# COPT DEFENSE PROPERTIES (CDP) Informational only - not investment advice. CIK: 0000860546 SIC: 6798 Real Estate Investment Trusts SIC breadcrumb: [Finance, Insurance, And Real Estate](/division/H/) > [Holding And Other Investment Offices](/major-group/67/) > [SIC 6798 Real Estate Investment Trusts](/industry/6798/) Latest 10-K filed: 2026-02-20 SEC page: https://www.sec.gov/edgar/browse/?CIK=860546 Filing source: https://www.sec.gov/Archives/edgar/data/860546/000086054626000011/cdp-20251231.htm ## At a glance FY2025 · period end 2025-12-31 · filed 2026-02-20 · accession 0000860546-26-000011 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000860546.json | Metric | Value | FY | Provenance | | --- | ---: | ---: | --- | | Revenue | 763,923,000 USD | 2025 | verified | | Net income | 159,534,000 USD | 2025 | verified | | Assets | 4,701,790,000 USD | 2025 | verified | | Free cash flow | 288,866,000 USD | 2025 | computed | | Net margin | 20.88% | 2025 | computed | | Revenue YoY | +1.41% | 2025 | computed | | ROE | 10.53% | 2025 | computed | Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity. No market price, no rating, no forecast on this site. Not investment advice. ### Peer percentile fingerprint | Ratio | CDP | Peer median | Percentile | N | | --- | ---: | ---: | ---: | ---: | | Net margin | 20.9% | 16.8% | 55 | 149 | | Revenue growth | 1.4% | 3.7% | 38 | 149 | | FCF margin | 37.8% | 21.8% | 72 | 70 | | ROE | 10.5% | 5.7% | 77 | 151 | | ROA | 3.4% | 1.5% | 71 | 155 | | Liabilities / equity | 2.06 | 1.48 | 65 | 151 | Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 6798 Real Estate Investment Trusts, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking. ## Selected Fundamentals | Metric | Value | Unit | FY | Filed | | --- | ---: | --- | ---: | --- | | Revenue | 763923000 | USD | 2025 | 2026-02-20 | | Net income | 159534000 | USD | 2025 | 2026-02-20 | | Assets | 4701790000 | USD | 2025 | 2026-02-20 | ## Financials Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-20. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000860546.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Revenue | 574,328,000 | 612,820,000 | 578,112,000 | 611,821,000 | 582,354,000 | 664,446,000 | 739,030,000 | 684,982,000 | 753,267,000 | 763,923,000 | | Net income | 33,768,000 | 74,941,000 | 78,643,000 | 200,004,000 | 102,878,000 | 81,578,000 | 178,822,000 | -74,347,000 | 143,942,000 | 159,534,000 | | Diluted EPS | 0.15 | 0.56 | 0.69 | 1.71 | 0.87 | 0.68 | 1.53 | -0.67 | 1.23 | 1.34 | | Operating cash flow | 234,270,000 | 230,121,000 | 180,482,000 | 228,558,000 | 238,424,000 | 249,148,000 | 265,825,000 | 276,274,000 | 330,955,000 | 309,933,000 | | Capital expenditures | 26,345,000 | 22,882,000 | 24,223,000 | 24,659,000 | 32,756,000 | 30,026,000 | 36,377,000 | 20,500,000 | 31,342,000 | 21,067,000 | | Dividends paid | 104,135,000 | 109,174,000 | 114,286,000 | 122,657,000 | 123,367,000 | 123,527,000 | 123,645,000 | 127,178,000 | 131,840,000 | 136,598,000 | | Assets | 3,780,885,000 | 3,595,205,000 | 3,656,005,000 | 3,854,453,000 | 4,077,023,000 | 4,262,452,000 | 4,257,275,000 | 4,246,966,000 | 4,254,191,000 | 4,701,790,000 | | Liabilities | 2,163,242,000 | 2,103,773,000 | 2,002,697,000 | 2,105,777,000 | 2,357,881,000 | 2,578,479,000 | 2,509,527,000 | 2,699,631,000 | 2,693,624,000 | 3,114,115,000 | | Stockholders' equity | 1,523,059,000 | 1,402,142,000 | 1,585,411,000 | 1,678,960,000 | 1,661,035,000 | 1,622,740,000 | 1,681,803,000 | 1,483,912,000 | 1,493,083,000 | 1,514,775,000 | | Cash and cash equivalents | 209,863,000 | 12,261,000 | 8,066,000 | 14,733,000 | 18,369,000 | 13,262,000 | 12,337,000 | 167,820,000 | 38,284,000 | 274,986,000 | | Free cash flow | 207,925,000 | 207,239,000 | 156,259,000 | 203,899,000 | 205,668,000 | 219,122,000 | 229,448,000 | 255,774,000 | 299,613,000 | 288,866,000 | ### Ratios ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported. | Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | | --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | | Net margin | 5.88% | 12.23% | 13.60% | 32.69% | 17.67% | 12.28% | 24.20% | -10.85% | 19.11% | 20.88% | | Return on equity | 2.22% | 5.34% | 4.96% | 11.91% | 6.19% | 5.03% | 10.63% | -5.01% | 9.64% | 10.53% | | Return on assets | 0.89% | 2.08% | 2.15% | 5.19% | 2.52% | 1.91% | 4.20% | -1.75% | 3.38% | 3.39% | | Liabilities / equity | 1.42 | 1.50 | 1.26 | 1.25 | 1.42 | 1.59 | 1.49 | 1.82 | 1.80 | 2.06 | ## As-reported value updates 5 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period. Ledger: /company/CDP/revisions/ ## Quarterly Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-08-03. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0000860546.json. Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived. | Quarter | End date | Revenue | Net income | Diluted EPS | Method | | --- | --- | ---: | ---: | ---: | --- | | 2022-Q3 | 2022-09-30 | | | 0.27 | reported discrete quarter | | 2023-Q1 | 2023-03-31 | | | 0.70 | reported discrete quarter | | 2023-Q2 | 2023-06-30 | | | 0.27 | reported discrete quarter | | 2023-Q3 | 2023-09-30 | 168,556,000 | -221,207,000 | -1.94 | reported discrete quarter | | 2023-Q4 | 2023-12-31 | 179,729,000 | 34,820,000 | | derived Q4 = FY annual - nine-month YTD | | 2024-Q1 | 2024-03-31 | 193,266,000 | 33,671,000 | 0.29 | reported discrete quarter | | 2024-Q2 | 2024-06-30 | 187,343,000 | 36,407,000 | 0.31 | reported discrete quarter | | 2024-Q3 | 2024-09-30 | 189,225,000 | 37,397,000 | 0.32 | reported discrete quarter | | 2024-Q4 | 2024-12-31 | 183,433,000 | 36,467,000 | | derived Q4 = FY annual - nine-month YTD | | 2025-Q1 | 2025-03-31 | 187,856,000 | 36,228,000 | 0.31 | reported discrete quarter | | 2025-Q2 | 2025-06-30 | 189,915,000 | 40,166,000 | 0.34 | reported discrete quarter | | 2025-Q3 | 2025-09-30 | 188,795,000 | 43,744,000 | 0.37 | reported discrete quarter | | 2025-Q4 | 2025-12-31 | 197,357,000 | 39,396,000 | | derived Q4 = FY annual - nine-month YTD | | 2026-Q1 | 2026-03-31 | 200,637,000 | 40,139,000 | 0.34 | reported discrete quarter | | 2026-Q2 | 2026-06-30 | 197,392,000 | 48,559,000 | 0.40 | reported discrete quarter | ## Filed narrative (10-K & 10-Q) ## Business Verbatim Item 1 Business section from CDP's latest 10-K: [/company/CDP/business/](/company/CDP/business/). ## Risk Factors Verbatim Item 1A Risk Factors from CDP's latest 10-K: [/company/CDP/risk-factors/](/company/CDP/risk-factors/). ## Latest quarter (10-Q) Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/860546/000086054626000040/cdp-20260630.htm Extracted structurally from real Item 2 body heading to real Item 3/4 boundary. Confidence: high Filing date: 2026-08-03 Report date: 2026-06-30 Item 2.           Management’s Discussion and Analysis of Financial Condition and Results of Operations Overview During the six months ended June 30, 2026, we:  •finished the period with our portfolio 94.1% occupied and 95.6% leased; •achieved a tenant retention rate of 84.4%, which was driven by our Defense/IT Portfolio; •acquired approximately 17 acres of land on April 23, 2026 for a purchase price of $43.0 million, subject to a ground lease underlying two fully-leased operating properties located at 15020 and 15030 Conference Center Drive in Chantilly, Virginia; and •repaid at maturity $400.0 million in 2.25% Notes on March 16, 2026 using remaining excess available cash and cash equivalents from our prefunding of this debt maturity with a new bond issuance in 2025 and borrowings under our Revolving Credit Facility. We discuss significant factors contributing to changes in our net income in the section entitled “Results of Operations.” In addition, the section entitled “Liquidity and Capital Resources” includes discussions of, among other things: •how we expect to generate and obtain cash for short and long-term capital needs; and •material cash requirements for known contractual and other obligations. We refer to the measures annualized rental revenue (“ARR”), “tenant retention rate,” “investment space leasing,” and “vacant space leasing” in this Quarterly Report on Form 10-Q. ARR is a measure that we use to evaluate the sources of our rental revenue as of a point in time. It is computed by multiplying by 12 the sum of monthly contractual base rents and estimated monthly expense reimbursements under active leases as of a point in time (ignoring free rent then in effect and rent associated with tenant funded landlord assets). Our computation of ARR excludes the effect of lease incentives. We consider ARR to be a useful measure for analyzing revenue sources because, since it is point-in-time based, it does not contain increases and decreases in revenue associated with periods in which lease terms were not in effect; historical revenue under GAAP does contain such fluctuations. We find the measure particularly useful for leasing, tenant, segment, and industry analysis. In instances in which we report ARR per occupied square foot, the measure excludes revenue from leases not associated with our buildings. Tenant retention rate is a measure we use that represents the percentage of square feet renewed in a period relative to the total square feet scheduled to expire in that period, including the effect of early renewals. Investment space leasing represents vacant space leased within two years of the shell completion date for development properties or the acquisition date for operating property acquisitions. Vacant space leasing represents our vacated second-generation space leased and vacant space leased in development properties and operating property acquisitions after two years from such properties’ shell completion or acquisition date. For operating portfolio square footage, occupancy, and leasing statistics included below and elsewhere in this Quarterly Report on Form 10-Q, amounts disclosed include information pertaining to properties owned through unconsolidated real estate joint ventures except for amounts reported for ARR, which represent the portion attributable to our ownership interest. You should refer to our consolidated financial statements and the notes thereto as you read this section. This section contains “forward-looking” statements, as defined in the Private Securities Litigation Reform Act of 1995, that are based on our current expectations, estimates, and projections about future events and financial trends affecting the financial condition and operations of our business. Forward-looking statements can be identified by the use of words such as “may,” “will,” “should,” “could,” “believe,” “anticipate,” “expect,” “estimate,” “plan,” or other comparable terminology. Forward-looking statements are inherently subject to risks and uncertainties, many of which we cannot predict with accuracy and some of which we might not even anticipate. Although we believe that the expectations, estimates, and projections reflected in such forward-looking statements are based on reasonable assumptions at the time made, we can give no assurance that these expectations, estimates, and projections will be achieved. Future events and actual results may differ materially from those discussed in the forward-looking statements. We caution readers that forward-looking statements reflect our opinion only as of the date on which they were made. You should not place undue reliance on forward-looking statements. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: •general economic and business conditions, which will, among other things, affect office property and data center demand and rents, tenant creditworthiness, interest rates, financing availability, property operating and construction costs, and property values; •adverse changes in the real estate markets, including, among other things, increased competition with other companies; •our ability to borrow on favorable terms or at all; •risks of property acquisition and development activities, including, among other things, risks that development projects may not be completed on schedule, that tenants may not take occupancy or pay rent, or that development or operating costs may be greater than anticipated; •risks of investing through joint venture structures, including risks that our joint venture partners may not fulfill their financial obligations as investors or may take actions that are inconsistent with our objectives; 27 •changes in our plans for properties or views of market economic conditions or failure to obtain development rights, either of which could result in recognition of impairment losses; •potential impact of prolonged government shutdowns or budgetary reductions or impasses, such as a reduction of rental revenues, non-renewal of leases, and/or reduced or delayed demand for additional space by existing or new tenants; •potential additional costs, such as capital improvements, fees, and penalties, associated with environmental laws or regulations; •adverse changes resulting from other government actions and initiatives, such as changes in taxation, zoning laws, or other regulations; •our ability to satisfy and operate effectively under federal income tax rules relating to real estate investment trusts and partnerships; •the dilutive effects of issuing additional common shares; and •security breaches relating to cyber attacks, cyber intrusions or other factors, and other significant disruptions of our information technology networks and related systems. We undertake no obligation to publicly update or supplement forward-looking statements. Occupancy and Leasing The tables below present occupancy information: [[GREPCENT_TABLE]] [["","June 30, 2026","","December 31, 2025"],["Occupancy rates at period end"],["Total","94.1","%","","94.0","%"],["Defense/IT Portfolio"],["Fort Meade/BW Corridor","92.1","%","","93.6","%"],["Redstone Arsenal","97.8","%","","96.1","%"],["NoVA Defense/IT","93.5","%","","93.5","%"],["Lackland Air Force Base","100.0","%","","100.0","%"],["Navy Support","86.2","%","","86.9","%"],["Data Center Shells","100.0","%","","100.0","%"],["Total Defense/IT Portfolio","95.1","%","","95.5","%"],["Other","83.1","%","","76.6","%"],["ARR per occupied square foot at period end","$","36.65","","","$","36.14"]] [[/GREPCENT_TABLE]] [[GREPCENT_TABLE]] [["","Rentable Square Feet","","Occupied Square Feet"],["","(in thousands)"],["December 31, 2025","25,147","","","23,649"],["Vacated upon lease expiration (1)","\u2014","","","(330)"],["Occupancy for new leases","\u2014","","","489"],["Development placed in service","148","","","\u2014"],["Other changes","8","","","9"],["June 30, 2026","25,303","","","23,817"]] [[/GREPCENT_TABLE]] (1)Includes lease terminations and space reductions occurring in connection with lease renewals. During the six months ended June 30, 2026, we leased 2.2 million square feet, including: 1.5 million square feet of renewal leasing (representing a tenant retention rate of 84.4%); 231,000 square feet of vacant space leasing; and 416,000 square feet of investment space leasing. 28 Results of Operations We evaluate the operating performance of our properties using NOI from real estate operations, our segment performance measure, which includes: real estate revenues and property operating expenses; and the net of revenues and property operating expenses of real estate operations owned through unconsolidated real estate joint ventures (“UJV” or “UJVs”) that is allocable to our ownership interest (“UJV NOI allocable to COPT Defense”). The table below reconciles net income, the most directly comparable GAAP measure, to NOI from real estate operations: [[GREPCENT_TABLE]] [["","For the Three Months Ended June 30,","","For the Six Months Ended June 30,"],["","2026","","2025","","2026","","2025"],["","(in thousands)"],["Net income","$","48,559","","","$","40,166","","","$","88,698","","","$","76,394"],["Construction contract and other service revenues","(6,766)","","","(12,458)","","","(12,807)","","","(22,717)"],["Depreciation and other amortization associated with real estate operations","42,289","","","39,573","","","84,974","","","78,932"],["Construction contract and other service expenses","6,023","","","11,873","","","11,575","","","21,578"],["General, administrative, leasing, and other expenses","13,264","","","11,911","","","25,913","","","24,067"],["Interest expense","24,444","","","20,938","","","48,440","","","41,442"],["Interest and other income, net","(2,973)","","","(1,223)","","","(6,928)","","","(2,791)"],["Gain on sales of real estate","(6,442)","","","\u2014","","","(7,024)","","","(300)"],["Equity in income of unconsolidated entities","(392)","","","(355)","","","(1,798)","","","(726)"],["UJV NOI allocable to COPT Defense included in equity in income of unconsolidated entities","2,050","","","1,870","","","4,106","","","3,759"],["Income tax expense","34","","","117","","","158","","","220"],["NOI from real estate operations","$","120,090","","","$","112,412","","","$","235,307","","","$","219,858"]] [[/GREPCENT_TABLE]] Our changes in NOI from real estate operations included the following primary categories: •Same Property, which we define as properties stably owned and 100% operational throughout the current and prior year reporting periods being compared; •developed properties placed into service that were not 100% operational throughout the current and prior year reporting periods being compared; and •properties acquired during the current or prior year reporting periods being compared. Our Same Property pool consisted of 203 properties, comprising 97.1% of our portfolio’s square footage as of June 30, 2026 and 95.8% of NOI from real estate operations for the six months then ended. This pool of properties changed from the pool used for purposes of comparing 2025 and 2024 in our 2025 Annual Report on Form 10-K due to the addition of three properties placed in service and 100% operational on or before January 1, 2025 and two properties acquired in 2024. In addition to owning properties, we provide construction management and other services. The primary manner in which we evaluate the operating performance of our construction management and other service activities is through a measure we define as NOI from service operations, which is based on the net of the revenues and expenses from these activities. The revenues and expenses from these activities consist primarily of subcontracted costs that are reimbursed to us by customers along with a management fee. The operating margins from these activities are small relative to t [Excerpt truncated for page length; source filing is linked above.] ## Latest 10-K MD&A (excerpt) Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/860546/000086054626000011/cdp-20251231.htm Complete FY 2025 MD&A: /company/CDP/mda/fy2025/ Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary. Published MD&A gate trimmed front/tail over-capture. Confidence: high Filing date: 2026-02-20 Report date: 2025-12-31 Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations You should refer to our consolidated financial statements and the notes thereto as you read this section. This section contains “forward-looking” statements, as defined in the Private Securities Litigation Reform Act of 1995, that are based on our current expectations, estimates and projections about future events and financial trends affecting the financial condition and operations of our business. Forward-looking statements can be identified by the use of words such as “may,” “will,” “should,” “could,” “believe,” “anticipate,” “expect,” “estimate,” “plan” or other comparable terminology. Forward-looking statements are inherently subject to risks and uncertainties, many of which we cannot predict with accuracy and some of which we might not even anticipate. Although we believe that the expectations, estimates and projections reflected in such forward-looking statements are based on reasonable assumptions at the time made, we can give no assurance that these expectations, estimates and projections will be achieved. Future events and actual results may differ materially from those discussed in the forward-looking statements. Important factors that may affect these expectations, estimates and projections include, but are not limited to: •general economic and business conditions, which will, among other things, affect office property and data center demand and rents, tenant creditworthiness, interest rates, financing availability, property operating and construction costs, and property values; •adverse changes in the real estate markets, including, among other things, increased competition with other companies; •our ability to borrow on favorable terms or at all; •risks of property acquisition and development activities, including, among other things, risks that development projects may not be completed on schedule, that tenants may not take occupancy or pay rent or that development or operating costs may be greater than anticipated; •risks of investing through joint venture structures, including risks that our joint venture partners may not fulfill their financial obligations as investors or may take actions that are inconsistent with our objectives; •changes in our plans for properties or views of market economic conditions or failure to obtain development rights, either of which could result in recognition of significant impairment losses; •potential impact of prolonged government shutdowns or budgetary reductions or impasses, such as a reduction of rental revenues, non-renewal of leases and/or reduced or delayed demand for additional space by existing or new tenants; •potential additional costs, such as capital improvements, fees and penalties, associated with environmental laws or regulations; •adverse changes resulting from other government actions and initiatives, such as changes in taxation, zoning laws or other regulations; •our ability to satisfy and operate effectively under federal income tax rules relating to real estate investment trusts and partnerships; •the dilutive effects of issuing additional common shares; and •security breaches relating to cyber attacks, cyber intrusions or other factors, and other significant disruptions of our information technology networks and related systems. We undertake no obligation to publicly update or supplement forward-looking statements. Overview In 2025, we: •achieved year end occupancy of 94.0% for our total portfolio and 95.5% for our Defense/IT Portfolio, both of which increased from year end 2024; •completed strong leasing in our operating portfolio, including 557,000 square feet in vacancy leasing, a volume equating to 47% of the unleased space we had as of year end 2024, and a 77.9% tenant retention rate; •committed capital to five new external growth investments across four Defense/IT Portfolio sub-segments, including: •four new development properties totaling 498,000 square feet, three of which were fully pre-leased; and •a fully-occupied, 142,000 square foot Defense/IT Portfolio property acquisition, which reinforces our position as the largest landlord in a highly-leased business park; •placed into service 468,000 newly-developed, fully-leased square feet across three Defense/IT Portfolio properties; •closed on three new financings, which pre-funded the repayment at maturity of a bond maturing in March 2026 and provided additional liquidity to fund our external growth; and •ended the year with no significant debt maturing until 2028 other than the pre-funded 2026 bond maturity. Our business is driven by our Defense/IT Portfolio segment, which as of year end represented 92.1% of our property square footage and 90.3% of our ARR. We believe that the critical nature of the activities served by this segment’s properties has 23 helped fuel strong demand for space, enabling the segment to consistently achieve year end occupancy of at least 93% for each of the last nine years. In 2025, our Defense/IT Portfolio: •achieved a tenant retention rate of 79.3%, our 10th consecutive year with a retention rate of at least 75%, with average increases in rent per renewed square foot of 2.7% for cash rents and 11.0% for straight-line rents; •leased 424,000 square feet of its vacant space, achieving progress across its sub-segments; •increased its Same Property pool’s average occupancy from 95.9% in 2024 to 96.0% in 2025, ending the year 95.8% occupied; and •completed 477,000 square feet in investment space leasing, including the four new development properties discussed below and vacant space in a property that we acquired last year. Throughout 2025, we experienced strong demand from defense contractors looking for new or incremental space to support mission programs and contracts, a significant amount of which required secured space. We believe that this demand drove the strong performance of this segment, along with the following unique advantages associated with our Defense/IT strategy: proximity of the properties to the demand drivers they serve; prevalence of significant investments in high security improvements, which may make tenants unable, or less likely, to relocate; and the high level of technical proficiency and credentials of our operations team (many of whom are credentialed) charged with managing these spaces. Our Defense/IT Portfolio also has benefited from continued defense budget appropriation increases, with bipartisan support, a trend we expect could continue for the foreseeable future with the 2026 USG defense budget appropriations increase approved in February 2026, along with the additional appropriations included in the One Big Beautiful Bill Act passed in July 2025. We expect that these enhanced USG commitments to defense investment will support additional demand for our portfolio as the priority missions our tenants support are expected to see increased funding to counter an increasingly complex national security environment. These missions include intelligence, surveillance and reconnaissance, cybersecurity and network activities, naval sea and air technology development, unmanned aerial vehicles and missile defense and space activities. For the 43-day long federal government shutdown in 2025, the most significant effect on us was that it delayed our ability to progress, or finalize, certain of our Defense/IT Portfolio segment’s renewal leasing activities, but our existing USG leases remained in effect and the majority of our rent payments continued to occur in a timely manner. Strong Defense/IT Portfolio demand coupled with limited vacancy in our operating portfolio drove our need to continue to invest in additional space, which we addressed in 2025 through the following external growth investments: •developing space in new properties, including: •468,000 square feet placed in service during the year in three fully-leased, newly-developed properties in our Data Center Shells and Redstone Arsenal sub-segments; and •498,000 square feet in new capital commitments in four development properties across our Fort Meade/BW Corridor, Redstone Arsenal and Lackland Air Force Base sub-segments for an anticipated total cost of approximately $233.4 million. As of December 31, 2025, we had an aggregate of 646,000 square feet under development in five properties that were 58% leased, including: three fully-leased properties expected to be placed in service in 2027; and two properties across our Fort Meade/BW Corridor and Redstone Arsenal sub-segments with minimal pre-leasing being developed to accommodate future anticipated USG and contractor demand, which are expected to be placed in service in 2026 and 2027; and •acquiring 15050 Conference Center Drive, a 142,000 square foot property in Chantilly, Virginia (included in our NoVA Defense/IT sub-segment), for a gross purchase price of $40.0 million, or $32.6 million net of a $7.4 million credit for an unpaid tenant improvement allowance. This property, with significant secured-space enhancements, is located in a supply-constrained submarket in which we are the largest landlord, and is 100% leased to an existing defense contractor tenant of ours. We funded these property investments primarily using excess available cash flow from operations and borrowings under our Revolving Credit Facility and Revolving Development Facility (discussed below). In 2025, our total portfolio also included six office properties in our Other segment, which as of year end represented 7.9% of our property square footage and 9.7% of our ARR, and accounted for 31% of the portfolio’s vacant space. These properties, which have experienced a challenging leasing environment for several years, increased their average occupancy rate from 72.5% in 2024 to 75.5% in 2025, and we were successful in leasing 133,000 square feet of this segment’s vacant space in 2025, which exceeded the expiring lease square footage that was vacated. One property accounted for 37% of this segment’s vacant space and 11% of our total portfolio’s vacant space. We do not consider our Other segment’s properties to be strategic holdings since they do not align with our Defense/IT strategy. While we intend to sell them when market conditions and opportunities position us to optimize our return on investment, we did not initiate plans for sales in 2025 due in part to continued unfavorable capital markets for potential buyers. 24 Our total portfolio’s 2025 year end occupancy rate increased (relative to 2024) from 93.6% to 94.0% due primarily to improved occupancy in our Other segment resulting from vacant space leasing, with occupancy for our Defense/IT Portfolio increasing slightly from 95.4% to 95.5%. The 2025 year end occupancy rate of our Same Property pool (which excludes the effect of properties acquired and placed in service in 2024 and 2025) decreased (relative to 2024) from 94.4% to 94.2% for our total portfolio and from 96.4% to 95.8% for the Defense/IT Portfolio component due primarily to several leases not renewed upon expiration in our Fort Meade/BW Corridor and Redstone Arsenal sub-segments. As of December 31, 2025, we had scheduled lease expirations for 2.9 million square feet in 2026, representing 12.3% of our total occupied square feet and 19.3% of our total ARR, including: •2.8 million square feet in our Defense/IT Portfolio segment, which included several large USG leases whose renewals were affected by the federal government shutdown. We expect to renew virtually all of these scheduled lease expirations due to the strong demand for space and unique retention advantages associated with our Defense/IT strategy discussed above; and •82,000 square feet in our Other segment, which represented 5.4% of this segment’s occupied square feet. Please refer to the section below entitled “Occupancy and Leasing” for additional related disclosure. We were active in the capital markets in 20 [Excerpt truncated for page length; the complete text is on the linked full-MD&A page.] Read the full FY 2025 MD&A: /company/CDP/mda/fy2025/ All MD&A years: /company/CDP/mda/ ## MD&A history Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page. - [FY 2024 MD&A](/company/CDP/mda/fy2024/): filed 2025-02-21; accession 0000860546-25-000008 (https://www.sec.gov/Archives/edgar/data/860546/000086054625000008/ofc-20241231.htm) - [FY 2023 MD&A](/company/CDP/mda/fy2023/): filed 2024-02-22; accession 0000860546-24-000013 (https://www.sec.gov/Archives/edgar/data/860546/000086054624000013/ofc-20231231.htm) - [FY 2022 MD&A](/company/CDP/mda/fy2022/): filed 2023-02-24; accession 0000860546-23-000010 (https://www.sec.gov/Archives/edgar/data/860546/000086054623000010/ofc-20221231.htm) - [FY 2021 MD&A](/company/CDP/mda/fy2021/): filed 2022-02-22; accession 0000860546-22-000013 (https://www.sec.gov/Archives/edgar/data/860546/000086054622000013/ofc-20211231.htm) ## Macro cross-references Indicators mapped to this company's SIC classification (industry 6798 Real Estate Investment Trusts) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim. - [DGS10](/indicator/DGS10/): Market Yield on U.S. Treasury Securities at 10-Year Constant Maturity - [HOUST](/indicator/HOUST/): New Privately-Owned Housing Units Started: Total Units - [PERMIT](/indicator/PERMIT/): New Privately-Owned Housing Units Authorized in Permit-Issuing Places: Total Units - [FEDFUNDS](/indicator/FEDFUNDS/): Federal Funds Effective Rate Macro-to-micro threads including this sector: [Interest rates & the Fed](/thread/interest-rates-fed/), [Money & trade](/thread/money-trade/), [Government finances](/thread/government-finances/), [Sector employment](/thread/sector-employment/). All macro indicators: /indicators/ ## For LLMs & downloads Markdown twin: /company/CDP.md · JSON record: /company/CDP.json · verified financials: /company/CDP/financials.json / /company/CDP/financials.csv · machine TOC for the whole site: /llms.txt