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COPT Defense Executes 236,000 Square Foot Build-to-Suit Lease in its Maryland Portfolio

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Information

COPT Defense Properties (NYSE:CDP) ("COPT Defense" or the "Company") executed a build-to-suit lease in January 2026 with a Defense/IT tenant in its Maryland portfolio. The Company's anticipated capital commitment to

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AI Summary

COPT Defense signed a $146 million lease for a new facility. The build-to-suit project reflects strong demand in their Defense/IT portfolio. The company achieved $277 million in capital commitments in 2025. COPT's Defense/IT Portfolio is 97% leased with 22.6 million square feet. Forward-looking statements indicate potential risks for future projections.

Sentiment Rationale

The substantial lease and capital commitments indicate solid demand in a strategic sector, suggesting positive performance ahead. Historical data shows similar announcements often lead to price rises for companies engaged in defense and IT sectors.

Trading Thesis

Commitments for new properties may take years to materialize; however, long-term occupancy and revenue growth can support sustained price increases. Previous developments in COPT’s portfolio have shown gradual valuation increases post-lease agreements.

Market-Moving

  • COPT Defense signed a $146 million lease for a new facility.
  • The build-to-suit project reflects strong demand in their Defense/IT portfolio.
  • The company achieved $277 million in capital commitments in 2025.

Key Facts

  • COPT Defense signed a $146 million lease for a new facility.
  • The build-to-suit project reflects strong demand in their Defense/IT portfolio.
  • The company achieved $277 million in capital commitments in 2025.
  • COPT's Defense/IT Portfolio is 97% leased with 22.6 million square feet.
  • Forward-looking statements indicate potential risks for future projections.

Companies Mentioned

  • LMT (LMT)
  • NOC (NOC)
  • BA (BA)

Corporate Developments

The announcement signals a strengthening business model and operational growth in a niche market, likely signaling bullish sentiment among investors. Increased leasing activity not only assures future cash flow but also reflects investor confidence.

COPT Defense Properties (NYSE:CDP) ("COPT Defense" or the "Company") executed a build-to-suit lease in January 2026 with a Defense/IT tenant in its Maryland portfolio. The Company's anticipated capital commitment to this 236,000 square foot facility is $146 million, with rent commencement expected in the third quarter of 2028.

"We continue to see strong demand for build-to-suit development in our Defense/IT Portfolio, as demonstrated by the $277 million of capital commitments to new investments achieved in 2025. This build-to-suit lease is a continuation of that demand and represents a very strong start to the year," said Stephen E. Budorick, COPT Defense's President & CEO.

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 September 30, 2025, the Company's Defense/IT Portfolio of 198 properties, including 24 owned through unconsolidated joint ventures, encompassed 22.6 million square feet and was 97.0% 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, 2024.

IR Contacts:

Venkat Kommineni, CFA

443.285.5587

venkat.kommineni@copt.com

Michelle Layne

443.285.5452

michelle.layne@copt.com

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