COPT Defense Properties: A Unique Specialty Real Estate Franchise Supporting National Defense
SAN FRANCISCO, Nov. 19, 2024 (GLOBE NEWSWIRE) -- Advisor Access spoke at length with Stephen E. Budorick, president and CEO.
Advisor Access: How would you describe COPT Defense Properties’ niche position among REITs?
Stephen Budorick: COPT Defense’s business model focuses on owning properties and developable land (Defense/IT Properties) near key United States defense installations whose missions have been and continue to be Department of Defense spending priorities such as Intelligence, Surveillance and Reconnaissance, Missile Defense, R&D, Space, Cybersecurity and Cloud Computing.
Over 90% of our rental revenue comes from properties in Defense/IT locations. Our largest tenant is the United States Government, generating 36% of annualized rental revenue. The next 51% of annual rental revenue is generated from the Defense Contractor industry, conducting work to support the priority missions of our United States Government tenants in proximate or adjacent properties we own…
AA: COPT Defense announced strong 3Q 2024 results. What are some of the highlights?
SB: We delivered excellent results in 3Q 2024 and expect to deliver FFO per share growth of ~6% in 2024, which is ~2.5% higher than our initial expectations, and well ahead of peers, as the majority expect FFO per share to decline in 2024. Based on consensus estimates, we are forecasted to generate the second highest FFO per share growth in our sector in both 2024 and in 2025…
…Our Defense/IT Portfolio is 96.5% leased and 95.0% occupied…We forecast tenant retention in the 82.5–87.5% range in 2024…
AA: What competitive advantages does COPT Defense have in providing secured, specialized space?
SB: Our competitive advantage is based on four pillars:
First, our operating platform…
Second, our development expertise…
Third, our track record and customer relationships…
And finally, our unique and advantaged land positions…
AA: How is COPT Defense positioned for long-term growth and value creation?
Click Here to View the CDP Investor Presentation
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