COPT Defense Properties (CDP) Q2 2025 earnings summary

Executive summary

• Achieved strong Q2 2025 results, with FFO per share as adjusted at $0.68, up 6.3% year over year, exceeding guidance midpoints, and marking the 30th consecutive quarter of meeting or exceeding FFO guidance.

• Portfolio occupancy was 94.0% and leased rate 95.6% at June 30, 2025, with tenant retention at 90% in Q2 and 81.9% year to date.

• Leasing activity was robust, with 724,000 sq ft leased in Q2 and 1.4 million sq ft in H1 2025, representing 88% of the full-year vacancy leasing target.

• Raised guidance midpoints for FFO per share, same property cash NOI growth, tenant retention, and vacancy leasing targets.

• Defense/IT Portfolio remains the primary driver of occupancy and leasing performance.

Financial highlights

• Q2 2025 FFO per share as adjusted was $0.68, up from $0.64 in Q2 2024; net income was $40.2 million, up from $36.4 million year over year.

• Total revenues for Q2 2025 were $189.9 million, with lease revenue at $175.6 million.

• Same property cash NOI increased 2.2% in Q2 and 4.6% year to date; guidance midpoint for 2025 raised to 3.25%.

• Dividend per share for Q2 2025 was $0.305, up from $0.295 in Q2 2024.

• Net debt to in-place adjusted EBITDA at 5.9x; fixed charge coverage ratio at 4.9x.

Outlook and guidance

• Raised 2025 FFO per share guidance midpoint to $2.67, implying 3.9% annual growth.

• Increased same property cash NOI growth guidance midpoint to 3.25% for 2025.

• Tenant retention guidance midpoint raised to 82.5% for 2025.

• Full-year vacancy leasing target increased to 450,000 sq ft.

• Management expects to spend $115–$135 million on property development in the remainder of 2025.