Stephen E. Budorick, President and CEO of COPT Defense Properties, provided insights into the company's specialized real estate strategy during an interview with Advisor Access. He highlighted the company's focus on owning properties and developable land near key U.S. defense installations, which are critical for national security missions. Over 90% of the company's rental revenue is derived from these Defense/IT locations.
Budorick emphasized the stability of the tenant base, with the United States Government accounting for 36% of annualized rental revenue and defense contractors contributing an additional 51%. The Defense/IT Portfolio maintained a strong 96.5% leased rate and 95.0% occupied rate, underscoring the demand for specialized, secured space.
The CEO reiterated the company's strong financial outlook, expecting FFO per share growth of approximately 6% in 2024, which is 2.5% higher than initial expectations. He also outlined four competitive advantages: a specialized operating platform, proven development expertise, a long track record with customer relationships, and unique, advantaged land positions.
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