COPT Defense Properties (CDP) Citi’s 30th Annual Global Property CEO Conference 2025 summary

Company Overview and Strategy

• Specializes in mission-critical, high-security properties supporting U.S. defense activities, with 80% of the portfolio dedicated to secure operations.

• Portfolio includes government-secured campuses, high-security leases, and cloud computing campuses, with over 90% of rental revenue from Defense IT tenants.

• Three main defense asset concentrations are highly leased and account for 45% of annualized rental revenue.

• Defense contractors lease 15 million sq ft, contributing 51% of rental revenue; non-defense assets are under 10% and planned for recycling.

• Only public REIT specializing in secured, specialized space for defense/IT tenants, with 30+ years of operating excellence.

Financial Performance and Growth Outlook

• Delivered $2.5 billion in developments over the past decade, currently developing four projects totaling $250 million and 600,000 sq ft, 75% pre-leased.

• New projects and completions in 2024 expected to add $29 million in annual NOI, supporting 4% compound FFO growth from 2023 to 2026.

• Achieved 4.8% FFO per share growth over five years; 2025 guidance projects 3.5% FFO growth per share.

• Over the past five years, FFOPS increased 27%, dividend grew 10.9%, and $1.7 billion in developments were placed into service.

• Dividend per share increased 10.9% since 2022, reinforcing value and growth orientation.

Results for 4th Quarter and FY 2024

• Adjusted FFOPS exceeded guidance by 6 cents, reaching $0.65 for 4Q24 and $2.57 for FY 2024; guidance met or exceeded for 28 consecutive quarters.

• Same property cash NOI rose 10% for 4Q24 and 9.1% for FY 2024, the highest increase ever reported.

• Defense/IT portfolio occupancy increased by 60 bps quarter-over-quarter, with 95.6% occupied and 96.8% leased at year-end.

• Total leasing activity surpassed annual targets, with 709,000 SF leased and a 93% retention rate; Defense/IT retention rate reached 96%.

• Achieved the highest annual tenant retention rate in over 20 years and the second highest for Defense/IT since 1Q17.