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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): April 28, 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 April 28, 2025, COPT Defense Properties (the “Company”) issued a press release relating to its financial results for the period ended March 31, 2025 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: April 28, 2025



EX-99.1 2 cdp03312025ex991.htm EX-99.1 Document
EXHIBIT 99.1

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COPT Defense Properties
Supplemental Information + Earnings Release - Unaudited
For the Period Ended 3/31/25
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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 March 31, 2025, our Defense/IT Portfolio of 198 properties, including 24 owned through unconsolidated joint ventures, encompassed 22.6 million square feet and was 96.6% 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, 2024.
1
1Q 2025 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   Seth Bergey   212.816.2066   seth.bergey@citi.com
Evercore ISI Steve Sakwa 212.446.9462 steve.sakwa@evercoreisi.com
Green Street   Dylan Burzinski   949.640.8780   dburzinski@greenstreet.com
Jefferies   Peter Abramowitz   212.336.7241   pabramowitz@jefferies.com
JP Morgan   Tony Paolone   212.622.6682   anthony.paolone@jpmorgan.com
Truist Securities   Michael Lewis   212.319.5659   michael.r.lewis@truist.com
Wedbush Securities Richard Anderson 212.938.9949 richard.anderson@wedbush.com
Wells Fargo Securities Blaine Heck 410.662.2556 blaine.heck@wellsfargo.com
 
With the exception of Green Street, the above-listed firms are those whose analysts publish research material on the Company and whose estimates of our FFO per share can be tracked through FactSet. Any opinions, estimates or forecasts the above analysts make regarding COPT Defense’s future performance are their own and do not represent the views, estimates or forecasts of COPT Defense’s management.
2
1Q 2025 Supplemental Information Package
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COPT Defense Properties
Selected Financial Summary Data
(in thousands, except per share data)
  Page Three Months Ended
SUMMARY OF RESULTS  Refer. 3/31/25 12/31/24 9/30/24 6/30/24 3/31/24
Net income 7 $ 36,228  $ 36,467  $ 37,397  $ 36,407  $ 33,671 
NOI from real estate operations 13 $ 107,446  $ 106,340  $ 105,526  $ 105,410  $ 101,657 
Same Property NOI 17 $ 104,276  $ 103,819  $ 104,044  $ 104,092  $ 101,112 
Same Property cash NOI 18 $ 100,162  $ 101,629  $ 100,163  $ 100,472  $ 93,555 
Adjusted EBITDA 11 $ 99,119  $ 98,628  $ 99,236  $ 98,592  $ 95,841 
FFO per NAREIT 8 $ 76,028  $ 76,033  $ 76,460  $ 75,346  $ 72,799 
Diluted AFFO avail. to common share and unit holders 10 $ 56,045  $ 47,902  $ 52,592  $ 61,435  $ 59,269 
Dividend per common share N/A $ 0.305  $ 0.295  $ 0.295  $ 0.295  $ 0.295 
Per share - diluted:          
EPS 9 $ 0.31  $ 0.31  $ 0.32  $ 0.31  $ 0.29 
FFO - Nareit 9 $ 0.65  $ 0.64  $ 0.65  $ 0.64  $ 0.62 
FFO - as adjusted for comparability 9 $ 0.65  $ 0.65  $ 0.65  $ 0.64  $ 0.62 
Numerators for diluted per share amounts:
Diluted EPS 7 $ 34,597  $ 35,018  $ 35,981  $ 35,022  $ 32,480 
Diluted FFO available to common share and unit holders 8 $ 74,393  $ 74,416  $ 74,905  $ 74,280  $ 71,892 
Diluted FFO available to common share and unit holders, as adjusted for comparability 8 $ 74,393  $ 74,473  $ 74,974  $ 74,360  $ 71,969 

3
1Q 2025 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
PAYOUT RATIOS AND CAPITALIZATION Refer. 3/31/25 12/31/24 9/30/24 6/30/24 3/31/24
GAAP
Payout ratio:
Net income N/A 97.2% 93.0% 90.7% 93.1% 100.7%
Capitalization and debt ratios:
Total assets 6 $ 4,250,311  $ 4,254,191  $ 4,234,302  $ 4,219,338  $ 4,232,895 
Total equity 6 $ 1,538,291  $ 1,536,593  $ 1,532,595  $ 1,530,506  $ 1,526,046 
Debt per balance sheet 6 $ 2,412,670  $ 2,391,755  $ 2,390,839  $ 2,389,925  $ 2,416,873 
Debt to assets 30 56.8% 56.2% 56.5% 56.6% 57.1%
Net income to interest expense ratio 30 1.8x 1.8x 1.8x 1.8x 1.6x
Debt to net income ratio 30 16.6x 16.4x 16.0x 16.4x 17.9x
Non-GAAP
Payout ratios:          
Diluted FFO N/A 47.0% 45.2% 44.9% 45.3% 46.8%
Diluted FFO - as adjusted for comparability N/A 47.0% 45.2% 44.9% 45.3% 46.7%
Diluted AFFO N/A 62.4% 70.3% 64.0% 54.8% 56.8%
Capitalization and debt ratios:        
Total Market Capitalization 27 $ 5,578,378  $ 5,968,572  $ 5,897,659  $ 5,289,664  $ 5,218,681 
Total Equity Market Capitalization 27 $ 3,143,822  $ 3,553,555  $ 3,482,187  $ 2,873,744  $ 2,774,450 
Net debt 35 $ 2,462,248  $ 2,428,430  $ 2,432,567  $ 2,367,180  $ 2,372,747 
Net debt to adjusted book 30 40.7% 40.4% 40.8% 40.5% 40.9%
Adjusted EBITDA fixed charge coverage ratio 30 4.7x 4.7x 4.8x 4.7x 4.5x
Net debt to in-place adj. EBITDA ratio 30 6.1x 6.0x 6.1x 6.0x 6.1x
Net debt adjusted for fully-leased investment properties to in-place adj. EBITDA ratio 30 6.0x 5.9x 5.9x 5.9x 6.0x

4
1Q 2025 Supplemental Information Package
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COPT Defense Properties
Selected Portfolio Data (1)
  3/31/25 12/31/24 9/30/24 6/30/24 3/31/24
# of Properties
Total Portfolio 204 203 202 201 201
Consolidated Portfolio 180 179 178 177 177
Defense/IT Portfolio (2) 198 197 196 195 195
Same Property 198 198 198 198 198
% Occupied
Total Portfolio 93.6  % 93.6  % 93.1  % 93.6  % 93.6  %
Consolidated Portfolio 92.3  % 92.2  % 91.6  % 92.2  % 92.2  %
Defense/IT Portfolio (2) 95.3  % 95.4  % 94.8  % 95.4  % 95.5  %
Same Property 94.1  % 94.4  % 93.9  % 93.9  % 93.9  %
% Leased
Total Portfolio 95.1  % 95.1  % 94.8  % 94.9  % 94.9  %
Consolidated Portfolio 94.0  % 94.1  % 93.6  % 93.8  % 93.8  %
Defense/IT Portfolio (2) 96.6  % 96.7  % 96.4  % 96.5  % 96.6  %
Same Property 95.2  % 95.7  % 95.3  % 95.2  % 95.3  %
Square Feet (in thousands)
Total Portfolio 24,548 24,537 24,316 24,135 24,137
Consolidated Portfolio 20,253 20,242 20,021 19,839 19,841
Defense/IT Portfolio (2) 22,560 22,549 22,331 22,150 22,150
Same Property 23,856 23,856 23,856 23,856 23,856
(1)Except for the Consolidated Portfolio, includes properties owned through unconsolidated real estate JVs (see page 32).
(2)Includes our retrospective reclassification in the quarter ended 3/31/25 of two properties to our Fort Meade/BW Corridor sub-segment from our Other segment.
5
1Q 2025 Supplemental Information Package
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COPT Defense Properties
Consolidated Balance Sheets
(in thousands)
  3/31/25 12/31/24 9/30/24 6/30/24 3/31/24
Assets          
Properties, net:          
Operating properties, net $ 3,343,341  $ 3,353,477  $ 3,289,959  $ 3,257,822  $ 3,272,452 
Development and redevelopment in progress, including land (1) 89,132  67,342  108,077  106,709  76,931 
Land held (1) 211,009  209,707  206,652  171,062  168,495 
Total properties, net 3,643,482  3,630,526  3,604,688  3,535,593  3,517,878 
Property - operating lease right-of-use assets 54,374  55,760  40,523  40,899  40,368 
Cash and cash equivalents 24,292  38,284  34,478  100,443  123,144 
Investment in unconsolidated real estate joint ventures 38,960  39,360  39,720  40,148  40,597 
Accounts receivable, net 45,924  42,234  42,240  46,963  50,088 
Deferred rent receivable 165,968  161,438  159,182  156,123  153,788 
Lease incentives, net 64,260  64,013  63,034  63,744  61,150 
Deferred leasing costs, net 71,468  71,268  71,815  72,156  70,902 
Investing receivables, net 78,430  69,680  83,536  84,087  82,523 
Prepaid expenses and other assets, net 63,153  81,628  95,086  79,182  92,457 
Total assets $ 4,250,311  $ 4,254,191  $ 4,234,302  $ 4,219,338  $ 4,232,895 
Liabilities and equity          
Liabilities:          
Debt $ 2,412,670  $ 2,391,755  $ 2,390,839  $ 2,389,925  $ 2,416,873 
Accounts payable and accrued expenses 98,039  126,031  134,112  122,202  111,981 
Rents received in advance and security deposits 41,624  38,560  33,213  33,485  37,557 
Dividends and distributions payable 35,208  33,909  33,915  33,908  33,906 
Deferred revenue associated with operating leases 38,915  39,752  37,660  37,199  34,019 
Property - operating lease liabilities 48,216  49,240  33,615  33,818  33,141 
Other liabilities 13,809  14,377  15,917  15,530  16,406 
Total liabilities 2,688,481  2,693,624  2,679,271  2,666,067  2,683,883 
Redeemable noncontrolling interest 23,539  23,974  22,436  22,765  22,966 
Equity:      
COPT Defense’s shareholders’ equity:      
Common shares 1,129  1,127  1,127  1,127  1,126 
Additional paid-in capital 2,492,454  2,494,369  2,493,340  2,489,931  2,487,468 
Cumulative distributions in excess of net income (1,003,120) (1,003,401) (1,005,260) (1,008,087) (1,009,964)
Accumulated other comprehensive income 403  988  58  3,614  3,849 
Total COPT Defense’s shareholders’ equity 1,490,866  1,493,083  1,489,265  1,486,585  1,482,479 
Noncontrolling interests in subsidiaries:          
Common units in the Operating Partnership 32,745  28,935  28,918  29,470  29,214 
Other consolidated entities 14,680  14,575  14,412  14,451  14,353 
Total noncontrolling interests in subsidiaries 47,425  43,510  43,330  43,921  43,567 
Total equity 1,538,291  1,536,593  1,532,595  1,530,506  1,526,046 
Total liabilities, redeemable noncontrolling interest and equity $ 4,250,311  $ 4,254,191  $ 4,234,302  $ 4,219,338  $ 4,232,895 
(1)Refer to pages 24 and 26 for detail.


6
1Q 2025 Supplemental Information Package
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COPT Defense Properties
Consolidated Statements of Operations
(in thousands)
  Three Months Ended
  3/31/25 12/31/24 9/30/24 6/30/24 3/31/24
Revenues          
Lease revenue $ 175,308  $ 169,765  $ 170,549  $ 165,619  $ 165,433 
Other property revenue 2,289  1,641  2,014  1,466  1,230 
Construction contract and other service revenues 10,259  12,027  16,662  20,258  26,603 
Total revenues 187,856  183,433  189,225  187,343  193,266 
Operating expenses          
Property operating expenses 72,040  66,964  68,881  63,410  66,746 
Depreciation and amortization associated with real estate operations 39,359  38,821  38,307  38,161  38,351 
Construction contract and other service expenses 9,705  11,519  16,127  19,612  26,007 
General and administrative expenses 8,148  8,429  8,157  8,591  8,378 
Leasing expenses 2,999  2,243  2,341  2,462  2,187 
Business development expenses and land carry costs 1,009  1,171  918  979  1,182 
Total operating expenses 133,260  129,147  134,731  133,215  142,851 
Interest expense (20,504) (20,391) (20,376) (20,617) (20,767)
Interest and other income, net 1,568  2,331  3,324  2,884  4,122 
Gain on sales of real estate 300  —  —  —  — 
Income before equity in income of unconsolidated entities and income taxes 35,960  36,226  37,442  36,395  33,770 
Equity in income of unconsolidated entities 371  217  85  26  69 
Income tax (expense) benefit (103) 24  (130) (14) (168)
Net income 36,228  36,467  37,397  36,407  33,671 
Net income attributable to noncontrolling interests:          
Common units in the Operating Partnership (726) (681) (711) (694) (608)
Other consolidated entities (762) (665) (601) (599) (454)
Net income attributable to common shareholders $ 34,740  $ 35,121  $ 36,085  $ 35,114  $ 32,609 
Amount allocable to share-based compensation awards (143) (103) (104) (92) (129)
Numerator for diluted EPS $ 34,597  $ 35,018  $ 35,981  $ 35,022  $ 32,480 
7
1Q 2025 Supplemental Information Package
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COPT Defense Properties
Funds from Operations
(in thousands)
  Three Months Ended
  3/31/25 12/31/24 9/30/24 6/30/24 3/31/24
Net income $ 36,228  $ 36,467  $ 37,397  $ 36,407  $ 33,671 
Real estate-related depreciation and amortization 39,359  38,821  38,307  38,161  38,351 
Gain on sales of real estate (300) —  —  —  — 
Depreciation and amortization on unconsolidated real estate JVs (1) 741  745  756  778  777 
FFO - per Nareit (2) 76,028  76,033  76,460  75,346  72,799 
FFO allocable to other noncontrolling interests (3) (1,158) (1,050) (985) (984) (836)
Basic FFO allocable to share-based compensation awards (530) (614) (617) (599) (587)
Basic FFO available to common share and common unit holders (2) 74,340  74,369  74,858  73,763  71,376 
Redeemable noncontrolling interest —  —  —  471  469 
Diluted FFO adjustments allocable to share-based compensation awards 53  47  47  46  47 
Diluted FFO available to common share and common unit holders - per Nareit (2) 74,393  74,416  74,905  74,280  71,892 
Executive transition costs —  58  69  81  77 
Diluted FFO comparability adjustments allocable to share-based compensation awards —  (1) —  (1) — 
Diluted FFO available to common share and common unit holders, as adjusted for comparability (2) $ 74,393  $ 74,473  $ 74,974  $ 74,360  $ 71,969 

(1)See page 32 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 31.
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1Q 2025 Supplemental Information Package
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COPT Defense Properties
Diluted Share + Unit Computations
(in thousands, except per share data)

  Three Months Ended
  3/31/25 12/31/24 9/30/24 6/30/24 3/31/24
EPS Denominator:          
Weighted average common shares - basic 112,383  112,347  112,314  112,293  112,231 
Dilutive effect of share-based compensation awards 643  711  696  492  509 
Dilutive exchangeable debt —  664  —  —  — 
Weighted average common shares - diluted 113,026  113,722  113,010  112,785  112,740 
Diluted EPS $ 0.31  $ 0.31  $ 0.32  $ 0.31  $ 0.29 
Weighted Average Shares for period ended:          
Common shares 112,383  112,347  112,314  112,293  112,231 
Dilutive effect of share-based compensation awards 643  711  696  492  509 
Common units 2,047  1,664  1,696  1,703  1,625 
Redeemable noncontrolling interest —  —  —  926  947 
Dilutive exchangeable debt —  664  —  —  — 
Denominator for diluted FFO per share and as adjusted for comparability 115,073  115,386  114,706  115,414  115,312 
Weighted average common units (2,047) (1,664) (1,696) (1,703) (1,625)
Redeemable noncontrolling interest —  —  —  (926) (947)
Denominator for diluted EPS 113,026  113,722  113,010  112,785  112,740 
Diluted FFO per share - Nareit (1) $ 0.65  $ 0.64  $ 0.65  $ 0.64  $ 0.62 
Diluted FFO per share - as adjusted for comparability (1) $ 0.65  $ 0.65  $ 0.65  $ 0.64  $ 0.62 
(1)Refer to the section entitled “Definitions” for a definition of this measure.
9
1Q 2025 Supplemental Information Package
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COPT Defense Properties
Adjusted Funds from Operations
(in thousands)
  Three Months Ended
  3/31/25 12/31/24 9/30/24 6/30/24 3/31/24
Diluted FFO available to common share and common unit holders, as adjusted for comparability (1) $ 74,393  $ 74,473  $ 74,974  $ 74,360  $ 71,969 
Straight line rent adjustments and lease incentive amortization (1,699) 2,950  613  3,788  3,473 
Amortization of intangibles and other assets included in NOI 162  211  211  211  122 
Share-based compensation, net of amounts capitalized 2,854  2,617  2,617  2,564  2,645 
Amortization of deferred financing costs 667  671  671  681  685 
Amortization of net debt discounts, net of amounts capitalized 1,051  1,041  1,032  1,023  1,014 
Replacement capital expenditures (1) (21,464) (34,134) (27,824) (21,250) (20,776)
Other 81  73  298  58  137 
Diluted AFFO available to common share and common unit holders (“diluted AFFO”) (1) $ 56,045  $ 47,902  $ 52,592  $ 61,435  $ 59,269 
Replacement capital expenditures (1)          
Tenant improvements and incentives $ 13,758  $ 22,912  $ 18,772  $ 15,045  $ 12,776 
Building improvements 1,872  10,942  6,694  5,705  4,953 
Leasing costs 3,461  2,629  3,013  3,110  3,590 
Net additions to (exclusions from) tenant improvements and incentives 3,538  (7) 728  (1,040) 316 
Excluded building improvements (201) (2,342) (1,383) (1,570) (818)
Excluded leasing costs (964) —  —  —  (41)
Replacement capital expenditures $ 21,464  $ 34,134  $ 27,824  $ 21,250  $ 20,776 
(1)Refer to the section entitled “Definitions” for a definition of this measure.
10
1Q 2025 Supplemental Information Package
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COPT Defense Properties
EBITDAre + Adjusted EBITDA
(in thousands)
  Three Months Ended
  3/31/25 12/31/24 9/30/24 6/30/24 3/31/24
Net income $ 36,228  $ 36,467  $ 37,397  $ 36,407  $ 33,671 
Interest expense 20,504  20,391  20,376  20,617  20,767 
Income tax expense (benefit) 103  (24) 130  14  168 
Real estate-related depreciation and amortization 39,359  38,821  38,307  38,161  38,351 
Other depreciation and amortization 542  589  614  564  608 
Gain on sales of real estate (300) —  —  —  — 
Adjustments from unconsolidated real estate JVs 1,518  1,681  1,759  1,709  1,671 
EBITDAre (1) 97,954  97,925  98,583  97,472  95,236 
Credit loss expense (recoveries) 515  (113) 38  436  22 
Business development expenses 593  758  557  603  630 
Executive transition costs 57  58  69  81  430 
Net gain on other investments —  —  (11) —  (477)
Adjusted EBITDA (1) 99,119  98,628  99,236  98,592  95,841 
Pro forma NOI adjustment for property changes within period 786  528  —  —  813 
Change in collectability of deferred rental revenue 1,232  1,646  —  27  — 
In-place adjusted EBITDA (1) $ 101,137  $ 100,802  $ 99,236  $ 98,619  $ 96,654 
(1)Refer to the section entitled “Definitions” for a definition of this measure.

11
1Q 2025 Supplemental Information Package
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COPT Defense Properties
Properties by Segment - 3/31/25
(square feet in thousands)
# of
Properties		 Operational
Square Feet		 % Occupied % Leased
Defense/IT Portfolio:
Fort Meade/Baltimore Washington (“BW”) Corridor:        
National Business Park (Annapolis Junction, MD) 34  4,288  97.9% 98.0%
Howard County, MD 36  3,063  90.5% 93.0%
Other (1) 25  1,883  92.5% 94.2%
Total Fort Meade/BW Corridor 95  9,234  94.4% 95.6%
Northern Virginia (“NoVA”) Defense/IT 16  2,500  92.2% 93.8%
Lackland Air Force Base (San Antonio, Texas) 9  1,142  100.0% 100.0%
Navy Support 22  1,271  81.6% 88.1%
Redstone Arsenal (Huntsville, Alabama) 25  2,485  95.3% 97.9%
Data Center Shells:
Consolidated Properties 7  1,633  100.0% 100.0%
Unconsolidated JV Properties (2) 24  4,295  100.0% 100.0%
Total Defense/IT Portfolio 198  22,560  95.3% 96.6%
Other (1) 6  1,988  74.7% 77.6%
Total Portfolio 204  24,548  93.6% 95.1%
Consolidated Portfolio 180  20,253  92.3% 94.0%
(1)Reflects our reclassification in the quarter ended 3/31/25 of two properties totaling 158,000 square feet, which were 65.5% occupied and 77.8% leased, to our Fort Meade/BW Corridor sub-segment from our Other segment.
(2)See page 32 for additional disclosure regarding our unconsolidated real estate JVs.
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(3)Refer to the section entitled “Definitions” for a definition of this measure.
12
1Q 2025 Supplemental Information Package
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COPT Defense Properties
Consolidated Real Estate Revenues + NOI by Segment
(in thousands)
  Three Months Ended
  3/31/25 12/31/24 9/30/24 6/30/24 3/31/24
Consolidated real estate revenues          
Defense/IT Portfolio:
Fort Meade/BW Corridor $ 84,608  $ 79,307  $ 80,757  $ 78,419  $ 78,836 
NoVA Defense/IT 23,162  21,924  22,083  20,601  21,426 
Lackland Air Force Base 16,410  18,100  16,879  16,447  16,411 
Navy Support 7,960  8,094  8,068  8,240  8,226 
Redstone Arsenal 16,422  17,160  18,332  17,017  16,808 
Data Center Shells-Consolidated 10,865  10,104  9,029  9,600  8,457 
Total Defense/IT Portfolio 159,427  154,689  155,148  150,324  150,164 
Other 18,170  16,717  17,415  16,761  16,499 
Consolidated real estate revenues (1) $ 177,597  $ 171,406  $ 172,563  $ 167,085  $ 166,663 
NOI from real estate operations (2)          
Defense/IT Portfolio:
Fort Meade/BW Corridor $ 52,678  $ 52,236  $ 52,415  $ 53,420  $ 50,459 
NoVA Defense/IT 13,073  13,309  12,831  11,671  12,164 
Lackland Air Force Base 7,411  7,576  7,719  7,650  7,723 
Navy Support 3,794  4,291  3,984  4,607  4,600 
Redstone Arsenal 10,128  10,951  11,869  11,296  11,016 
Data Center Shells:
Consolidated properties 9,012  8,568  7,475  7,509  7,514 
COPT Defense’s share of unconsolidated real estate JVs 1,889  1,898  1,844  1,735  1,740 
Total Defense/IT Portfolio 97,985  98,829  98,137  97,888  95,216 
Other 9,461  7,511  7,389  7,522  6,441 
NOI from real estate operations (1) $ 107,446  $ 106,340  $ 105,526  $ 105,410  $ 101,657 

(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
1Q 2025 Supplemental Information Package
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COPT Defense Properties
Cash NOI by Segment
(in thousands)
  Three Months Ended
  3/31/25 12/31/24 9/30/24 6/30/24 3/31/24
Cash NOI from real estate operations (1)          
Defense/IT Portfolio:
Fort Meade/BW Corridor $ 50,104  $ 52,096  $ 50,314  $ 51,380  $ 47,396 
NoVA Defense/IT 12,263  13,308  13,223  12,452  12,933 
Lackland Air Force Base 8,086  8,194  8,218  8,124  8,186 
Navy Support 3,833  4,215  4,000  4,656  4,503 
Redstone Arsenal 8,723  8,554  9,730  9,034  6,308 
Data Center Shells:
Consolidated properties 7,002  6,783  6,739  6,748  6,688 
COPT Defense’s share of unconsolidated real estate JVs 1,628  1,611  1,565  1,481  1,477 
Total Defense/IT Portfolio 91,639  94,761  93,789  93,875  87,491 
Other 9,586  7,815  7,340  7,506  6,444 
Cash NOI from real estate operations (2) $ 101,225  $ 102,576  $ 101,129  $ 101,381  $ 93,935 
(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
1Q 2025 Supplemental Information Package
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COPT Defense Properties
NOI from Real Estate Operations + Occupancy by Property Grouping - 3/31/25
(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
Defense/IT Portfolio:
Same Property: (2)
Consolidated properties 168  17,573  94.9% 96.0% $ 600,998  86.6  % $ 93,308 
Unconsolidated JV properties 24  4,295  100.0% 100.0% 8,166  1.2  % 1,889 
Total Same Property in Defense/IT Portfolio 192  21,868  95.9% 96.8% 609,164  87.8  % 95,197 
Properties Placed in Service (4) 4  409  81.8% 93.5% 8,844  1.3  % 2,472 
Acquired properties 2  283  67.4% 84.4% 6,845  1.0  % 316 
Total Defense/IT Portfolio 198  22,560  95.3% 96.6% 624,853  90.1  % 97,985 
Other 6  1,988  74.7% 77.6% 68,954  9.9  % 9,461 
Total Portfolio 204  24,548  93.6% 95.1% $ 693,807  100.0  % $ 107,446 
Consolidated Portfolio 180  20,253  92.3% 94.0% $ 685,641  98.8  % $ 105,557 
(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 1/1/24.

15
1Q 2025 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
  3/31/25 12/31/24 9/30/24 6/30/24 3/31/24
Defense/IT Portfolio:
Fort Meade/BW Corridor 94  9,031  95.6  % 96.0  % 95.7  % 95.8  % 96.0  %
NoVA Defense/IT 16  2,500  92.3  % 91.1  % 90.7  % 88.5  % 87.9  %
Lackland Air Force Base 8  1,062  100.0  % 100.0  % 100.0  % 100.0  % 100.0  %
Navy Support 22  1,271  82.1  % 82.9  % 83.1  % 85.1  % 85.1  %
Redstone Arsenal 22  2,301  97.6  % 97.5  % 97.4  % 96.7  % 97.5  %
Data Center Shells:
Consolidated properties 6  1,408  100.0  % 100.0  % 100.0  % 100.0  % 100.0  %
Unconsolidated JV properties 24  4,295  100.0  % 100.0  % 100.0  % 100.0  % 100.0  %
Total Defense/IT Portfolio 192  21,868  96.0  % 96.1  % 95.9  % 95.7  % 95.8  %
Other 6  1,988  73.3  % 72.7  % 73.1  % 72.5  % 71.7  %
Total Same Property 198  23,856  94.1  % 94.1  % 94.0  % 93.8  % 93.8  %

Same Property (1) Period End Occupancy Rates by Segment 
(square feet in thousands)
# of Properties Operational Square Feet
  3/31/25 12/31/24 9/30/24 6/30/24 3/31/24
Defense/IT Portfolio:
Fort Meade/BW Corridor 94  9,031  95.3  % 96.7  % 95.4  % 95.7  % 95.9  %
NoVA Defense/IT 16  2,500  92.2  % 91.7  % 90.5  % 89.2  % 88.2  %
Lackland Air Force Base 8  1,062  100.0  % 100.0  % 100.0  % 100.0  % 100.0  %
Navy Support 22  1,271  81.6  % 82.6  % 83.3  % 84.5  % 85.9  %
Redstone Arsenal 22  2,301  98.1  % 97.4  % 97.6  % 96.7  % 97.3  %
Data Center Shells:
Consolidated properties 6  1,408  100.0  % 100.0  % 100.0  % 100.0  % 100.0  %
Unconsolidated JV properties 24  4,295  100.0  % 100.0  % 100.0  % 100.0  % 100.0  %
Total Defense/IT Portfolio 192  21,868  95.9  % 96.4  % 95.8  % 95.8  % 95.8  %
Other 6  1,988  74.7  % 72.7  % 73.4  % 73.1  % 72.2  %
Total Same Property 198  23,856  94.1  % 94.4  % 93.9  % 93.9  % 93.9  %
(1)Refer to the section entitled “Definitions” for a definition of this measure.
16
1Q 2025 Supplemental Information Package
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COPT Defense Properties
Same Property Real Estate Revenues + NOI by Segment
(in thousands)
  Three Months Ended
  3/31/25 12/31/24 9/30/24 6/30/24 3/31/24
Same Property real estate revenues          
Defense/IT Portfolio:
Fort Meade/BW Corridor $ 83,584  $ 78,371  $ 79,803  $ 77,448  $ 78,674 
NoVA Defense/IT 23,162  21,924  22,084  20,600  21,426 
Lackland Air Force Base 16,416  18,098  16,879  16,447  16,411 
Navy Support 7,960  8,095  8,067  8,240  8,227 
Redstone Arsenal 15,096  15,876  17,127  16,078  16,411 
Data Center Shells-Consolidated 9,304  9,044  9,033  9,600  8,457 
Total Defense/IT Portfolio 155,522  151,408  152,993  148,413  149,606 
Other 15,675  14,506  15,368  14,742  14,493 
Same Property real estate revenues $ 171,197  $ 165,914  $ 168,361  $ 163,155  $ 164,099 
Same Property NOI from real estate operations (“NOI”)          
Defense/IT Portfolio:
Fort Meade/BW Corridor $ 52,167  $ 51,773  $ 51,958  $ 53,050  $ 50,389 
NoVA Defense/IT 13,072  13,309  12,832  11,670  12,164 
Lackland Air Force Base 7,607  7,740  7,724  7,650  7,723 
Navy Support 3,794  4,292  3,984  4,607  4,600 
Redstone Arsenal 9,180  9,995  10,964  10,452  10,754 
Data Center Shells:
Consolidated properties 7,488  7,508  7,514  7,509  7,509 
COPT Defense’s share of unconsolidated real estate JVs 1,889  1,898  1,844  1,735  1,740 
Total Defense/IT Portfolio 95,197  96,515  96,820  96,673  94,879 
Other 9,079  7,304  7,224  7,419  6,233 
Same Property NOI (1) $ 104,276  $ 103,819  $ 104,044  $ 104,092  $ 101,112 
(1)Refer to the section entitled “Supplementary Reconciliations of Non-GAAP Measures” for reconciliation.



17
1Q 2025 Supplemental Information Package
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COPT Defense Properties
Same Property Cash NOI by Segment
(dollars in thousands)
  Three Months Ended
  3/31/25 12/31/24 9/30/24 6/30/24 3/31/24
Same Property cash NOI from real estate operations (“cash NOI”)          
Defense/IT Portfolio:
Fort Meade/BW Corridor $ 49,457  $ 51,525  $ 49,748  $ 50,899  $ 47,285 
NoVA Defense/IT 12,263  13,308  13,223  12,452  12,933 
Lackland Air Force Base 8,283  8,357  8,223  8,124  8,186 
Navy Support 3,833  4,215  4,000  4,656  4,503 
Redstone Arsenal 8,509  8,315  9,532  8,790  6,327 
Data Center Shells:
Consolidated properties 7,039  6,780  6,779  6,748  6,683 
COPT Defense’s share of unconsolidated real estate JVs 1,628  1,611  1,565  1,481  1,477 
Total Defense/IT Portfolio 91,012  94,111  93,070  93,150  87,394 
Other 9,150  7,518  7,093  7,322  6,161 
Same Property cash NOI (1) $ 100,162  $ 101,629  $ 100,163  $ 100,472  $ 93,555 
Percentage change in total Same Property cash NOI (1)(2) 7.1%
Percentage change in Defense/IT Portfolio Same Property cash NOI (2) 4.1%

(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
1Q 2025 Supplemental Information Package
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COPT Defense Properties
Leasing (1)(2)
Three Months Ended 3/31/25
(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 359  —  54  25  438  —  438 
Expiring Square Feet 473  6  81  25  585  —  585 
Vacating Square Feet 114  6  27  —  147  —  147 
Retention Rate (% based upon square feet) 75.8  % —  % 67.1  % 100.0  % 74.9  % —  % 74.9  %
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot $ 2.22  $ —  $ 3.01  $ 0.69  $ 2.23  $ —  $ 2.23 
Weighted Average Lease Term in Years 3.2  —  5.4  1.9  3.4  —  3.4 
Straight-line Rent Per Square Foot
Renewal Straight-line Rent $ 37.57  $ —  $ 31.36  $ 29.80  $ 36.36  $ —  $ 36.36 
Expiring Straight-line Rent $ 34.38  $ —  $ 31.49  $ 27.34  $ 33.62  $ —  $ 33.62 
Change in Straight-line Rent 9.3  % —  % (0.4  %) 9.0  % 8.2  % —  % 8.2  %
Cash Rent Per Square Foot
Renewal Cash Rent $ 37.58  $ —  $ 34.94  $ 29.43  $ 36.79  $ —  $ 36.79 
Expiring Cash Rent $ 38.04  $ —  $ 34.85  $ 29.02  $ 37.13  $ —  $ 37.13 
Change in Cash Rent (1.2  %) —  % 0.3  % 1.4  % (0.9  %) —  % (0.9  %)
Compound Annual Growth Rate 2.2  % —  % 3.7  % 2.5  % 2.4  % —  % 2.4  %
Average Escalations Per Year 2.6  % —  % 2.3  % 2.8  % 2.6  % —  % 2.6  %
New Leases
Investment Space
Leased Square Feet 48  —  —  41  89  —  89 
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot $ 9.62  $ —  $ —  $ —  $ 5.21  $ —  $ 5.21 
Weighted Average Lease Term in Years 10.9  —  —  10.0  10.5  —  10.5 
Straight-line Rent Per Square Foot $ 30.62  $ —  $ —  $ 22.09  $ 26.71  $ —  $ 26.71 
Cash Rent Per Square Foot $ 29.50  $ —  $ —  $ 22.75  $ 26.40  $ —  $ 26.40 
Vacant Space
Leased Square Feet 58  9  22  20  109  12  120 
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot $ 8.21  $ 12.55  $ 8.72  $ 5.86  $ 8.27  $ 6.14  $ 8.06 
Weighted Average Lease Term in Years 9.4  8.1  4.0  4.2  7.3  5.7  7.1 
Straight-line Rent Per Square Foot $ 31.28  $ 33.86  $ 36.27  $ 26.96  $ 31.73  $ 33.09  $ 31.86 
Cash Rent Per Square Foot $ 29.47  $ 33.50  $ 37.23  $ 27.67  $ 31.06  $ 39.00  $ 31.83 
Total Square Feet Leased 465  9  76  86  636  12  647 
Average Escalations Per Year 2.8  % 2.5  % 2.3  % 2.1  % 2.6  % 2.8  % 2.6  %
(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.
19
1Q 2025 Supplemental Information Package
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COPT Defense Properties
Lease Expiration Analysis as of 3/31/25 (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
Fort Meade/BW Corridor 1,383  $ 58,422  9.3  % $ 42.20 
NoVA Defense/IT 64  2,195  0.4  % 34.41 
Lackland Air Force Base 703  46,207  7.4  % 65.76 
Navy Support 88  2,051  0.3  % 23.36 
Redstone Arsenal 203  4,774  0.8  % 23.48 
2025 2,441  113,649  18.2  % 46.54 
Fort Meade/BW Corridor 889  35,651  5.7  % 40.10 
NoVA Defense/IT 68  2,397  0.4  % 35.29 
Lackland Air Force Base 250  13,027  2.1  % 52.10 
Navy Support 249  7,787  1.2  % 31.28 
Redstone Arsenal 124  3,278  0.5  % 26.51 
Data Center Shells-Unconsolidated JV Properties 446  860  0.1  % 19.29 
2026 2,026  63,000  10.1  % 38.79 
Fort Meade/BW Corridor 1,002  38,886  6.2  % 38.76 
NoVA Defense/IT 190  6,626  1.1  % 34.82 
Navy Support 261  9,486  1.5  % 36.40 
Redstone Arsenal 173  4,860  0.8  % 28.04 
Data Center Shells-Unconsolidated JV Properties 364  540  0.1  % 14.81 
2027 1,990  60,397  9.7  % 36.30 
Fort Meade/BW Corridor 2,041  75,852  12.1  % 37.11 
NoVA Defense/IT 408  16,968  2.7  % 41.55 
Navy Support 116  2,811  0.4  % 24.19 
Redstone Arsenal 44  1,241  0.2  % 27.95 
Data Center Shells-Unconsolidated JV Properties 515  906  0.1  % 17.58 
2028 3,124  97,779  15.6  % 36.70 
Fort Meade/BW Corridor 970  31,523  5.0  % 32.47 
NoVA Defense/IT 657  25,479  4.1  % 38.76 
Navy Support 123  3,634  0.6  % 29.54 
Redstone Arsenal 374  7,554  1.2  % 20.09 
Data Center Shells-Unconsolidated JV Properties 992  2,325  0.4  % 23.45 
2029 3,116  70,515  11.3  % 31.68 
Thereafter
Consolidated Properties 6,818  215,978  34.6  % 30.88 
Unconsolidated JV Properties 1,978  3,535  0.6  % 17.87 
Total Defense/IT Portfolio 21,493  $ 624,853  100.0  % $ 35.12 

20
1Q 2025 Supplemental Information Package
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COPT Defense Properties
Lease Expiration Analysis as of 3/31/25 (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 21,493  $ 624,853  90.1  % $ 35.12 
Other
         2025 84  2,058  0.3  % 24.35 
         2026 163  6,156  0.9  % 37.82 
         2027 88  3,939  0.6  % 44.35 
         2028 244  16,187  2.3  % 37.57 
         2029 157  6,563  0.9  % 41.74 
Thereafter 750  34,051  4.9  % 45.38 
Total Other 1,486  68,954  9.9  % 41.63 
Total Portfolio 22,979  $ 693,807  100.0  % $ 35.63 
Consolidated Portfolio 18,684  $ 685,641 
Unconsolidated JV Properties 4,295  $ 8,166 
Note: As of 3/31/25, the weighted average lease term was 5.1 years for the total portfolio and 5.0 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 3/31/25. With regard to properties owned through unconsolidated real estate JVs, the amounts reported above reflect 100% of the properties’ square footage but only reflect the portion of Annualized Rental Revenue that was allocable to our 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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21
1Q 2025 Supplemental Information Package
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COPT Defense Properties
2025 Defense/IT Portfolio Quarterly Lease Expiration Analysis as of 3/31/25 (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
Fort Meade/BW Corridor 699  $ 31,539  5.0  % $ 45.09 
NoVA Defense/IT 24  717  0.1  % 30.58 
Navy Support 38  709  0.1  % 18.72 
Q2 2025 761  32,965  5.2  % 43.33 
Fort Meade/BW Corridor 400  16,178  2.6  % 40.35 
NoVA Defense/IT 2  71  —  % 34.66 
Lackland Air Force Base 161  7,686  1.2  % 47.87 
Navy Support 20  536  0.1  % 26.67 
Redstone Arsenal 169  3,808  0.6  % 22.54 
Q3 2025 752  28,279  4.5  % 37.57 
Fort Meade/BW Corridor 284  10,704  1.7  % 37.69 
NoVA Defense/IT 38  1,408  0.2  % 36.74 
Lackland Air Force Base 542  38,521  6.2  % 71.05 
Navy Support 30  806  0.1  % 27.03 
Redstone Arsenal 34  966  0.2  % 28.07 
Q4 2025 928  52,405  8.4  % 56.43 
2,441  $ 113,649  18.2  % $ 46.54 
(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 3/31/25.
(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.
22
1Q 2025 Supplemental Information Package
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COPT Defense Properties
Top 20 Tenants as of 3/31/25 (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) $ 250,513  36.1  % 5,644  3.2 
Fortune 100 Company 67,777  9.8  % 6,407  7.5 
General Dynamics Corporation 32,987  4.8  % 674  3.6 
Northrop Grumman Corporation 15,070  2.2  % 519  6.5 
The Boeing Company 14,957  2.2  % 443  2.1 
CACI International Inc   14,010  2.0  % 342  3.9 
Peraton Corp.   13,701  2.0  % 346  4.5 
Fortune 100 Company   12,003  1.7  % 183  9.5 
Booz Allen Hamilton, Inc.   11,084  1.6  % 266  2.5 
Morrison & Foerster, LLP   9,912  1.4  % 102  12.0 
KBR, Inc. 7,794  1.1  % 287  8.8 
CareFirst, Inc.   7,661  1.1  % 214  11.7 
Amentum Holdings, LLC   7,485  1.1  % 202  4.0 
Yulista Holding, LLC   7,258  1.0  % 368  4.7 
AT&T Corporation   6,972  1.0  % 321  4.5 
Mantech International Corp.   6,807  1.0  % 208  2.2 
University System of Maryland   6,521  0.9  % 179  4.8 
Wells Fargo & Company   5,964  0.9  % 138  3.8 
Lockheed Martin Corporation   5,750  0.8  % 194  5.3 
Miles & Stockbridge, P.C.   5,467  0.8  % 130  3.7 
Subtotal Top 20 Tenants   509,693  73.5  % 17,167  5.3 
All remaining tenants   184,114  26.5  % 5,812  4.3 
Total / Weighted Average   $ 693,807  100.0  % 22,979  5.1 

(1)For properties owned through unconsolidated real estate JVs, includes our share of those properties’ ARR of $8.2 million (see page 32 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 3/31/25, $6.4 million of our ARR was through the General Services Administration (GSA), representing 2.6% of our ARR from the United States Government and 0.9% of our total ARR.






23
1Q 2025 Supplemental Information Package
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COPT Defense Properties
Summary of Development Projects as of 3/31/25 (1)
(dollars and square feet in thousands) 
Total Rentable Square Feet
% Leased as of 4/14/2025
as of 3/31/25 (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  $ 46,781  $ —  2Q 25 2Q 26
Redstone Arsenal:
9700 Advanced Gateway (4) Huntsville, Alabama 50  100% 14,600  10,998  2,171  1Q 25 3Q 25
8500 Advanced Gateway Huntsville, Alabama 150  0% 51,950  6,124  —  2Q 26 2Q 27
Subtotal / Average 200  25% 66,550  17,122  2,171 
Data Center Shells:
MP 3 Northern Virginia 225  100% 111,800  16,422  —  3Q 25 3Q 25
Southpoint Phase 2 Bldg B Northern Virginia 193  100% 65,000  11,077  —  4Q 25 4Q 25
Data Center Shells Subtotal / Average 418  100% 176,800  27,499  — 
Total Defense/IT Portfolio Under Development 756  62% $ 308,450  $ 91,402  $ 2,171     
(1)Includes properties under, or contractually committed for, development as of 3/31/25.
(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.
(4)Although classified as under development, 10,000 square feet were operational as of 3/31/25.
24
1Q 2025 Supplemental Information Package
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COPT Defense Properties
Development Placed in Service as of 3/31/25
(square feet in thousands)
 
Square Feet Placed in Service
Total Space Placed in Service % Leased as of 4/14/2025
Total Property
Property Segment/Sub-Segment
% Leased as of 4/14/2025
 Rentable Square Feet 2025
Property and Location 1st Quarter
9700 Advanced Gateway
Huntsville, Alabama
 Redstone Arsenal 100% 50  10  100%
% Leased as of 4/14/2025
 100%

25
1Q 2025 Supplemental Information Package
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COPT Defense Properties
Summary of Land Owned/Controlled as of 3/31/25 (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 (Annapolis Junction, MD) 144 1,483
Howard County, MD 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) 287 3,200
Data Center Shells 365 3,300
Total Defense/IT Portfolio land owned/controlled for future development 1,008 10,846 $ 201,356 
Other land owned/controlled 53   1,538 9,653 
Land held, net 1,061 12,384 $ 211,009 

(1)This land inventory schedule includes properties under ground lease to us and excludes all properties listed as development as detailed on page 24. 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 31). 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.
26
1Q 2025 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 3/31/25
Debt
Secured debt 1.1 4.81  % 4.40  % $ 69,345 
Unsecured debt 4.6 3.19  % 3.35  % 2,365,211 
Total Consolidated Debt 4.5 3.24  % 3.38  % $ 2,434,556 
Fixed-rate debt (3) 4.7 2.96  % 3.34  % $ 2,392,456 
Variable-rate debt (3) 2.5 5.66  % 5.74  % 42,100 
Total Consolidated Debt $ 2,434,556 
Common Equity
Common Shares 112,882 
Common Units (4) 2,403 
Total Common Shares and Units 115,285 
Closing Common Share Price on 3/31/25
 $ 27.27 
Equity Market Capitalization (5) $ 3,143,822 
Total Market Capitalization (5) $ 5,578,378 
(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 $210.3 million that hedge the risk of changes in interest rates on variable-rate debt.
(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 4/11/25
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27
1Q 2025 Supplemental Information Package
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COPT Defense Properties
Summary of Outstanding Debt as of 3/31/25
(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%		 $ 95,000  Oct-26 (1)(2) LW Redstone:
4000 & 4100 Market Street and 8800 Redstone Gateway (2)(3) SOFR
+0.10%+1.55%		 $ 22,100  $ 21,800  Mar-26 (4)
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 (5) 5825 & 5850 University Research Court (3) 3.82% 36,905  $ 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%		 10,340  $ 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 4.81% $ 69,345 
Unsecured Bank Term Loan SOFR+
0.10%+1.30%		 125,000  Jan-26 (2)(6)
Other Unsecured Debt 0.00% 211  May-26
Total Unsecured Debt 3.19% $ 2,365,211 
Debt Summary
Total Unsecured Debt 3.19% $ 2,365,211 
Total Secured Debt 4.81% 69,345 
Consolidated Debt 3.24% $ 2,434,556 
Debt per balance sheet $ 2,412,670 
Net discounts and deferred financing costs 21,886 
Consolidated Debt 2,434,556 
COPT Defense’s share of unconsolidated JV gross debt (7) 53,750 
Gross debt $ 2,488,306 
(1)The 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 JVs.
(4)This loan maturity may be extended by a one-year period, provided certain conditions are met.
(5)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.
(6)The term loan matures in January 2026 and may be extended by two 12-month periods at our option.
(7)See page 32 for additional disclosure regarding our unconsolidated real estate JVs.

28
1Q 2025 Supplemental Information Package
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COPT Defense Properties
Summary of Outstanding Debt as of 3/31/25 (continued)

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(1)Revolving Credit Facility maturity of $95.0 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 $210.3 million that hedge the risk of changes in interest rates on variable-rate debt.
29
1Q 2025 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
3/31/25
As of and for Three Months Ended
3/31/25
Senior Note Covenants (1) Required Line of Credit & Term Loan Covenants (1) Required
Total Debt / Total Assets < 60% 41.5% Total Debt / Total Assets < 60% 37.8%
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 4.6x
Unencumbered Assets / Unsecured Debt > 150% 241.1% Unsecured Debt / Unencumbered Assets < 60% 37.8%
Unencumbered Adjusted NOI / Unsecured Interest Expense > 1.75x 4.8x
Debt Ratios Page Refer. Unencumbered Portfolio Analysis
GAAP # of unencumbered properties 179 
Debt per balance sheet 6 $ 2,412,670  % of total portfolio 88  %
Total assets 6 $ 4,250,311  Unencumbered square feet in-service 20,899 
Debt to assets 56.8  % % of total portfolio 85  %
Net income 7 $ 36,228  NOI from unencumbered real estate operations $ 104,276 
Debt to net income ratio (2) 16.6  x % of total NOI from real estate operations 97  %
Interest expense 7 $ 20,504  Adjusted EBITDA from unencumbered real estate operations $ 95,950 
Net income to interest expense ratio (2) 1.8  x % of total adjusted EBITDA from real estate operations 97  %
Unencumbered adjusted book $ 5,848,887 
Non-GAAP % of total adjusted book 97  %
Net debt 35 $ 2,462,248 
Adjusted book 35 $ 6,050,003 
Net debt to adjusted book 40.7  %
Net debt adj. for fully-leased investment properties 35 $ 2,434,749 
In-place adjusted EBITDA 11 $ 101,137 
Net debt to in-place adjusted EBITDA ratio 6.1  x
Net debt adj. for fully-leased investment properties to in-place adj. EBITDA ratio 6.0  x
Denominator for debt service coverage 34 $ 19,999 
Denominator for fixed charge coverage 34 $ 20,926 
Adjusted EBITDA 11 $ 99,119 
Adjusted EBITDA debt service coverage ratio 5.0  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.
30
1Q 2025 Supplemental Information Package
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COPT Defense Properties
Consolidated Real Estate Joint Ventures as of 3/31/25
(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 Total Assets (2)
Suburban Maryland:            
M Square Associates, LLC (4 properties)
 414  96.6% 96.6% $ 1,900  $ 93,795  $ 47,245  50%
Huntsville, Alabama:
LW Redstone Company, LLC (24 properties)
 2,348  95.9% 98.2% 9,610  618,755  22,100  85% (4)
Washington, D.C.:
Stevens Place (1 property)
 188  83.5% 92.2% 1,466  141,648  —  95%
Total / Average 2,950  95.2% 97.6% $ 12,976  $ 854,198  $ 69,345 
 
        
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  $ 6,047  $ —  50%
Huntsville, Alabama:        
Redstone Gateway (5) 3,390  114,533  —  85% (3)
Total 3,738  $ 120,580  $ —   
 
(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 $70.0 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.
31
1Q 2025 Supplemental Information Package
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COPT Defense Properties
Unconsolidated Real Estate Joint Ventures as of 3/31/25 (1)
(dollars and square feet in thousands) 
Joint venture information
COPT Defense ownership %
 10  %
COPT Defense’s investment
 $ 35,065  (2)
# of Properties 24 
Square Feet 4,295 
% Occupied 100  %
COPT Defense’s share of ARR $ 8,166 
Balance sheet information Total COPT Defense’s Share (3)
Operating properties, net $ 932,868  $ 93,287 
Total assets $ 1,028,040  $ 102,804 
Debt (4) $ 536,205  $ 53,621 
Total liabilities $ 611,902  $ 61,190 
Three Months Ended
Operating information Total COPT Defense’s Share (3)
Revenue $ 23,433  $ 2,344 
Operating expenses (4,548) (455)
NOI from real estate operations and EBITDAre (5) 18,885  1,889 
Interest expense (7,769) (777)
Depreciation and amortization (7,873) (741)
Net income $ 3,243  $ 371 
NOI from real estate operations (per above) (5) $ 18,885  $ 1,889 
Straight line rent adjustments (768) (77)
Amortization of acquired above- and below-market rents (1,838) (184)
Cash NOI from real estate operations (5) $ 16,279  $ 1,628 
(1)Includes equity method investments in five JVs that own and operate data center shell properties.
(2)Includes $39.0 million reported in “Investment in unconsolidated real estate joint ventures” and $3.9 million for investments with deficit balances reported in “other liabilities” on our consolidated balance sheet.
(3)Represents the portion allocable to our ownership interest.
(4)Maturities on JV debt range from 2027 (assuming exercise of two one-year extension options) to 2030.
(5)Refer to the section entitled “Definitions” for a definition of this measure.


32
1Q 2025 Supplemental Information Package
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COPT Defense Properties
Supplementary Reconciliations of Non-GAAP Measures
(in thousands)
  Three Months Ended
  3/31/25 12/31/24 9/30/24 6/30/24 3/31/24
Net income $ 36,228  $ 36,467  $ 37,397  $ 36,407  $ 33,671 
Construction contract and other service revenues (10,259) (12,027) (16,662) (20,258) (26,603)
Depreciation and other amortization associated with real estate operations 39,359  38,821  38,307  38,161  38,351 
Construction contract and other service expenses 9,705  11,519  16,127  19,612  26,007 
General and administrative expenses 8,148  8,429  8,157  8,591  8,378 
Leasing expenses 2,999  2,243  2,341  2,462  2,187 
Business development expenses and land carry costs 1,009  1,171  918  979  1,182 
Interest expense 20,504  20,391  20,376  20,617  20,767 
Interest and other income, net (1,568) (2,331) (3,324) (2,884) (4,122)
Gain on sales of real estate (300) —  —  —  — 
Equity in income of unconsolidated entities (371) (217) (85) (26) (69)
Unconsolidated real estate JVs NOI allocable to COPT Defense included in equity in income of unconsolidated entities (1) 1,889  1,898  1,844  1,735  1,740 
Income tax expense (benefit) 103  (24) 130  14  168 
NOI from real estate operations 107,446  106,340  105,526  105,410  101,657 
Straight line rent adjustments and lease incentive amortization (1,875) 3,437  1,017  4,213  3,632 
Amortization of acquired above- and below-market rents 64  65  64  64  (24)
Amortization of intangibles and other assets to property operating expenses 98  146  147  146  147 
Lease termination fees, net (834) (865) (931) (880) (775)
Tenant funded landlord assets and lease incentives (3,413) (6,260) (4,415) (7,318) (10,439)
Cash NOI adjustments in unconsolidated real estate JVs (261) (287) (279) (254) (263)
Cash NOI from real estate operations $ 101,225  $ 102,576  $ 101,129  $ 101,381  $ 93,935 
NOI from real estate operations (from above) $ 107,446  $ 106,340  $ 105,526  $ 105,410  $ 101,657 
Non-Same Property NOI from real estate operations (3,170) (2,521) (1,482) (1,318) (545)
Same Property NOI from real estate operations 104,276  103,819  104,044  104,092  101,112 
Straight line rent adjustments and lease incentive amortization 154  5,065  (498) 182  3,913 
Amortization of acquired above- and below-market rents (69) (69) (69) (69) (69)
Lease termination fees, net (834) (864) (931) (881) (775)
Tenant funded landlord assets and lease incentives (3,105) (6,035) (2,103) (2,598) (10,364)
Cash NOI adjustments in unconsolidated real estate JVs (260) (287) (280) (254) (262)
Same Property Cash NOI from real estate operations $ 100,162  $ 101,629  $ 100,163  $ 100,472  $ 93,555 
(1)See page 32 for additional disclosure regarding our unconsolidated real estate JVs.
33
1Q 2025 Supplemental Information Package
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COPT Defense Properties
Supplementary Reconciliations of Non-GAAP Measures (continued)
(in thousands)
  Three Months Ended
  3/31/25 12/31/24 9/30/24 6/30/24 3/31/24
Real estate revenues
Lease revenue
Fixed contractual payments $ 131,691  $ 130,543  $ 129,357  $ 127,363  $ 126,198 
Variable lease payments (1) 43,617  39,222  41,192  38,256  39,235 
Lease revenue 175,308  169,765  170,549  165,619  165,433 
Other property revenue 2,289  1,641  2,014  1,466  1,230 
Real estate revenues $ 177,597  $ 171,406  $ 172,563  $ 167,085  $ 166,663 
Provision for credit losses (recoveries) on billed lease revenue $ 903  $ 1,604  $ 25  $ (24) $ (109)
Total revenues $ 187,856  $ 183,433  $ 189,225  $ 187,343  $ 193,266 
Construction contract and other service revenues (10,259) (12,027) (16,662) (20,258) (26,603)
Real estate revenues $ 177,597  $ 171,406  $ 172,563  $ 167,085  $ 166,663 
Total interest expense $ 20,504  $ 20,391  $ 20,376  $ 20,617  $ 20,767 
Less: Amortization of deferred financing costs (667) (671) (671) (681) (685)
Less: Amortization of net debt discounts, net of amounts capitalized (1,051) (1,041) (1,032) (1,023) (1,014)
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 752  872  821  808  804 
Denominator for interest coverage 19,538  19,551  19,494  19,721  19,872 
Scheduled principal amortization 461  455  448  662  769 
Denominator for debt service coverage 19,999  20,006  19,942  20,383  20,641 
Capitalized interest 927  928  712  643  589 
Denominator for fixed charge coverage $ 20,926  $ 20,934  $ 20,654  $ 21,026  $ 21,230 
Dividends on unrestricted common and deferred shares $ 34,318  $ 33,167  $ 33,165  $ 33,153  $ 33,143 
Distributions on unrestricted common units 661  491  491  505  500 
Dividends and distributions on restricted shares and units 236  248  247  238  267 
Total dividends and distributions for GAAP payout ratio 35,215  33,906  33,903  33,896  33,910 
Dividends and distributions on antidilutive shares and units (237) (250) (249) (241) (266)
Dividends and distributions for non-GAAP payout ratios $ 34,978  $ 33,656  $ 33,654  $ 33,655  $ 33,644 
(1)Represents primarily lease revenue associated with property operating expense reimbursements from tenants.
34
1Q 2025 Supplemental Information Package
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COPT Defense Properties
Supplementary Reconciliations of Non-GAAP Measures (continued)
(in thousands)
3/31/25 12/31/24 9/30/24 6/30/24 3/31/24
Total assets $ 4,250,311  $ 4,254,191  $ 4,234,302  $ 4,219,338  $ 4,232,895 
Accumulated depreciation 1,572,422  1,537,293  1,502,730  1,468,595  1,434,621 
Accumulated amortization of intangibles on property acquisitions and deferred leasing costs 227,122  228,154  227,281  226,739  225,443 
COPT Defense’s share of liabilities of unconsolidated real estate JVs 61,190  61,294  61,118  60,922  60,904 
COPT Defense’s share of accumulated depreciation and amortization of unconsolidated real estate JVs 13,616  12,817  12,014  11,199  10,364 
Less: Property - operating lease liabilities (48,216) (49,240) (33,615) (33,818) (33,141)
Less: Property - finance lease liabilities (384) (391) (397) (403) (409)
Less: Cash and cash equivalents (24,292) (38,284) (34,478) (100,443) (123,144)
Less: COPT Defense’s share of cash of unconsolidated real estate JVs (1,766) (2,053) (1,575) (1,278) (1,159)
Adjusted book $ 6,050,003  $ 6,003,781  $ 5,967,380  $ 5,850,851  $ 5,806,374 
Gross debt (page 28)
$ 2,488,306  $ 2,468,767  $ 2,468,620  $ 2,468,901  $ 2,497,050 
Less: Cash and cash equivalents (24,292) (38,284) (34,478) (100,443) (123,144)
Less: COPT Defense’s share of cash of unconsolidated real estate JVs (1,766) (2,053) (1,575) (1,278) (1,159)
Net debt 2,462,248  2,428,430  2,432,567  2,367,180  2,372,747 
Costs incurred on fully-leased development properties (27,499) (18,774) (70,954) (56,646) (43,034)
Costs incurred on fully-leased operating property acquisitions —  (17,034) (17,034) —  — 
Net debt adjusted for fully-leased investment properties $ 2,434,749  $ 2,392,622  $ 2,344,579  $ 2,310,534  $ 2,329,713 

35
1Q 2025 Supplemental Information Package
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COPT Defense Properties
Definitions
Non-GAAP Measures

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

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

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

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

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

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

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

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

Diluted FFO available to common share and common unit holders, as adjusted for comparability (“Diluted FFO, as adjusted for comparability”)
Defined as Diluted FFO or FFO adjusted to exclude: operating property acquisition costs (for acquisitions classified as business combinations); gain or loss on early extinguishment of debt; FFO associated with properties that secured non-recourse debt on which we defaulted and, subsequently, extinguished via conveyance of such properties (including property NOI, interest expense and gains on debt extinguishment); loss on interest rate derivatives; and executive transition costs associated with named executive officers.  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 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
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1Q 2025 Supplemental Information Package
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Definitions
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 or acquired 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.

Net debt to Adjusted book
Defined as Net debt divided by Adjusted book (defined above).
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1Q 2025 Supplemental Information Package
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Definitions
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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1Q 2025 Supplemental Information Package
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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 1/1/24.
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.
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1Q 2025 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 First Quarter 2025 Results
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EPS of $0.31
FFO per Share, as Adjusted for Comparability, of $0.65
4.8% FFO per Share Growth Year-over-Year
Met Midpoint of Guidance

Reiterates Midpoint of 2025 FFO per Share Guidance of $2.66
Implies 3.5% FFO per Share Growth for the Year

Continued Strong Occupancy and Leased Levels
Defense/IT Portfolio 95.3% Occupied and 96.6% Leased
Occupancy Rate Exceeded 94% for 9 Consecutive Quarters

Same Property Cash NOI Increased 7.1%
Reiterates Midpoint of Same Property Cash NOI Guidance for the Year of 2.75%

Committed $52 million of Capital to New Investment in Huntsville
$308 million of Active Developments (756,000 SF) are 62% Leased
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Excellent Leasing to Start the Year
Total Leasing of 647,000 SF

120,000 SF of Vacancy Leasing
On Track to Achieve/Exceed Annual Target of 400,000 SF

Tenant Retention of 75%
On Track to Achieve Annual Goal of 75%-85%

89,000 SF of Investment Leasing
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COLUMBIA, MD (BUSINESS WIRE) April 28, 2025 - COPT Defense Properties (“COPT Defense” or the “Company”) (NYSE: CDP) announced results for the first quarter ended March 31, 2025.



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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, generated strong results in the first quarter with FFO per share at the midpoint of our guidance range, despite incurring higher than expected net weather-related expenses. Our performance year-to-date is tracking according to plan and we are reiterating the midpoint of our 2025 FFO per share guidance range at $2.66, which implies 3.5% year-over-year growth.

In terms of our leasing achievements, we are off to a great start, as we have executed 179,000 square feet of vacancy leasing and over 100,000 square feet of investment leasing year-to-date, while maintaining a strong tenant retention rate of 75%. Our Defense/IT Portfolio was 95.3% occupied and 96.6% leased at quarter-end, and marked nine consecutive quarters in which our occupancy rate exceeded 94%, highlighting the strength and durability of our portfolio.

In terms of external growth, we commenced construction on a 150,000 square foot development at Redstone Gateway in order to capture near-term demand, as we only have 37,000 square feet of inventory across our entire 2.5 million square foot Huntsville portfolio.

Our actual and expected performance led our Board of Trustees to approve a 3.4% increase in our quarterly dividend in February, which marks our third consecutive annual increase, amounting to a 10.9% cumulative increase since 2022. Looking forward, we continue to anticipate compound annual FFO per share growth of roughly 4% between 2023 to 2026.”

Financial Highlights

1st Quarter Financial Results:
>Diluted earnings per share (“EPS”) was $0.31 for the quarter ended March 31, 2025, compared to $0.29 for the quarter ended March 31, 2024.

>Diluted funds from operations per share (“FFOPS”), as calculated in accordance with Nareit’s definition and as adjusted for comparability, was $0.65 for the quarter ended March 31, 2025, compared to $0.62 for the quarter ended March 31, 2024.

Operating Performance Highlights

Operating Portfolio Summary:
>At March 31, 2025, the Company’s 24.5 million square foot total portfolio was 93.6% occupied and 95.1% leased, which includes the 22.6 million square foot Defense/IT Portfolio that was 95.3% occupied and 96.6% leased.

>During the quarter ended March 31, 2025, the Company placed into service 10,000 square feet of development that was 100% leased.

Same Property Performance:
>At March 31, 2025, the Company’s 23.9 million square foot Same Property portfolio was 94.1% occupied and 95.2% leased.



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>The Company’s Same Property cash NOI increased 7.1% in the quarter ended March 31, 2025, compared to the same period in 2024.

Leasing:
>Total Square Feet Leased: For the quarter ended March 31, 2025, the Company leased 647,000 square feet, including 438,000 square feet of renewals, 120,000 square feet of vacancy leasing, and 89,000 square feet of investment leasing.

>Tenant Retention Rates: During the quarter ended March 31, 2025, the Company renewed 74.9% of expiring square feet in its total portfolio, all of which was in the Defense/IT Portfolio.

>Rent Spreads and Average Escalations on Renewing Leases: For the quarter ended March 31, 2025, straight-line rents on renewals increased 8.2% and cash rents on renewed space decreased 0.9% while annual escalations on renewing leases averaged 2.6%.

>Lease Terms: In the quarter ended March 31, 2025, lease terms averaged 3.4 years on renewing leases, 7.1 years on vacancy leasing, and 10.5 years on investment leasing.

Investment Activity Highlights
>Development Pipeline: The Company’s development pipeline consists of five properties totaling 756,000 square feet that were 62% leased as of April 14, 2025. These projects represent a total estimated investment of $308 million, of which $91 million was spent as of March 31, 2025.

Balance Sheet and Capital Transaction Highlights
>For the quarter ended March 31, 2025, the Company’s adjusted EBITDA fixed charge coverage ratio was 4.7x.

>At March 31, 2025, the Company’s net debt to in-place adjusted EBITDA ratio was 6.1x and its net debt adjusted for fully-leased investment properties to in-place adjusted EBITDA ratio was 6.0x.

>At March 31, 2025, and including the effect of interest rate swaps, the Company’s weighted average effective interest rate on its consolidated debt portfolio was 3.4% with a weighted average maturity of 4.5 years, and 98% 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 first quarter 2025 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 Management is narrowing its full-year guidance for diluted EPS and diluted FFOPS, per Nareit and as adjusted for comparability of $1.27-$1.35 and $2.62-$2.70, respectively to new ranges of $1.28-$1.34 and $2.63-$2.69, respectively.



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2025 Guidance
Management is establishing second quarter guidance for diluted EPS and diluted FFOPS per Nareit and as adjusted for comparability at $0.31-$0.33 and $0.65-$0.67, respectively. Reconciliations of projected diluted EPS to projected diluted FFOPS, in accordance with Nareit and as adjusted for comparability are as follows:
Reconciliation of Diluted EPS to FFOPS, per Nareit,
and As Adjusted for Comparability
 Quarter Ending June 30, 2025 Year Ending December 31, 2025
Low High Low High
Diluted EPS $ 0.31  $ 0.33  $ 1.28  $ 1.34 
Real estate-related depreciation and amortization 0.34  0.34  1.35  1.35 
Diluted FFOPS, Nareit definition and as adjusted for comparability $ 0.65  $ 0.67  $ 2.63  $ 2.69 

The Company detailed its initial full year guidance, with supporting assumptions, in a separate press release issued February 6, 2025; 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 first quarter 2025 results on its conference call tomorrow at 12:00 p.m. Eastern Time, details of which are listed below:

Conference Call Date: Tuesday, April 29, 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-conf.media-server.com/register/BIcd5f0d58372b4632aafb741d70095683
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 March 31, 2025, the Company’s Defense/IT Portfolio of 198 properties, including 24 owned through unconsolidated joint ventures, encompassed 22.6 million square feet and was 96.6% 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, 2024.


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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 March 31,
  2025 2024
Revenues    
Lease revenue $ 175,308  $ 165,433 
Other property revenue 2,289  1,230 
Construction contract and other service revenues 10,259  26,603 
Total revenues 187,856  193,266 
Operating expenses    
Property operating expenses 72,040  66,746 
Depreciation and amortization associated with real estate operations 39,359  38,351 
Construction contract and other service expenses 9,705  26,007 
General and administrative expenses 8,148  8,378 
Leasing expenses 2,999  2,187 
Business development expenses and land carry costs 1,009  1,182 
Total operating expenses 133,260  142,851 
Interest expense (20,504) (20,767)
Interest and other income, net 1,568  4,122 
Gain on sales of real estate 300  — 
Income before equity in income of unconsolidated entities and income taxes 35,960  33,770 
Equity in income of unconsolidated entities 371  69 
Income tax expense (103) (168)
Net income 36,228  33,671 
Net income attributable to noncontrolling interests    
Common units in the Operating Partnership (“OP”) (726) (608)
Other consolidated entities (762) (454)
Net income attributable to common shareholders $ 34,740  $ 32,609 
Earnings per share (“EPS”) computation    
Numerator for diluted EPS    
Net income attributable to common shareholders $ 34,740  $ 32,609 
Amount allocable to share-based compensation awards (143) (129)
Numerator for diluted EPS $ 34,597  $ 32,480 
Denominator    
Weighted average common shares - basic 112,383  112,231 
Dilutive effect of share-based compensation awards 643  509 
Weighted average common shares - diluted 113,026  112,740 
Diluted EPS $ 0.31  $ 0.29 
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COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands, except per share data)
  For the Three Months Ended March 31,
  2025 2024
Net income $ 36,228  $ 33,671 
Real estate-related depreciation and amortization 39,359  38,351 
Gain on sales of real estate (300) — 
Depreciation and amortization on unconsolidated real estate JVs 741  777 
Funds from operations (“FFO”) 76,028  72,799 
FFO allocable to other noncontrolling interests (1,158) (836)
Basic FFO allocable to share-based compensation awards (530) (587)
Basic FFO available to common share and common unit holders (“Basic FFO”) 74,340  71,376 
Redeemable noncontrolling interest —  469 
Diluted FFO adjustments allocable to share-based compensation awards 53  47 
Diluted FFO available to common share and common unit holders (“Diluted FFO”) 74,393  71,892 
Executive transition costs —  77 
Diluted FFO available to common share and common unit holders, as adjusted for comparability 74,393  71,969 
Straight line rent adjustments and lease incentive amortization (1,699) 3,473 
Amortization of intangibles and other assets included in net operating income (“NOI”) 162  122 
Share-based compensation, net of amounts capitalized 2,854  2,645 
Amortization of deferred financing costs 667  685 
Amortization of net debt discounts, net of amounts capitalized 1,051  1,014 
Replacement capital expenditures (21,464) (20,776)
Other 81  137 
Diluted adjusted funds from operations available to common share and common unit holders (“Diluted AFFO”) $ 56,045  $ 59,269 
Diluted FFO per share $ 0.65  $ 0.62 
Diluted FFO per share, as adjusted for comparability $ 0.65  $ 0.62 
Dividends/distributions per common share/unit $ 0.305  $ 0.295 

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COPT Defense Properties
Summary Financial Data
(unaudited)
(Dollars and shares in thousands, except per share data)
March 31,
2025		 December 31,
2024
Balance Sheet Data    
Properties, net of accumulated depreciation $ 3,643,482  $ 3,630,526 
Total assets $ 4,250,311  $ 4,254,191 
Debt per balance sheet $ 2,412,670  $ 2,391,755 
Total liabilities $ 2,688,481  $ 2,693,624 
Redeemable noncontrolling interest $ 23,539  $ 23,974 
Total equity $ 1,538,291  $ 1,536,593 
Debt to assets 56.8  % 56.2  %
Net debt to adjusted book 40.7  % 40.4  %
Defense/IT Portfolio Data (as of period end)    
Number of operating properties 198  197 
Total operational square feet (in thousands) 22,560  22,549 
% Occupied 95.3  % 95.4  %
% Leased 96.6  % 96.7  %
For the Three Months Ended March 31,
2025 2024
GAAP    
Payout ratio
Net income 97.2  % 100.7  %
Debt ratios
Net income to interest expense ratio 1.8  x  1.6  x 
Debt to net income ratio 16.6  x  17.9  x 
Non-GAAP
Payout ratios
Diluted FFO 47.0  % 46.8  %
Diluted FFO, as adjusted for comparability 47.0  % 46.7  %
Diluted AFFO 62.4  % 56.8  %
Debt ratios
Adjusted EBITDA fixed charge coverage ratio 4.7  x  4.5  x 
Net debt to in-place adjusted EBITDA ratio 6.1  x  6.1  x 
Net debt adj. for fully-leased investment properties to in-place adj. EBITDA ratio 6.0  x  6.0  x 
Reconciliation of denominators for per share measures  
Denominator for diluted EPS 113,026  112,740 
Weighted average common units 2,047  1,625 
Redeemable noncontrolling interest —  947 
Denominator for diluted FFO per share and as adjusted for comparability 115,073  115,312 




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COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)
For the Three Months Ended March 31,
  2025 2024
Numerators for Payout Ratios
Dividends on unrestricted common and deferred shares $ 34,318  $ 33,143 
Distributions on unrestricted common units 661  500 
Dividends and distributions on restricted shares and units 236  267 
Total dividends and distributions for GAAP payout ratio 35,215  33,910 
Dividends and distributions on antidilutive shares and units (237) (266)
Dividends and distributions for non-GAAP payout ratios $ 34,978  $ 33,644 
Reconciliation of net income to earnings before interest, income taxes, depreciation and amortization for real estate (“EBITDAre”), adjusted EBITDA and in-place adjusted EBITDA    
Net income $ 36,228  $ 33,671 
Interest expense 20,504  20,767 
Income tax expense 103  168 
Real estate-related depreciation and amortization 39,359  38,351 
Other depreciation and amortization 542  608 
Gain on sales of real estate (300) — 
Adjustments from unconsolidated real estate JVs 1,518  1,671 
EBITDAre 97,954  95,236 
Credit loss expense 515  22 
Business development expenses 593  630 
Executive transition costs 57  430 
Net gain on other investments —  (477)
Adjusted EBITDA 99,119  95,841 
Pro forma NOI adjustment for property changes within period 786  813 
Change in collectability of deferred rental revenue 1,232  — 
In-place adjusted EBITDA $ 101,137  $ 96,654 
Reconciliations of tenant improvements and incentives, building improvements and leasing costs for operating properties to replacement capital expenditures
Tenant improvements and incentives $ 13,758  $ 12,776 
Building improvements 1,872  4,953 
Leasing costs 3,461  3,590 
Net additions to tenant improvements and incentives 3,538  316 
Excluded building improvements (201) (818)
Excluded leasing costs (964) (41)
Replacement capital expenditures $ 21,464  $ 20,776 
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COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)
For the Three Months Ended March 31,
  2025 2024
Reconciliation of interest expense to the denominator for fixed charge coverage-Adjusted EBITDA    
Interest expense $ 20,504  $ 20,767 
Less: Amortization of deferred financing costs (667) (685)
Less: Amortization of net debt discounts, net of amounts capitalized (1,051) (1,014)
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 752  804 
Scheduled principal amortization 461  769 
Capitalized interest 927  589 
Denominator for fixed charge coverage-Adjusted EBITDA $ 20,926  $ 21,230 
Reconciliation of net income to NOI from real estate operations, same property NOI from real estate operations and same property cash NOI from real estate operations
Net income $ 36,228  $ 33,671 
Construction contract and other service revenues (10,259) (26,603)
Depreciation and other amortization associated with real estate operations 39,359  38,351 
Construction contract and other service expenses 9,705  26,007 
General and administrative expenses 8,148  8,378 
Leasing expenses 2,999  2,187 
Business development expenses and land carry costs 1,009  1,182 
Interest expense 20,504  20,767 
Interest and other income, net (1,568) (4,122)
Gain on sales of real estate (300) — 
Equity in income of unconsolidated entities (371) (69)
Unconsolidated real estate JVs NOI allocable to COPT Defense included in equity in income of unconsolidated entities 1,889  1,740 
Income tax expense 103  168 
NOI from real estate operations 107,446  101,657 
Non-Same Property NOI from real estate operations (3,170) (545)
Same Property NOI from real estate operations 104,276  101,112 
Straight line rent adjustments and lease incentive amortization 154  3,913 
Amortization of acquired above- and below-market rents (69) (69)
Lease termination fees, net (834) (775)
Tenant funded landlord assets and lease incentives (3,105) (10,364)
Cash NOI adjustments in unconsolidated real estate JVs (260) (262)
Same Property Cash NOI from real estate operations $ 100,162  $ 93,555 
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COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)


March 31,
2025		 December 31,
2024
Reconciliation of total assets to adjusted book    
Total assets $ 4,250,311  $ 4,254,191 
Accumulated depreciation 1,572,422  1,537,293 
Accumulated amortization of intangibles on property acquisitions and deferred leasing costs 227,122  228,154 
COPT Defense’s share of liabilities of unconsolidated real estate JVs 61,190  61,294 
COPT Defense’s share of accumulated depreciation and amortization of unconsolidated real estate JVs 13,616  12,817 
Less: Property - operating lease liabilities (48,216) (49,240)
Less: Property - finance lease liabilities (384) (391)
Less: Cash and cash equivalents (24,292) (38,284)
Less: COPT Defense’s share of cash of unconsolidated real estate JVs (1,766) (2,053)
Adjusted book $ 6,050,003  $ 6,003,781 

March 31,
2025		 December 31,
2024		 March 31,
2024
Reconciliation of debt to net debt and net debt adjusted for fully-leased investment properties
Debt per balance sheet $ 2,412,670  $ 2,391,755  $ 2,416,873 
Net discounts and deferred financing costs 21,886  23,262  27,358 
COPT Defense’s share of unconsolidated JV gross debt 53,750  53,750  52,819 
Gross debt 2,488,306  2,468,767  2,497,050 
Less: Cash and cash equivalents (24,292) (38,284) (123,144)
Less: COPT Defense’s share of cash of unconsolidated real estate JVs (1,766) (2,053) (1,159)
Net debt 2,462,248  2,428,430  2,372,747 
Costs incurred on fully-leased development properties (27,499) (18,774) (43,034)
Costs incurred on fully-leased operating property acquisitions —  (17,034) — 
Net debt adjusted for fully-leased investment properties $ 2,434,749  $ 2,392,622  $ 2,329,713 
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