10-K - COPT DEFENSE PROPERTIES (0000860546) (Filer)

Fri, Feb 21, 9:28 PM (65 days ago)

COPT Defense Properties (CDP) reported strong financial performance for the fiscal year ending December 31, 2024. Revenue increased to $753.3 million from $685.0 million, with net income rising to $143.9 million from a loss of $74.3 million. Earnings per share improved to $1.23 from a loss of $0.67. The company’s operating expenses decreased significantly due to the prior year's $252.8 million impairment loss. CDP's Defense/IT Portfolio, comprising 195 properties, accounted for 90.3% of annualized rental revenue (ARR). The portfolio maintained a 95.6% occupancy rate, with a notable tenant retention rate of 88.6%. The company is strategically positioned near U.S. Government installations, ensuring stable demand. Future outlook remains positive, with ongoing developments expected to add 606,000 square feet. However, risks include reliance on government contracts, interest rate fluctuations, and potential economic downturns affecting tenant creditworthiness. CDP's financial condition is robust, supported by $525 million available under its revolving credit facility, with no significant debt maturing until 2026. The company aims to sustain growth while navigating competitive market conditions.