COPT Defense (CDP) Q1 2026 Earnings Transcript

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DATE

Tuesday, April 28, 2026 astatine 12 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Stephen E. Budorick

• President — Britt Snider

• Executive Vice President & Chief Financial Officer — Anthony Mifsud

• Operator

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Full Conference Call Transcript

Stephen E. Budorick: Good afternoon, and convey you for joining us. We are disconnected to a coagulated commencement successful 2026, and each aspects of the concern are connected way to execute our objectives for the year. Based connected our beardown results successful 2025 and our outlook for 2026, successful February we recommended, and our Board approved, an summation successful our yearly dividend of $0.06 per share, oregon 4.9%, marking our 4th consecutive twelvemonth of dividend increases. Since 2022, our dividend has accrued 16.4% and our FFO per stock has accrued 15.3%, demonstrating our charismatic full instrumentality concern profile, each portion maintaining a blimpish AFFO payout ratio beneath 65% and continuing to person the capableness to self-fund the equity required for outer investments.

For the archetypal quarter, FFO per stock was $0.69, which is $0.01 supra the midpoint of guidance and represents a 6.2% year-over-year increase. Same-property currency NOI accrued 5.4% year-over-year, driven successful portion by a 70-basis-point summation successful our mean occupancy. We executed 1.2 cardinal quadrate feet of renewal leasing and achieved a 91% retention rate. This included the afloat renewal of our astir 1 cardinal quadrate ft field leased to the U.S. authorities adjacent Lackland Air Force Base successful San Antonio. These renewals code a important information of our 2026 maturity risk, reducing our expiring annualized rental gross from 21% astatine the opening of the twelvemonth to 11%.

We executed 92 1000 quadrate feet of vacancy leasing; we are close connected way to conscionable our full-year people of 400 1000 quadrate feet. We executed 384 1000 quadrate feet of concern leasing, which consists of 2 antecedently announced full-building leases astatine National Business Park. Year to date, we person committed astir $250 cardinal of superior to caller investments consisting of 620 Guardian Way, which is simply a afloat leased build-to-suit task astatine National Business Park, and 2 caller investments totaling astir $100 million. Based connected these beardown results, we are elevating guardant guidance metrics, and Anthony volition supply further details successful his section.

Regarding these 2 caller investments: first, we committed $55 cardinal to a 150 1000 quadrate ft improvement task astatine Redstone Gateway, which sits wrong the obstruction wrong our unafraid parcel connected Redstone Arsenal. This concern creates Anti-Terrorism/Force Protection (ATFP)-compliant inventory for the United States authorities successful beforehand of expected requirements. We are presently seeing request for aggregate authorities missions experiencing maturation related to rocket defence and abstraction activities, which successful aggregate exceeds the capableness of the building. Second, we committed astir $43 cardinal to the acquisition of 17 acres of onshore successful a crushed lease successful the Westfields submarket successful Chantilly, Virginia.