COPT Defense Properties reported a solid financial performance for the second quarter of 2026, with total revenues reaching $197.4 million, a 3.9% increase from $189.9 million in the same period last year. The company's lease revenue, which constitutes the bulk of its income, rose to $188.8 million, up from $175.6 million in Q2 2025. For the first half of 2026, total revenues amounted to $398.0 million, compared to $377.8 million in the prior year, reflecting a 5.3% year-over-year growth. Net income attributable to common shareholders also saw an increase, rising to $46.4 million, or $0.40 per diluted share, from $38.3 million, or $0.34 per diluted share, in the same quarter of 2025.
The company experienced notable changes in its operational metrics, with occupancy rates at 94.1% and a tenant retention rate of 84.4% as of June 30, 2026. COPT Defense Properties also expanded its portfolio, acquiring approximately 17 acres of land for $43 million in April 2026, which is expected to enhance its Defense/IT Portfolio. Additionally, the company sold non-operating properties in Aberdeen, Maryland, for $8.5 million, realizing a gain of $6.4 million. These strategic moves contributed to a total property portfolio that now includes 202 operating properties totaling 23.3 million square feet.
Operationally, the company reported an increase in property operating expenses, which rose to $72.6 million from $66.9 million in the previous year, primarily due to higher utility costs and real estate taxes. The total operating expenses for the first half of 2026 were $276.5 million, compared to $263.5 million in the same period last year. The increase in expenses was partially offset by a gain on sales of real estate and improved interest income, which rose to $6.9 million from $2.8 million in the prior year.
Looking ahead, COPT Defense Properties maintains a positive outlook, with expectations to continue leveraging its existing portfolio and pursuing new development opportunities. The company has a robust liquidity position, with $24.2 million in cash and cash equivalents and significant borrowing capacity under its Revolving Credit Facility, which totals $800 million. The company plans to utilize these resources to fund ongoing property developments and meet its financial obligations, including $10 million in debt balloon payments due in 2026. Overall, COPT Defense Properties is well-positioned to capitalize on growth opportunities while managing its operational and financial commitments effectively.
About COPT DEFENSE PROPERTIES
COPT Defense Properties is a Maryland-based REIT specializing in owning, operating, and developing properties near U.S. Government defense installations. Its portfolio includes office spaces and data centers serving national security and technology sectors, primarily in the Washington, D.C. area. The company emphasizes security, mission-critical facilities, and long-term leases, leveraging strategic land holdings and development expertise to support defense and IT infrastructure needs.
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