COPT Defense Properties (NYSE: CDP) reported full‑year 2025 results on February 5 2026, posting earnings per share of $1.34 and adjusted funds from operations (FFO) per share of $2.72—an increase of 5.8% from the $2.57 reported in 2024. Total revenue reached $763.9 million, up roughly 1.3% from $753.3 million in 2024, while same‑property cash net operating income rose 4.1% year‑over‑year.
Revenue growth was driven by a modest expansion in the company’s defense‑centric portfolio. The 2025 revenue mix was 55% from defense/IT tenants and 45% from other government‑related leases, with the defense segment posting a 2.5% increase in revenue. The company’s focus on high‑quality, long‑term contracts with U.S. government agencies and defense contractors helped offset the broader office‑market headwinds that have pressured other REITs.
Leasing activity was a key driver of the results. COPT closed 557,000 sq ft of vacancy leasing and 477,000 sq ft of investment leasing, exceeding guidance and contributing to a 94.0% total portfolio occupancy and a 95.3% leased rate. In its core defense/IT portfolio, occupancy reached 95.5% and the leased rate climbed to 96.5%. The company also invested $278 million in five new projects, 81% of which were pre‑leased on a weighted‑average basis, underscoring the strength of its development pipeline.
Management highlighted the company’s confidence in 2026, projecting FFO per share in the range of $2.71 to $2.79—slightly above the 2025 figure—while reaffirming its focus on high‑return, mission‑critical assets. CEO Stephen E. Budorick noted that the company “generated FFO per share growth, which represented a 5.8% increase over 2024’s results” and that the leasing success “resulted in a 40 basis point year‑over‑year increase in total portfolio occupancy.” He also emphasized that the $400 million liquidity from bond maturities and three new financings will support future growth.
The market reacted positively, with analysts adjusting expectations. Jefferies raised its price target to $34 from $33, citing the company’s robust leasing performance and the anticipated benefits of the “One Big Beautiful Bill Act” and the upcoming Space Command relocation. The guidance signals continued confidence in the defense niche, while the modest upside in FFO reflects a cautious outlook amid potential financing costs and lease expirations.
Strategically, COPT’s focus on defense and IT assets positions it well to capture tailwinds from federal spending and the growing demand for secure, mission‑critical facilities. The company’s high occupancy and leasing momentum, combined with a disciplined capital deployment strategy, suggest resilience against broader office‑market volatility and a solid foundation for long‑term growth.
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