COPT Defense Properties : March/April 2025 Investor Presentation
CDP
Change Presentation Title on First Master Slide
Table of Contents
RESULTS FOR 4TH QUARTER + FY 2024 > Page3
2025 GUIDANCE > Page5
FACTORS SUPPORTING GROWTH > Page7
PORTFOLIO UPDATE > Page 22
CONTINUED GROWTH THROUGH 2026 > Page 27
APPENDICES: > Page 30
> Safe Harbor | Page 31
> Definitions + Glossary | Page 32
> Reconciliations | Page 37
RESULTS FOR 4TH QUARTER + FY 2024
Strong 4th Quarter + FY 2024 Results
FFOPS, as adjusted for comparability
> 6-cents above the initial midpoint of guidance
> Met or exceeded guidance each quarter over the past 28 quarters
Increase in Same Property cash NOI
> Our highest increase ever reported
Defense/IT Portfolio
> 60 basis point quarter-over-quarter increase in occupancy
Same Property portfolio
> 50 basis point quarter-over-quarter increase in occupancy
Exceeded leasing goals | Total leasing
> Exceeded annual target of 400,000 SF
Renewal leasing
Investment leasing
4Q24
FY 2024
$0.65
$2.57
10.0%
9.1%
Occupied
95.6%
Leased
96.8%
Occupied
94.1%
Leased
95.4%
709,000 SF
3.2 million SF
114,000 SF
500,000 SF
561,000 SF
2.6 million SF
34,000 SF
124,000 SF
Total Retention rate
93%
86%
> Highest annual rate in over 20 years
Defense/IT Retention rate
96%
89%
> Second highest annual rate since segment was disclosed in 1Q17
2025 GUIDANCE
FY 2025 Guidance Summary1
FY 2024 Actual FY 2025 Guidance
Key Assumptions
EPS
FFOPS, as adjusted for comparability > Year-Over-Year Growth
$1.23 $2.57 6.2%
2025 Same Property Pool: > % Change in Cash NOI > Year-end Occupancy Leasing: > Tenant Retention > Change in Cash Rents on Renewals
9.1%2 94.1%2
86%
0.6%
Cash NOI from Developments3
$10.5
Net Construction Contract and Other Service Revenues Total G&A Expenses4
$2.3
$47
Consolidated Interest Expense (net of Capitalized Interest) Interest and Other Income, net
$82.2
$12.7
Dividend / Diluted AFFO Payout RatioInvestment Activity
60.6%
Capital Invested in Development / Acquisitions Capital Commitment to New Investments5 Property Sales
$189 $212 -
Low
Midpoint
High
2.0%
2.75%
3.5%
93.5%
94%
94.5%
Below 65%
$275 $225 None
1. Dollars are in millions (except per share data).
2. Same Property metrics in 2024 refer to the 2024 Pool.
3. The 2024 actual amount represents cash NOI from developments placed into service during 2023 and 2024. The 2025 assumption amount represents cash NOI from developments placed into service during 2024 and expected to be placed into service during 2025 and, as such, are not yet in the Company's Same Property portfolio.
4. Includes G&A, leasing expenses, business development expenses, and land carry costs.
5. See definition on page 10.
Please see the Company's 2025 Guidance press release issued 2/6/25 for Management Commentary on initial 2025 guidance.
FACTORS SUPPORTING GROWTH
Positioned for Long-Term Growth + Value Creation
Concentrate assets in locations to serve high priority defense and cybersecurity missions of the
U.S. Government Defense tenant portfolio achieves steady growth from:
• High occupancy and tenant retention
• Lower CapX
• Best-in-class tenant credit quality
Competitive Advantages
DIFFERENTIATED PLATFORM AS THE ONLY "GO-TO" PUBLIC COMPANY LANDLORD FOR SECURED, SPECIALIZED SPACE*
OPERATING PLATFORM
Our teams of managers have specialized skills and credentials required to handle the complex space and security needs of tenants at our Defense/IT Properties - a distinct competitive advantage over non-credentialed landlords
TRACK RECORD + CUSTOMER
RELATIONSHIPS
30+ years of operating excellence and customer service - since 1992, one of the few trusted landlords able to accommodate U.S. Government and defense contractor tenant requirements
* Includes SCIF and ATFP buildings.
PROVEN DEVELOPMENT EXPERTISE
Trusted provider of secured, specialized space, with the ability to satisfy SCIF, ATFP and other requirements
UNIQUE + ADVANTAGED LAND
POSITIONS
Proximity to Demand Drivers - Properties and entitled land adjacent to mission-critical, knowledge-based defense installations
Key Differentiators
DRIVER OF OUR TENANT DEMAND DIFFERS FROM TRADITIONAL OFFICE
> Underlying Economy is National Defense > Critical missions we support are vital and will receive funding
>
Intelligence, Surveillance, Missile Defense, and Cyber
> Mission Locations are Well Established and Permanent > Knowledge-based defense installations in Maryland,
Northern Virginia, DC, Huntsville,and San Antonio
> COPT Defense land has a protected advantage > Adjacent to, or containing, the demand driver
> Tenant Relationships are built on decades of trust > Top 15 Defense/IT tenants have on average: 14 leases and are located in 3 to 4 of our markets
>
National Defense requires secured facilities
> Government contracts require work to be conducted in SCIF
> Expensive and time consuming to construct
> ~80% of portfolio contains high security improvements
>
ATFP, SCIF, and Access Control
> Protected from Work from Home
10
Disclaimer
COPT Defense Properties published this content on March 24, 2025, and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on March 25, 2025 at 03:26:04.637.