COPT Defense sets 2026 guidance with modest FFO per share growth

COPT Defense Properties (NYSE: CDP) established financial guidance for 2026, projecting diluted funds from operations per share in a range of $2.71 to $2.79, representing a 1.1% increase at the midpoint compared to 2025 actual results of $2.72.

The real estate investment trust focused on defense-related properties set diluted earnings per share guidance of $1.21 to $1.29 for 2026, down from $1.34 in 2025. For the first quarter of 2026, the company expects diluted EPS of $0.30 to $0.32 and diluted FFO per share of $0.67 to $0.69.

COPT Defense anticipates same property cash net operating income growth of 2.0% to 3.0% in 2026, driven by contractual rent increases and commencement of rents from recent leasing activity. The company expects year-end occupancy to remain relatively flat at 93.5% to 94.5%, compared to 94.2% in 2025.

Net operating income from investments is projected to increase to $19.0 to $21.0 million in 2026, up from $16.2 million in 2025, reflecting approximately $180 million in properties delivered in 2025 and a $40 million acquisition.

Interest expense is expected to rise significantly to $94.0 to $98.0 million from $86.7 million in 2025, primarily due to refinancing a $400 million unsecured bond maturing in March 2026. The company noted a spread of approximately 235 basis points between the new bond's interest rate and the maturing bond.

COPT Defense plans capital investments in development and acquisitions of $200 to $250 million in 2026, with capital commitments to new investments ranging from $225 to $275 million, primarily focused on Fort Meade/BW Corridor and Redstone Arsenal locations.

The company's defense and IT portfolio consisted of 201 properties encompassing 23.2 million square feet as of December 31, 2025, and was 96.5% leased. The information is based on a company press release.

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