COPT Defense Properties announced strong financial results for the full year ended December 31, 2024, with diluted FFO per share, as adjusted for comparability, increasing 6.2% over 2023 to $2.57. Diluted earnings per share (EPS) for the year was $1.23, a significant improvement from $(0.67) in 2023.
The company achieved a record 9.1% increase in Same Property Cash Net Operating Income (NOI) for the full year, marking its highest increase ever reported. The total portfolio was 93.6% occupied and 95.1% leased, with the core Defense/IT Portfolio demonstrating even stronger metrics at 95.6% occupied and 96.8% leased.
Leasing activity exceeded annual goals, with total leasing reaching 3.2 million square feet and vacancy leasing totaling 500,000 square feet, surpassing the 400,000 square feet annual target. Tenant retention was 86%, the highest annual rate in over 20 years, reflecting the stability of its specialized tenant base.
For the fourth quarter 2024, diluted FFO per share, as adjusted for comparability, was $0.65, and diluted EPS was $0.31. Same Property Cash NOI for the quarter increased by 10.0% compared to the same period in 2023.
Looking ahead, COPT Defense established its initial 2025 guidance, projecting diluted FFO per share, as adjusted for comparability, at a midpoint of $2.66, which implies a 3.5% growth rate over 2024. The midpoint for Same Property Cash NOI growth in 2025 is set at 2.75%, with tenant retention expected to be between 75% and 85%.
The company plans to commit $200 million to $250 million to new investments in 2025, primarily for development starts, with a total development spend of $250 million to $300 million. Management also noted plans to prefund a $400 million bond maturing in March 2026 during the fourth quarter of 2025, which is expected to create a temporary drag on FFO.
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