COPT Defense Properties Soars to New Heights in Q1 2026, Sets Stage for Strong Year Ahead
Chevy Chase, MD – April 28, 2026 – COPT Defense Properties (COPT) today announced its first quarter 2026 results, solidifying the company's position as a leader in the defense-related real estate sector.
During the conference call, Steve Budorick, President and CEO of COPT, stated that the company is "off to a solid start in 2026," with all aspects of the business on track to achieve its objectives for the year. This optimistic tone was echoed by other executives, including Britt A. Snider, Executive Vice President and COO, who highlighted the company's commitment to growth and investment.
One of the key highlights from the quarter was the company's ability to execute a strong renewal leasing program. COPT executed 1.2 million square feet of renewal leasing, achieving a 91% retention rate, with notable renewals including the full renewal of a nearly one-million-square-foot campus leased to the U.S. government near Lackland Air Force Base in San Antonio.
Additionally, the company executed 92,000 square feet of vacancy leasing and is on track to meet its full-year target of 400,000 square feet. COPT also committed $250 million of capital to new investments during the quarter, with notable deals including a $55 million development project at Redstone Gateway and a $43 million acquisition in the Westfield submarket in Chantilly, Virginia.
Regarding the latter deal, Anthony Mifsud, Executive Vice President and CFO, noted that the ground lease has "very attractive long-term economics" supported by two highly strategic 100% leased office buildings known as Mission Ridge. This transaction provides COPT with perpetual control of a strategic land parcel in one of its priority submarkets.
The company's strong results were recognized by Moody’s, which upgraded its investment-grade rating to Baa2 with a stable outlook. This upgrade reflects COPT’s continued growth and stability in the defense-related real estate sector.
COPT also reported that same-Property Cash NOI increased 5.4% year-over-year, driven in part by a 70-basis-point increase in its average occupancy rate. Furthermore, the company's FFO per share was $0.69, which is $0.01 above the midpoint of guidance and represents a 6.2% year-over-year increase.
Overall, COPT’s Q1 results demonstrate its continued growth and momentum in the defense-related real estate sector. With a solid start to the year, the company appears well-positioned for a strong finish to 2026.
