Copt Defense Properties · NYSE:CDP
Copt Defense Properties — Q1 2026 Earnings Presentation
37 slides from Copt Defense Properties's earnings presentation, Apr 28, 2026
Slide 1: Results for 1st Quarter 2026 Updated 2026 Guidance
Results for st 1 Quarter 2026 Updated 2026 Guidance APRIL 27, 2026
Slide 2: Table of Contents
Table of Contents RESULTS FOR 1 ST QUARTER 2026 3 UPDATED 2026 GUIDANCE 6 FACTORS SUPPORTING GROWTH 9 PORTFOLIO UPDATE 18 CONCLUSION 23 APPENDICES: 27 Safe Harbor 28 Definitions + Glossary 29 Reconciliations 34 2
Slide 3: Results for 1st Quarter 2026
Results for st 1 Quarter 2026 3
Slide 4: Strong 1st Quarter 2026 Results
Strong 1st Quarter 2026 Results 1Q26 FFOPS, As Adjusted for Comparability $0.69 FFO per Share Growth Year-Over-Year 6.2% 1Q26 Results were 1-cent Above Midpoint of Guidance Met or Exceeded Guidance Each Quarter Over the Past 33 Quarters Increase in Same Property Cash NOI | Total Portfolio 5.4% | Def
Slide 5: Commentary on 1st Quarter 2026 Results
Commentary on 1st Quarter 2026 Results $0.69 FFOPS, AS ADJUSTED FOR COMPARABILITY 92,000 SF VACANCY LEASING • 1-cent beat vs. midpoint of guidance • 87,000 SF in Defense/IT Portfolio • Represents a 6.2% increase year-over-year • 5,000 SF in Other Segment 5.4% INCREASE IN SAME PROPERTY CASH NOI YOY 1
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 2025 FY 2026 INITIAL GUIDANCE FY 2026 UPDATED GUIDANCE AS OF 4Q 2025 AS OF 1Q 2026 Actual Low Midpoint High Low Midpoint High FFOPS2 $2.72 $2.71 $2.75 $2.79 $2.73 $2.76 $2.79 Same Property % Change in 4.1%3 2.0% 2.5% 3.0% 2.5
Slide 8: FY 2026 Guidance Summary
FY 2026 Guidance Summary 1 Green highlighted rows = Increase to guidance (See Page 8 for Commentary) FY 2025 FY 2026 UPDATED GUIDANCE Actual Low Midpoint High EPS $1.34 $1.24 $1.27 $1.30 FFOPS, As Adjusted for Comparability $2.72 $2.73 $2.76 $2.79 Year-Over-Year Growth 5.8% — 1.5% — 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 1 COMPARABLE STRATEGY TOTAL SF DEMAND DRIVER (000s) % LEASED % ARR ONLY PUBLIC REIT FOR SECURED, Ft. Meade/BW Corridor 9,255 95% 44% SPECIALIZED SPACE WITH CREDENTIALED Redstone Arsenal 2,525 98
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 $400,000 $389,000 CAPITAL COMMITTED TO NEW INVESTMENTS $350,000 • 3 projects totaling $244M in 2026 to
Slide 13: Land + Ground Lease Acquisition | Mission Ridge
Land + Ground Lease Acquisition | Mission Ridge CHANTILLY, VIRGINIA 13
Slide 14: 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 15: 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 | 15 15
Slide 16: 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, 6.1x 6.0x 6.0x • Solid EBITDA/I
Slide 17: 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 3/31/26 (000s) • Issued $400M of 4.50% Senior Notes due 2030 $800,000 on October
Slide 18: Portfolio Update
Portfolio Update 18
Slide 19: Vacancy Leasing is On Track to Meet 2026 Target
Vacancy Leasing is On Track to Meet 2026 Target LEASING VOLUME ON-PACE IN 1Q26 VACANCY LEASING IN OPERATING PORTFOLIO (000s) 3 EXECUTED2 WALT1 2020 2021 2022 2023 2024 2025 2026E 92,000 SF 6.6 YEARS 416 SF 616 SF 801 SF 452 SF 590 SF 557 SF 400 SF 4 23% of 2026 Target 800 83 100% 700 2026 LEASING TA
Slide 20: Sector-Leading Tenant Retention
Sector-Leading Tenant Retention CDP's retention rate is nearly DRIVEN BY double that of the Office REITs RENEWAL RATES SINCE 2020 that report this metric 1. Unique + Advantaged Locations 90% 2. Significant Tenant Co-investment 86% 3. Long-term Tenant Relationships 80% 82.5% 81% 80% 78% 4. Operating
Slide 21: Significant Progress with 2026 Lease Expirations
Significant Progress with 2026 Lease Expirations Started 2026 With ~2.9M SF | ~1.7M SF Now Expiring in 2Q26 – 4Q26 Executed Renewals (1Q26) ~1.3M SF Expiring Achieved Retention = 91% ~1.2M SF Renewed • Fully Renewed Expirations near Lackland AFB | 953,000 SF with USG 2026 Total Portfolio • Accounted
Slide 22: Large Lease Expirations | 2Q24 - 4Q26
Large Lease Expirations | 2Q24 – 4Q26 Expect to Fully Renew 8 Remaining Large Leases in 2027 Totaling 950,000 SF with USG 30 MONTH OUTLOOK AS OF 2Q24 4.0M SF of Large Leases to Expire Between 2Q24–4Q26 57% of total expiring SF and ARR at 2Q24 6.9M SF Set to Expire Between 2Q24–4Q26 Leases U.S. Gover
Slide 23: Conclusion
Conclusion STRONG RESULTS + CONTINUED GROWTH 23
Slide 24: 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 4.5% PE R Y E AR FR OM $2.76 IMPLIE S 1.5% GR OWTH OVE R 2025 2019–2026E R E S ULTS FFOPS, AS ADJUSTED FOR COMPARABILITY FFOPS, AS ADJUSTED FOR COMPARABILITY (000s) $2.80 $2.76 $350,000 $2.72
Slide 25: Attractive Investment Opportunity
Attractive Investment Opportunity 4.5% Compound Annual FFOPS Growth Dividend 16.4% Increase in Dividend per Growth (2019–2026E) Share (since 2022) Stock Growth Value Stock 11.6x Price to 2026E FFOPS1 1. As of the closing price on April 24, 2026, and the midpoint of current 2026E FFOPS guidance, as a
Slide 26: Continued Growth
Continued Growth STRONG LEASING DEMAND AT EXISTING PROPERTIES FFOPS, AS ADJUSTED FOR COMPARABILITY FUTURE $2.80 $2.76 ACTIVE $2.72 DEVELOPMENT OPPORTUNITIES $2.70 $508M ~1.0M SF DEVELOPMENT LEASING PIPELINE $2.60 $2.57 DEVELOPMENTS 4.5% CAGR 1.0M SF | 73% leased1 ~0.6M SF POTENTIAL FUTURE OPPORTUNIT
Slide 27: Appendices
Appendices SAFE HARBOR 28 DEFINITIONS + GLOSSARY 29 RECONCILIATIONS 34 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 March 31, 2026. This presentation may contain forward-looking statements within the meaning The areas of risk that may affect these expectations, estima
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, AS ADJUSTED FOR COMPARABILITY IN-PLACE ADJUSTED EBITDA Defined as (1) Diluted FFO available to common share and common unit holders, as adjusted for comparability divided by (2) the sum of the (a) weighted av
Slide 32: Definitions + Glossary (continued)
Definitions+ Glossary Definitions + Glossary (continued) (continued) NET DEBT ADJUSTED FOR FULLY-LEASED INVESTMENT PROPERTIES PORTFOLIO Defined as Net debt less costs incurred on properties under development and on operating 3/31/26 12/31/25 9/30/25 6/30/25 3/31/25 property acquisitions that were 10
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 Operating office and data center shell properties stably owned and 100% operational since
Slide 34: Reconciliations
Reconciliations Reconciliations Year Ended December 31, Three Months Ended 2019 2020 2021 2022 2023 2024 2025 3/31/26 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 $ 178,822 $ (74,347) $ 143,94
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 $ 1.24 $ 1.30 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 3/31/26 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 — Q1 2026 Earnings Presentation on 6ix