Copt Defense Properties · NYSE:CDP
Copt Defense Properties — Investor Presentation (May 2025)
61 slides from Copt Defense Properties's investor presentation, May 12, 2025
Slide 1: Proud Partners of the Redstone Arsenal Since 2009
PROUD PARTNERS OF THE REDSTONE ARSENAL SINCE 2009
Slide 2: Agenda
Agenda COMPANY OVERVIEW HUNTSVILLE OFFICE MARKETS > Page 3 > Page 38 HUNTSVILLE OVERVIEW OUR 4 COMPETITIVE ADVANTAGES IN HUNTSVILLE > Page 6 > Page 43 REDSTONE ARSENAL SPACE COMMAND SITE PLAN PROPOSAL > Page 14 > Page 49 REDSTONE GATEWAY CASE STUDY / FUN FACTS > Page 27 > Page 52 REDSTONE GATEWAY HI
Slide 3: Company Overview
COMPANY OVERVIEW 9
Slide 4: Company Overview
Company Overview PUBLIC REIT WITH NATIONAL DEFENSE MISSIONS WE SUPPORT: INVESTMENT STRATEGY XXXXXXXXXXXXXX > Investments Support Knowledge-Based > Signals Intelligence Defense Activities > Human Intelligence > One-of-One: NO OTHER REIT HAS A > Geospatial Intelligence and COMPARABLE STRATEGY Reconnai
Slide 5: Defense/IT Portfolio
Defense/IT Portfolio MARYLAND 109 Buildings | 9.9 Million SF —WASHINGTON,DG 2Buildings | 360,000 SF —VIRGINIA® 53 Buildings | 8.6 Million SF TEXAS Q9Buildings | 141Million SF —ALABAMA 25 Buildings | 2.5 Million SF DEFENSE/IT PORTFOLIO TOTAL 198 Buildings | 22.6 Million SF Data as of March 31,2025 y]
Slide 6: Huntsville Overview
HUNTSVILLE OVERVIEW 9
Slide 7: Huntsville | Map
Huntsville | Map 2-HOUR DRIVE FROM NASHVILLE | 1-HOUR FLIGHT FROM ATLANTA 7
Slide 8: Huntsville | Overview
Huntsville | Overview LARGEST CITY IN ALABAMA WITH FAVORABLE ECONOMIC + DEMOGRAPHIC TRENDS > Population of 240,000 City for Tech Talent Growth > Increased 52% since 2010 vs national rate of 21% #1 CBRE > Key Drivers: Best Metro for Millennials > Redstone Arsenal #5 CommercialCafe > U.S. Army, NASA,
Slide 9: Huntsville | Employment
Huntsville | Employment GOVERNMENT + DEFENSE CONTRACTORS ARE THE LARGEST EMPLOYERS 2025 Leading 2025 Leading Employers Employers Redstone Arsenal Other ~45K Employees 14% Defense Contractor Manufacturing 11% Government ~25K Employees 42% of Top 100 Health Care 12% 54 Government Contractors are Locat
Slide 10: Huntsville | Demographics
Huntsville | Demographics POPULATION GROWTH + HOUSEHOLD INCOME EXCEED U.S. AVERAGE Population Growth in Huntsville has Exceeded Median Household Income in Huntsville Exceeds that of the U.S. Avg in Every Quarter over the last that of the U.S. Avg by $11,000, as 10 years Growth Accelerated over the p
Slide 11: Huntsville | Demographics
Huntsville | Demographics EMPLOYMENT RATE + JOB GROWTH EXCEED U.S. AVERAGE Unemployment Rate in Huntsville has been Job Growth in Huntsville has Exceeded Below that of the U.S. Avg since 2015; that of the U.S. Avg in 36 of the last 40 Quarters and is 2.7% vs U.S. at 4.2% as of YE 2024 Unemployment R
Slide 12: Huntsville | Contract Awards
Huntsville | Contract Awards OVER $11B OF AWARDS TO CONTRACTORS IN HUNTSVILLE IN FY 2024 Awards Have Increased over 50% since 2017; ~45% of FY 2024 Awards were to our Tenants; The Significant Increase in FY 2018 + 2019 was ~33% of FY 2024 Awards were to 3 of our Tenants: Driven by Army, Air Force +
Slide 13: Huntsville | Contract Awards
Huntsville | Contract Awards 85% OF AWARDS ARE FUNDED BY U.S. ARMY, AIR FORCE, NASA + MISSILE DEFENSE AGENCY U.S. Army is the Largest Funding Agency, Missile Defense + Air Force Led in Funding Growth Accounting for 35% of Total Awards, followed by between 2014-2019 (both $ and %); Missile Defense Ag
Slide 14: Redstone Arsenal
REDSTONE ARSENAL 3
Slide 15: Redstone Arsenal | Map
Redstone Arsenal | Map BIRTHPLACE OF U.S. SPACE PROGRAM + NERVE CENTER OF U.S. MISSILE DEFENSE ENTERPRISE 15
Slide 16: Redstone Arsenal | Overview
Redstone Arsenal | Overview NAMED “ROCKET CITY” FOR A REASON > 38,000-acre Federal research, development, testing and engineering center > Over twice the size of Manhattan > 19M SF of facilities (office, R&D, warehouse, etc…) > ~45,000 Civilian and Contract employees on-post > 2014 = 37,000 workers
Slide 17: Redstone Arsenal | Overview
Redstone Arsenal | Overview DOD + FEDERAL CENTER OF EXCELLENCE > Redstone Arsenal has the most diversified funding of any U.S. military base, receiving funding from: > Department of Defense (U.S. Army) > NASA > Department of Justice > FBI > Alcohol, Tobacco, Firearms (ATF) > Intelligence Community >
Slide 18: Redstone Arsenal | Demand Drivers
Redstone Arsenal | Demand Drivers FUNCTIONAL SYNERGIES AMONG ~80 COMMANDS + AGENCIES Space Operations + Logistics Services Research, Dev, Intelligence + Missile Defense Test + Engineering Homeland Defense U.S. Army Program Materiel Executive U.S. Missile Command Office – U.S. Army DIA – Missile & De
Slide 19: Redstone Arsenal | Missile Defense Agency
Redstone Arsenal | Missile Defense Agency VON BRAUN COMPLEX CONTAINS THE LARGEST BUILDING ON REDSTONE ARSENAL ~2.0M Square Feet 140K SF SCIF SCIF Basement Anti-Terrorism ATFP Force Protection Auditorium 800 Seating 19
Slide 20: Redstone Arsenal | Army Materiel Command (AMC) HQ
Redstone Arsenal | Army Materiel Command (AMC) HQ DELIVER PRECISION SUSTAINMENT + MATERIEL READINESS TO AN EXPEDITIONARY GLOBAL FORCE BRAC moved Security Assistance Army Materiel 2005 AMC HQ to Command Command Huntsville (Weapon Sales) Completed 2011 Construction of New HQ 440,000 Square Feet 1 of 4
Slide 21: Redstone Arsenal | Army Materiel Command (AMC) HQ
Redstone Arsenal | Army Materiel Command (AMC) HQ SECURITY ASSISTANCE PROGRAMS + FOREIGN MILITARY SALES TO BUILD PARTNER CAPACITY 21
Slide 22: Redstone Arsenal | Army Aviation + Missile Command
Redstone Arsenal | Army Aviation + Missile Command DEVELOPS, ACQUIRES, FIELDS + SUSTAINS AVIATION, MISSILE + UNMANNED AERIAL VEHICLES New Facility 1994-97 Developed Separate, but 9 Connected Buildings ~1.0M Square Feet >3,000 Employees >$3.5B Annual Budget 22
Slide 23: Redstone Arsenal | NASA Marshall Space Flight Center
Redstone Arsenal | NASA Marshall Space Flight Center DELIVERS VITAL PROPULSION SYSTEMS + HARDWARE, LAUNCH VEHICLES + SPACE SYSTEMS Established by 1960 Eisenhower Carried Saturn Astronauts to Moon in 1969 Carry Astronauts SLS to Deep Space Construction 2005 Commenced on New Complex >4.5M Square Feet
Slide 24: International Space Station Payload Operations Center
S INTERNATIONAL PACE STATION PAYLOAD OPERATIONS CENTER
Slide 25: Redstone Arsenal | FBI Campus
Redstone Arsenal | FBI Campus 10X GROWTH IN 10 YEARS… FROM 500 IN 2018 TO 5,000 IN 2028E FBI FBIRedstone RedstonePopulation Population 6,000 5,000 5,000 4,500 4,000 4,000 3,800 3,200 3,000 2,700 2,600 2,640 2,165 1,997 2,000 1,508 1,260 1,260 1,134 831 FBI has ~1,600 Acres of Secure Land 1,000 500 6
Slide 26: Redstone Arsenal | FBI Campus
FBI Director announced 500 employees relocating Redstone Arsenal | FBI Campus to Huntsville from DC Visited Redstone Arsenal on April 24, 2025 Senator Tuberville (AL) FBI Director Patel Senator Britt (AL) 26
Slide 27: Redstone Gateway
REDSTONE GATEWAY Pare Ca
Slide 28: Redstone Gateway | Map
Redstone Gateway | Map DEMAND DRIVER = REDSTONE ARSENAL 25 Properties 2.5M Square Feet 98% Leased of CDP’s 9% Rental Revenue Buildings are 23 of 25 100% Leased Square Feet 37K Unleased 28
Slide 29: Redstone Gateway | Aerial
Redstone Gateway | Aerial DEMAND DRIVER = REDSTONE ARSENAL 29
Slide 30: Redstone Gateway | Top Tenants
Redstone Gateway | Top Tenants 30
Slide 31: Redstone Gateway | Top Tenants
Redstone Gateway | Top Tenants U.S. GOVERNMENT + LEADING DEFENSE CONTRACTORS CALL REDSTONE GATEWAY HOME 31
Slide 32: Redstone Gateway | Secure Parcel
Redstone Gateway | Secure Parcel SECURE REDSTONE GATEWAY CAMPUS HOUSES USG AGENCIES | USACE, PEO MISSILES / SPACE + FBI 2 Properties 2020- Developed 2023 for USG 5 Leases 450K Square Feet Secure | 100% ATFP 100% Leased of CDP’s ~2% Rental Revenue 32
Slide 33: Redstone Gateway | Master Plan
Redstone Gateway | Master Plan 3.2M SQUARE FEET OF TOTAL DEVELOPMENT CAPACITY Development Capacity 2.2M SF | Commercial Development Capacity 1.0M SF | Secure Development Capacity 3.2M SF | Total 33
Slide 34: Redstone Gateway History
REDSTONE GATEWAY HISTORY
Slide 35: Redstone Gateway | Timeline
Redstone Gateway | Timeline 2006: EUL 2009: Army 2012: 2014: Leonardo ~2.4M SF Awarded Lease Boeing DRS Developed Redstone Arsenal Negotiated Leased RG Built spec building, For the USG and EUL awarded to Jim JWA negotiates the 1000 + 2 build- leased to Leonardo, Defense Wilson & Associates master le
Slide 36: Redstone Gateway | Joint Venture, EUL + TIF Structure
Redstone Gateway | Joint Venture, EUL + TIF Structure > JV | Formed in 2010 with Jim Wilson & Associates (JWA) > JWA contributed the EUL development rights to the JV > JWA receives a $1.2M preferred return annually > CDP receives 100% of the remaining cash flow > EUL | Allows for Private Development
Slide 37: Redstone Gateway Portfolio Growth
Redstone Gateway Portfolio Growth WE HAVE INVESTED OVER ~$700M INTO REDSTONE GATEWAY TO BUILD A ~2.4M SF PORTFOLIO Portfolio PortfolioGrowth by Square Growth FeetFeet by Square (thousands) (thousands) 2,338 2,388 2,538 24 Properties 2,164 1,959 1,329 1,476 2.4M Square Feet 514 514 558 669 426 495 30
Slide 38: Redstone Gateway | 2013
Redstone Gateway | 2013 3 BUILDINGS = ~300,000 SF 38
Slide 39: Redstone Gateway | 2018
Redstone Gateway | 2018 7 BUILDINGS = ~550,000 SF 39
Slide 40: Redstone Gateway | Today
Redstone Gateway | Today 24 BUILDINGS = ~2.4 MILLION SF 40
Slide 41: Huntsville Office Markets
HUNTSVILLE OFFICE MARKETS 9
Slide 42: Huntsville | Submarkets
Huntsville | Submarkets CDP’S REDSTONE GATEWAY IS THE 3RD LARGEST SUBMARKET 9.5M Cummings Research SF Park (CRP) 4.2M Central Business SF District (CBD) 2.5M COPT Defense SF Portfolio 2.2M Jetplex Industrial SF Park 42
Slide 43: Huntsville | Cummings Research Park (CRP)
Huntsville | Cummings Research Park (CRP) 3,800 Acres 200 Properties 9.5M Square Feet 81% Occupancy We Are Here $21 Asking Rent Square Feet 310 1.8M Available Bridge Street 43
Slide 44: Huntsville | Cummings Research Park (CRP)
Huntsville | Cummings Research Park (CRP) SUPPORTED NASA DURING ITS FORMATIVE STATE, THEN PLATEAU’D Building Vintage > Lack of Density > Minimum size of 4 to 8 acres CRP CRP CRP Timeframe > Building and parking ≤50% of total site area Total East West > Large Setbacks Pre-1980 15% 35% 5% > Minimum 10
Slide 45: Huntsville | Redstone Gateway vs Cummings Research Park
Huntsville | Redstone Gateway vs Cummings Research Park REDSTONE GATEWAY COMMANDS HIGHER ASKING RENTS + LOWER VACANCY RATES vs CUMMINGS CDP’s Vacancy Rate is Significantly Below CDP’s Average Asking Rents of $30 psf, are Cummings + has Averaged ~3% since YE 2015; ~40% Higher than Cummings Research P
Slide 46: Our 4 Competitive Advantages in Huntsville
OUR 4 COMPETITIVE ADVANTAGES IN HUNTSVILLE
Slide 47: CDP's Competitive Advantages
CDP’s Competitive Advantages 4 KEY AREAS > 1: Advantaged Location | Proximity and Visibility Advantaged Location > Closest to the commands on Redstone Arsenal Gate 9 > High visibility on Rideout Road (~20,000+ cars per day) > 2: New, Modern Product | Often Build-to-Suit > No zoning restrictions > De
Slide 48: 1 | Advantaged Location
1 | Advantaged Location > Closest to mission + Interoperability with Base > Proximity and Visibility (~20,000+ cars per day) > ~470 acres adjacent to Gate 9 | > Best location for serving U.S. Government Redstone Arsenal’s main point of ingress/egress customers on Redstone Arsenal Gate 9 48
Slide 49: 2 | New, Modern Product
2 | New, Modern Product > Redstone Gateway offers: > New, modern, often build-to-suit facilities: > Provide superior operating efficiencies > ~80% of buildings have or will have LEED credentials* > Average building vintage = 2019 > Unlike competition, Redstone Gateway has no zoning restrictions > We
Slide 50: 3 | Relationship with Redstone Arsenal's Garrison
3 | Relationship with Redstone Arsenal’s Garrison > The Garrison of a U.S. defense installation acts as the head of infrastructure and public works > JV pays the Garrison a ground rent on occupied buildings > The Garrison uses these payments to supplement their budgets for infrastructure projects on
Slide 51: 4 | Secure Connection to Priority Missions at Redstone Arsenal
4 | Secure Connection to Priority Missions at Redstone Arsenal > Secure + Direct Connection to Redstone Arsenal > JWICS and SIPRNET are highly secure > Hard-wired IT and Communications network communication networks > Via telecom duct bank > Used by USG and Military to share classified information >
Slide 52: Space Command Site Plan Proposal
SPACE COMMAND SITE PLAN PROPOSAL
Slide 53: Redstone Gateway | Space Command Site Plan Proposed
Redstone Gateway | Space Command Site Plan Proposed SECURED OPTION INSIDE THE FENCE OF REDSTONE ARSENAL Proposed Site for Space Command 53
Slide 54: Space Command | Timeline
“I expect…Space Command will officially be assigned to build its Space Command | Timeline headquarters in Huntsville. I’ve already talked with the contractor. He is ready to turn dirt on the day the announcement’s made, and we do expect it to be announced right after the Air Force secretary is named
Slide 55: Q&A
Q&A
Slide 56: Case Study
CASE STUDY
Slide 57: Case Study | Yulista
Case Study | Yulista BUILD-TO-SUIT 7500 | 7600 | 8600 ADVANCED GATEWAY 23 ACRES | 361,000 SF HEADQUARTERS CAMPUS + UTILITY DEDICATED BUILDINGS TYPE: Class A Office (100,000 SF | 4 stories) Flex R&D (135,000 SF) High Bay (126,000 SF) Planned Building to Accommodate Future Growth BUILDINGS: 4 (3 Exist
Slide 58: Fun Facts
FUN FACTS
Slide 59: Redstone Arsenal | Timeline
Redstone Arsenal | Timeline 1941: Redstone 1945: Operation 1960: NASA 1962: U.S. Army 2005: BRAC • Redstone Test 2020: 2022: FBI Arsenal Paperclip Marshall Space Missile relocates 8 major Center (RTC) SMDC Moves Flight Center Command • Missile Defense Established German scientists functions to Expan
Slide 60: NASA George C. Marshall Space Flight Center
NASA GEORGE C. MARSHALL _ SPACE FLIGHT .CENTER
Slide 61: City of Huntsville
City of Huntsville Good photo of Huntsville 61
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