COPT Defense Properties (CDP) Q3 2026 earnings summary

Executive summary

• Q3 adjusted FFO per share was $0.71, $0.02 above the guidance midpoint; FY26 midpoint rose $0.02 to $2.80.

• Q3 revenue was $208.8M, net income $49.8M and diluted EPS $0.41, all up YoY.

• Total portfolio was 94.0% occupied and 95.0% leased at quarter-end; Defense/IT was 95.2% occupied and 96.2% leased.

Financial highlights

• Q3 same-property cash NOI rose 3.2% YoY; nine-month growth was 5.3%.

• Q3 adjusted FFO per share included $0.013 of Exchangeable Notes dilution and benefited from lower operating expenses, space recapture fees and development fees.

• Q3 real estate NOI was $120.3M vs. $111.8M; nine-month NOI was $355.6M vs. $331.7M.

• Q3 real estate sale gains were $7.7M vs. $3.0M YoY; nine-month gains were $14.7M vs. $3.3M.

• Nine-month operating cash flow was $273.8M vs. $228.6M.

Outlook and guidance

• FY26 adjusted FFO per share guidance midpoint increased to $2.80, implying 2.9% YoY growth; range is $2.79-$2.81.

• Same-property cash NOI growth guidance midpoint rose 25 bps to 4.25%; FY26 EPS guidance is $1.43-$1.45.

• FY26 vacancy leasing target increased to 625,000 SF; retention midpoint decreased 2.5 points to 80% after strategic recaptures.

• FY26 new investment commitment target rose $40M to $375M; development and acquisition investment guidance increased $15M to $240M.

• Q4 active development spending is expected at $80M-$90M; tenant improvements, capital improvements and leasing costs are expected to total ~$40M for the rest of 2026.