COPT Defense Properties

COPT Defense Properties is a U.S. real estate investment trust focused on properties that support defense, intelligence, cybersecurity, and other national-security missions. The company owns, operates, and develops office properties and single-tenant data center shells located near major U.S. government defense installations and mission-critical contractors. Its portfolio is organized around a Defense/IT strategy that emphasizes high-security space, proximity to demand drivers, and tenant relationships that are harder to displace than in conventional office real estate. In addition to leasing real estate, the company also provides property management, development, and construction services, primarily for its own portfolio and in some cases for third parties. COPT Defense is structured through its operating partnership, CDPLP, and its shares trade on the NYSE under the ticker CDP.

20,9 %

+1,4 %

— COPT Defense Properties
%
Defense/IT Portfolio office properties75% Office buildings and campus-style properties near U.S. defense installations and mission sites used by government agencies and contractors.
Data center shells15% Single-tenant shell buildings in Northern Virginia designed for data center users and mission-critical infrastructure needs.
Development projects5% Ground-up and expansion development of new properties that are typically pre-leased or targeted to defense-related demand.
Property management and real estate services3% Property management, development management, and construction services provided for owned assets and some third-party tenants.
Other office properties2% Non-strategic office assets outside the core Defense/IT strategy, held for cash flow and eventual disposition when market conditions allow.

COPT Defense’s core customers are U.S. government agencies and defense contractors that need space close to military...

  • U.S. Government agenciesprimary

    Lease mission-critical space near defense installations for operational and security reasons.

  • Defense contractorsprimary

    Rent secure office and support space to execute classified or sensitive national-security programs.

  • Data center tenantssecondary

    Use Northern Virginia shell properties for digital infrastructure and data-center deployment needs.

  • Third-party tenants for servicessecondary

    Buy property management, development, and construction services tied to tenant buildouts and projects.

  • Conventional office tenantsemerging

    Occupy non-strategic office assets in the Other segment, mainly for standard office use.

The company’s portfolio is concentrated in the United States, with operations centered on defense and intelligence hubs...

  • •Portfolio is concentrated in the United States
  • •Core assets sit near U.S. defense installations and missions
  • •Northern Virginia is a key market for defense/IT and data centers
  • •Baltimore/Washington corridor supports Fort Meade-related demand
  • •Huntsville, Alabama is tied to Redstone Arsenal defense activity
  • •San Antonio and Navy-support locations diversify mission exposure
  • •Non-core office assets are mainly in Greater Washington, DC/Baltimore

COPT Defense’s strategy is to concentrate capital on properties that serve defense, intelligence, cybersecurity, and...

01
Expand the Defense/IT portfolio through development and acquisitionsmedium-term

The core strategy depends on adding assets that benefit from defense-related demand and high-security tenant needs.

02
Increase occupancy and lease-up vacant spaceshort-term

Higher occupancy improves recurring rental income and reinforces the portfolio’s mission-critical positioning.

03
Recycle capital out of non-core office assetsmedium-term

The Other segment does not fit the long-term strategy and ties up capital in weaker leasing markets.

04
Preserve liquidity and funding flexibilityshort-term

Development and acquisitions require access to debt, equity, and asset-sale proceeds.

COPT Defense faces the usual risks of office and industrial real estate, including weaker local demand, higher...

critical

REIT qualification failure

Tax status depends on complex income, asset, and distribution tests that must be maintained continuously.

Scope
Cash distributions and tax expense
Materiality
high
high

Defense budget or mission funding slowdown

Tenant demand is tied to U.S. government defense priorities and contractor program activity.

Scope
Core portfolio demand and lease renewals
Materiality
high
high

Cyberattack or IT disruption

The company serves national-security tenants and may be a more attractive target for hostile actors.

Scope
Operations, tenant trust, and business continuity
Materiality
high
high

Insurance cost and coverage limitations

Properties near sensitive sites may face higher premiums and narrower coverage for terrorism or catastrophic events.

Scope
Property losses and financing covenants
Materiality
high
medium

Weak leasing environment for non-core office assets

The Other segment has faced a challenging leasing environment and is not strategic.

Scope
Vacancy, valuation, and disposition timing
Materiality
medium
Assessment of lease term as lessor
Can shift revenue and NOI between periods
ARR versus GAAP revenue
Affects interpretation of leasing momentum
Construction contract and other service revenue
Can distort comparability of quarterly results
Depreciation and real estate amortization
Affects net income and FFO reconciliation
Joint venture accounting
Influences segment performance and ownership attribution

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: 11/08/2026