COPT Defense Properties (CDP) Q1 2026 earnings summary

Executive summary

• Achieved strong Q1 2026 results with diluted EPS of $0.34 (up from $0.31), FFO per share (as adjusted) of $0.69 (up 6.2% year-over-year and $0.01 above guidance midpoint), and robust leasing with 1.2 million SF renewed and 91% tenant retention.

• Portfolio occupancy was 94.4% and 95.2% leased at quarter-end, with Defense/IT Portfolio at 95.6% occupancy and 96.4% leased.

• Increased annual dividend by 4.9% to $0.32 per share, marking the fourth consecutive annual increase and a 16.4% rise since 2022.

• Committed $201 million to new investments in Q1 2026, including major projects and a 17-acre land acquisition in Chantilly, VA.

• Moody’s upgraded credit rating to Baa2 with a stable outlook in March 2026.

Financial highlights

• Q1 2026 FFO per share (as adjusted) was $0.69, up from $0.65 year-over-year and $0.01 above guidance midpoint.

• Same-property cash NOI increased 5.4% year-over-year, aided by higher occupancy and burn-off of free rent.

• Total revenues for Q1 2026 were $200.6 million, up from $187.9 million year-over-year.

• Net income attributable to common shareholders was $40.1 million, a 10.8% increase from $36.2 million in Q1 2025.

• Tenant retention rate reached 91% for the quarter, with 1.2 million SF of renewals including a major government campus.

Outlook and guidance

• Raised 2026 FFO per share guidance midpoint by $0.01 to $2.76, implying 1.5% annual growth.

• Increased midpoint of Same-Property Cash NOI growth by 50 basis points to 3%.

• Tenant retention guidance raised to 80–85% (from 75–85%), with midpoint up 250 basis points to 82.5%.

• Increased capital committed to new investments guidance by $40 million to $290 million.

• Q2 2026 FFO per share (as adjusted) guidance is $0.68–$0.70; full-year 2026 diluted EPS guidance is $1.24–$1.30.