COPT Defense Properties targets $2.75 FFO per share for 2026 while advancing $450M in pre-leased developments

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• Developments are expected to generate an incremental $52 million of cash NOI annually once stabilized between 2026 and 2029

  80% confidence

• The company has the ability to handle expected development investments with cash generated internally

  80% confidence

• Increasing defense spending will drive long-term demand for the company's properties

  80% confidence

• In the Defense/IT portfolio, 424,000 square feet of vacancy leasing was achieved, surpassing the entire portfolio goal

  80% confidence

• The team executed 557,000 square feet of vacancy leasing, exceeding the initial target by 40%

  80% confidence

• 2025 was another great year for the company as we outperformed on virtually all of our operating and financial metrics

  80% confidence

• We're very confident we're going to continue to produce solid growth as we have and that's my message

  80% confidence

• Not currently. We're constantly evaluating opportunities, but there's nothing that we're seriously considering regarding data center opportunities

  80% confidence

• Guidance assumes tenant retention at 80% and cash rent spreads up 2% at the midpoint for 2026

  80% confidence

• Our yield targets haven't really changed for developments. We target 8.5% cash-on-cash yield at the commencement of the lease

  80% confidence

• Our overall capacity on the land we control without structured parking is 5.5 million square feet. So we got 3 million square feet of development runway on the enhanced use land that we do currently control

  80% confidence

• Earlier-than-expected lease commencements, lower operating expenses, and the Stonegate acquisition contributed to outperformance

  80% confidence

• Capital spending guidance for 2026 is $200 million to $250 million on active and future projects, with $225 million to $275 million in new investment commitments

  80% confidence

• This amounts to a Defense Budget of over $950 billion, which is the largest defense-based budget in our nation's history and is a 15% year-over-year increase

  80% confidence

• The company expects same-property cash NOI to increase 2.5% at the midpoint in 2026

  80% confidence

• The company committed $278 million to new investments across five projects in four markets with an 81% pre-leased rate

  80% confidence

• The spending for the significant spending for those isn't going to occur in 2026, it will occur in '27 and 2028

  80% confidence

• For 2026, we're establishing the midpoint of FFO per share guidance at $2.75, which implies $0.03 or 1.1% growth over 2025's outstanding results

  80% confidence

• Same-property occupancy projected between 93.5% and 94.5% for 2026

  80% confidence

• Portfolio occupancy is at 94% and Defense/IT portfolio is at 95.5%

  80% confidence

• We reported 2025 FFO per share of $2.72, which was $0.02 above the midpoint of our revised guidance and $0.06 above our initial guidance

  80% confidence

• Many, if not most, of those pertain to Golden Dome. And I believe they represent kind of initial footprints, early moves to get into the action

  80% confidence

• Probably 70% of nonrenewals are just getting smaller tenants into the rightsized space... for a decade, we've delivered 80% retention

  80% confidence

• 2.2 million square feet of government leases are set to expire in 2026, with management expecting nearly all to renew

  80% confidence

• Guidance includes a $0.09 increase in financing costs, with underlying FFO per share growth of 4.4% excluding this impact

  80% confidence

• Demand is about 50-50 existing and new business... we're encouraged by seeing some influx from people into our markets that have not had footprints there previously

  80% confidence

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