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EarningsQ2 2026 Earnings Report
CDP Q2 2026 EPS Results
Actual EPS$0.40
Consensus EPS$0.33
Beat/MissBeat by +$0.07
One Year Ago EPS$0.34
CDP Q2 2026 Revenue Results
Actual Revenue$197.39M
Expected Revenue$189.36M
Beat/MissBeat by +$8.03M
YoY Revenue Growth+3.94%
Earnings Announcement Details
QuarterQ2 2026
Date07/27/2026
TimeAfter Close
Conference CallMonday, July 27, 2026
CDP Upcoming Earnings
COPT Defense Properties's next earnings date is estimated for October 29, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
CDP Q2 2026 Earnings Call
0:00 / 0:00
Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was broadly positive: management reported outperformance in Q2 (FFO above midpoint), raised full-year guidance across multiple metrics, demonstrated strong leasing, high occupancy, robust tenant retention, and a growing prelease/development pipeline—supported by large anticipated increases in defense spending (FY2027 $1.1T base). Challenges disclosed were largely timing, modest near-term moderation in growth due to known move-outs and nonrecurring 2025 items, some financing cost/dilution pressure from exchangeable notes and refinancing, speculative inventory starts without preleases, and localized constraints (e.g., power for data centers). Overall, the positives (raised guidance, strong leasing/occupancy, pipeline acceleration, budget tailwinds) materially outweigh the disclosed headwinds.Company Guidance
FFO Per Share Outperformance and Continued Growth
Q2 FFO per share of $0.71 was $0.02 above midpoint guidance, a 4.4% year-over-year increase; this marks the 24th consecutive quarter of year-over-year FFO per share growth. Full-year midpoint FFO guidance increased $0.02 to $2.78, implying 2.2% growth over 2025.
Strong Same-Property NOI and Operating Performance
Same-property cash NOI grew 7.4% year-over-year in Q2 and 6.4% in the first half; annual same-property cash NOI growth midpoint was raised 100 basis points to 4%.
Robust Leasing and Occupancy Metrics
Executed 139k sq ft of vacancy leasing in Q2 and 231k sq ft in H1; total portfolio 95.6% leased and 94.1% occupied (defense IT portfolio 96.4% leased / 95.1% occupied). Northern Virginia portfolio at 95.2% leased vs ~78% market occupancy.
Increased Vacancy Leasing Target and Leasing Pipeline
YTD vacancy leasing of 290k sq ft (≈25% of unleased space at start of year); annual vacancy leasing target increased ~19% from 400k to 475k sq ft. Development leasing pipeline ~1.2M sq ft (20% q/q increase) and additional 900k sq ft of potential opportunities (≈60% q/q increase).
Acceleration at Redstone Gateway
Starting 2 new development projects totaling ~240k sq ft; 2.4M sq ft operating portfolio is 99.6% leased and will reach 100% leased after a pending 10k sq ft lease. Committed to two inventory buildings (180k and 60k sq ft) to deliver in late 2027–early 2028; park expected to exceed 3M sq ft soon.
Guidance and Capital Allocation Upgrades
Raised midpoints on four metrics: FFO per share (+$0.02 to $2.78), same-property cash NOI (+100 bps to 4%), cash rent change on renewals (+100 bps to 3%), and capital committed to new investments increased to $335M (company cited increases of $40M–$45M in discussion).
Tenant Retention and Renewal Strength
Average tenant retention of 84% in H1 (79% over the past decade); executed nearly 350k sq ft of renewal leasing in the quarter. Historic large-lease renewals: since disclosure 4 years ago, renewed 5M sq ft at a 98% retention rate; outlook for full-year retention unchanged at 80%–85%.
Defense Budget Tailwind
White House FY2027 base budget request of $1.1T (reported as ~30% YoY increase and ~50% over 5 years); NDAA matched the $1.1T base and calls for increases including +$16B (14%) for intelligence, +$4B (25%) for DoD cyber, and +$18B for Golden Dome—supporting durable demand for the portfolio.
Disciplined Development Yields and Funding Capacity
Target initial cash yields on new development remain ~8.5%; company states capacity to self-fund equity for roughly $300M of investment annually on a leverage-neutral basis and prefers funding with free cash flow rather than new equity issuance.
Strategic Acquisitions and Capital Deployment
Invested $43M to acquire 17 acres and a ground lease in Chantilly/Westfield at an approximate gap yield of 7.5% with future upside; additional $91M committed to Redstone Gateway developments to address accelerating mission-driven demand.
CDP Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed