Earnings

Copt Defense Properties' Same-Property NOI Falls

The Tip Desk · October 31, 2026 · 2 min read

The defense REIT reported $120.3 million of NOI from real estate operations in the three months ended Sept. 30, 2026, as lease revenue reached $193.5 million.

Copt Defense Properties (CDP), a self-managed REIT focused on properties near U.S. government defense installations, reported NOI from real estate operations of $120.3 million for the three months ended Sept. 30, 2026, up from $120.1 million in the prior quarter. Same Property NOI was $114.3 million.

Total revenues rose to $208.8 million from $197.4 million. Lease revenue was $193.5 million. Construction contract and other service revenues more than doubled to $13.4 million from $6.8 million.

Net income was $49.8 million, or $0.41 a share, versus $48.6 million, or $0.40 a share. Gain on sales of real estate was $7.7 million versus $6.4 million. Diluted FFO available to common share and unit holders was $83.9 million, or $0.71 a share, matching the prior quarter’s $0.71 a share. Adjusted EBITDA was $111.4 million.

Consolidated real estate revenues were $195.3 million. Fort Meade/Baltimore Washington Corridor revenues were $84.7 million. Redstone Arsenal was $21.2 million, Lackland Air Force Base $20.7 million, and Navy Support $9.8 million. Data Center Shells-Consolidated revenues were $15.2 million.

Defense/IT Portfolio NOI was $112.1 million. Fort Meade/BW Corridor NOI was $53.8 million. Redstone Arsenal NOI was $13.8 million. Lackland NOI was $9.6 million. Data Center Shells consolidated NOI was $12.1 million. Other NOI was $8.2 million.

Cash NOI from real estate operations was $114.7 million. Defense/IT cash NOI was $107.7 million. Fort Meade/BW Corridor cash NOI was $53.5 million. Other cash NOI was $7.1 million.

As of Sept. 30, 2026, the Defense/IT Portfolio of 202 properties, including 24 owned through unconsolidated joint ventures, encompassed 23.3 million square feet and was 96.2% leased, down from 96.4% at June 30. Same Property leased occupancy was 94.9%. Same Property period-end occupancy was 93.9%. Same Property average occupancy for the Defense/IT Portfolio held at 95.5%. Fort Meade/BW Corridor average occupancy was 93.3%. Navy Support average occupancy was 88.1%.

The total portfolio stood at 208 properties and 25.3 million square feet. The consolidated portfolio was 184 properties and 21.0 million square feet.

Diluted AFFO available to common share and unit holders was $65.4 million. Replacement capital expenditures were $23.0 million. The dividend per common share was $0.32.

Debt on the balance sheet was $2.58 billion. Net debt was $2.65 billion. Debt-to-assets was 56.4%. Total assets were $4.57 billion. Total equity was $1.60 billion. Cash and cash equivalents were $24.3 million.