COPT Defense Properties, a real estate investment trust (REIT) focused on properties near U.S. government defense installations, reported a net income of $159.5 million for the fiscal year ending December 31, 2025, an increase from $143.9 million in 2024. The company’s diluted earnings per share rose to $1.34, up from $1.23 the previous year. Total revenues increased to $763.9 million, compared to $753.3 million in 2024, driven primarily by a rise in real estate operations revenue, which reached $721.8 million, up from $677.7 million.
COPT Defense's financial performance reflects a strategic focus on its Defense/IT Portfolio, which accounted for 90.3% of its annualized rental revenue (ARR) and 92.1% of its total square footage. The company achieved a year-end occupancy rate of 94.0% across its total portfolio, with the Defense/IT Portfolio slightly higher at 95.5%. The tenant retention rate for the Defense/IT segment was 79.3%, with average rent increases of 2.7% for cash rents and 11.0% for straight-line rents. The company also completed significant leasing activities, including 557,000 square feet of vacancy leasing, which represented 47% of the unleased space at the end of 2024.
In terms of operational developments, COPT Defense continued to expand its portfolio, committing capital to five new external growth investments across four Defense/IT sub-segments. This included the development of four new properties totaling 498,000 square feet, three of which were fully pre-leased. The company also acquired a fully-occupied 142,000 square foot property in Chantilly, Virginia, for $40 million. As of December 31, 2025, COPT Defense had 646,000 square feet under development, with 58% leased.
The company’s strategic focus on the Defense/IT sector is supported by increasing defense budget appropriations, which are expected to continue, bolstering demand for its properties. COPT Defense anticipates that the ongoing commitment to national security will sustain its growth trajectory. However, the company also faces challenges, including potential impacts from government shutdowns, which could affect lease renewals and tenant demand. Looking ahead, COPT Defense plans to leverage its existing land holdings and development capabilities to meet anticipated demand while maintaining a strong financial position with significant liquidity and available borrowing capacity.
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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