COPT Defense Properties Reports Q2 2025 Financial Results with Revenue of $189.9 Million

COPT Defense Properties reported its financial results for the second quarter of 2025, revealing a total revenue of $189.9 million, a slight increase from $187.3 million in the same period last year. The company's lease revenue rose to $175.6 million, up from $165.6 million, while other property revenue also increased to $1.9 million from $1.5 million. However, construction contract and other service revenues saw a decline, dropping to $12.5 million from $20.3 million. The net income attributable to common shareholders for the quarter was $38.3 million, or $0.34 per diluted share, compared to $35.1 million, or $0.31 per diluted share, in the prior year.

In terms of operational performance, COPT Defense Properties reported a portfolio occupancy rate of 94.0% and a leasing rate of 95.6% as of June 30, 2025. The company achieved a tenant retention rate of 81.9%, driven primarily by its Defense/IT Portfolio. The total properties under management included 198 operating properties totaling 22.6 million square feet, with five properties under development expected to add approximately 756,000 square feet upon completion. The company also controlled about 1,010 acres of land that could potentially be developed into 10.8 million square feet.

Comparing the first half of 2025 to the same period in 2024, total revenues decreased slightly from $380.6 million to $377.8 million. The decline was attributed to a significant drop in construction contract and service revenues, which fell from $46.9 million to $22.7 million. Operating expenses for the first half of 2025 were $263.5 million, down from $276.1 million in the previous year, primarily due to reduced construction-related expenses. The net income for the first half of 2025 was $76.4 million, compared to $70.1 million in the prior year.

COPT Defense Properties also reported a total asset value of $4.3 billion as of June 30, 2025, an increase from $4.2 billion at the end of 2024. The company's total liabilities rose to $2.7 billion, up from $2.7 billion, with net debt increasing to $2.4 billion. The company maintained a strong liquidity position, with $21.3 million in cash and cash equivalents and a revolving credit facility with a maximum borrowing capacity of $600 million, of which $120 million was drawn as of the reporting date.

Looking ahead, COPT Defense Properties expects to continue its focus on developing properties and acquiring additional operating properties. The company anticipates spending between $115 million and $135 million on development costs for properties actively under development during the remainder of 2025. COPT Defense remains committed to maintaining its investment-grade rating and plans to fund its activities through a combination of cash flow from operations, available cash, and borrowings under its revolving credit facility.