenditures (1) (34,134) (27,824) (21,250) (20,776) (21,498) (103,984) (93,494)
Other 73  298  58  137  336  566  (84)
Diluted AFFO available to common share and common unit holders (“diluted AFFO”) (1) $ 47,902  $ 52,592  $ 61,435  $ 59,269  $ 54,280  $ 222,222  $ 203,021 
Replacement capital expenditures (1)          
Tenant improvements and incentives $ 22,912  $ 18,772  $ 15,045  $ 12,776  $ 7,850  $ 69,505  $ 74,912 
Building improvements 10,942  6,694  5,705  4,953  14,762  28,294  25,976 
Leasing costs 2,629  3,013  3,110  3,590  2,440  12,342  9,634 
Net (exclusions from) additions to tenant improvements and incentives (7) 728  (1,040) 316  (189) (3) (12,170)
Excluded building improvements and leasing costs (2,342) (1,383) (1,570) (859) (3,365) (6,154) (4,858)
Replacement capital expenditures $ 34,134  $ 27,824  $ 21,250  $ 20,776  $ 21,498  $ 103,984  $ 93,494 
(1)Refer to the section entitled “Definitions” for a definition of this measure.
10
4Q 2024 Supplemental Information Package
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COPT Defense Properties
EBITDAre + Adjusted EBITDA
(in thousands)
  Three Months Ended Years Ended
  12/31/24 9/30/24 6/30/24 3/31/24 12/31/23 12/31/24 12/31/23
Net income (loss) $ 36,467  $ 37,397  $ 36,407  $ 33,671  $ 34,820  $ 143,942  $ (74,347)
Interest expense 20,391  20,376  20,617  20,767  20,383  82,151  71,142 
Income tax (benefit) expense (24) 130  14  168  121  288  588 
Real estate-related depreciation and amortization 38,821  38,307  38,161  38,351  36,735  153,640  148,950 
Other depreciation and amortization 589  614  564  608  619  2,375  2,445 
Impairment losses on real estate —  —  —  —  —  —  252,797 
Gain on sales of real estate —  —  —  —  —  —  (49,392)
Adjustments from unconsolidated real estate JVs 1,681  1,759  1,709  1,671  1,911  6,820  6,917 
EBITDAre (1) 97,925  98,583  97,472  95,236  94,589  389,216  359,100 
Credit loss (recoveries) expense (113) 38  436  22  (1,288) 383  (611)
Business development expenses 758  557  603  630  445  2,548  1,393 
Executive transition costs 58  69  81  430  188  638  824 
Net gain on other investments —  (11) —  (477) —  (488) (25)
Adjusted EBITDA (1) 98,628  99,236  98,592  95,841  93,934  $ 392,297  $ 360,681 
Pro forma NOI adjustment for property changes within period 528  —  —  813  1,341 
Change in collectability of deferred rental revenue 1,646  —  27  —  (198)
In-place adjusted EBITDA (1) $ 100,802  $ 99,236  $ 98,619  $ 96,654  $ 95,077 
(1)Refer to the section entitled “Definitions” for a definition of this measure.

11
4Q 2024 Supplemental Information Package
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COPT Defense Properties
Properties by Segment - 12/31/24
(square feet in thousands)
# of
Properties		 Operational
Square Feet		 % Occupied % Leased
Defense/IT Portfolio:
Fort Meade/Baltimore Washington (“BW”) Corridor:        
National Business Park 34  4,286  99.4% 99.5%
Howard County 36  3,063  92.4% 93.2%
Other 23  1,725  95.0% 95.7%
Total Fort Meade/BW Corridor 93  9,074  96.2% 96.7%
Northern Virginia (“NoVA”) Defense/IT 16  2,500  91.7% 93.6%
Lackland AFB (San Antonio, Texas) 9  1,143  93.0% 100.0%
Navy Support 22  1,271  82.6% 88.3%
Redstone Arsenal (Huntsville, Alabama) 24  2,475  94.5% 95.5%
Data Center Shells:
Consolidated Properties 7  1,633  100.0% 100.0%
Unconsolidated JV Properties (1) 24  4,295  100.0% 100.0%
Total Defense/IT Portfolio 195  22,391  95.6% 96.8%
Other 8  2,146  72.8% 78.2%
Total Portfolio 203  24,537  93.6% 95.1%
Consolidated Portfolio 179  20,242  92.2% 94.1%
(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
4Q 2024 Supplemental Information Package
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COPT Defense Properties
Consolidated Real Estate Revenues + NOI by Segment
(in thousands)
  Three Months Ended Years Ended
  12/31/24 9/30/24 6/30/24 3/31/24 12/31/23 12/31/24 12/31/23
Consolidated real estate revenues          
Defense/IT Portfolio:
Fort Meade/BW Corridor $ 78,572  $ 80,056  $ 77,715  $ 78,068  $ 74,758  $ 314,411  $ 290,061 
NoVA Defense/IT 21,924  22,083  20,601  21,426  20,410  86,034  80,413 
Lackland Air Force Base 18,100  16,879  16,447  16,411  17,861  67,837  67,254 
Navy Support 8,094  8,068  8,240  8,226  8,405  32,628  32,638 
Redstone Arsenal 17,160  18,332  17,017  16,808  14,971  69,317  55,131 
Data Center Shells-Consolidated 10,104  9,029  9,600  8,457  7,654  37,190  27,444 
Total Defense/IT Portfolio 153,954  154,447  149,620  149,396  144,059  607,417  552,941 
Other 17,452  18,116  17,465  17,267  17,503  70,300  71,862 
Consolidated real estate revenues (1) $ 171,406  $ 172,563  $ 167,085  $ 166,663  $ 161,562  $ 677,717  $ 624,803 
NOI from real estate operations (2)          
Defense/IT Portfolio:
Fort Meade/BW Corridor $ 51,900  $ 52,127  $ 53,078  $ 50,178  $ 48,894  $ 207,283  $ 190,273 
NoVA Defense/IT 13,309  12,831  11,671  12,164  11,972  49,975  48,820 
Lackland Air Force Base 7,576  7,719  7,650  7,723  7,708  30,668  30,638 
Navy Support 4,291  3,984  4,607  4,600  4,783  17,482  18,024 
Redstone Arsenal 10,951  11,869  11,296  11,016  10,157  45,132  35,983 
Data Center Shells:
Consolidated properties 8,568  7,475  7,509  7,514  6,966  31,066  24,741 
COPT Defense’s share of unconsolidated real estate JVs 1,898  1,844  1,735  1,740  1,671  7,217  6,659 
Total Defense/IT Portfolio 98,493  97,849  97,546  94,935  92,151  388,823  355,138 
Other 7,847  7,677  7,864  6,722  6,505  30,110  28,939 
NOI from real estate operations (1) $ 106,340  $ 105,526  $ 105,410  $ 101,657  $ 98,656  $ 418,933  $ 384,077 
(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
4Q 2024 Supplemental Information Package
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COPT Defense Properties
Cash NOI by Segment
(in thousands)
  Three Months Ended Years Ended
  12/31/24 9/30/24 6/30/24 3/31/24 12/31/23 12/31/24 12/31/23
Cash NOI from real estate operations (1)          
Defense/IT Portfolio:
Fort Meade/BW Corridor $ 51,731  $ 49,998  $ 51,017  $ 47,117  $ 46,173  $ 199,863  $ 181,075 
NoVA Defense/IT 13,308  13,223  12,452  12,933  12,881  51,916  49,711 
Lackland Air Force Base 8,194  8,218  8,124  8,186  8,114  32,722  31,861 
Navy Support 4,215  4,000  4,656  4,503  5,008  17,374  19,563 
Redstone Arsenal 8,554  9,730  9,034  6,308  4,869  33,626  18,425 
Data Center Shells:
Consolidated properties 6,783  6,739  6,748  6,688  5,868  26,958  21,069 
COPT Defense’s share of unconsolidated real estate JVs 1,611  1,565  1,481  1,477  1,400  6,134  5,532 
Total Defense/IT Portfolio 94,396  93,473  93,512  87,212  84,313  368,593  327,236 
Other 8,180  7,656  7,869  6,723  6,536  30,428  28,869 
Cash NOI from real estate operations (2) $ 102,576  $ 101,129  $ 101,381  $ 93,935  $ 90,849  $ 399,021  $ 356,105 
(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
4Q 2024 Supplemental Information Package
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COPT Defense Properties
NOI from Real Estate Operations + Occupancy by Property Grouping - 12/31/24
(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 Year Ended
Defense/IT Portfolio:
Same Property: (2)
Consolidated properties 160  16,527  95.6% 96.7% $ 575,655  83.8  % $ 89,246  $ 356,183 
Unconsolidated real estate JV 21  3,547  100.0% 100.0% 6,431  0.9  % 1,458  5,459 
Total Same Property in Defense/IT Portfolio 181  20,074  96.4% 97.3% 582,086  84.7  % 90,704  361,642 
Properties Placed in Service (4) 9  1,287  92.9% 93.4% 32,701  4.8  % 7,050  24,266 
Other unconsolidated JV properties (5) 3  748  100.0% 100.0% 1,422  0.2  % 441  1,724 
Acquired properties (6) 2  282  39.8% 68.3% 4,076  0.6  % 298  1,191 
Total Defense/IT Portfolio 195  22,391  95.6% 96.8% 620,285  90.3  % 98,493  388,823 
Other 8  2,146  72.8% 78.2% 66,559  9.7  % 7,847  30,110 
Total Portfolio 203  24,537  93.6% 95.1% $ 686,844  100.0  % $ 106,340  $ 418,933 
Consolidated Portfolio 179  20,242  92.2% 94.1% $ 678,991  98.9  % $ 104,442  $ 411,716 
(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
4Q 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 Years Ended
  12/31/24 9/30/24 6/30/24 3/31/24 12/31/23 12/31/24 12/31/23
Defense/IT Portfolio:
Fort Meade/BW Corridor 91  8,687  96.3  % 96.0  % 96.1  % 96.2  % 96.2  % 96.1  % 95.0  %
NoVA Defense/IT 16  2,500  91.1  % 90.7  % 88.5  % 87.9  % 88.5  % 89.5  % 89.7  %
Lackland Air Force Base 8  1,062  100.0  % 100.0  % 100.0  % 100.0  % 100.0  % 100.0  % 100.0  %
Navy Support 21  1,241  83.3  % 83.7  % 85.6  % 85.6  % 87.8  % 84.5  % 87.9  %
Redstone Arsenal 20  2,049  97.7  % 97.6  % 96.8  % 97.7  % 97.4  % 97.5  % 92.8  %
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  20,074  96.0  % 95.8  % 95.6  % 95.7  % 95.9  % 95.8  % 95.0  %
Other 8  2,146  72.8  % 73.1  % 72.9  % 72.0  % 73.9  % 72.7  % 75.7  %
Total Same Property 189  22,220  93.8  % 93.6  % 93.4  % 93.4  % 93.8  % 93.6  % 93.2  %

Same Property (1) Period End Occupancy Rates by Segment 
(square feet in thousands)
# of Properties Operational Square Feet
  12/31/24 9/30/24 6/30/24 3/31/24 12/31/23
Defense/IT Portfolio:
Fort Meade/BW Corridor 91  8,687  97.0  % 95.7  % 96.0  % 96.1  % 96.3  %
NoVA Defense/IT 16  2,500  91.7  % 90.5  % 89.2  % 88.2  % 88.9  %
Lackland Air Force Base 8  1,062  100.0  % 100.0  % 100.0  % 100.0  % 100.0  %
Navy Support 21  1,241  82.8  % 83.9  % 85.2  % 86.4  % 88.0  %
Redstone Arsenal 20  2,049  97.5  % 97.8  % 96.8  % 97.5  % 97.7  %
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  20,074  96.4  % 95.8  % 95.7  % 95.8  % 96.0  %
Other 8  2,146  72.8  % 73.4  % 73.4  % 72.5  % 73.2  %
Total Same Property 189  22,220  94.1  % 93.6  % 93.5  % 93.5  % 93.8  %
(1)Refer to the section entitled “Definitions” for a definition of this measure.
16
4Q 2024 Supplemental Information Package
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COPT Defense Properties
Same Property Real Estate Revenues + NOI by Segment
(in thousands)
  Three Months Ended Years Ended
  12/31/24 9/30/24 6/30/24 3/31/24 12/31/23 12/31/24 12/31/23
Same Property real estate revenues          
Defense/IT Portfolio:
Fort Meade/BW Corridor $ 75,813  $ 77,279  $ 74,921  $ 76,082  $ 74,008  $ 304,095  $ 289,304 
NoVA Defense/IT 21,924  22,084  20,600  21,426  20,411  86,034  80,413 
Lackland Air Force Base 18,098  16,879  16,447  16,411  17,860  67,835  67,254 
Navy Support 7,934  7,913  8,085  8,073  8,251  32,005  32,021 
Redstone Arsenal 13,937  15,214  14,317  14,311  13,861  57,779  53,493 
Data Center Shells-Consolidated 6,531  6,543  6,658  6,427  6,186  26,159  24,969 
Total Defense/IT Portfolio 144,237  145,912  141,028  142,730  140,577  573,907  547,454 
Other 15,240  16,069  15,446  15,262  15,500  62,017  64,207 
Same Property real estate revenues $ 159,477  $ 161,981  $ 156,474  $ 157,992  $ 156,077  $ 635,924  $ 611,661 
Same Property NOI from real estate operations (“NOI”)          
Defense/IT Portfolio:
Fort Meade/BW Corridor $ 49,805  $ 50,090  $ 50,953  $ 48,330  $ 48,239  $ 199,178  $ 189,618 
NoVA Defense/IT 13,309  12,832  11,670  12,164  11,972  49,975  48,820 
Lackland Air Force Base 7,740  7,724  7,650  7,723  7,708  30,837  30,638 
Navy Support 4,206  3,903  4,536  4,522  4,702  17,167  17,682 
Redstone Arsenal 8,660  9,661  9,281  9,321  9,148  36,923  34,629 
Data Center Shells:
Consolidated properties 5,526  5,523  5,527  5,527  5,538  22,103  22,374 
COPT Defense’s share of unconsolidated real estate JVs 1,458  1,405  1,295  1,301  1,233  5,459  4,946 
Total Defense/IT Portfolio 90,704  91,138  90,912  88,888  88,540  361,642  348,707 
Other 7,639  7,513  7,760  6,515  6,314  29,427  28,132 
Same Property NOI (1) $ 98,343  $ 98,651  $ 98,672  $ 95,403  $ 94,854  $ 391,069  $ 376,839 
(1)Refer to the section entitled “Supplementary Reconciliations of Non-GAAP Measures” for reconciliation.



17
4Q 2024 Supplemental Information Package
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COPT Defense Properties
Same Property Cash NOI by Segment
(dollars in thousands)
  Three Months Ended Years Ended
  12/31/24 9/30/24 6/30/24 3/31/24 12/31/23 12/31/24 12/31/23
Same Property cash NOI from real estate operations (“cash NOI”)          
Defense/IT Portfolio:
Fort Meade/BW Corridor $ 51,349  $ 49,676  $ 50,605  $ 47,052  $ 46,267  $ 198,682  $ 181,169 
NoVA Defense/IT 13,308  13,223  12,452  12,933  12,882  51,916  49,711 
Lackland Air Force Base 8,358  8,223  8,124  8,186  8,114  32,891  31,861 
Navy Support 4,139  3,922  4,589  4,429  4,932  17,079  19,242 
Redstone Arsenal 7,101  8,353  7,962  6,412  4,966  29,828  18,705 
Data Center Shells:
Consolidated properties 5,035  5,029  5,013  4,984  4,960  20,061  19,844 
COPT Defense’s share of unconsolidated real estate JVs 1,312  1,268  1,185  1,183  1,108  4,948  4,401 
Total Defense/IT Portfolio 90,602  89,694  89,930  85,179  83,229  355,405  324,933 
Other 7,883  7,410  7,684  6,440  6,264  29,417  27,733 
Same Property cash NOI (1) $ 98,485  $ 97,104  $ 97,614  $ 91,619  $ 89,493  $ 384,822  $ 352,666 
Percentage change in total Same Property cash NOI (1)(2) 10.0% 9.1%
Percentage change in Defense/IT Portfolio Same Property cash NOI (2) 8.9% 9.4%

(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
4Q 2024 Supplemental Information Package
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COPT Defense Properties
Leasing (1)(2)
Three Months Ended 12/31/24
(square feet in thousands)
Defense/IT Portfolio
  Ft Meade/BW Corridor NoVA Defense/IT Navy Support Redstone Arsenal Total Defense/IT Portfolio Other  Total
Renewed Space        
Leased Square Feet 392  39  69  38  538  23  561 
Expiring Square Feet 400  39  81  40  561  43  604 
Vacating Square Feet 9  —  12  2  23  20  42 
Retention Rate (% based upon square feet) 97.8  % 100.0  % 85.2  % 95.0  % 95.9  % 54.2  % 93.0  %
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot $ 3.03  $ 5.37  $ 0.29  $ 0.50  $ 2.66  $ 8.69  $ 2.91 
Weighted Average Lease Term in Years 3.6  2.3  2.9  3.0  3.4  6.1  3.5 
Straight-line Rent Per Square Foot
Renewal Straight-line Rent $ 32.87  $ 37.00  $ 17.20  $ 26.59  $ 30.70  $ 33.78  $ 30.83 
Expiring Straight-line Rent $ 31.55  $ 32.47  $ 16.11  $ 22.21  $ 28.97  $ 35.11  $ 29.22 
Change in Straight-line Rent 4.2  % 14.0  % 6.8  % 19.7  % 6.0  % (3.8  %) 5.5  %
Cash Rent Per Square Foot
Renewal Cash Rent $ 33.33  $ 37.07  $ 17.24  $ 25.97  $ 31.00  $ 35.61  $ 31.19 
Expiring Cash Rent $ 33.43  $ 36.58  $ 16.73  $ 25.96  $ 30.98  $ 37.93  $ 31.26 
Change in Cash Rent (0.3  %) 1.3  % 3.0  % —  % 0.1  % (6.1  %) (0.2  %)
Compound Annual Growth Rate 4.6  % 3.4  % 2.9  % 3.6  % 4.2  % 0.1  % 4.0  %
Average Escalations Per Year 2.7  % 2.5  % 2.6  % 2.5  % 2.7  % 2.6  % 2.7  %
New Leases
Investment Space (3)
Leased Square Feet —  —  —  34  34  —  34 
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot $ —  $ —  $ —  $ 6.02  $ 6.02  $ —  $ 6.02 
Weighted Average Lease Term in Years —  —  —  5.9  5.9  —  5.9 
Straight-line Rent Per Square Foot $ —  $ —  $ —  $ 25.42  $ 25.42  $ —  $ 25.42 
Cash Rent Per Square Foot $ —  $ —  $ —  $ 25.54  $ 25.54  $ —  $ 25.54 
Vacant Space
Leased Square Feet 36  17  16  —  69  45  114 
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot $ 7.10  $ 11.57  $ 10.13  $ —  $ 8.91  $ 6.58  $ 7.99 
Weighted Average Lease Term in Years 6.1  9.9  3.7  —  6.5  8.9  7.4 
Straight-line Rent Per Square Foot $ 27.08  $ 36.70  $ 34.34  $ —  $ 31.13  $ 26.99  $ 29.50 
Cash Rent Per Square Foot $ 28.17  $ 33.42  $ 33.91  $ —  $ 30.80  $ 25.26  $ 28.62 
Total Square Feet Leased 428  56  85  72  641  68  709 
Average Escalations Per Year 2.7  % 2.8  % 2.7  % 2.5  % 2.7  % 3.1  % 2.8  %
Average Escalations Excl. Data Center Shells 2.8  %
(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
4Q 2024 Supplemental Information Package
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COPT Defense Properties
Leasing (1)(2)
Year Ended 12/31/24
(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 1,533  443  —  330  171  43  2,519  101  2,620 
Expiring Square Feet 1,681  473  —  447  198  43  2,842  204  3,045 
Vacating Square Feet 148  30  —  117  27  —  323  103  426 
Retention Rate (% based upon square feet) 91.2  % 93.6  % —  % 73.8  % 86.2  % 100.0  % 88.6  % 49.4  % 86.0  %
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot $ 2.72  $ 3.69  $ —  $ 1.53  $ 2.79  $ 0.56  $ 2.70  $ 5.11  $ 2.79 
Weighted Average Lease Term in Years 3.9  3.9  —  3.1  2.8  5.0  3.8  7.4  3.9 
Straight-line Rent Per Square Foot
Renewal Straight-line Rent $ 37.70  $ 40.00  $ —  $ 24.08  $ 26.55  $ 34.64  $ 35.52  $ 34.20  $ 35.47 
Expiring Straight-line Rent $ 34.40  $ 39.54  $ —  $ 21.94  $ 24.25  $ 13.15  $ 32.62  $ 33.87  $ 32.67 
Change in Straight-line Rent 9.6  % 1.2  % —  % 9.8  % 9.5  % 163.4  % 8.9  % 1.0  % 8.6  %
Cash Rent Per Square Foot
Renewal Cash Rent $ 37.18  $ 40.71  $ —  $ 24.21  $ 26.08  $ 33.01  $ 35.28  $ 34.63  $ 35.26 
Expiring Cash Rent $ 36.95  $ 41.46  $ —  $ 24.05  $ 25.88  $ 14.36  $ 34.92  $ 38.11  $ 35.04 
Change in Cash Rent 0.6  % (1.8  %) —  % 0.7  % 0.8  % 129.9  % 1.0  % (9.1  %) 0.6  %
Compound Annual Growth Rate 3.1  % 2.4  % —  % 1.1  % 2.0  % 11.7  % 2.8  % 1.6  % 2.7  %
Average Escalations Per Year 2.6  % 1.8  % —  % 2.5  % 2.5  % 3.0  % 2.5  % 1.9  % 2.4  %
New Leases
Investment Space (3)
Leased Square Feet —  —  80  —  43  —  124  —  124 
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot $ —  $ —  $ 4.21  $ —  $ 5.35  $ —  $ 4.61  $ —  $ 4.61 
Weighted Average Lease Term in Years —  —  9.5  —  5.7  —  8.2  —  8.2 
Straight-line Rent Per Square Foot $ —  $ —  $ 47.80  $ —  $ 25.05  $ —  $ 39.82  $ —  $ 39.82 
Cash Rent Per Square Foot $ —  $ —  $ 44.32  $ —  $ 25.07  $ —  $ 37.57  $ —  $ 37.57 
Vacant Space
Leased Square Feet 184  79  —  103  22  —  388  113  500 
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot $ 7.33  $ 11.37  $ —  $ 24.88  $ 7.61  $ —  $ 12.81  $ 7.40  $ 11.60 
Weighted Average Lease Term in Years 8.1  8.0  —  5.0  5.1  —  7.1  9.9  7.7 
Straight-line Rent Per Square Foot $ 31.57  $ 33.98  $ —  $ 47.64  $ 28.76  $ —  $ 36.15  $ 36.63  $ 36.26 
Cash Rent Per Square Foot $ 30.75  $ 33.43  $ —  $ 47.27  $ 27.63  $ —  $ 35.49  $ 34.35  $ 35.23 
Total Square Feet Leased 1,717  522  80  433  236  43  3,031  214  3,244 
Average Escalations Per Year 2.6  % 2.1  % 3.0  % 2.3  % 2.5  % 3.0  % 2.5  % 2.5  % 2.5  %
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
4Q 2024 Supplemental Information Package
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COPT Defense Properties
Lease Expiration Analysis as of 12/31/24 (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 1,671  $ 69,386  11.2  % $ 41.49 
NoVA Defense/IT 69  2,383  0.4  % 34.31 
Lackland Air Force Base 703  46,207  7.4  % 65.76 
Navy Support 166  4,344  0.7  % 26.22 
Redstone Arsenal 228  5,406  0.9  % 23.72 
2025 2,837  127,726  20.6  % 45.00 
Ft Meade/BW Corridor 1,027  40,990  6.6  % 39.91 
NoVA Defense/IT 68  2,382  0.4  % 35.06 
Lackland Air Force Base 250  12,793  2.1  % 51.17 
Navy Support 244  7,527  1.2  % 30.89 
Redstone Arsenal 105  2,688  0.4  % 25.54 
Data Center Shells-Unconsolidated JV Properties 446  852  0.1  % 19.11 
2026 2,140  67,231  10.8  % 38.67 
Ft Meade/BW Corridor 955  37,445  6.0  % 39.18 
NoVA Defense/IT 190  6,519  1.1  % 34.26 
Navy Support 264  9,612  1.5  % 36.42 
Redstone Arsenal 171  4,714  0.8  % 27.52 
Data Center Shells-Unconsolidated JV Properties 364  527  0.1  % 14.48 
2027 1,944  58,817  9.5  % 36.36 
Ft Meade/BW Corridor 1,832  65,945  10.6  % 35.93 
NoVA Defense/IT 408  16,864  2.7  % 41.29 
Navy Support 113  2,685  0.4  % 23.69 
Redstone Arsenal 38  1,039  0.2  % 27.18 
Data Center Shells-Unconsolidated JV Properties 515  889  0.1  % 17.25 
2028 2,906  87,423  14.1  % 35.73 
Ft Meade/BW Corridor 930  30,177  4.9  % 32.41 
NoVA Defense/IT 655  25,414  4.1  % 38.77 
Navy Support 91  2,724  0.4  % 30.10 
Redstone Arsenal 374  7,507  1.2  % 19.97 
Data Center Shells-Unconsolidated JV Properties 992  2,286  0.4  % 23.05 
2029 3,042  68,108  11.0  % 31.66 
Thereafter
Consolidated Properties 6,552  207,680  33.5  % 30.87 
Unconsolidated JV Properties 1,978  3,300  0.5  % 16.68 
Total Defense/IT Portfolio 21,399  $ 620,285  100.0  % $ 35.05 

21
4Q 2024 Supplemental Information Package
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COPT Defense Properties
Lease Expiration Analysis as of 12/31/24 (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 21,399  $ 620,285  90.3  % $ 35.05 
Other
         2025 144  3,857  0.6  % 26.75 
         2026 168  6,165  0.9  % 36.72 
         2027 116  4,330  0.6  % 37.00 
         2028 249  15,185  2.2  % 37.01 
         2029 177  6,718  1.0  % 37.90 
Thereafter 708  30,304  4.4  % 42.75 
Total Other 1,562  66,559  9.7  % 38.74 
Total Portfolio 22,961  $ 686,844  100.0  % $ 35.35 
Consolidated Portfolio 18,666  $ 678,991 
Unconsolidated JV Properties 4,295  $ 7,853 
Note: As of 12/31/24, the weighted average lease term was 5.2 years for the total portfolio and 5.1 years for both the Defense/IT and 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 12/31/24. 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
4Q 2024 Supplemental Information Package
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COPT Defense Properties
2025 Defense/IT Portfolio Quarterly Lease Expiration Analysis as of 12/31/24 (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 848  $ 38,258  6.2  % $ 45.09 
NoVA Defense/IT 6  198  —  % 34.95 
Navy Support 17  350  0.1  % 21.10 
Redstone Arsenal 6  173  —  % 27.90 
Q1 2025 877  38,979  6.3  % 44.45 
Ft Meade/BW Corridor 72  2,168  0.3  % 29.99 
NoVA Defense/IT 23  710  0.1  % 30.28 
Navy Support 75  2,083  0.3  % 27.78 
Redstone Arsenal 3  74  —  % 27.58 
Q2 2025 173  5,035  0.7  % 29.03 
Ft Meade/BW Corridor 401  16,288  2.6  % 40.57 
NoVA Defense/IT 2  72  —  % 35.53 
Lackland Air Force Base 161  7,686  1.2  % 47.87 
Navy Support 23  597  0.1  % 25.99 
Redstone Arsenal 185  4,197  0.7  % 22.73 
Q3 2025 772  28,840  4.6  % 37.37 
Ft Meade/BW Corridor 350  12,671  2.0  % 36.17 
NoVA Defense/IT 38  1,403  0.2  % 36.61 
Lackland Air Force Base 542  38,521  6.2  % 71.05 
Navy Support 51  1,314  0.2  % 25.71 
Redstone Arsenal 34  963  0.2  % 27.97 
Q4 2025 1,015  54,872  8.8  % 54.00 
2,837  $ 127,726  20.6  % $ 45.00 
(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 12/31/24.
(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
4Q 2024 Supplemental Information Package
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COPT Defense Properties
Top 20 Tenants as of 12/31/24 (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) $ 246,781  35.9  % 5,558  3.3 
Fortune 100 Company 67,119  9.8  % 6,407  7.7 
General Dynamics Corporation 33,012  4.8  % 702  3.2 
Northrop Grumman Corporation 15,217  2.2  % 519  6.8 
The Boeing Company 14,591  2.1  % 443  2.3 
CACI International Inc   14,280  2.1  % 350  3.7 
Peraton Corp.   13,602  2.0  % 346  4.7 
Booz Allen Hamilton, Inc.   12,233  1.8  % 297  1.6 
Fortune 100 Company   12,003  1.7  % 183  9.8 
Morrison & Foerster, LLP   9,631  1.4  % 102  12.3 
CareFirst, Inc. 9,273  1.4  % 264  9.7 
KBR, Inc.   7,791  1.1  % 287  9.0 
Amentum Holdings, LLC   7,282  1.1  % 202  4.3 
Yulista Holding, LLC   7,193  1.0  % 368  5.0 
AT&T Corporation   6,912  1.0  % 321  4.8 
Mantech International Corp.   6,716  1.0  % 208  2.4 
University System of Maryland   6,389  0.9  % 179  5.0 
Wells Fargo & Company   5,855  0.9  % 138  4.0 
Lockheed Martin Corporation   5,750  0.8  % 194  5.6 
Miles & Stockbridge, P.C.   5,440  0.8  % 130  3.9 
Subtotal Top 20 Tenants   507,070  73.8  % 17,198  5.5 
All remaining tenants   179,774  26.2  % 5,763  4.3 
Total / Weighted Average   $ 686,844  100.0  % 22,961  5.2 

(1)For properties owned through unconsolidated real estate JVs, includes COPT Defense’s share of those properties’ ARR of $7.9 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 12/31/24, $6.2 million of our ARR was through the General Services Administration (GSA), representing 2.5% of our ARR from the United States Government and 0.9% of our total ARR.






24
4Q 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 12/31/24
 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 12/31/24
 2 282  $ 32 


25
4Q 2024 Supplemental Information Package
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COPT Defense Properties
Summary of Development Projects as of 12/31/24 (1)
(dollars and square feet in thousands) 
Total Rentable Square Feet
% Leased as of 12/31/24
as of 12/31/24 (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  $ 41,546  $ —  2Q 25 2Q 26
Redstone Arsenal:
9700 Advanced Gateway Huntsville, Alabama 50  73% 11,038  7,121  —  1Q 25 1Q 26
Data Center Shells:
MP 3 Northern Virginia 225  100% 111,800  12,172  —  3Q 25 3Q 25
Southpoint Phase 2 Bldg B Northern Virginia 193  100% 65,000  6,602  —  4Q 25 4Q 25
Data Center Shells Subtotal / Average 418  100% 176,800  18,774  — 
Total Defense/IT Portfolio Under Development 606  75% $ 252,938  $ 67,441  $ —     
(1)Includes properties under, or contractually committed for, development as of 12/31/24.
(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
4Q 2024 Supplemental Information Package
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COPT Defense Properties
Development Placed in Service as of 12/31/24
(square feet in thousands)
 
Square Feet Placed in Service
Total Space Placed in Service % Leased as of 12/31/24
Total Property
Property Segment/Sub-Segment
% Leased as of 12/31/24
 Rentable Square Feet 2024
Property and Location 1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Total 2024
5300 Redstone Gateway
Huntsville, Alabama
 Redstone Arsenal 100% 46  46  —  —  —  46  100%
8100 Rideout Road
Huntsville, Alabama
 Redstone Arsenal 47% 128  27  —  101  —  128  47%
Southpoint Phase 2 Bldg A
   Northern Virginia
 Data Center Shells 100% 225  —  —  —  225  225  100%
Total Development Placed in Service 83% 399  73  —  101  225  399  83%
% Leased as of 12/31/24
 100% N/A 33% 100% 83%

27
4Q 2024 Supplemental Information Package
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COPT Defense Properties
Summary of Land Owned/Controlled as of 12/31/24 (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 365 3,300
Total Defense/IT Portfolio land owned/controlled for future development 1,016 10,996 $ 200,054 
Other land owned/controlled 53   1,538 9,653 
Land held, net 1,069 12,534 $ 209,707 

(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.
28
4Q 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 12/31/24
Debt
Secured debt 1.1 4.91  % 3.18  % $ 69,756 
Unsecured debt 4.8 3.19  % 3.34  % 2,345,261 
Total Consolidated Debt 4.7 3.24  % 3.33  % $ 2,415,017 
Fixed-rate debt (3) 4.9 2.96  % 3.33  % $ 2,415,017 
Variable-rate debt (3) 2.7 5.90  % N/A — 
Total Consolidated Debt $ 2,415,017 
Common Equity
Common Shares 112,703 
Common Units (4) 2,113 
Total Common Shares and Units 114,816 
Closing Common Share Price on 12/31/24
 $ 30.95 
Equity Market Capitalization (5) $ 3,553,555 
Total Market Capitalization (5) $ 5,968,572 
(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 $232.6 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 12/31/24.
(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 1/15/25
Moody’s Baa3 Positive 11/14/24
S&P BBB- Stable 5/9/24
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29
4Q 2024 Supplemental Information Package
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COPT Defense Properties
Summary of Outstanding Debt as of 12/31/24
(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%		 $ 22,175  $ 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% 37,181  $ 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%		 10,400  $ 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 4.91% $ 69,756 
Unsecured Bank Term Loans
2026 Maturity SOFR+
0.10%+1.30%		 $ 125,000  Jan-26 (2)(6)
Other Unsecured Debt 0.00% 261  May-26
Total Unsecured Debt 3.19% $ 2,345,261 
Debt Summary
Total Unsecured Debt 3.19% $ 2,345,261 
Total Secured Debt 4.91% 69,756 
Consolidated Debt 3.24% $ 2,415,017 
Debt per balance sheet $ 2,391,755 
Net discounts and deferred financing costs 23,262 
Consolidated Debt 2,415,017 
COPT Defense’s share of unconsolidated JV gross debt (7) 53,750 
Gross debt $ 2,468,767 
(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
4Q 2024 Supplemental Information Package
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COPT Defense Properties
Summary of Outstanding Debt as of 12/31/24 (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 $232.6 million that hedge the risk of changes in interest rates on variable-rate debt.
31
4Q 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
12/31/24
As of and for Three Months Ended
12/31/24
Senior Note Covenants (1) Required Line of Credit & Term Loan Covenants (1)(2) Required
Total Debt / Total Assets < 60% 41.2% Total Debt / Total Assets < 60% 36.7%
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% 242.9% Unsecured Debt / Unencumbered Assets < 60% 36.6%
Unencumbered Adjusted NOI / Unsecured Interest Expense > 1.75x 4.9x
Debt Ratios Page Refer. Unencumbered Portfolio Analysis
GAAP # of unencumbered properties 178 
Debt per balance sheet 6 $ 2,391,755  % of total portfolio 88  %
Total assets 6 $ 4,254,191  Unencumbered square feet in-service 20,888 
Debt to assets 56.2  % % of total portfolio 85  %
Net income 7 $ 36,467  NOI from unencumbered real estate operations $ 103,053 
Debt to net income ratio (2) 16.4  x % of total NOI from real estate operations 97  %
Interest expense 7 $ 20,391  Adjusted EBITDA from unencumbered real estate operations $ 95,342 
Net income to interest expense ratio (2) 1.8  x % of total adjusted EBITDA from real estate operations 97  %
Unencumbered adjusted book $ 5,802,814 
Non-GAAP % of total adjusted book 97  %
Net debt 37 $ 2,428,430 
Adjusted book 37 $ 6,003,781 
Net debt to adjusted book 40.4  %
Net debt adj. for fully-leased investment properties 37 $ 2,392,622 
In-place adjusted EBITDA 11 $ 100,802 
Net debt to in-place adjusted EBITDA ratio 6.0  x
Net debt adj. for fully-leased investment properties to in-place adj. EBITDA ratio 5.9  x
Denominator for debt service coverage 36 $ 20,006 
Denominator for fixed charge coverage 36 $ 20,934 
Adjusted EBITDA 11 $ 98,628 
Adjusted EBITDA debt service coverage ratio 4.9  x
Adjusted EBITDA fixed charge coverage ratio 4.7  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
4Q 2024 Supplemental Information Package
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COPT Defense Properties
Consolidated Real Estate Joint Ventures as of 12/31/24
(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 Year Ended Total Assets (2)
Suburban Maryland:            
M Square Associates, LLC (4 properties)
 414  95.5% 95.5% $ 1,939  $ 7,166  $ 92,017  $ 47,581  50%
Huntsville, Alabama:
LW Redstone Company, LLC (23 properties)
 2,338  95.5% 96.0% 10,455  43,435  621,372  22,175  85% (4)
Washington, D.C.:
Stevens Place (1 property)
 188  61.9% 92.2% 1,294  5,362  133,576  —  95%
Total / Average 2,940  93.4% 95.7% $ 13,688  $ 55,963  $ 846,965  $ 69,756 
 
        
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  $ 5,924  $ —  50%
Huntsville, Alabama:        
Redstone Gateway (5) 3,400  110,729  —  85% (3)
Total 3,748  $ 116,653  $ —   
 
(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 $69.2 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.
33
4Q 2024 Supplemental Information Package
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COPT Defense Properties
Unconsolidated Real Estate Joint Ventures as of 12/31/24 (1)
(dollars and square feet in thousands) 
Joint venture information
COPT Defense ownership %
 10  %
COPT Defense’s investment
 $ 35,951  (2)
# of Properties 24 
Square Feet 4,295 
% Occupied 100  %
COPT Defense’s share of ARR $ 7,853 
Balance sheet information Total COPT Defense’s Share (4)
Operating properties, net $ 938,038  $ 93,804 
Total assets $ 1,038,423  $ 103,842 
Debt (3) $ 535,975  $ 53,598 
Total liabilities $ 612,943  $ 61,294 
Three Months Ended Year Ended
Operating information Total COPT Defense’s Share (4) Total COPT Defense’s Share (4)
Revenue $ 22,404  $ 2,240  $ 85,998  $ 8,600 
Operating expenses (3,426) (342) (13,832) (1,383)
NOI from real estate operations and EBITDAre (5) 18,978  1,898  72,166  7,217 
Interest expense (9,356) (936) (37,640) (3,764)
Depreciation and amortization (7,915) (745) (32,412) (3,056)
Net income $ 1,707  $ 217  $ 2,114  $ 397 
NOI from real estate operations (per above) (5) $ 18,978  $ 1,898  $ 72,166  $ 7,217 
Straight line rent adjustments (1,018) (102) (3,099) (310)
Amortization of acquired above- and below-market rents (1,855) (185) (7,731) (773)
Cash NOI from real estate operations (5) $ 16,105  $ 1,611  $ 61,336  $ 6,134 
(1)Includes equity method investments in five JVs that own and operate data center shell properties.
(2)Includes $39.4 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 two 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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Supplementary Reconciliations of Non-GAAP Measures
(in thousands)
  Three Months Ended Years Ended
  12/31/24 9/30/24 6/30/24 3/31/24 12/31/23 12/31/24 12/31/23
Net income (loss) $ 36,467  $ 37,397  $ 36,407  $ 33,671  $ 34,820  $ 143,942  $ (74,347)
Construction contract and other service revenues (12,027) (16,662) (20,258) (26,603) (18,167) (75,550) (60,179)
Depreciation and other amortization associated with real estate operations 38,821  38,307  38,161  38,351  36,735  153,640  148,950 
Construction contract and other service expenses 11,519  16,127  19,612  26,007  17,167  73,265  57,416 
Impairment losses —  —  —  —  —  —  252,797 
General and administrative expenses 8,429  8,157  8,591  8,378  8,240  33,555  31,105 
Leasing expenses 2,243  2,341  2,462  2,187  2,308  9,233  8,932 
Business development expenses and land carry costs 1,171  918  979  1,182  797  4,250  2,732 
Interest expense 20,391  20,376  20,617  20,767  20,383  82,151  71,142 
Interest and other income, net (2,331) (3,324) (2,884) (4,122) (5,659) (12,661) (12,587)
Gain on sales of real estate —  —  —  —  —  —  (49,392)
Equity in (income) loss of unconsolidated entities (217) (85) (26) (69) 240  (397) 261 
Unconsolidated real estate JVs NOI allocable to COPT Defense included in equity in income (loss) of unconsolidated entities (1) 1,898  1,844  1,735  1,740  1,671  7,217  6,659 
Income tax (benefit) expense (24) 130  14  168  121  288  588 
NOI from real estate operations 106,340  105,526  105,410  101,657  98,656  418,933  384,077 
Straight line rent adjustments and lease incentive amortization 3,437  1,017  4,213  3,632  703  12,299  7,231 
Amortization of acquired above- and below-market rents 65  64  64  (24) (121) 169  (536)
Amortization of intangibles and other assets to property operating expenses 146  147  146  147  146  586  586 
Lease termination fees, net (865) (931) (880) (775) (716) (3,451) (3,744)
Tenant funded landlord assets and lease incentives (6,260) (4,415) (7,318) (10,439) (7,548) (28,432) (30,382)
Cash NOI adjustments in unconsolidated real estate JVs (287) (279) (254) (263) (271) (1,083) (1,127)
Cash NOI from real estate operations $ 102,576  $ 101,129  $ 101,381  $ 93,935  $ 90,849  $ 399,021  $ 356,105 
NOI from real estate operations (from above) $ 106,340  $ 105,526  $ 105,410  $ 101,657  $ 98,656  $ 418,933  $ 384,077 
Non-Same Property NOI from real estate operations (7,997) (6,875) (6,738) (6,254) (3,802) (27,864) (7,238)
Same Property NOI from real estate operations 98,343  98,651  98,672  95,403  94,854  391,069  376,839 
Straight line rent adjustments and lease incentive amortization 7,093  1,531  2,501  5,367  3,142  16,492  7,030 
Amortization of acquired above- and below-market rents (69) (69) (69) (69) (121) (276) (536)
Lease termination fees, net (864) (931) (881) (775) (717) (3,451) (3,745)
Tenant funded landlord assets and lease incentives (5,871) (1,942) (2,498) (8,190) (7,541) (18,501) (26,378)
Cash NOI adjustments in unconsolidated real estate JVs (147) (136) (111) (117) (124) (511) (544)
Same Property Cash NOI from real estate operations $ 98,485  $ 97,104  $ 97,614  $ 91,619  $ 89,493  $ 384,822  $ 352,666 
(1)See page 34 for additional disclosure regarding our unconsolidated real estate JVs.
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4Q 2024 Supplemental Information Package
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Supplementary Reconciliations of Non-GAAP Measures (continued)
(in thousands)
  Three Months Ended Years Ended
  12/31/24 9/30/24 6/30/24 3/31/24 12/31/23 12/31/24 12/31/23
Real estate revenues
Lease revenue
Fixed contractual payments $ 130,543  $ 129,357  $ 127,363  $ 126,198  $ 123,677  $ 513,461  $ 478,585 
Variable lease payments (1) 39,222  41,192  38,256  39,235  36,660  157,905  141,262 
Lease revenue 169,765  170,549  165,619  165,433  160,337  671,366  619,847 
Other property revenue 1,641  2,014  1,466  1,230  1,225  6,351  4,956 
Real estate revenues $ 171,406  $ 172,563  $ 167,085  $ 166,663  $ 161,562  $ 677,717  $ 624,803 
Provision for credit losses (recoveries) on billed lease revenue $ 1,604  $ 25  $ (24) $ (109) $ 498  $ 1,496  $ 584 
Total revenues $ 183,433  $ 189,225  $ 187,343  $ 193,266  $ 179,729  $ 753,267  $ 684,982 
Construction contract and other service revenues (12,027) (16,662) (20,258) (26,603) (18,167) (75,550) (60,179)
Real estate revenues $ 171,406  $ 172,563  $ 167,085  $ 166,663  $ 161,562  $ 677,717  $ 624,803 
Total interest expense $ 20,391  $ 20,376  $ 20,617  $ 20,767  $ 20,383  $ 82,151  $ 71,142 
Less: Amortization of deferred financing costs (671) (671) (681) (685) (681) (2,708) (2,580)
Less: Amortization of net debt discounts, net of amounts capitalized (1,041) (1,032) (1,023) (1,014) (1,004) (4,110) (2,994)
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 872  821  808  804  819  3,305  3,188 
Denominator for interest coverage 19,551  19,494  19,721  19,872  19,517  78,638  68,756 
Scheduled principal amortization 455  448  662  769  763  2,334  3,052 
Denominator for debt service coverage 20,006  19,942  20,383  20,641  20,280  80,972  71,808 
Capitalized interest 928  712  643  589  1,028  2,872  4,479 
Denominator for fixed charge coverage $ 20,934  $ 20,654  $ 21,026  $ 21,230  $ 21,308  $ 83,844  $ 76,287 
Dividends on unrestricted common and deferred shares $ 33,167  $ 33,165  $ 33,153  $ 33,143  $ 31,998  $ 132,628  $ 127,978 
Distributions on unrestricted common units 491  491  505  500  430  1,987  1,725 
Dividends and distributions on restricted shares and units 248  247  238  267  209  1,000  828 
Total dividends and distributions for GAAP payout ratio 33,906  33,903  33,896  33,910  32,637  135,615  130,531 
Dividends and distributions on antidilutive shares and units (250) (249) (241) (266) (212) (1,006) (835)
Dividends and distributions for non-GAAP payout ratios $ 33,656  $ 33,654  $ 33,655  $ 33,644  $ 32,425  $ 134,609  $ 129,696 
(1)Represents primarily lease revenue associated with property operating expense reimbursements from tenants.
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Supplementary Reconciliations of Non-GAAP Measures (continued)
(in thousands)
12/31/24 9/30/24 6/30/24 3/31/24 12/31/23
Total assets $ 4,254,191  $ 4,234,302  $ 4,219,338  $ 4,232,895  $ 4,246,966 
Accumulated depreciation 1,537,293  1,502,730  1,468,595  1,434,621  1,400,162 
Accumulated amortization of intangibles on property acquisitions and deferred leasing costs 228,154  227,281  226,739  225,443  228,484 
COPT Defense’s share of liabilities of unconsolidated real estate JVs 61,294  61,118  60,922  60,904  60,583 
COPT Defense’s share of accumulated depreciation and amortization of unconsolidated real estate JVs 12,817  12,014  11,199  10,364  9,528 
Less: Property - operating lease liabilities (49,240) (33,615) (33,818) (33,141) (33,931)
Less: Property - finance lease liabilities (391) (397) (403) (409) (415)
Less: Cash and cash equivalents (38,284) (34,478) (100,443) (123,144) (167,820)
Less: COPT Defense’s share of cash of unconsolidated real estate JVs (2,053) (1,575) (1,278) (1,159) (852)
Adjusted book $ 6,003,781  $ 5,967,380  $ 5,850,851  $ 5,806,374  $ 5,742,705 
Gross debt (page 30)
$ 2,468,767  $ 2,468,620  $ 2,468,901  $ 2,497,050  $ 2,497,613 
Less: Cash and cash equivalents (38,284) (34,478) (100,443) (123,144) (167,820)
Less: COPT Defense’s share of cash of unconsolidated real estate JVs (2,053) (1,575) (1,278) (1,159) (852)
Net debt 2,428,430  2,432,567  2,367,180  2,372,747  2,328,941 
Costs incurred on fully-leased development properties (18,774) (70,954) (56,646) (43,034) (53,914)
Costs incurred on fully-leased operating property acquisitions (17,034) (17,034) —  —  — 
Net debt adjusted for fully-leased investment properties $ 2,392,622  $ 2,344,579  $ 2,310,534  $ 2,329,713  $ 2,275,027 

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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 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
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COPT Defense Properties
Definitions
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 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
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Definitions
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 that debt reported on our consolidated balance sheet is the most directly comparable GAAP measure to this non-GAAP measure.

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Definitions
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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4Q 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. In instances in which we report ARR per occupied square foot, the measure excludes revenue from leases not associated with our buildings.
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
4Q 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 Full Year 2024 Results
_______________________________________________________________

EPS of $1.23 for Full Year
FFO per Share, as Adjusted for Comparability, of $2.57
Increased 6.2% Over 2023 Results

Total Portfolio 93.6% Occupied and 95.1% Leased
Defense/IT Portfolio 95.6% Occupied and 96.8% Leased

For the year, Same Property Cash NOI Increased 9.1%
The Company’s Highest Increase Ever Reported
_______________________________________________________________

Exceeded Leasing Goals in 2024
Total Leasing of 3.2 million SF

500,000 SF of Vacancy Leasing
Exceeded Annual Target of 400,000 SF

Tenant Retention of 86%
Highest Annual Retention Rate in Over 20 Years
_______________________________________________________________

Solid Investment Activity
Committed $212 million of Capital to New Investments
124,000 SF of Investment Leasing
_______________________________________________________________


COLUMBIA, MD (BUSINESS WIRE) February 6, 2025 - COPT Defense Properties (“COPT Defense” or the “Company”) (NYSE: CDP) announced results for the fourth quarter and full year ended December 31, 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 excellent results in 2024. The success of our differentiated strategy is evident in our occupancy rate of 93.6%, which is roughly 700 basis points higher than the Office sector, while occupancy in our Defense/IT Portfolio is even higher at 95.6%. We generated FFO per share growth of 6.2%, our second highest annual growth rate since 2015, which was driven by record performance in our Same Property portfolio, placing highly leased developments into service, and achieving our highest tenant retention rate in over 20 years of 86%.

We achieved a milestone in 2024 as we executed on our first acquisitions since 2015. We leveraged our investment-grade rated balance sheet to execute on several strategic and opportunistic investments, which serve to strengthen our relationship with the U.S. Government and top defense contractors, and will be accretive to shareholder value. The operating assets were acquired at significant discounts to replacement cost and provide strong going-in cash yields, while the development land provides an opportunity to expand our data center shell portfolio over the medium to long term.

We have generated FFO per share growth in each of the past six years, which amounts to a compound annual growth rate of 4.8% between 2019 to 2024. Looking forward, our guidance implies continued growth in 2025, with FFO per share growth of 3.5% at the midpoint, generated by continued strong performance of our portfolio.”


Financial Highlights

4th Quarter Financial Results:
>Diluted earnings per share (“EPS”) was $0.31 for the quarter ended December 31, 2024, compared to $0.30 for the quarter ended December 31, 2023.

>Diluted funds from operations per share (“FFOPS”), as calculated in accordance with Nareit’s definition was $0.64 for the quarter ended December 31, 2024, compared to $0.62 for the quarter ended December 31, 2023.

>FFOPS, as adjusted for comparability, was $0.65 for the quarter ended December 31, 2024, compared to $0.62 for the quarter ended December 31, 2023.

Full Year 2024 Financial Results:
>EPS for the year ended December 31, 2024 was $1.23 as compared to $(0.67) for 2023.

>Per Nareit’s definition, FFOPS for 2024 was $2.57 as compared to $2.41 for 2023.

>FFOPS, as adjusted for comparability, for 2024 was $2.57 as compared to $2.42 for 2023.



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Operating Performance Highlights

Operating Portfolio Summary:
>At December 31, 2024, the Company’s 24.5 million square foot total portfolio was 93.6% occupied and 95.1% leased, which includes the 22.4 million square foot Defense/IT Portfolio that was 95.6% occupied and 96.8% leased.

>During the quarter and year ended December 31, 2024, the Company placed into service 225,000 and 399,000 square feet, respectively, of developments that were 100% and 83% leased, respectively, as of year end.

Same Property Performance:
>At December 31, 2024, the Company’s 22.2 million square foot Same Property portfolio was 94.1% occupied and 95.4% leased.

>The Company’s Same Property cash NOI increased 10.0% and 9.1% for the three months and year ended December 31, 2024, respectively, compared to the same periods in 2023.

Leasing:
>Total Square Feet Leased: For the quarter ended December 31, 2024, the Company leased 709,000 square feet, including 561,000 square feet of renewals, 114,000 square feet of vacancy leasing, and 34,000 square feet of investment leasing. For the year ended December 31, 2024, the Company executed 3.2 million square feet of total leasing, including 2.6 million square feet of renewals, 500,000 square feet of vacancy leasing, and 124,000 square feet of investment leasing.

>Tenant Retention Rates: During the quarter and year ended December 31, 2024, the Company renewed 93.0% and 86.0%, respectively, of expiring square feet in its total portfolio and renewed 95.9% and 88.6%, respectively, of expiring square feet in its Defense/IT Portfolio.

>Rent Spreads and Average Escalations on Renewing Leases: For the quarter and year ended December 31, 2024, straight-line rents on renewals increased 5.5% and 8.6%, respectively, and cash rents on renewed space decreased 0.2% and increased 0.6%, respectively, while annual escalations on renewing leases averaged 2.7% and 2.4%, respectively.

>Lease Terms: In the quarter ended December 31, 2024, lease terms averaged 3.5 years on renewing leases, 7.4 years on vacancy leasing, and 5.9 years on investment leasing. For the year ended December 31, 2024, lease terms averaged 3.9 years on renewing leases, 7.7 years on vacancy leasing, and 8.2 years on investment leasing.

Investment Activity Highlights
>Development Pipeline: The Company’s development pipeline consists of four properties totaling 606,000 square feet that were 75% leased as of December 31, 2024. These projects represent a total estimated investment of $252.9 million, of which $67.4 million was spent.

Balance Sheet and Capital Transaction Highlights
>For the quarter ended December 31, 2024, the Company’s adjusted EBITDA fixed charge coverage ratio was 4.7x.

>At December 31, 2024, the Company’s net debt to in-place adjusted EBITDA ratio was 6.0x and its net debt adjusted for fully-leased investment properties to in-place adjusted EBITDA ratio was 5.9x.


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>At December 31, 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 4.7 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 fourth quarter and full year 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

2025 Guidance
The Company details its initial full year and first quarter guidance, with supporting assumptions, in a separate press release issued concurrently with this press release; that release can be found in the ‘News & Events – Press Releases’ section of COPT Defense’s Investors website: https://investors.copt.com/news-events/press-releases

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

Conference Call Date: Friday, February 7, 2025
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/BI959f6e09b0064c679a6d9d437eec49c7

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.

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 December 31, 2024, the Company’s Defense/IT Portfolio of 195 properties, including 24 owned through unconsolidated joint ventures, encompassed 22.4 million square feet and was 96.8% leased.



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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 December 31, For the Years Ended December 31,
  2024 2023 2024 2023
Revenues    
Lease revenue $ 169,765  $ 160,337  $ 671,366  $ 619,847 
Other property revenue 1,641  1,225  6,351  4,956 
Construction contract and other service revenues 12,027  18,167  75,550  60,179 
Total revenues 183,433  179,729  753,267  684,982 
Operating expenses    
Property operating expenses 66,964  64,577  266,001  247,385 
Depreciation and amortization associated with real estate operations 38,821  36,735  153,640  148,950 
Construction contract and other service expenses 11,519  17,167  73,265  57,416 
Impairment losses —  —  —  252,797 
General and administrative expenses 8,429  8,240  33,555  31,105 
Leasing expenses 2,243  2,308  9,233  8,932 
Business development expenses and land carry costs 1,171  797  4,250  2,732 
Total operating expenses 129,147  129,824  539,944  749,317 
Interest expense (20,391) (20,383) (82,151) (71,142)
Interest and other income, net 2,331  5,659  12,661  12,587 
Gain on sales of real estate —  —  —  49,392 
Income (loss) before equity in income (loss) of unconsolidated entities and income taxes 36,226  35,181  143,833  (73,498)
Equity in income (loss) of unconsolidated entities 217  (240) 397  (261)
Income tax benefit (expense) 24  (121) (288) (588)
Net income (loss) 36,467  34,820  143,942  (74,347)
Net (income) loss attributable to noncontrolling interests:    
Common units in the Operating Partnership (“OP”) (681) (576) (2,694) 1,306 
Other consolidated entities (665) (592) (2,319) (428)
Net income (loss) attributable to common shareholders $ 35,121  $ 33,652  $ 138,929  $ (73,469)
Earnings per share (“EPS”) computation:    
Numerator for diluted EPS:    
Net income (loss) attributable to common shareholders $ 35,121  $ 33,652  $ 138,929  $ (73,469)
Amount allocable to share-based compensation awards (103) (100) (421) (1,199)
Numerator for diluted EPS $ 35,018  $ 33,552  $ 138,508  $ (74,668)
Denominator:    
Weighted average common shares - basic 112,347  112,199  112,296  112,178 
Dilutive effect of share-based compensation awards 711  432  603  — 
Dilutive exchangeable debt 664  —  —  — 
Weighted average common shares - diluted 113,722  112,631  112,899  112,178 
Diluted EPS $ 0.31  $ 0.30  $ 1.23  $ (0.67)
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COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands, except per share data)
  For the Three Months Ended December 31, For the Years Ended December 31,
  2024 2023 2024 2023
Net income (loss) $ 36,467  $ 34,820  $ 143,942  $ (74,347)
Real estate-related depreciation and amortization 38,821  36,735  153,640  148,950 
Impairment losses on real estate —  —  —  252,797 
Gain on sales of real estate —  —  —  (49,392)
Depreciation and amortization on unconsolidated real estate JVs 745  805  3,056  3,217 
Funds from operations (“FFO”) 76,033  72,360  300,638  281,225 
FFO allocable to other noncontrolling interests (1,050) (972) (3,855) (3,978)
Basic FFO allocable to share-based compensation awards (614) (513) (2,417) (1,940)
Basic FFO available to common share and common unit holders (“Basic FFO”) 74,369  70,875  294,366  275,307 
Redeemable noncontrolling interests —  —  1,963  (58)
Diluted FFO adjustments allocable to share-based compensation awards 47  38  188  150 
Diluted FFO available to common share and common unit holders (“Diluted FFO”) 74,416  70,913  296,517  275,399 
Executive transition costs 58  188  285  518 
Diluted FFO comparability adjustments allocable to share-based compensation awards (1) (1) (2) (4)
Diluted FFO available to common share and common unit holders, as adjusted for comparability 74,473  71,100  296,800  275,913 
Straight line rent adjustments and lease incentive amortization 2,950  313  10,824  6,518 
Amortization of intangibles and other assets included in net operating income (“NOI”) 211  26  755  50 
Share-based compensation, net of amounts capitalized 2,617  2,318  10,443  8,544 
Amortization of deferred financing costs 671  681  2,708  2,580 
Amortization of net debt discounts, net of amounts capitalized 1,041  1,004  4,110  2,994 
Replacement capital expenditures (34,134) (21,498) (103,984) (93,494)
Other 73  336  566  (84)
Diluted adjusted funds from operations available to common share and common unit holders (“Diluted AFFO”) $ 47,902  $ 54,280  $ 222,222  $ 203,021 
Diluted FFO per share $ 0.64  $ 0.62  $ 2.57  $ 2.41 
Diluted FFO per share, as adjusted for comparability $ 0.65  $ 0.62  $ 2.57  $ 2.42 
Dividends/distributions per common share/unit $ 0.295  $ 0.285  $ 1.18  $ 1.14 

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COPT Defense Properties
Summary Financial Data
(unaudited)
(Dollars and shares in thousands, except per share data)
December 31,
2024		 December 31,
2023
Balance Sheet Data    
Properties, net of accumulated depreciation $ 3,630,526  $ 3,503,678 
Total assets $ 4,254,191  $ 4,246,966 
Debt per balance sheet $ 2,391,755  $ 2,416,287 
Total liabilities $ 2,693,624  $ 2,699,631 
Redeemable noncontrolling interests $ 23,974  $ 23,580 
Total equity $ 1,536,593  $ 1,523,755 
Debt to assets 56.2  % 56.9  %
Net debt to adjusted book 40.4  % 40.6  %
Defense/IT Portfolio Data (as of period end)    
Number of operating properties 195  190 
Total operational square feet (in thousands) 22,391  21,719 
% Occupied 95.6  % 96.2  %
% Leased 96.8  % 97.2  %
For the Three Months Ended December 31, For the Years Ended December 31,
2024 2023 2024 2023
GAAP        
Payout ratio:
Net income 93.0  % 93.7  % 94.2  % N/A
Debt ratios:
Net income to interest expense ratio 1.8  x  1.7  x  1.8  x  N/A
Debt to net income ratio 16.4  x  17.3  x  N/A N/A
Non-GAAP
Payout ratios:
Diluted FFO 45.2  % 45.7  % 45.4  % 47.1  %
Diluted FFO, as adjusted for comparability 45.2  % 45.6  % 45.4  % 47.0  %
Diluted AFFO 70.3  % 59.7  % 60.6  % 63.9  %
Debt ratios:
Adjusted EBITDA fixed charge coverage ratio 4.7  x  4.4  x  4.7  x  4.7  x 
Net debt to in-place adjusted EBITDA ratio 6.0  x  6.1  x  N/A N/A
Net debt adj. for fully-leased investment properties to in-place adj. EBITDA ratio 5.9  x  6.0  x  N/A N/A
Reconciliation of denominators for per share measures  
Denominator for diluted EPS 113,722  112,631  112,899  112,178 
Weighted average common units 1,664  1,514  1,672  1,509 
Dilutive effect of additional share-based compensation awards —  —  —  424 
Redeemable noncontrolling interests —  —  842  38 
Denominator for diluted FFO per share and as adjusted for comparability 115,386  114,145  115,413  114,149 




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COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)
For the Three Months Ended December 31, For the Years Ended December 31,
  2024 2023 2024 2023
Numerators for Payout Ratios
Dividends on unrestricted common and deferred shares $ 33,167  $ 31,998  $ 132,628  $ 127,978 
Distributions on unrestricted common units 491  430  1,987  1,725 
Dividends and distributions on restricted shares and units 248  209  1,000  828 
Total dividends and distributions for GAAP payout ratio 33,906  32,637  135,615  130,531 
Dividends and distributions on antidilutive shares and units (250) (212) (1,006) (835)
Dividends and distributions for non-GAAP payout ratios $ 33,656  $ 32,425  $ 134,609  $ 129,696 
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) $ 36,467  $ 34,820  $ 143,942  $ (74,347)
Interest expense 20,391  20,383  82,151  71,142 
Income tax (benefit) expense (24) 121  288  588 
Real estate-related depreciation and amortization 38,821  36,735  153,640  148,950 
Other depreciation and amortization 589  619  2,375  2,445 
Impairment losses on real estate —  —  —  252,797 
Gain on sales of real estate —  —  —  (49,392)
Adjustments from unconsolidated real estate JVs 1,681  1,911  6,820  6,917 
EBITDAre 97,925  94,589  389,216  359,100 
Credit loss (recoveries) expense (113) (1,288) 383  (611)
Business development expenses 758  445  2,548  1,393 
Executive transition costs 58  188  638  824 
Net gain on other investments —  —  (488) (25)
Adjusted EBITDA 98,628  93,934  $ 392,297  $ 360,681 
Pro forma NOI adjustment for property changes within period 528  1,341 
Change in collectability of deferred rental revenue 1,646  (198)
In-place adjusted EBITDA $ 100,802  $ 95,077 
Reconciliations of tenant improvements and incentives, building improvements and leasing costs for operating properties to replacement capital expenditures
Tenant improvements and incentives $ 22,912  $ 7,850  $ 69,505  $ 74,912 
Building improvements 10,942  14,762  28,294  25,976 
Leasing costs 2,629  2,440  12,342  9,634 
Net exclusions from tenant improvements and incentives (7) (189) (3) (12,170)
Excluded building improvements and leasing costs (2,342) (3,365) (6,154) (4,858)
Replacement capital expenditures $ 34,134  $ 21,498  $ 103,984  $ 93,494 
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COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)
For the Three Months Ended December 31, For the Years Ended December 31,
  2024 2023 2024 2023
Reconciliation of interest expense to the denominator for fixed charge coverage-Adjusted EBITDA        
Interest expense $ 20,391  $ 20,383  $ 82,151  $ 71,142 
Less: Amortization of deferred financing costs (671) (681) (2,708) (2,580)
Less: Amortization of net debt discounts, net of amounts capitalized (1,041) (1,004) (4,110) (2,994)
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 872  819  3,305  3,188 
Scheduled principal amortization 455  763  2,334  3,052 
Capitalized interest 928  1,028  2,872  4,479 
Denominator for fixed charge coverage-Adjusted EBITDA $ 20,934  $ 21,308  $ 83,844  $ 76,287 
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) $ 36,467  $ 34,820  $ 143,942  $ (74,347)
Construction contract and other service revenues (12,027) (18,167) (75,550) (60,179)
Depreciation and other amortization associated with real estate operations 38,821  36,735  153,640  148,950 
Construction contract and other service expenses 11,519  17,167  73,265  57,416 
Impairment losses —  —  —  252,797 
General and administrative expenses 8,429  8,240  33,555  31,105 
Leasing expenses 2,243  2,308  9,233  8,932 
Business development expenses and land carry costs 1,171  797  4,250  2,732 
Interest expense 20,391  20,383  82,151  71,142 
Interest and other income, net (2,331) (5,659) (12,661) (12,587)
Gain on sales of real estate —  —  —  (49,392)
Equity in (income) loss of unconsolidated entities (217) 240  (397) 261 
Unconsolidated real estate JVs NOI allocable to COPT Defense included in equity in income (loss) of unconsolidated entities 1,898  1,671  7,217  6,659 
Income tax (benefit) expense (24) 121  288  588 
NOI from real estate operations 106,340  98,656  418,933  384,077 
Non-Same Property NOI from real estate operations (7,997) (3,802) (27,864) (7,238)
Same Property NOI from real estate operations 98,343  94,854  391,069  376,839 
Straight line rent adjustments and lease incentive amortization 7,093  3,142  16,492  7,030 
Amortization of acquired above- and below-market rents (69) (121) (276) (536)
Lease termination fees, net (864) (717) (3,451) (3,745)
Tenant funded landlord assets and lease incentives (5,871) (7,541) (18,501) (26,378)
Cash NOI adjustments in unconsolidated real estate JVs (147) (124) (511) (544)
Same Property Cash NOI from real estate operations $ 98,485  $ 89,493  $ 384,822  $ 352,666 

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COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)
December 31,
2024		 December 31,
2023
Reconciliation of total assets to adjusted book    
Total assets $ 4,254,191  $ 4,246,966 
Accumulated depreciation 1,537,293  1,400,162 
Accumulated amortization of intangibles on property acquisitions and deferred leasing costs 228,154  228,484 
COPT Defense’s share of liabilities of unconsolidated real estate JVs 61,294  60,583 
COPT Defense’s share of accumulated depreciation and amortization of unconsolidated real estate JVs 12,817  9,528 
Less: Property - operating lease liabilities (49,240) (33,931)
Less: Property - finance lease liabilities (391) (415)
Less: Cash and cash equivalents (38,284) (167,820)
Less: COPT Defense’s share of cash of unconsolidated real estate JVs (2,053) (852)
Adjusted book $ 6,003,781  $ 5,742,705 

December 31,
2024		 December 31,
2023
Reconciliation of debt to net debt and net debt adjusted for fully-leased investment properties
Debt per balance sheet $ 2,391,755  $ 2,416,287 
Net discounts and deferred financing costs 23,262  28,713 
COPT Defense’s share of unconsolidated JV gross debt 53,750  52,613 
Gross debt 2,468,767  2,497,613 
Less: Cash and cash equivalents (38,284) (167,820)
Less: COPT Defense’s share of cash of unconsolidated real estate JVs (2,053) (852)
Net debt 2,428,430  2,328,941 
Costs incurred on fully-leased development properties (18,774) (53,914)
Costs incurred on fully-leased operating property acquisitions (17,034) — 
Net debt adjusted for fully-leased investment properties $ 2,392,622  $ 2,275,027 
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