COPT Defense Properties reported solid first quarter 2025 results, with diluted FFO per share, as adjusted for comparability, of $0.65. This met the midpoint of the company's guidance range and represents a 4.8% year-over-year growth compared to $0.62 in Q1 2024. Diluted earnings per share (EPS) for the quarter was $0.31.
The company reiterated the midpoint of its full-year 2025 FFO per share guidance at $2.66, implying a 3.5% year-over-year growth. Same Property Cash Net Operating Income (NOI) increased by 7.1% in the first quarter of 2025, and the midpoint of the full-year Same Property Cash NOI guidance remains at 2.75%.
Operational performance remained strong, with the Defense/IT Portfolio 95.3% occupied and 96.6% leased as of March 31, 2025. This marks nine consecutive quarters where the occupancy rate exceeded 94%. Total leasing activity for the quarter was 647,000 square feet, including 120,000 square feet of vacancy leasing, keeping the company on track to meet its annual target.
COPT Defense commenced construction on a 150,000 square foot development at Redstone Gateway in Huntsville, Alabama. This new project aims to capture near-term demand, as the company's Huntsville portfolio currently has only 37,000 square feet of available inventory across its 2.5 million square feet.
The company also narrowed its full-year 2025 guidance ranges for diluted EPS to $1.28-$1.34 and for diluted FFOPS to $2.63-$2.69. This adjustment reflects increased precision in its financial outlook for the year.
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