COPT Defense Properties (CDP) AI Stock Analysis

• Market Cap: $6.45B
• Dividend Yield: 4.2%
• Average Volume (3M): 777.48K
• Price to Earnings (P/E): 21.7
• Beta (1Y): 0.39
• Revenue Growth: 0.06%
• EPS Growth: 8.88%
• Country: US
• Employees: 427
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 0.37
• Shares Outstanding: 113,210,594
• 10 Day Avg. Volume: 917,910
• 30 Day Avg. Volume: 777,477
• PEG Ratio: -0.09
• Price to Book (P/B): 2.33
• Price to Sales (P/S): 4.61
• P/FCF Ratio: 11.60
• Enterprise Value/Market Cap: 0.90
• Enterprise Value/Revenue: 7.77
• Enterprise Value/Gross Profit: 14.91
• Enterprise Value/Ebitda: 16.75
• 1Y Price Target: $34.00
• Price Target Upside: 18.10% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 1.32
• Revenue Forecast (FY): $707.86M

• Rating: 70 Outperform
• Price Target: $31.00 ▲(7.68% Upside)

COPT Defense Properties receives a solid score due to strong financial performance and positive earnings call highlights. The company's robust revenue growth and improved profitability are significant strengths. However, high leverage and technical indicators showing neutral to bearish momentum are concerns. The valuation is fair, with an attractive dividend yield, supporting the overall positive outlook.

Positive Factors

High Leasing Rates

High leasing rates indicate strong demand for CDP's properties, ensuring stable revenue streams and enhancing long-term financial stability.

Successful Financings

Successful financings improve liquidity and reduce refinancing risk, supporting CDP's growth and operational flexibility.

Space Command Relocation

The relocation of Space Command is a strategic win, likely boosting demand for CDP's properties and fostering long-term growth.

Negative Factors

High Leverage

High leverage can pose risks, especially if interest rates rise, potentially straining cash flow and limiting financial flexibility.

Potential Impact of Government Shutdown

Government shutdowns can disrupt operations and delay revenue recognition, affecting CDP's financial performance and planning.

Refinancing Headwinds

Refinancing headwinds can increase costs and reduce profitability, impacting CDP's financial performance in the medium term.

COPT Defense Properties Business Overview & Revenue Model

Company Description

COPT is a REIT that owns, manages, leases, develops and selectively acquires office and data center properties. The majority of its portfolio is in locations that support the United States Government and its contractors, most of whom are engaged in national security, defense and information technology (IT) related activities servicing what the Company believes are growing, durable, priority missions (Defense/IT Locations). The Company also owns a portfolio of office properties located in select urban submarkets in the Greater Washington, DC/Baltimore region with durable Class-A office fundamentals and characteristics (Regional Office Properties). As of June 30, 2023, the Company derived 90% of its core portfolio annualized rental revenue from Defense/IT Locations and 10% from its Regional Office Properties. As of the same date and including 24 properties owned through unconsolidated joint ventures, COPT's core portfolio of 192 properties encompassed 22.9 million square feet and was 95% leased.

How the Company Makes Money

COPT Defense Properties generates revenue primarily through long-term leases with government agencies and defense contractors, ensuring stable cash flow. The company's revenue model is largely based on rental income from its diversified portfolio of properties, which includes office buildings, specialized facilities, and data centers tailored for defense-related operations. Key revenue streams include lease payments, tenant reimbursements for operating expenses, and potential income from property sales or development projects. Additionally, CDP benefits from strategic partnerships with government entities and contractors that enhance its leasing opportunities and provide insights into sector-specific demands, further solidifying its earnings base.

COPT Defense Properties Financial Statement Overview

Summary

COPT Defense Properties demonstrates strong revenue growth and improved profitability, with efficient cash flow management. However, high leverage poses a risk, and past income volatility requires attention. The company is on a positive trajectory, but careful monitoring of debt levels and consistent profitability is essential for sustained financial health.

Income Statement

COPT Defense Properties shows strong revenue growth with a 34.4% increase in TTM, indicating robust demand. The gross profit margin improved significantly to 67.19%, reflecting efficient cost management. Net profit margin also increased to 19.23%, demonstrating enhanced profitability. However, the company experienced a negative net income in 2023, which is a concern. Overall, the income statement reflects a positive trajectory with some past volatility.

Balance Sheet

The company maintains a high debt-to-equity ratio of 1.61, indicating significant leverage, which could pose risks if interest rates rise. Return on equity is moderate at 9.59%, suggesting decent profitability relative to shareholder equity. The equity ratio is stable, showing a balanced asset structure. While the balance sheet is stable, the high leverage remains a potential risk.

Cash Flow

Free cash flow grew by 5.59% in the TTM, highlighting improved cash generation. The operating cash flow to net income ratio is strong at 3.76, indicating healthy cash flow relative to earnings. The free cash flow to net income ratio is also robust at 0.93, suggesting efficient cash conversion. Overall, cash flow metrics are solid, but the growth rate could be more aggressive.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	750.00M	753.27M	684.98M	739.03M	664.45M	609.37M
Gross Profit	390.78M	260.36M	231.23M	220.41M	209.47M	199.72M
EBITDA	347.94M	369.74M	337.49M	354.46M	320.44M	303.48M
Net Income	149.94M	138.93M	-73.47M	173.03M	76.54M	97.37M
Balance Sheet
Total Assets	4.35B	4.25B	4.25B	4.26B	4.26B	4.08B
Cash, Cash Equivalents and Short-Term Investments	0.00	38.28M	167.82M	12.34M	13.26M	18.37M
Total Debt	0.00	2.44B	2.45B	2.26B	2.30B	2.12B
Total Liabilities	2.77B	2.69B	2.70B	2.51B	2.58B	2.36B
Stockholders Equity	1.56B	1.49B	1.48B	1.68B	1.62B	1.66B
Cash Flow
Free Cash Flow	241.98M	299.61M	255.77M	229.45M	219.12M	205.67M
Operating Cash Flow	261.05M	330.95M	276.27M	265.82M	249.15M	238.42M
Investing Cash Flow	-210.46M	-291.01M	-169.62M	-83.46M	-202.97M	-325.79M
Financing Cash Flow	-62.88M	-169.67M	46.26M	-183.18M	-50.90M	91.27M

COPT Defense Properties Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.79
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CDP, the sentiment is Positive. The current price of 28.79 is above the 20-day moving average (MA) of 28.11, below the 50-day MA of 28.91, and above the 200-day MA of 27.44, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 56.62 is Neutral, neither overbought nor oversold. The STOCH value of 88.81 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CDP.

COPT Defense Properties Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KRC	72 Outperform	$5.09B	15.72	5.94%	5.08%	0.77%	62.58%
CDP	70 Outperform	$6.45B	21.66	10.01%	4.20%	0.06%	8.88%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
HIW	65 Neutral	$3.13B	24.69	5.37%	6.75%	-2.10%	-13.30%
CUZ	63 Neutral	$4.29B	73.59	1.26%	4.95%	16.38%	3.60%
DEI	54 Neutral	$2.15B	59.33	1.04%	6.21%	-0.12%	―
SLG	51 Neutral	$3.81B	―	0.61%	6.06%	8.60%	―

COPT Defense Properties Corporate Events

COPT Defense Properties Expands Credit Facility Agreement

On October 6, 2025, COPT Defense Properties entered into a second amendment to its credit agreement with several lenders, increasing the revolving credit facility from $600 million to $800 million and extending the maturity date to October 5, 2029. The amendment also allows for future increases in the aggregate commitment and introduces changes to interest terms based on credit ratings, impacting the company’s financial flexibility and potentially enhancing its market position.

The most recent analyst rating on (CDP) stock is a Hold with a $31.00 price target. To see the full list of analyst forecasts on COPT Defense Properties stock, see the CDP Stock Forecast page.

COPT Defense Properties Completes $400M Senior Notes Offering

On October 2, 2025, COPT Defense Properties‘ operating partnership, CDPLP, completed a $400 million offering of 4.500% Senior Notes due in 2030, which are fully guaranteed by CDP. This financial move, registered under the Securities Act of 1933, is expected to strengthen the company’s financial position and enhance its ability to serve its niche market of defense and government tenants.

The most recent analyst rating on (CDP) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on COPT Defense Properties stock, see the CDP Stock Forecast page.

COPT Defense Properties Announces $400M Senior Notes Offering

On September 23, 2025, COPT Defense Properties announced that its operating partnership, COPT Defense Properties, L.P., entered into an underwriting agreement for the issuance and sale of $400 million in 4.500% Senior Notes due 2030. The offering is expected to close on October 2, 2025, and the proceeds will be used for general corporate purposes, including repaying existing debt. This strategic financial move is anticipated to strengthen the company’s financial position and support its ongoing operations, potentially enhancing its market presence in the defense property sector.

The most recent analyst rating on (CDP) stock is a Buy with a $35.00 price target. To see the full list of analyst forecasts on COPT Defense Properties stock, see the CDP Stock Forecast page.

COPT Defense Properties Sees Strong Q2 2025 Growth

COPT Defense Properties has reported strong financial and operational performance, with a 94% occupancy rate across its portfolio as of June 30, 2025. The company benefits from increased Department of Defense spending, driven by the One Big Beautiful Bill Act, which has led to a 13% increase in the FY 2026 budget over the previous year. This growth is supported by consistent internal and external development investments, resulting in a stable tenant base with significant government and Fortune 100 company leases. The company’s strategic positioning in defense and IT sectors ensures continued demand and low-risk occupancy, contributing to a 6.6% increase in net operating income in the second quarter of 2025 compared to the same period in 2024.

The most recent analyst rating on (CDP) stock is a Hold with a $33.00 price target. To see the full list of analyst forecasts on COPT Defense Properties stock, see the CDP Stock Forecast page.