COPT Defense reported fourth-quarter funds from operations of $0.70 per share, surpassing the consensus estimate of $0.68 and up 7.7% from $0.65 per share in Q4 2024. Total revenue increased by 6.5% year-over-year, driven by higher rental income from recently placed developments and a 40 basis-point rise in total portfolio occupancy to 94.0%. The Company’s same-property net operating income grew by 2.6%, reflecting contractual rent escalations and improved tenant retention.

The Company executed an 148,000-square-foot, 11-year lease with a top-10 U.S. defense contractor at 400 National Business Parkway, part of its 882,000-square-foot development pipeline adjacent to Fort Meade. Scheduled to commence in Q4 2026, this agreement lifts the pipeline’s committed occupancy to 86%. The facility lease is expected to contribute approximately $15 million of stabilized annual rental revenue upon commencement.

For the year ended December 31, 2025, COPT Defense generated FFO of $2.72 per share, a 5.8% increase over $2.57 in 2024, and delivered diluted EPS of $1.34 versus $1.23 a year earlier. The Company closed three financings that provided $400 million of incremental liquidity and prefunded its 2026 bond maturity. Vacancy leasing totaled 557,000 square feet—nearly 40% above target—driving portfolio leased rate to 95.3%. Capital commitments of $278 million were made to five new projects, 81% pre-leased on average.

COPT Defense set full-year 2026 guidance of diluted EPS in a range of $1.21 to $1.29 and FFO per share between $2.71 and $2.79. First-quarter 2026 EPS is forecast at $0.30 to $0.32, with FFO of $0.67 to $0.69. Management projects same-property cash NOI growth of 2.5% for the year, assumes year-end occupancy near 94.0%, and plans $200 million to $250 million of development and acquisition investments, supporting steady income growth despite elevated financing costs.