Copt Defense Properties · NYSE:CDP
Copt Defense Properties — Q2 2026 Earnings Presentation
37 slides from Copt Defense Properties's earnings presentation, Jul 28, 2026
Slide 1: Results for 2nd Quarter 2026
Results for nd 2 Quarter 2026 JULY 27, 2026 Development Project: 8500 Advanced Gateway Huntsville, AL
Slide 2: Table of Contents
Table of Contents RESULTS FOR 2 ND QUARTER 2026 3 UPDATED 2026 GUIDANCE 6 FACTORS SUPPORTING GROWTH 9 PORTFOLIO UPDATE 15 CONCLUSION 20 APPENDICES: 24 Land + Ground Lease Acquisition | Mission Ridge 25 Safe Harbor 28 Definitions + Glossary 29 Reconciliations 34 2
Slide 3: Results for 2nd Quarter 2026
Results for nd 2 Quarter 2026 3
Slide 4: Strong 2nd Quarter 2026 Results
Strong 2nd Quarter 2026 Results 2Q26 1H26 FFOPS, As Adjusted for Comparability $0.71 $1.40 FFO per Share Growth Year-Over-Year 4.4% 5.3% 2Q26 Results were 2-cents Above Midpoint of Guidance Met or Exceeded Guidance Each Quarter Over the Past 34 Quarters Increase in Same Property Cash NOI Total Portf
Slide 5: Commentary on 2nd Quarter 2026 Results
Commentary on 2nd Quarter 2026 Results $0.71 FFO PER SHARE 347,000 SF RENEWAL LEASING • 2-cent beat vs. midpoint of guidance • Tenant Retention = 68% • Represents a 4.4% increase year-over-year • Influenced negatively (12%) by 2 strategic non-renewals • Benefited from: • Tenants relocated to our new
Slide 6: Updated 2026 Guidance
aE eB \" cig 2,8. ee Updated 2026 Guidance
Slide 7: FY 2026 Guidance Updates
FY 2026 Guidance Updates1 Green highlighted rows = Increase to guidance FY 2026 INITIAL GUIDANCE UPDATED GUIDANCE UPDATED GUIDANCE FY 2025 AS OF 4Q 2025 AS OF 1Q 2026 AS OF 2Q 2026 Actual Low Midpoint High Low Midpoint High Low Midpoint High FFOPS2 $2.72 $2.71 $2.75 $2.79 $2.73 $2.76 $2.79 $2.76 $2.
Slide 8: FY 2026 Guidance Summary
FY 2026 Guidance Summary 1 Green highlighted rows = Increase to guidance (See Page 7 for Commentary) FY 2025 FY 2026 UPDATED GUIDANCE Actual Low Midpoint High EPS $1.34 $1.39 $1.41 $1.43 FFOPS, As Adjusted for Comparability $2.72 $2.76 $2.78 $2.80 Year-Over-Year Growth 5.8% — 2.2% — KEY ASSUMPTIONS
Slide 9: Factors Supporting Growth
Factors Supporting Growth a, F-F; ee
Slide 10: FY 2027 DOD Total Budget Request
FY 2027 DOD Total Budget Request Represents a Monumental Increase FY 2027 TOTAL BUDGET REQUEST | $1.425T $1,500 $1,425 (includes $350B Mandatory Funding/Reconciliation) $1,400 • 44% increase over FY 2026 Enacted $1,300 $350 FY 2027 BASE BUDGET REQUEST | $1.1T $1,200 • 28% increase over FY 2026 Enact
Slide 11: Portfolio Supports Priority DOD Missions
Portfolio Supports Priority DOD Missions ONE-OF-ONE: NO OTHER REIT HAS A TOTAL PORTFOLIO BY DEMAND DRIVER 2 COMPARABLE STRATEGY TOTAL SF % GAAP DEMAND DRIVER (000s) % LEASED NOI1 ONLY PUBLIC REIT FOR SECURED, Fort Meade/BW Corridor 9,403 94% 44% SPECIALIZED SPACE WITH CREDENTIALED Redstone Arsenal 2
Slide 12: External Growth from Investment
External Growth from Investment Allocating Capital to Projects at our Defense/IT Locations is the Foundation for External Growth 100% OF INVESTMENTS SINCE 2016 $450,000 FOCUSED ON DEFENSE/IT ASSETS $335,0002 $400,000 CAPITAL COMMITTED TO NEW INVESTMENTS $389,000 • 3 projects totaling $244M in 2026 t
Slide 13: Strong Balance Sheet Supports Growth
Strong Balance Sheet Supports Growth MOODY’S UPGRADE | MARCH 2026 MAINTAINING OUR STRONG BALANCE SHEET • Upgrade to Baa2 | Stable Outlook 6.4x • “The ratings upgrade reflects the 6.3x • Strong operating performance of the REIT’s 6.2x 6.1x specialized office portfolio, 6.0x 6.0x 6.0x • Solid EBITDA/I
Slide 14: Well-Staggered Debt Maturity Schedule
Well-Staggered Debt Maturity Schedule Strategy is to Refinance Debt Maturities + Term Out Debt Component of Development Investment in Public Fixed Income Market PRE-FUNDED 2026 BOND MATURITY DEBT MATURITY SCHEDULE AS OF 6/30/26 (000s) • Issued $400M of 4.50% Senior Notes due 2030 $1,000,000 on Octob
Slide 15: Portfolio Update
Portfolio Update 15
Slide 16: Increased Vacancy Leasing Target for 2026
Increased Vacancy Leasing Target for 2026 2026 Target Increased by 75,000 SF to 475,000 SF VACANCY LEASING 1 VACANCY LEASING IN OPERATING PORTFOLIO (000s) 3 2020 2021 2022 2023 2024 2025 2026E 2Q26 3Q26 TO DATE 2026 YTD 416 SF 616 SF 801 SF 452 SF 500 SF 557 SF 475 SF 4 139,000 SF 59,000 SF 290,000
Slide 17: Sector-Leading Tenant Retention
Sector-Leading Tenant Retention CDP's retention rate is nearly DRIVEN BY double that of the Office REITs 1. Unique + Advantaged Locations RENEWAL RATES SINCE 2020 that report this metric 90% 2. Significant Tenant Co-investment 86% 3. Long-term Tenant Relationships 80% 82.5% 81% 80% 4. Operating Plat
Slide 18: Large Lease Expirations | 2Q24 – 4Q26 | Final Review
Large Lease Expirations | 2Q24 – 4Q26 | Final Review 30 MONTH OUTLOOK AS OF 2Q24 4.0M SF of Large Leases to Expire Between 2Q24–4Q26 6.9M SF 57% of Total Expiring SF + ARR as of 2Q24 Set to Expire Between 2Q24–4Q26 Leases U.S. Government 13 13 full building Defense/IT | 10 Defense Contractors 12 2.9
Slide 19: Large Lease Expirations | 2Q26 – 4Q28 | New Outlook
Large Lease Expirations | 2Q26 – 4Q28 | New Outlook Expect ~90% Retention on Large Leases Expiring Over the Next 30 Months 30 MONTH OUTLOOK AS OF 2Q26 7.0M SF Set to Expire Between 2Q26–4Q28 2.9M SF Expected Retention = 65–75% 4.1M SF Expected Retention = ~90% Small Leases (≤ 50,000 SF) 39 Large Lea
Slide 20: Conclusion
Conclusion STRONG RESULTS + CONTINUED GROWTH 20
Slide 21: Strong Growth in Profitability
Strong Growth in Profitability COPT DEFENSE’S FFOPS H AS 2026E FFOPS MID POIN T GUID AN CE OF COMPOUNDED AT 4.6% PE R Y E AR FR OM $2.78 IMPLIE S 2.2% GR OWTH OVE R 2025 2019–2026E R E S ULTS FFOPS, AS ADJUSTED FOR COMPARABILITY FFO, AS ADJUSTED FOR COMPARABILITY (000s) $2.80 $2.78 $350,000 $2.72 $2
Slide 22: Attractive Investment Opportunity
Attractive Investment Opportunity 4.6% Compound Annual FFOPS Growth Dividend 16.4% Increase in Dividend per Growth (2019–2026E) Stock Growth Share (since 2022) Value Stock 13.7x Price to 2026E FFOPS1 1. As of the closing price on July 24, 2026, and the midpoint of current 2026E FFOPS guidance, as ad
Slide 23: Continued Growth
Continued Growth STRONG LEASING DEMAND AT EXISTING PROPERTIES FFOPS, AS ADJUSTED FOR COMPARABILITY $2.80 $2.78 ACTIVE FUTURE $2.72 DEVELOPMENT OPPORTUNITIES $2.70 $440M ~1.2M SF DEVELOPMENT LEASING PIPELINE DEVELOPMENTS $2.60 4.6% $2.57 CAGR 885K SF | 73% leased1 ~900K SF POTENTIAL FUTURE OPPORTUNIT
Slide 24: Appendices
Appendices LAND + GROUND LEASE ACQUISITION | 25 MISSION RIDGE SAFE HARBOR 28 DEFINITIONS + GLOSSARY 29 RECONCILIATIONS 34 24
Slide 25: Land + Ground Lease Acquisition | Mission Ridge
Land + Ground Lease Acquisition | Mission Ridge CHANTILLY, VIRGINIA 25
Slide 26: Land + Ground Lease Acquisition | Mission Ridge
Land + Ground Lease Acquisition | Mission Ridge Control of a Strategic Land Parcel in a Priority Submarket – Westfields in Chantilly, VA • ~$43M investment to acquire 17 acres of land + DEAL ground lease 5.4% 7.4% TERMS • 89 years remaining on 99-year ground lease Cash Yield GAAP (Year 1) Yield • En
Slide 27: Land + Ground Lease Acquisition | Mission Ridge
Land + Ground Lease Acquisition | Mission Ridge U.S. Government FBI Cyber Stonegate I Acquisition in 4Q25 National Reconnaissance Office | 27 27
Slide 28: Safe Harbor
Safe Harbor Unless otherwise noted, information in this presentation represents the Company's consolidated portfolio as of or for the quarter ended June 30, 2026. This presentation may contain forward-looking statements within the meaning The areas of risk that may affect these expectations, estimat
Slide 29: Definitions + Glossary
Definitions + Glossary ACQUISITION COSTS AVERAGE ESCALATIONS Transaction costs expensed in connection with executed or anticipated acquisitions of operating Leasing statistic used to report average increase in rental rates over lease terms for leases with a term properties. of greater than one-year.
Slide 30: Definitions + Glossary (continued)
Definitions+ Glossary Definitions + Glossary (continued) (continued) CASH NET OPERATING INCOME (“CASH NOI”) DILUTED ADJUSTED FUNDS FROM OPERATIONS AVAILABLE TO COMMON SHARE AND NOI from real estate operations adjusted: to eliminate the effects of straight-line rental adjustments, COMMON UNIT HOLDERS
Slide 31: Definitions + Glossary (continued)
Definitions+ Glossary Definitions + Glossary (continued) (continued) DILUTED FFO PER SHARE GSA Diluted FFO divided by the sum of the (1) weighted average common shares outstanding during a United States General Services Administration. period, (2) weighted average common units outstanding during a p
Slide 32: Definitions + Glossary (continued)
Definitions+ Glossary Definitions + Glossary (continued) (continued) NET DEBT ADJUSTED FOR FULLY-LEASED INVESTMENT PROPERTIES PORTFOLIO Net debt less costs incurred on properties under development and on operating property 6/30/26 3/31/26 12/31/25 9/30/25 6/30/25 acquisitions that were 100% leased.
Slide 33: Definitions + Glossary (continued)
Definitions+ Glossary Definitions + Glossary (continued) (continued) PRO FORMA NET DEBT, PRO FORMA NET DEBT ADJUSTED FOR FULLY-LEASED SAME PROPERTY INVESTMENT PROPERTIES, PRO FORMA IN-PLACE ADJUSTED EBITDA AND ASSOCIATED RATIOS Operating properties stably owned and 100% operational since at least th
Slide 34: Reconciliations
Reconciliations Reconciliations Year Ended December 31, Three Months Ended Six Months Ended 2019 2020 2021 2022 2023 2024 2025 6/30/26 6/30/26 Reconciliations of net income to diluted FFO and diluted FFO as adjusted for comparability (in thousands) Net income (loss) $ 200,004 $ 102,878 $ 81,578 $ 17
Slide 35: Reconciliations (continued)
Reconciliations Reconciliations (continued) (continued) Actuals Guidance Year Ending Year Ended December 31, 2026 December 31, 2025 Low High Reconciliations of diluted EPS to diluted FFOPS per Nareit and as adjusted for comparability (in dollars per share) Diluted EPS $ 1.34 $ 1.39 $ 1.43 Real estat
Slide 36: Reconciliations (continued)
Reconciliations Reconciliations (continued) (continued) Three Months Ended Three Months Ended 12/31/21 12/31/22 12/31/23 12/31/24 12/31/25 6/30/26 Reconciliations of net income to Adjusted EBITDA, in-place adjusted EBITDA, and pro forma in-place adjusted EBITDA (in thousands) Net income $ 14,965 $ 5
Slide 37: INVESTORS.COPT.COM
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COPT Defense Properties — Q2 2026 Earnings Presentation on 6ix