COPT Defense Properties Reports Strong Q4 2025 Earnings Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2d ago
0mins
Should l Buy CDP?
Source: seekingalpha
- Strong Financial Performance: COPT Defense Properties reported an FFO per share of $2.72 for 2025, exceeding both initial and revised guidance, marking the seventh consecutive year of growth and demonstrating robust operational and financial metrics.
- Increased Investment Commitments: The company committed $278 million across five projects in four markets with an 81% pre-leased rate, expecting these developments to generate an incremental $52 million in cash NOI annually between 2026 and 2029, further driving revenue growth.
- Favorable Defense Budget: The FY 2026 Defense Appropriations Act raises the defense budget to over $950 billion, a 15% year-over-year increase, which is expected to drive long-term demand for the company’s properties, enhancing its competitive position in the market.
- Robust Leasing and Occupancy Rates: The company ended 2025 with a portfolio occupancy rate of 94.2%, exceeding expectations, and achieved a 95.5% occupancy rate in its Defense/IT portfolio, reflecting strong leasing execution and market demand.
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Analyst Views on CDP
Wall Street analysts forecast CDP stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CDP is 33.67 USD with a low forecast of 31.00 USD and a high forecast of 38.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
6 Analyst Rating
5 Buy
1 Hold
0 Sell
Strong Buy
Current: 32.000
Low
31.00
Averages
33.67
High
38.00
Current: 32.000
Low
31.00
Averages
33.67
High
38.00
About CDP
COPT Defense Properties is a self-managed real estate investment trust (REIT). The Company is focused on owning, operating and developing properties in locations proximate to, or sometimes containing, key United States Government (USG) defense installations and missions (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. Its Defense/IT Portfolio includes approximately 199 operating properties totaling 22.7 million square feet comprised of 16.8 million square feet in 168 office properties and 5.9 million square feet in 31 single-tenant data center shells. It owns approximately 24 of these data center shells totaling 4.3 million square feet through unconsolidated real estate joint ventures. It also owns around 50 acres of other developable land in the Greater Washington, DC/Baltimore region.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
COPT Defense Properties Reports Strong Q4 2025 Earnings Performance
- Strong Financial Performance: COPT Defense Properties reported an FFO per share of $2.72 for 2025, exceeding both initial and revised guidance, marking the seventh consecutive year of growth and demonstrating robust operational and financial metrics.
- Increased Investment Commitments: The company committed $278 million across five projects in four markets with an 81% pre-leased rate, expecting these developments to generate an incremental $52 million in cash NOI annually between 2026 and 2029, further driving revenue growth.
- Favorable Defense Budget: The FY 2026 Defense Appropriations Act raises the defense budget to over $950 billion, a 15% year-over-year increase, which is expected to drive long-term demand for the company’s properties, enhancing its competitive position in the market.
- Robust Leasing and Occupancy Rates: The company ended 2025 with a portfolio occupancy rate of 94.2%, exceeding expectations, and achieved a 95.5% occupancy rate in its Defense/IT portfolio, reflecting strong leasing execution and market demand.
See More
CDP Holdings Q4 Earnings Beat Expectations
- Strong Financial Performance: CDP Holdings reported a Q4 FFO of $0.70, beating expectations by $0.02, indicating robust financial management and operational efficiency.
- Significant Revenue Growth: The company achieved Q4 revenue of $197.36 million, a 7.6% year-over-year increase, surpassing market expectations of $197.45 million, reflecting ongoing business growth potential.
- Positive Stock Reaction: CDP Holdings' shares rose by 1.56%, demonstrating investor confidence in the company's financial results and future prospects.
- Clear Future Guidance: The company concurrently issued initial full-year and first-quarter guidance for 2026, showcasing a clear roadmap for future performance and enhancing market confidence in its long-term growth trajectory.
See More
CDP Holdings to Announce Q4 Earnings on February 5
- Earnings Announcement Schedule: CDP Holdings is set to release its Q4 2023 earnings on February 5 after market close, with consensus EPS estimated at $0.33 and revenue expected to reach $187.45 million, reflecting a 2.2% year-over-year growth, which will provide crucial insights into the company's financial health.
- Earnings Forecast Analysis: Over the past three months, EPS estimates have seen one upward revision while revenue estimates have faced four downward adjustments, indicating a cautious market sentiment regarding the company's future performance, which could impact investor confidence and stock price volatility.
- Dividend Declaration: CDP Holdings has declared a dividend of $0.305 per share, maintaining its payout despite revenue estimate downgrades, demonstrating the company's commitment to shareholder returns, which may attract income-seeking investors.
- Market Attention: Ahead of the upcoming earnings release, CDP Holdings is under significant market scrutiny, particularly in the real estate investment trust (REIT) sector, as investors look forward to its potential in AI technology applications and future growth opportunities.
See More
COPT Defense Announces 2025 Tax Treatment for Share Distributions
- Dividend Distribution Overview: COPT Defense has announced the tax treatment for its common share distributions for 2025, with a record date of December 31, 2025, and a payment date of January 15, 2026, demonstrating the company's commitment to shareholder tax transparency.
- Distribution Amount Details: The total distribution per share is $0.3050, of which $0.2976 is classified as taxable ordinary dividends and $0.0074 as capital gain, reflecting the company's stable cash flow and profitability.
- Portfolio Overview: As of September 30, 2025, COPT Defense owns 198 properties totaling 22.6 million square feet with a leasing rate of 97.0%, showcasing its strong market position in the defense sector.
- Forward-Looking Statements: The company’s forward-looking statements highlight uncertainties regarding future financial trends, advising investors to be aware of potential risks and ensuring reasonable expectations for the company's future development.
See More
COPT Defense Properties Former CEO Roger Waesche Passes Away, Key Architect of Strategic Reallocation
- Leadership Loss: COPT Defense Properties announces the passing of former CEO Roger Waesche, who spent over 30 years at the company and significantly enhanced its financial strength during his tenure as CEO from 2011 to 2016 through strategic initiatives.
- Strategic Reallocation Success: Waesche was the architect of the 2011 Strategic Reallocation Program, which focused investments on the Defense/IT Portfolio, successfully reducing leverage and achieving an investment-grade credit rating, thereby strengthening the company's market position.
- Career Overview: Joining the company's predecessor in 1984, Waesche served as CFO and COO before becoming CEO, playing a crucial role in the company's public listing in 1998 and demonstrating exceptional leadership and industry influence.
- Legacy and Impact: Current CEO Stephen Budorick remarked that Waesche's intellect and thoughtful approach not only transformed the company but also developed a strong team, marking a lasting legacy in the organization.
See More
COPT Defense Exceeds 2025 Vacancy Leasing Target by 557,000 Square Feet
- Leasing Performance Exceeds Expectations: COPT Defense achieved 557,000 square feet of vacancy leasing in 2025, surpassing its initial target by nearly 40%, demonstrating exceptional performance amid strong market demand.
- Continuous Target Adjustments: The company raised its leasing targets from 400,000 square feet in February to 450,000 in July and 500,000 in October 2025, ultimately exceeding its third-quarter projection by 11% with the achieved leasing area.
- Significant Contribution from Defense/IT Portfolio: Of the total leasing in 2025, 424,000 square feet came from the Defense/IT Portfolio, while 125,000 square feet came from the Other segment, marking the highest level in over a decade and showcasing the company's success in diversifying its leasing.
- Strong Market Demand: With a total portfolio occupancy rate of 95.1% at the beginning of 2025, the 557,000 square feet leased represented 47% of the unleased space at the start of the year, reflecting the effectiveness of the company's business plan and the demand for secure space.
See More
COPT Defense Properties Reports Strong Q4 2025 Earnings Performance
- Strong Financial Performance: COPT Defense Properties reported an FFO per share of $2.72 for 2025, exceeding both initial and revised guidance, marking the seventh consecutive year of growth and demonstrating robust operational and financial metrics.
- Increased Investment Commitments: The company committed $278 million across five projects in four markets with an 81% pre-leased rate, expecting these developments to generate an incremental $52 million in cash NOI annually between 2026 and 2029, further driving revenue growth.
- Favorable Defense Budget: The FY 2026 Defense Appropriations Act raises the defense budget to over $950 billion, a 15% year-over-year increase, which is expected to drive long-term demand for the company’s properties, enhancing its competitive position in the market.
- Robust Leasing and Occupancy Rates: The company ended 2025 with a portfolio occupancy rate of 94.2%, exceeding expectations, and achieved a 95.5% occupancy rate in its Defense/IT portfolio, reflecting strong leasing execution and market demand.
See More
CDP Holdings Q4 Earnings Beat Expectations
- Strong Financial Performance: CDP Holdings reported a Q4 FFO of $0.70, beating expectations by $0.02, indicating robust financial management and operational efficiency.
- Significant Revenue Growth: The company achieved Q4 revenue of $197.36 million, a 7.6% year-over-year increase, surpassing market expectations of $197.45 million, reflecting ongoing business growth potential.
- Positive Stock Reaction: CDP Holdings' shares rose by 1.56%, demonstrating investor confidence in the company's financial results and future prospects.
- Clear Future Guidance: The company concurrently issued initial full-year and first-quarter guidance for 2026, showcasing a clear roadmap for future performance and enhancing market confidence in its long-term growth trajectory.
See More
CDP Holdings to Announce Q4 Earnings on February 5
- Earnings Announcement Schedule: CDP Holdings is set to release its Q4 2023 earnings on February 5 after market close, with consensus EPS estimated at $0.33 and revenue expected to reach $187.45 million, reflecting a 2.2% year-over-year growth, which will provide crucial insights into the company's financial health.
- Earnings Forecast Analysis: Over the past three months, EPS estimates have seen one upward revision while revenue estimates have faced four downward adjustments, indicating a cautious market sentiment regarding the company's future performance, which could impact investor confidence and stock price volatility.
- Dividend Declaration: CDP Holdings has declared a dividend of $0.305 per share, maintaining its payout despite revenue estimate downgrades, demonstrating the company's commitment to shareholder returns, which may attract income-seeking investors.
- Market Attention: Ahead of the upcoming earnings release, CDP Holdings is under significant market scrutiny, particularly in the real estate investment trust (REIT) sector, as investors look forward to its potential in AI technology applications and future growth opportunities.
See More
COPT Defense Announces 2025 Tax Treatment for Share Distributions
- Dividend Distribution Overview: COPT Defense has announced the tax treatment for its common share distributions for 2025, with a record date of December 31, 2025, and a payment date of January 15, 2026, demonstrating the company's commitment to shareholder tax transparency.
- Distribution Amount Details: The total distribution per share is $0.3050, of which $0.2976 is classified as taxable ordinary dividends and $0.0074 as capital gain, reflecting the company's stable cash flow and profitability.
- Portfolio Overview: As of September 30, 2025, COPT Defense owns 198 properties totaling 22.6 million square feet with a leasing rate of 97.0%, showcasing its strong market position in the defense sector.
- Forward-Looking Statements: The company’s forward-looking statements highlight uncertainties regarding future financial trends, advising investors to be aware of potential risks and ensuring reasonable expectations for the company's future development.
See More
COPT Defense Properties Former CEO Roger Waesche Passes Away, Key Architect of Strategic Reallocation
- Leadership Loss: COPT Defense Properties announces the passing of former CEO Roger Waesche, who spent over 30 years at the company and significantly enhanced its financial strength during his tenure as CEO from 2011 to 2016 through strategic initiatives.
- Strategic Reallocation Success: Waesche was the architect of the 2011 Strategic Reallocation Program, which focused investments on the Defense/IT Portfolio, successfully reducing leverage and achieving an investment-grade credit rating, thereby strengthening the company's market position.
- Career Overview: Joining the company's predecessor in 1984, Waesche served as CFO and COO before becoming CEO, playing a crucial role in the company's public listing in 1998 and demonstrating exceptional leadership and industry influence.
- Legacy and Impact: Current CEO Stephen Budorick remarked that Waesche's intellect and thoughtful approach not only transformed the company but also developed a strong team, marking a lasting legacy in the organization.
See More
COPT Defense Exceeds 2025 Vacancy Leasing Target by 557,000 Square Feet
- Leasing Performance Exceeds Expectations: COPT Defense achieved 557,000 square feet of vacancy leasing in 2025, surpassing its initial target by nearly 40%, demonstrating exceptional performance amid strong market demand.
- Continuous Target Adjustments: The company raised its leasing targets from 400,000 square feet in February to 450,000 in July and 500,000 in October 2025, ultimately exceeding its third-quarter projection by 11% with the achieved leasing area.
- Significant Contribution from Defense/IT Portfolio: Of the total leasing in 2025, 424,000 square feet came from the Defense/IT Portfolio, while 125,000 square feet came from the Other segment, marking the highest level in over a decade and showcasing the company's success in diversifying its leasing.
- Strong Market Demand: With a total portfolio occupancy rate of 95.1% at the beginning of 2025, the 557,000 square feet leased represented 47% of the unleased space at the start of the year, reflecting the effectiveness of the company's business plan and the demand for secure space.
See More
