We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
| Share Name | Share Symbol | Market | Type |
|---|---|---|---|
| COPT Defense Properties | NYSE:CDP | NYSE | Common Stock |
| Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
|---|---|---|---|---|---|---|---|---|
| 0.02 | 0.07% | 27.08 | 27.217 | 26.84 | 26.93 | 826,578 | 00:00:00 |
From Mar 2023 to Mar 2025
EPS of ($0.67) for Full Year Impacted by 3Q23 Impairment of Assets in Other Segment
FFO per Share, as Adjusted for Comparability, of $2.42 Increased 2.5% Over 2022 Results
Defense/IT Portfolio 96.2% Occupied and 97.2% Leased
Same Property Cash NOI Increased 5.7% Highest Reported Year-over-Year Annual Increase in Over 15 Years
Placed 848,000 SF of Developments into Service that are 98% Leased
817,000 SF of Active Developments are 91% Leased
Exceeded Leasing Goals in 2023 Total Leasing of 2.9 million SF
452,000 SF of Vacancy Leasing Exceeded Annual Target of 400,000 SF
Tenant Retention of 80% 3rd Highest Annual Retention Rate Over Last 20 Years
747,000 SF of Development Leasing Exceeded Annual Guidance of 700,000 SF
COPT Defense Properties (“COPT Defense” or the “Company”) (NYSE: CDP) announced results for the fourth quarter and full year ended December 31, 2023.
Management Comments
Stephen E. Budorick, COPT Defense’s President & Chief Executive Officer, commented, “The performance of our Defense/IT investment strategy, which concentrates our portfolio near priority U.S. defense installations, continues to demonstrate operating strength, resulting in a solid earnings growth profile.
We achieved several key operating and financial performance milestones in 2023. Our Defense/IT Portfolio was 96.2% occupied and 97.2% leased at year end, which are the highest rates reported since we began disclosing the segment in 2015. Our sector leading tenant retention rate of 79.4% was the third highest figure in the last 20 years. Same property cash NOI increased 5.7%, the highest reported level in over 15 years, while cash rent spreads on renewals were the highest since 2008.
We attribute our continued strong performance to the strength in defense spending over the past few years, which has resulted in growing tenant demand in our Defense/IT Portfolio to support mission-critical national defense activities.
The outlook for defense spending remains favorable as the FY24 National Defense Authorization Act, which was passed in December and is awaiting Appropriation, calls for 3.3% year-over-year growth, which we believe will fuel demand for space in our portfolio through 2025.
We have generated FFO per share growth in each of the past 5 years, which amounts to a compound annual growth rate of 4.5% between 2019 to 2023. Looking forward, we expect FFO per share to increase 3.7% at the midpoint in 2024 and continue to anticipate compound annual growth of roughly 4% between 2023 to 2026.”
Financial Highlights
4th Quarter Financial Results:
Full Year 2023 Financial Results:
Operating Performance Highlights
Operating Portfolio Summary:
Same Property Performance:
Leasing:
Investment Activity Highlights
Balance Sheet and Capital Transaction Highlights
Associated Supplemental Presentation
Prior to the call, the Company will post a slide presentation to accompany management’s prepared remarks for its fourth quarter and full year 2023 conference call; the presentation can be viewed and downloaded from the ‘Financial Info – Financial Results’ section of COPT Defense’s Investors website: https://investors.copt.com/financial-information/financial-results
2024 Guidance
The Company details its initial full year and first quarter guidance, with supporting assumptions, in a separate press release issued concurrently with this press release; that release can be found in the ‘News & Events – Press Releases’ section of COPT Defense’s Investors website: https://investors.copt.com/news-events/press-releases
Conference Call Information
Management will discuss fourth quarter and full year 2023 results on its conference call tomorrow at 12:00 p.m. Eastern Time, details of which are listed below:
Conference Call Date:
Friday, February 09, 2024
Time:
12:00 p.m. Eastern Time
Participants must register for the conference call at the link below to receive the dial-in number and personal pin. Registering only takes a few moments and provides direct access to the conference call without waiting for an operator. You may register at any time, including up to and after the call start time: https://register.vevent.com/register/BIec6f0e6112cd459ab4eda8f3c55c2d22
The conference call will also be available via live webcast in the ‘News & Events – IR Calendar’ section of COPT Defense’s Investors website: https://investors.copt.com/news-events/ir-calendar
Replay Information
A replay of the conference call will be immediately available via webcast only on COPT Defense’s Investors website and will be maintained on the website for approximately 90 days after the conference call.
Definitions
For definitions of certain terms used in this press release, please refer to the information furnished in the Company’s Supplemental Information Package furnished on a Form 8-K which can be found on its website (www.copt.com). Reconciliations of non-GAAP measures to the most directly comparable GAAP measures are included in the attached tables.
About COPT Defense
COPT Defense, an S&P MidCap 400 Company, is a self-managed REIT focused on owning, operating and developing properties in locations proximate to, or sometimes containing, key U.S. Government (“USG”) defense installations and missions (referred to as its Defense/IT Portfolio). The Company’s tenants include the USG and their defense contractors, who are primarily engaged in priority national security activities, and who generally require mission-critical and high security property enhancements. As of December 31, 2023, the Company’s Defense/IT Portfolio of 190 properties, including 24 owned through unconsolidated joint ventures, encompassed 21.7 million square feet and was 97.2% leased.
Forward-Looking Information
This press release may contain “forward-looking” statements, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that are based on the Company’s current expectations, estimates and projections about future events and financial trends affecting the Company. Forward-looking statements can be identified by the use of words such as “may,” “will,” “should,” “could,” “believe,” “anticipate,” “expect,” “estimate,” “plan” or other comparable terminology. Forward-looking statements are inherently subject to risks and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate. Although the Company believes that the expectations, estimates and projections reflected in such forward-looking statements are based on reasonable assumptions at the time made, the Company can give no assurance that these expectations, estimates and projections will be achieved. Future events and actual results may differ materially from those discussed in the forward-looking statements and the Company undertakes no obligation to update or supplement any forward-looking statements.
The areas of risk that may affect these expectations, estimates and projections include, but are not limited to, those risks described in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.
Source: COPT Defense Properties
COPT Defense Properties
Summary Financial Data
(unaudited)
(dollars and shares in thousands, except per share data)
For the Three Months Ended December 31,
For the Years Ended December 31,
2023
2022
2023
2022
Revenues
Lease revenue
$
160,337
$
150,022
$
619,847
$
580,169
Other property revenue
1,225
1,163
4,956
4,229
Construction contract and other service revenues
18,167
24,062
60,179
154,632
Total revenues
179,729
175,247
684,982
739,030
Operating expenses
Property operating expenses
64,577
58,470
247,385
227,430
Depreciation and amortization associated with real estate operations
36,735
36,907
148,950
141,230
Construction contract and other service expenses
17,167
23,454
57,416
149,963
Impairment losses
—
—
252,797
—
General and administrative expenses
8,240
7,766
31,105
27,461
Leasing expenses
2,308
2,235
8,932
8,337
Business development expenses and land carry costs
797
1,157
2,732
3,193
Total operating expenses
129,824
129,989
749,317
557,614
Interest expense
(20,383
)
(16,819
)
(71,142
)
(61,174
)
Interest and other income, net
5,659
4,671
12,587
9,070
Gain on sales of real estate
—
19,238
49,392
19,250
Loss on early extinguishment of debt
—
(267
)
—
(609
)
Income (loss) from continuing operations before equity in (loss) income of unconsolidated entities and income taxes
35,181
52,081
(73,498
)
147,953
Equity in (loss) income of unconsolidated entities
(240
)
229
(261
)
1,743
Income tax expense
(121
)
(223
)
(588
)
(447
)
Income (loss) from continuing operations
34,820
52,087
(74,347
)
149,249
Discontinued operations
—
—
—
29,573
Net income (loss)
34,820
52,087
(74,347
)
178,822
Net (income) loss attributable to noncontrolling interests:
Common units in the Operating Partnership (“OP”)
(576
)
(775
)
1,306
(2,603
)
Other consolidated entities
(592
)
(833
)
(428
)
(3,190
)
Net income (loss) attributable to common shareholders
$
33,652
$
50,479
$
(73,469
)
$
173,029
Earnings per share (“EPS”) computation:
Numerator for diluted EPS:
Net income (loss) attributable to common shareholders
$
33,652
$
50,479
$
(73,469
)
$
173,029
Amount allocable to share-based compensation awards
(100
)
(129
)
(1,199
)
(463
)
Redeemable noncontrolling interests
—
(60
)
—
(169
)
Numerator for diluted EPS
$
33,552
$
50,290
$
(74,668
)
$
172,397
Denominator:
Weighted average common shares - basic
112,199
112,096
112,178
112,073
Dilutive effect of share-based compensation awards
432
435
—
431
Dilutive effect of redeemable noncontrolling interests
—
102
—
116
Weighted average common shares - diluted
112,631
112,633
112,178
112,620
Diluted EPS
$
0.30
$
0.45
$
(0.67
)
$
1.53
COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands, except per share data)
For the Three Months Ended December 31,
For the Years Ended December 31,
2023
2022
2023
2022
Net income (loss)
$
34,820
$
52,087
$
(74,347
)
$
178,822
Real estate-related depreciation and amortization
36,735
36,907
148,950
141,230
Impairment losses on real estate
—
—
252,797
—
Gain on sales of real estate from continuing and discontinued operations
—
(19,238
)
(49,392
)
(47,814
)
Depreciation and amortization on unconsolidated real estate JVs
805
526
3,217
2,101
Funds from operations (“FFO”)
72,360
70,282
281,225
274,339
FFO allocable to other noncontrolling interests
(972
)
(1,227
)
(3,978
)
(4,795
)
Basic FFO allocable to share-based compensation awards
(513
)
(360
)
(1,940
)
(1,433
)
Basic FFO available to common share and common unit holders (“Basic FFO”)
70,875
68,695
275,307
268,111
Redeemable noncontrolling interests
—
(27
)
(58
)
(34
)
Diluted FFO adjustments allocable to share-based compensation awards
38
28
150
109
Diluted FFO available to common share and common unit holders (“Diluted FFO”)
70,913
68,696
275,399
268,186
Loss on early extinguishment of debt
—
267
—
609
Gain on early extinguishment of debt on unconsolidated real estate JVs
—
(168
)
—
(168
)
Executive transition costs
188
—
518
343
Diluted FFO comparability adjustments allocable to share-based compensation awards
(1
)
(1
)
(4
)
(5
)
Diluted FFO available to common share and common unit holders, as adjusted for comparability
71,100
68,794
275,913
268,965
Straight line rent adjustments and lease incentive amortization
313
(3,043
)
6,518
(8,825
)
Amortization of intangibles and other assets included in net operating income (“NOI”)
26
15
50
(258
)
Share-based compensation, net of amounts capitalized
2,318
2,247
8,544
8,700
Amortization of deferred financing costs
681
619
2,580
2,297
Amortization of net debt discounts, net of amounts capitalized
1,004
615
2,994
2,440
Replacement capital expenditures
(21,498
)
(43,283
)
(93,494
)
(95,886
)
Other
336
158
(84
)
980
Diluted adjusted funds from operations available to common share and common unit holders (“Diluted AFFO”)
$
54,280
$
26,122
$
203,021
$
178,413
Diluted FFO per share
$
0.62
$
0.60
$
2.41
$
2.35
Diluted FFO per share, as adjusted for comparability
$
0.62
$
0.60
$
2.42
$
2.36
Dividends/distributions per common share/unit
$
0.285
$
0.275
$
1.140
$
1.100
COPT Defense Properties
Summary Financial Data
(unaudited)
(Dollars and shares in thousands, except per share data)
December 31, 2023
December 31, 2022
Balance Sheet Data
Properties, net of accumulated depreciation
$
3,503,678
$
3,556,398
Total assets
$
4,246,966
$
4,257,275
Debt per balance sheet
$
2,416,287
$
2,231,794
Total liabilities
$
2,699,631
$
2,509,527
Redeemable noncontrolling interests
$
23,580
$
26,293
Total equity
$
1,523,755
$
1,721,455
Debt to assets
56.9
%
52.4
%
Net debt to adjusted book
40.6
%
39.8
%
Defense/IT Portfolio Data (as of period end)
Number of operating properties
190
186
Total operational square feet (in thousands)
21,719
20,869
% Occupied
96.2
%
94.1
%
% Leased
97.2
%
96.7
%
For the Three Months Ended December 31,
For the Years Ended December 31,
2023
2022
2023
2022
GAAP
Payout ratio:
Net income
93.7
%
60.3
%
N/A
70.2
%
Debt ratios:
Net income to interest expense ratio
1.7x
3.1x
N/A
2.9x
Debt to net income ratio
17.3x
10.7x
N/A
N/A
Non-GAAP
Payout ratios:
Diluted FFO
45.7
%
45.5
%
47.1
%
46.6
%
Diluted FFO, as adjusted for comparability
45.6
%
45.4
%
47.0
%
46.5
%
Diluted AFFO
59.7
%
119.7
%
63.9
%
70.1
%
Debt ratios:
Adjusted EBITDA fixed charge coverage ratio
4.4x
4.7x
4.7x
5.1x
Net debt to in-place adjusted EBITDA ratio
6.1x
6.3x
N/A
N/A
Pro forma net debt to in-place adjusted EBITDA ratio (1)
N/A
6.0x
N/A
N/A
Net debt adj. for fully-leased development to in-place adj. EBITDA ratio
6.0x
6.1x
N/A
N/A
Pro forma net debt adj. for fully-leased development to in-place adj. EBITDA ratio (1)
N/A
5.7x
N/A
N/A
Reconciliation of denominators for per share measures
Denominator for diluted EPS
112,631
112,633
112,178
112,620
Weighted average common units
1,514
1,476
1,509
1,454
Dilutive effect of additional share-based compensation awards
—
—
424
—
Redeemable noncontrolling interests
—
—
38
—
Denominator for diluted FFO per share and as adjusted for comparability
114,145
114,109
114,149
114,074
(1)
Includes, for the 12/31/22 period, adjustments associated with our sale on 1/10/23 of a 90% interest in three data center shell properties.
COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)
For the Three Months Ended December 31,
For the Years Ended December 31,
2023
2022
2023
2022
Numerators for Payout Ratios
Dividends on unrestricted common and deferred shares
$
31,998
$
30,844
$
127,978
$
123,367
Distributions on unrestricted common units
430
406
1,725
1,623
Dividends and distributions on restricted shares and units
209
134
828
567
Total dividends and distributions for GAAP payout ratio
32,637
31,384
130,531
125,557
Dividends and distributions on antidilutive shares and units
(212
)
(121
)
(835
)
(516
)
Dividends and distributions for non-GAAP payout ratios
$
32,425
$
31,263
$
129,696
$
125,041
Reconciliation of net income (loss) to earnings before interest, income taxes, depreciation and amortization for real estate (“EBITDAre”), adjusted EBITDA and in-place adjusted EBITDA
Net income (loss)
$
34,820
$
52,087
$
(74,347
)
$
178,822
Interest expense
20,383
16,819
71,142
61,174
Income tax expense
121
223
588
447
Real estate-related depreciation and amortization
36,735
36,907
148,950
141,230
Other depreciation and amortization
619
602
2,445
2,363
Impairment losses on real estate
—
—
252,797
—
Gain on sales of real estate from continuing and discontinued operations
—
(19,238
)
(49,392
)
(47,814
)
Adjustments from unconsolidated real estate JVs
1,911
1,033
6,917
3,313
EBITDAre
94,589
88,433
359,100
339,535
Credit loss (recoveries) expense
(1,288
)
(1,331
)
(611
)
271
Business development expenses
445
794
1,393
1,891
Executive transition costs
188
387
824
730
Loss on early extinguishment of debt
—
267
—
609
Gain on early extinguishment of debt on unconsolidated real estate JVs
—
(168
)
—
(168
)
Net gain on other investments
—
(595
)
(25
)
(1,159
)
Adjusted EBITDA
93,934
87,787
$
360,681
$
341,709
Pro forma NOI adjustment for property changes within period
1,341
2,704
Change in collectability of deferred rental revenue
(198
)
—
In-place adjusted EBITDA
$
95,077
$
90,491
Pro forma NOI adjustment from subsequent event transactions
N/A
(2,903
)
Pro forma in-place adjusted EBITDA
$
95,077
$
87,588
Reconciliations of tenant improvements and incentives, building improvements and leasing costs for operating properties to replacement capital expenditures
Tenant improvements and incentives
$
7,850
$
33,439
$
74,912
$
62,952
Building improvements
14,762
8,468
25,976
29,528
Leasing costs
2,440
4,389
9,634
11,480
Net (exclusions from) additions to tenant improvements and incentives
(189
)
(75
)
(12,170
)
2,150
Excluded building improvements and leasing costs
(3,365
)
(2,938
)
(4,858
)
(10,224
)
Replacement capital expenditures
$
21,498
$
43,283
$
93,494
$
95,886
COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)
For the Three Months Ended December 31,
For the Years Ended December 31,
2023
2022
2023
2022
Reconciliation of interest expense to the denominator for fixed charge coverage-Adjusted EBITDA
Interest expense
$
20,383
$
16,819
$
71,142
$
61,174
Less: Amortization of deferred financing costs
(681
)
(619
)
(2,580
)
(2,297
)
Less: Amortization of net debt discounts, net of amounts capitalized
(1,004
)
(615
)
(2,994
)
(2,440
)
COPT Defense’s share of interest expense of unconsolidated real estate JVs, excluding amortization of deferred financing costs and net debt premium and loss on interest rate derivatives
819
423
3,188
1,123
Scheduled principal amortization
763
864
3,052
3,333
Capitalized interest
1,028
1,835
4,479
6,709
Denominator for fixed charge coverage-Adjusted EBITDA
$
21,308
$
18,707
$
76,287
$
67,602
Reconciliation of net income (loss) to NOI from real estate operations, same property NOI from real estate operations and same property cash NOI from real estate operations
Net income (loss)
$
34,820
$
52,087
$
(74,347
)
$
178,822
Construction contract and other service revenues
(18,167
)
(24,062
)
(60,179
)
(154,632
)
Depreciation and other amortization associated with real estate operations
36,735
36,907
148,950
141,230
Construction contract and other service expenses
17,167
23,454
57,416
149,963
Impairment losses
—
—
252,797
—
General and administrative expenses
8,240
7,766
31,105
27,461
Leasing expenses
2,308
2,235
8,932
8,337
Business development expenses and land carry costs
797
1,157
2,732
3,193
Interest expense
20,383
16,819
71,142
61,174
Interest and other income, net
(5,659
)
(4,671
)
(12,587
)
(9,070
)
Gain on sales of real estate from continuing operations
—
(19,238
)
(49,392
)
(19,250
)
Loss on early extinguishment of debt
—
267
—
609
Equity in loss (income) of unconsolidated entities
240
(229
)
261
(1,743
)
Unconsolidated real estate JVs NOI allocable to COPT Defense included in equity in (loss) income of unconsolidated entities
1,671
1,095
6,659
4,327
Income tax expense
121
223
588
447
Discontinued operations
—
—
—
(29,573
)
Revenues from real estate operations from discontinued operations
—
—
—
1,980
Property operating expenses from discontinued operations
—
—
—
(971
)
NOI from real estate operations
98,656
93,810
384,077
362,304
Non-Same Property NOI from real estate operations
(11,705
)
(9,015
)
(39,244
)
(27,991
)
Same Property NOI from real estate operations
86,951
84,795
344,833
334,313
Straight line rent adjustments and lease incentive amortization
7,947
319
25,631
(2,729
)
Amortization of acquired above- and below-market rents
(121
)
(131
)
(536
)
(844
)
Lease termination fees, net
(717
)
(1,026
)
(3,745
)
(2,237
)
Tenant funded landlord assets and lease incentives
(7,501
)
(1,068
)
(25,244
)
(5,915
)
Cash NOI adjustments in unconsolidated real estate JVs
(58
)
(81
)
(267
)
(358
)
Same Property Cash NOI from real estate operations
$
86,501
$
82,808
$
340,672
$
322,230
COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)
December 31, 2023
December 31, 2022
Reconciliation of total assets to adjusted book
Total assets
$
4,246,966
$
4,257,275
Accumulated depreciation
1,400,162
1,267,434
Accumulated depreciation included in assets held for sale
—
6,014
Accumulated amortization of intangibles on property acquisitions and deferred leasing costs
228,484
222,779
COPT Defense’s share of liabilities of unconsolidated real estate JVs
60,583
52,404
COPT Defense’s share of accumulated depreciation and amortization of unconsolidated real estate JVs
9,528
6,078
Less: Property - operating lease liabilities
(33,931
)
(28,759
)
Less: Property - finance lease liabilities
(415
)
—
Less: Cash and cash equivalents
(167,820
)
(12,337
)
Less: COPT Defense’s share of cash of unconsolidated real estate JVs
(852
)
(456
)
Adjusted book
$
5,742,705
$
5,770,432
December 31, 2023
December 31, 2022
Reconciliation of debt to net debt, net debt adjusted for fully-leased development and pro forma net debt adjusted for fully-leased development
Debt per balance sheet
$
2,416,287
$
2,231,794
Net discounts and deferred financing costs
28,713
23,160
COPT Defense’s share of unconsolidated JV gross debt
52,613
52,100
Gross debt
2,497,613
2,307,054
Less: Cash and cash equivalents
(167,820
)
(12,337
)
Less: COPT Defense’s share of cash of unconsolidated real estate JVs
(852
)
(456
)
Net debt
2,328,941
2,294,261
Costs incurred on fully-leased development properties
(53,914
)
(95,972
)
Net debt adjusted for fully-leased development
$
2,275,027
$
2,198,289
Net debt
$
2,328,941
$
2,294,261
Pro forma debt adjustments from subsequent event transaction proceeds
N/A
(189,000
)
Pro forma net debt
2,328,941
2,105,261
Costs incurred on fully-leased development properties
(53,914
)
(95,972
)
Pro forma net debt adjusted for fully-leased development
$
2,275,027
$
2,009,289
View source version on businesswire.com: https://www.businesswire.com/news/home/20240208427624/en/
IR Contacts: Venkat Kommineni, CFA 443.285.5587 venkat.kommineni@copt.com
Michelle Layne 443.285.5452 michelle.layne@copt.com
1 Year COPT Defense Properties Chart |
1 Month COPT Defense Properties Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions
Hot Features
Premium
