COPT Defense Properties

29/07/2024 | Press release | Distributed by Public on 30/07/2024 03:27

COPT Defense Properties Form 8 K

COPT Defense Properties
Supplemental Information + Earnings Release - Unaudited
For the Period Ended 6/30/24
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Please refer to the section entitled "Definitions" for definitions of non-GAAP measures
and other terms we use herein that may not be customary or commonly known.
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COPT Defense Properties
Summary Description
THE COMPANY
COPT Defense Properties (the "Company" or "COPT Defense"), an S&P MidCap 400 Company, is a self-managed real estate investment trust ("REIT") focused on owning, operating and developing properties in locations proximate to, or sometimes containing, key U.S. Government ("USG") defense installations and missions (which we refer to herein as our Defense/IT Portfolio). Our tenants include the USG and their defense contractors, who are primarily engaged in priority national security activities, and who generally require mission-critical and high security property enhancements. The ticker symbol under which our common shares are publicly traded on the New York Stock Exchange is "CDP". As of June 30, 2024, our Defense/IT Portfolio of 193 properties, including 24 owned through unconsolidated joint ventures, encompassed 22.0 million square feet and was 96.7% leased.

MANAGEMENT Stephen E. Budorick, President + CEO INVESTOR RELATIONS Venkat Kommineni, VP
Britt A. Snider, EVP + COO
443.285.5587 | [email protected]
Anthony Mifsud, EVP + CFO
Michelle Layne, Manager
443.285.5452 | [email protected]

CORPORATE CREDIT RATING
Fitch: BBB- Stable | Moody's: Baa3 Stable | S&P: BBB- Stable

DISCLOSURE STATEMENT
This supplemental package contains forward-looking statements within the meaning of the Federal securities laws. 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 and we undertake no obligation to update or supplement any forward-looking statements. The areas of risk that may affect these expectations, estimates and projections include, but are not limited to, those risks described in Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2023.
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2Q 2024 Supplemental Information Package
COPT Defense Properties
Equity Research Coverage
Firm Senior Analyst Phone Email
Bank of America Securities Camille Bonnel 416.369.2140 [email protected]
BTIG Tom Catherwood 212.738.6410 [email protected]
Citigroup Global Markets Michael Griffin 212.816.5871 [email protected]
Evercore ISI Steve Sakwa 212.446.9462 [email protected]
Green Street Dylan Burzinski 949.640.8780 [email protected]
Jefferies & Co. Peter Abramowitz 212.336.7241 [email protected]
JP Morgan Tony Paolone 212.622.6682 [email protected]
Raymond James Bill Crow 727.567.2594 [email protected]
Truist Securities Michael Lewis 212.319.5659 [email protected]
Wedbush Securities Richard Anderson 212.938.9949 [email protected]
Wells Fargo Securities Blaine Heck 410.662.2556 [email protected]
With the exception of Green Street, the above-listed firms are those whose analysts publish research material on the Company and whose estimates of our FFO per share can be tracked through FactSet. Any opinions, estimates or forecasts the above analysts make regarding COPT Defense's future performance are their own and do not represent the views, estimates or forecasts of COPT Defense's management.
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2Q 2024 Supplemental Information Package
COPT Defense Properties
Selected Financial Summary Data
(in thousands, except per share data)
Page Three Months Ended Six Months Ended
SUMMARY OF RESULTS Refer. 6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 6/30/24 6/30/23
Net income (loss) 7 $ 36,407 $ 33,671 $ 34,820 $ (221,207) $ 31,642 $ 70,078 $ 112,040
NOI from real estate operations 13 $ 105,410 $ 101,657 $ 98,656 $ 96,494 $ 95,024 $ 207,067 $ 188,927
Same Property NOI 17 $ 98,672 $ 95,403 $ 94,854 $ 95,039 $ 94,223 $ 194,075 $ 186,946
Same Property cash NOI 18 $ 97,614 $ 91,619 $ 89,493 $ 88,793 $ 87,989 $ 189,233 $ 174,380
Adjusted EBITDA 11 $ 98,592 $ 95,841 $ 93,934 $ 90,260 $ 89,044 $ 194,433 $ 176,487
FFO per NAREIT 8 $ 75,346 $ 72,799 $ 72,360 $ 70,016 $ 70,033 $ 148,145 $ 138,849
Diluted AFFO avail. to common share and unit holders 10 $ 61,435 $ 59,269 $ 54,280 $ 64,122 $ 46,003 $ 120,705 $ 84,619
Dividend per common share N/A $ 0.295 $ 0.295 $ 0.285 $ 0.285 $ 0.285 $ 0.59 $ 0.57
Per share - diluted:
EPS 9 $ 0.31 $ 0.29 $ 0.30 $ (1.94) $ 0.27 $ 0.60 $ 0.96
FFO - Nareit 9 $ 0.64 $ 0.62 $ 0.62 $ 0.60 $ 0.60 $ 1.27 $ 1.19
FFO - as adjusted for comparability 9 $ 0.64 $ 0.62 $ 0.62 $ 0.60 $ 0.60 $ 1.27 $ 1.19
Numerators for diluted per share amounts:
Diluted EPS 7 $ 35,022 $ 32,480 $ 33,552 $ (217,179) $ 30,138 $ 67,508 $ 108,602
Diluted FFO available to common share and unit holders 8 $ 74,280 $ 71,892 $ 70,913 $ 68,512 $ 68,323 $ 146,173 $ 135,974
Diluted FFO available to common share and unit holders, as adjusted for comparability 8 $ 74,360 $ 71,969 $ 71,100 $ 68,593 $ 68,569 $ 146,330 $ 136,220

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2Q 2024 Supplemental Information Package
COPT Defense Properties
Selected Financial Summary Data (continued)
(in thousands, except ratios)
Page As of or for Three Months Ended
As of and for Six Months Ended
PAYOUT RATIOS AND CAPITALIZATION Refer. 6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 6/30/24 6/30/23
GAAP
Payout ratio:
Net income N/A 93.1% 100.7% 93.7% N/A 103.1% 96.8% 58.3%
Capitalization and debt ratios:
Total assets 6 $ 4,219,338 $ 4,232,895 $ 4,246,966 $ 4,239,257 $ 4,246,346
Total equity 6 $ 1,530,506 $ 1,526,046 $ 1,523,755 $ 1,525,873 $ 1,776,695
Debt per balance sheet 6 $ 2,389,925 $ 2,416,873 $ 2,416,287 $ 2,415,783 $ 2,176,174
Debt to assets 32 56.6% 57.1% 56.9% 57.0% 51.2% N/A N/A
Net income to interest expense ratio 32 1.8x 1.6x 1.7x N/A 1.9x 1.7x 3.4x
Debt to net income ratio 32 16.4x 17.9x 17.3x N/A 17.2x N/A N/A
Non-GAAP
Payout ratios:
Diluted FFO N/A 45.3% 46.8% 45.7% 47.3% 47.5% 46.0% 47.7%
Diluted FFO - as adjusted for comparability N/A 45.3% 46.7% 45.6% 47.3% 47.3% 46.0% 47.6%
Diluted AFFO N/A 54.8% 56.8% 59.7% 50.6% 70.5% 55.8% 76.6%
Capitalization and debt ratios:
Total Market Capitalization 29 $ 5,289,664 $ 5,218,681 $ 5,377,815 $ 5,172,058 $ 4,914,516
Total Equity Market Capitalization 29 $ 2,873,744 $ 2,774,450 $ 2,932,815 $ 2,726,295 $ 2,717,000
Net debt 37 $ 2,367,180 $ 2,372,747 $ 2,328,941 $ 2,293,005 $ 2,234,633
Net debt to adjusted book 32 40.5% 40.9% 40.6% 40.5% 38.4% N/A N/A
Adjusted EBITDA fixed charge coverage ratio 32 4.7x 4.5x 4.4x 4.6x 4.9x 4.6x 5.0x
Net debt to in-place adj. EBITDA ratio 32 6.0x 6.1x 6.1x 6.2x 6.3x N/A N/A
Net debt adjusted for fully-leased development to in-place adj. EBITDA ratio 32 5.9x 6.0x 6.0x 5.9x 5.7x N/A N/A

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2Q 2024 Supplemental Information Package
COPT Defense Properties
Selected Portfolio Data (1)
6/30/24 3/31/24 12/31/23 9/30/23 6/30/23
# of Properties
Total Portfolio 201 201 198 196 194
Consolidated Portfolio 177 177 174 172 170
Defense/IT Portfolio 193 193 190 188 186
Same Property 189 189 189 189 189
% Occupied
Total Portfolio 93.6 % 93.6 % 94.2 % 94.1 % 93.4 %
Consolidated Portfolio 92.2 % 92.2 % 92.9 % 92.7 % 91.9 %
Defense/IT Portfolio 95.5 % 95.6 % 96.2 % 95.9 % 95.3 %
Same Property 93.5 % 93.5 % 93.8 % 93.8 % 93.3 %
% Leased
Total Portfolio 94.9 % 94.9 % 95.3 % 95.1 % 94.9 %
Consolidated Portfolio 93.8 % 93.8 % 94.3 % 94.0 % 93.7 %
Defense/IT Portfolio 96.7 % 96.8 % 97.2 % 97.0 % 96.8 %
Same Property 95.0 % 95.0 % 95.1 % 94.9 % 94.7 %
Square Feet (in thousands)
Total Portfolio 24,135 24,137 23,859 23,479 23,035
Consolidated Portfolio 19,839 19,841 19,563 19,184 18,740
Defense/IT Portfolio 21,993 21,993 21,719 21,339 20,895
Same Property 22,224 22,224 22,224 22,224 22,224
(1)Except for the Consolidated Portfolio, includes properties owned through unconsolidated real estate joint ventures (see page 34).

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2Q 2024 Supplemental Information Package
COPT Defense Properties
Consolidated Balance Sheets
(in thousands)
6/30/24 3/31/24 12/31/23 9/30/23 6/30/23
Assets
Properties, net:
Operating properties, net $ 3,257,822 $ 3,272,452 $ 3,246,806 $ 3,148,434 $ 3,272,670
Development and redevelopment in progress, including land (1) 106,709 76,931 82,972 141,854 206,130
Land held (1) 171,062 168,495 173,900 177,909 193,435
Total properties, net 3,535,593 3,517,878 3,503,678 3,468,197 3,672,235
Property - operating right-of-use assets 40,899 40,368 41,296 40,487 41,652
Cash and cash equivalents 100,443 123,144 167,820 204,238 14,273
Investment in unconsolidated real estate joint ventures 40,148 40,597 41,052 41,495 41,928
Accounts receivable, net 46,963 50,088 48,946 40,211 47,363
Deferred rent receivable 156,123 153,788 149,237 142,041 136,382
Lease incentives, net 63,744 61,150 61,331 60,506 59,541
Deferred leasing costs, net 72,156 70,902 70,057 68,033 69,218
Investing receivables, net 84,087 82,523 81,512 87,535 86,708
Prepaid expenses and other assets, net 79,182 92,457 82,037 86,514 77,046
Total assets $ 4,219,338 $ 4,232,895 $ 4,246,966 $ 4,239,257 $ 4,246,346
Liabilities and equity
Liabilities:
Debt $ 2,389,925 $ 2,416,873 $ 2,416,287 $ 2,415,783 $ 2,176,174
Accounts payable and accrued expenses 122,202 111,981 133,315 135,605 135,784
Rents received in advance and security deposits 33,485 37,557 35,409 32,063 32,021
Dividends and distributions payable 33,908 33,906 32,644 32,645 32,636
Deferred revenue associated with operating leases 37,199 34,019 29,049 24,590 9,199
Property - operating lease liabilities 33,818 33,141 33,931 32,940 33,923
Other liabilities 15,530 16,406 18,996 17,936 27,699
Total liabilities 2,666,067 2,683,883 2,699,631 2,691,562 2,447,436
Redeemable noncontrolling interests 22,765 22,966 23,580 21,822 22,215
Equity:
COPT Defense's shareholders' equity:
Common shares 1,127 1,126 1,126 1,125 1,125
Additional paid-in capital 2,489,931 2,487,468 2,489,989 2,489,717 2,486,996
Cumulative distributions in excess of net income (1,008,087) (1,009,964) (1,009,318) (1,010,885) (762,617)
Accumulated other comprehensive income 3,614 3,849 2,115 6,094 5,224
Total COPT Defense's shareholders' equity 1,486,585 1,482,479 1,483,912 1,486,051 1,730,728
Noncontrolling interests in subsidiaries:
Common units in the Operating Partnership 29,470 29,214 25,502 25,337 29,563
Other consolidated entities 14,451 14,353 14,341 14,485 16,404
Total noncontrolling interests in subsidiaries 43,921 43,567 39,843 39,822 45,967
Total equity 1,530,506 1,526,046 1,523,755 1,525,873 1,776,695
Total liabilities, redeemable noncontrolling interests and equity $ 4,219,338 $ 4,232,895 $ 4,246,966 $ 4,239,257 $ 4,246,346
(1)Refer to pages 26 and 28 for detail.

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2Q 2024 Supplemental Information Package
COPT Defense Properties
Consolidated Statements of Operations
(in thousands)
Three Months Ended Six Months Ended
6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 6/30/24 6/30/23
Revenues
Lease revenue $ 165,619 $ 165,433 $ 160,337 $ 155,268 $ 153,682 $ 331,052 $ 304,242
Other property revenue 1,466 1,230 1,225 1,339 1,271 2,696 2,392
Construction contract and other service revenues 20,258 26,603 18,167 11,949 14,243 46,861 30,063
Total revenues 187,343 193,266 179,729 168,556 169,196 380,609 336,697
Operating expenses
Property operating expenses 63,410 66,746 64,577 61,788 61,600 130,156 121,020
Depreciation and amortization associated with real estate operations 38,161 38,351 36,735 37,620 37,600 76,512 74,595
Construction contract and other service expenses 19,612 26,007 17,167 11,493 13,555 45,619 28,756
Impairment losses - - - 252,797 - - -
General and administrative expenses 8,591 8,378 8,240 7,582 7,287 16,969 15,283
Leasing expenses 2,462 2,187 2,308 2,280 2,345 4,649 4,344
Business development expenses and land carry costs 979 1,182 797 714 726 2,161 1,221
Total operating expenses 133,215 142,851 129,824 374,274 123,113 276,066 245,219
Interest expense (20,617) (20,767) (20,383) (17,798) (16,519) (41,384) (32,961)
Interest and other income, net 2,884 4,122 5,659 2,529 2,143 7,006 4,399
Gain on sales of real estate - - - - 14 - 49,392
Income (loss) before equity in income (loss) of unconsolidated entities and income taxes 36,395 33,770 35,181 (220,987) 31,721 70,165 112,308
Equity in income (loss) of unconsolidated entities 26 69 (240) (68) 111 95 47
Income tax expense (14) (168) (121) (152) (190) (182) (315)
Net income (loss) 36,407 33,671 34,820 (221,207) 31,642 70,078 112,040
Net (income) loss attributable to noncontrolling interests:
Common units in the Operating Partnership (694) (608) (576) 3,691 (516) (1,302) (1,809)
Other consolidated entities (599) (454) (592) 1,329 (839) (1,053) (1,165)
Net income (loss) attributable to common shareholders $ 35,114 $ 32,609 $ 33,652 $ (216,187) $ 30,287 $ 67,723 $ 109,066
Amount allocable to share-based compensation awards (92) (129) (100) (992) (98) (215) (349)
Redeemable noncontrolling interests - - - - (51) - (115)
Numerator for diluted EPS $ 35,022 $ 32,480 $ 33,552 $ (217,179) $ 30,138 $ 67,508 $ 108,602
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2Q 2024 Supplemental Information Package
COPT Defense Properties
Funds from Operations
(in thousands)
Three Months Ended Six Months Ended
6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 6/30/24 6/30/23
Net income (loss) $ 36,407 $ 33,671 $ 34,820 $ (221,207) $ 31,642 $ 70,078 $ 112,040
Real estate-related depreciation and amortization 38,161 38,351 36,735 37,620 37,600 76,512 74,595
Impairment losses on real estate - - - 252,797 - - -
Gain on sales of real estate - - - - (14) - (49,392)
Depreciation and amortization on unconsolidated real estate JVs (1) 778 777 805 806 805 1,555 1,606
FFO - per Nareit (2) 75,346 72,799 72,360 70,016 70,033 148,145 138,849
FFO allocable to other noncontrolling interests (3) (984) (836) (972) (1,059) (1,239) (1,820) (1,947)
Basic FFO allocable to share-based compensation awards (599) (587) (513) (481) (480) (1,186) (946)
Basic FFO available to common share and common unit holders (2) 73,763 71,376 70,875 68,476 68,314 145,139 135,956
Redeemable noncontrolling interests 471 469 - - (28) 940 (58)
Diluted FFO adjustments allocable to share-based compensation awards 46 47 38 36 37 94 76
Diluted FFO available to common share and common unit holders - per Nareit (2) 74,280 71,892 70,913 68,512 68,323 146,173 135,974
Executive transition costs 81 77 188 82 248 158 248
Diluted FFO comparability adjustments allocable to share-based compensation awards (1) - (1) (1) (2) (1) (2)
Diluted FFO available to common share and common unit holders, as adjusted for comparability (2) $ 74,360 $ 71,969 $ 71,100 $ 68,593 $ 68,569 $ 146,330 $ 136,220

(1)See page 34 for additional disclosure regarding our unconsolidated real estate JVs.
(2)Refer to the section entitled "Definitions" for a definition of this measure.
(3)Pertains to noncontrolling interests in consolidated real estate JVs reported on page 33.

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2Q 2024 Supplemental Information Package
COPT Defense Properties
Diluted Share + Unit Computations
(in thousands, except per share data)

Three Months Ended Six Months Ended
6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 6/30/24 6/30/23
EPS Denominator:
Weighted average common shares - basic 112,293 112,231 112,199 112,196 112,188 112,261 112,157
Dilutive effect of share-based compensation awards 492 509 432 - 426 501 418
Dilutive effect of redeemable noncontrolling interests - - - - 62 - 77
Weighted average common shares - diluted 112,785 112,740 112,631 112,196 112,676 112,762 112,652
Diluted EPS $ 0.31 $ 0.29 $ 0.30 $ (1.94) $ 0.27 $ 0.60 $ 0.96
Weighted Average Shares for period ended:
Common shares 112,293 112,231 112,199 112,196 112,188 112,261 112,157
Dilutive effect of share-based compensation awards 492 509 432 429 426 501 418
Common units 1,703 1,625 1,514 1,520 1,514 1,664 1,502
Redeemable noncontrolling interests 926 947 - - 62 937 77
Denominator for diluted FFO per share and as adjusted for comparability 115,414 115,312 114,145 114,145 114,190 115,363 114,154
Weighted average common units (1,703) (1,625) (1,514) (1,520) (1,514) (1,664) (1,502)
Redeemable noncontrolling interests (926) (947) - - - (937) -
Dilutive effect of additional share-based compensation awards - - - (429) - - -
Denominator for diluted EPS 112,785 112,740 112,631 112,196 112,676 112,762 112,652
Diluted FFO per share - Nareit (1) $ 0.64 $ 0.62 $ 0.62 $ 0.60 $ 0.60 $ 1.27 $ 1.19
Diluted FFO per share - as adjusted for comparability (1) $ 0.64 $ 0.62 $ 0.62 $ 0.60 $ 0.60 $ 1.27 $ 1.19
(1)Refer to the section entitled "Definitions" for a definition of this measure.
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2Q 2024 Supplemental Information Package
COPT Defense Properties
Adjusted Funds from Operations
(in thousands)
Three Months Ended Six Months Ended
6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 6/30/24 6/30/23
Diluted FFO available to common share and common unit holders, as adjusted for comparability (1) $ 74,360 $ 71,969 $ 71,100 $ 68,593 $ 68,569 $ 146,330 $ 136,220
Straight line rent adjustments and lease incentive amortization 3,788 3,473 313 12,882 (3,161) 7,261 (6,677)
Amortization of intangibles and other assets included in NOI 211 122 26 26 17 333 (2)
Share-based compensation, net of amounts capitalized 2,564 2,645 2,318 2,280 2,213 5,209 3,946
Amortization of deferred financing costs 681 685 681 639 628 1,366 1,260
Amortization of net debt discounts, net of amounts capitalized 1,023 1,014 1,004 750 622 2,037 1,240
Replacement capital expenditures (1) (21,250) (20,776) (21,498) (21,122) (22,664) (42,026) (50,874)
Other 58 137 336 74 (221) 195 (494)
Diluted AFFO available to common share and common unit holders ("diluted AFFO") (1) $ 61,435 $ 59,269 $ 54,280 $ 64,122 $ 46,003 $ 120,705 $ 84,619
Replacement capital expenditures (1)
Tenant improvements and incentives $ 15,045 $ 12,776 $ 7,850 $ 14,457 $ 32,619 $ 27,821 $ 52,605
Building improvements 5,705 4,953 14,762 6,307 2,766 10,658 4,907
Leasing costs 3,110 3,590 2,440 1,902 3,542 6,700 5,292
Net additions to (exclusions from) tenant improvements and incentives (1,040) 316 (189) (813) (16,007) (724) (11,168)
Excluded building improvements and leasing costs (1,570) (859) (3,365) (731) (256) (2,429) (762)
Replacement capital expenditures $ 21,250 $ 20,776 $ 21,498 $ 21,122 $ 22,664 $ 42,026 $ 50,874
(1)Refer to the section entitled "Definitions" for a definition of this measure.
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2Q 2024 Supplemental Information Package
COPT Defense Properties
EBITDAre + Adjusted EBITDA
(in thousands)
Three Months Ended Six Months Ended
6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 6/30/24 6/30/23
Net income (loss) $ 36,407 $ 33,671 $ 34,820 $ (221,207) $ 31,642 $ 70,078 $ 112,040
Interest expense 20,617 20,767 20,383 17,798 16,519 41,384 32,961
Income tax expense 14 168 121 152 190 182 315
Real estate-related depreciation and amortization 38,161 38,351 36,735 37,620 37,600 76,512 74,595
Other depreciation and amortization 564 608 619 615 609 1,172 1,211
Impairment losses on real estate - - - 252,797 - - -
Gain on sales of real estate - - - - (14) - (49,392)
Adjustments from unconsolidated real estate JVs 1,709 1,671 1,911 1,743 1,559 3,380 3,263
EBITDAre (1) 97,472 95,236 94,589 89,518 88,105 192,708 174,993
Credit loss expense (recoveries) 436 22 (1,288) 372 238 458 305
Business development expenses 603 630 445 313 394 1,233 635
Executive transition costs 81 430 188 82 307 511 554
Net gain on other investments - (477) - (25) - (477) -
Adjusted EBITDA (1) 98,592 95,841 93,934 90,260 89,044 $ 194,433 $ 176,487
Pro forma NOI adjustment for property changes within period - 813 1,341 1,647 56
Change in collectability of deferred rental revenue 27 - (198) - 28
In-place adjusted EBITDA (1) $ 98,619 $ 96,654 $ 95,077 $ 91,907 $ 89,128
(1)Refer to the section entitled "Definitions" for a definition of this measure.

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2Q 2024 Supplemental Information Package
COPT Defense Properties
Properties by Segment - 6/30/24
(square feet in thousands)
# of
Properties 		Operational
Square Feet 		% Occupied % Leased
Defense/IT Portfolio:
Fort Meade/Baltimore Washington ("BW") Corridor:
National Business Park 34 4,292 98.9% 99.4%
Howard County 36 3,064 91.0% 92.5%
Other 23 1,725 93.2% 96.6%
Total Fort Meade/BW Corridor 93 9,081 95.2% 96.5%
Northern Virginia ("NoVA") Defense/IT 16 2,500 89.2% 93.0%
Lackland AFB (San Antonio, Texas) 8 1,062 100.0% 100.0%
Navy Support 22 1,273 84.5% 85.7%
Redstone Arsenal (Huntsville, Alabama) 24 2,374 96.8% 97.7%
Data Center Shells:
Consolidated Properties 6 1,408 100.0% 100.0%
Unconsolidated JV Properties (1) 24 4,295 100.0% 100.0%
Total Defense/IT Portfolio 193 21,993 95.5% 96.7%
Other 8 2,142 73.4% 76.8%
Total Portfolio 201 24,135 93.6% 94.9%
Consolidated Portfolio 177 19,839 92.2% 93.8%
(1)See page 34 for additional disclosure regarding our unconsolidated real estate JVs.

(2)Refer to the section entitled "Definitions" for a definition of this measure.
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2Q 2024 Supplemental Information Package
COPT Defense Properties
Consolidated Real Estate Revenues + NOI by Segment
(in thousands)
Three Months Ended Six Months Ended
6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 6/30/24 6/30/23
Consolidated real estate revenues
Defense/IT Portfolio:
Fort Meade/BW Corridor $ 77,715 $ 78,068 $ 74,758 $ 73,350 $ 72,176 $ 155,783 $ 141,953
NoVA Defense/IT 20,601 21,426 20,410 20,333 19,841 42,027 39,670
Lackland Air Force Base 16,447 16,411 17,861 16,193 17,595 32,858 33,200
Navy Support 8,240 8,226 8,405 8,190 8,118 16,466 16,043
Redstone Arsenal 17,017 16,808 14,971 13,768 12,978 33,825 26,392
Data Center Shells-Consolidated 9,600 8,457 7,654 6,811 6,287 18,057 12,979
Total Defense/IT Portfolio 149,620 149,396 144,059 138,645 136,995 299,016 270,237
Other 17,465 17,267 17,503 17,962 17,958 34,732 36,397
Consolidated real estate revenues (1) $ 167,085 $ 166,663 $ 161,562 $ 156,607 $ 154,953 $ 333,748 $ 306,634
NOI from real estate operations (2)
Defense/IT Portfolio:
Fort Meade/BW Corridor $ 53,078 $ 50,178 $ 48,894 $ 48,134 $ 47,988 $ 103,256 $ 93,245
NoVA Defense/IT 11,671 12,164 11,972 12,433 12,158 23,835 24,415
Lackland Air Force Base 7,650 7,723 7,708 7,626 7,644 15,373 15,304
Navy Support 4,607 4,600 4,783 4,257 4,602 9,207 8,984
Redstone Arsenal 11,296 11,016 10,157 8,820 8,228 22,312 17,006
Data Center Shells:
Consolidated properties 7,509 7,514 6,966 6,133 5,544 15,023 11,642
COPT Defense's share of unconsolidated real estate JVs 1,735 1,740 1,671 1,675 1,671 3,475 3,313
Total Defense/IT Portfolio 97,546 94,935 92,151 89,078 87,835 192,481 173,909
Other 7,864 6,722 6,505 7,416 7,189 14,586 15,018
NOI from real estate operations (1) $ 105,410 $ 101,657 $ 98,656 $ 96,494 $ 95,024 $ 207,067 $ 188,927
(1)Refer to the section entitled "Supplementary Reconciliations of Non-GAAP Measures" for reconciliation.
(2)Refer to the section entitled "Definitions" for a definition of this measure.
13
2Q 2024 Supplemental Information Package
COPT Defense Properties
Cash NOI by Segment
(in thousands)
Three Months Ended Six Months Ended
6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 6/30/24 6/30/23
Cash NOI from real estate operations (1)
Defense/IT Portfolio:
Fort Meade/BW Corridor $ 51,017 $ 47,117 $ 46,173 $ 45,513 $ 45,727 $ 98,134 $ 89,389
NoVA Defense/IT 12,452 12,933 12,881 12,765 12,642 25,385 24,065
Lackland Air Force Base 8,124 8,186 8,114 7,913 7,919 16,310 15,834
Navy Support 4,656 4,503 5,008 4,621 4,911 9,159 9,934
Redstone Arsenal 9,034 6,308 4,869 4,861 3,707 15,342 8,695
Data Center Shells:
Consolidated properties 6,748 6,688 5,868 4,904 4,918 13,436 10,297
COPT Defense's share of unconsolidated real estate JVs 1,481 1,477 1,400 1,396 1,385 2,958 2,736
Total Defense/IT Portfolio 93,512 87,212 84,313 81,973 81,209 180,724 160,950
Other 7,869 6,723 6,536 7,400 7,350 14,592 14,933
Cash NOI from real estate operations (2) $ 101,381 $ 93,935 $ 90,849 $ 89,373 $ 88,559 $ 195,316 $ 175,883
(1)Refer to the section entitled "Definitions" for a definition of this measure.
(2)Refer to the section entitled "Supplementary Reconciliations of Non-GAAP Measures" for reconciliation.

14
2Q 2024 Supplemental Information Package
COPT Defense Properties
NOI from Real Estate Operations + Occupancy by Property Grouping - 6/30/24
(dollars and square feet in thousands)
As of Period End NOI from Real Estate Operations (3)
# of
Properties 		Operational Square Feet % Occupied (1) % Leased (1) Annualized
Rental Revenue (2) 		% of Total
Annualized
Rental Revenue (2)
Property Grouping Three Months Ended Six Months Ended
Defense/IT Portfolio:
Same Property: (2)
Consolidated properties 160 16,535 94.7% 96.2% $ 559,249 84.5 % $ 89,617 $ 177,204
Unconsolidated real estate JV 21 3,547 100.0% 100.0% 5,851 0.9 % 1,295 2,596
Total Same Property in Defense/IT Portfolio 181 20,082 95.7% 96.9% 565,100 85.4 % 90,912 179,800
Properties Placed in Service (4) 8 961 97.7% 98.2% 24,999 3.8 % 5,824 11,356
Other unconsolidated JV properties (5) 3 748 100.0% 100.0% 1,368 0.2 % 440 884
Acquired property (6) 1 202 55.6% 55.6% 4,074 0.6 % 370 441
Total Defense/IT Portfolio 193 21,993 95.5% 96.7% 595,541 90.0 % 97,546 192,481
Other 8 2,142 73.4% 76.8% 66,537 10.0 % 7,864 14,586
Total Portfolio 201 24,135 93.6% 94.9% $ 662,078 100.0 % $ 105,410 $ 207,067
Consolidated Portfolio 177 19,839 92.2% 93.8% $ 654,858 98.9 % $ 103,675 $ 203,592
(1)Percentages calculated based on operational square feet.
(2)Refer to the section entitled "Definitions" for a definition of this measure.
(3)Refer to the section entitled "Supplementary Reconciliations of Non-GAAP Measures" for reconciliation.
(4)Newly developed or redeveloped properties placed in service that were not fully operational by 1/1/23.
(5)Includes three data center shell properties in which we sold ownership interests and retained 10% interests through unconsolidated real estate JVs in 2023.
(6)Includes an office property acquired on 3/15/24.

15
2Q 2024 Supplemental Information Package
COPT Defense Properties
Same Property (1) Average Occupancy Rates by Segment
(square feet in thousands)
# of Properties Operational Square Feet Three Months Ended Six Months Ended
6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 6/30/24 6/30/23
Defense/IT Portfolio:
Fort Meade/BW Corridor 91 8,693 96.1 % 96.2 % 96.2 % 95.8 % 94.8 % 96.1 % 93.9 %
NoVA Defense/IT 16 2,500 88.5 % 87.9 % 88.5 % 89.8 % 89.9 % 88.2 % 90.2 %
Lackland Air Force Base 8 1,062 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
Navy Support 21 1,243 85.6 % 85.6 % 87.8 % 87.2 % 87.6 % 85.6 % 88.2 %
Redstone Arsenal 20 2,049 96.8 % 97.7 % 97.4 % 93.5 % 90.6 % 97.2 % 90.2 %
Data Center Shells:
Consolidated properties 4 988 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
Unconsolidated JV properties 21 3,547 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
Total Defense/IT Portfolio 181 20,082 95.6 % 95.7 % 95.9 % 95.5 % 94.8 % 95.7 % 94.4 %
Other 8 2,142 72.9 % 72.0 % 73.9 % 75.2 % 75.0 % 72.5 % 76.8 %
Total Same Property 189 22,224 93.4 % 93.4 % 93.8 % 93.5 % 92.9 % 93.4 % 92.7 %

Same Property (1) Period End Occupancy Rates by Segment
(square feet in thousands)
# of Properties Operational Square Feet
6/30/24 3/31/24 12/31/23 9/30/23 6/30/23
Defense/IT Portfolio:
Fort Meade/BW Corridor 91 8,693 96.0 % 96.1 % 96.3 % 96.1 % 95.4 %
NoVA Defense/IT 16 2,500 89.2 % 88.2 % 88.9 % 89.5 % 89.9 %
Lackland Air Force Base 8 1,062 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
Navy Support 21 1,243 85.2 % 86.4 % 88.0 % 87.4 % 87.4 %
Redstone Arsenal 20 2,049 96.8 % 97.5 % 97.7 % 95.7 % 92.3 %
Data Center Shells:
Consolidated properties 4 988 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
Unconsolidated JV properties 21 3,547 100.0 % 100.0 % 100.0 % 100.0 % 100.0 %
Total Defense/IT Portfolio 181 20,082 95.7 % 95.8 % 96.0 % 95.8 % 95.2 %
Other 8 2,142 73.4 % 72.5 % 73.2 % 75.4 % 74.9 %
Total Same Property 189 22,224 93.5 % 93.5 % 93.8 % 93.8 % 93.3 %
(1)Includes properties stably owned and 100% operational since at least 1/1/23.

16
2Q 2024 Supplemental Information Package
COPT Defense Properties
Same Property Real Estate Revenues + NOI by Segment
(in thousands)
Three Months Ended Six Months Ended
6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 6/30/24 6/30/23
Same Property real estate revenues
Defense/IT Portfolio:
Fort Meade/BW Corridor $ 74,921 $ 76,082 $ 74,008 $ 73,350 $ 72,177 $ 151,003 $ 141,946
NoVA Defense/IT 20,600 21,426 20,411 20,333 19,840 42,026 39,669
Lackland Air Force Base 16,447 16,411 17,860 16,193 17,596 32,858 33,201
Navy Support 8,085 8,073 8,251 8,035 7,964 16,158 15,735
Redstone Arsenal 14,317 14,311 13,861 13,520 12,820 28,628 26,112
Data Center Shells-Consolidated 6,658 6,427 6,186 6,205 6,285 13,085 12,578
Total Defense/IT Portfolio 141,028 142,730 140,577 137,636 136,682 283,758 269,241
Other 15,446 15,262 15,500 15,953 15,964 30,708 32,754
Same Property real estate revenues $ 156,474 $ 157,992 $ 156,077 $ 153,589 $ 152,646 $ 314,466 $ 301,995
Same Property NOI from real estate operations ("NOI")
Defense/IT Portfolio:
Fort Meade/BW Corridor $ 50,953 $ 48,330 $ 48,239 $ 48,134 $ 47,988 $ 99,283 $ 93,245
NoVA Defense/IT 11,670 12,164 11,972 12,433 12,158 23,834 24,415
Lackland Air Force Base 7,650 7,723 7,708 7,625 7,645 15,373 15,305
Navy Support 4,536 4,522 4,702 4,177 4,510 9,058 8,803
Redstone Arsenal 9,281 9,321 9,148 8,665 8,134 18,602 16,816
Data Center Shells:
Consolidated properties 5,527 5,527 5,538 5,539 5,544 11,054 11,297
COPT Defense's share of unconsolidated real estate JVs 1,295 1,301 1,233 1,236 1,232 2,596 2,477
Total Defense/IT Portfolio 90,912 88,888 88,540 87,809 87,211 179,800 172,358
Other 7,760 6,515 6,314 7,230 7,012 14,275 14,588
Same Property NOI (1) $ 98,672 $ 95,403 $ 94,854 $ 95,039 $ 94,223 $ 194,075 $ 186,946
(1)Refer to the section entitled "Supplementary Reconciliations of Non-GAAP Measures" for reconciliation.

17
2Q 2024 Supplemental Information Package
COPT Defense Properties
Same Property Cash NOI by Segment
(dollars in thousands)
Three Months Ended Six Months Ended
6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 6/30/24 6/30/23
Same Property cash NOI from real estate operations ("cash NOI")
Defense/IT Portfolio:
Fort Meade/BW Corridor $ 50,605 $ 47,052 $ 46,267 $ 45,513 $ 45,727 $ 97,657 $ 89,389
NoVA Defense/IT 12,452 12,933 12,882 12,764 12,642 25,385 24,065
Lackland Air Force Base 8,124 8,186 8,114 7,913 7,919 16,310 15,834
Navy Support 4,589 4,429 4,932 4,545 4,825 9,018 9,765
Redstone Arsenal 7,962 6,412 4,966 4,953 3,771 14,374 8,786
Data Center Shells:
Consolidated properties 5,013 4,984 4,960 4,865 4,918 9,997 10,019
COPT Defense's share of unconsolidated real estate JVs 1,185 1,183 1,108 1,106 1,095 2,368 2,187
Total Defense/IT Portfolio 89,930 85,179 83,229 81,659 80,897 175,109 160,045
Other 7,684 6,440 6,264 7,134 7,092 14,124 14,335
Same Property cash NOI (1) $ 97,614 $ 91,619 $ 89,493 $ 88,793 $ 87,989 $ 189,233 $ 174,380
Percentage change in total Same Property cash NOI (1)(2) 10.9% 8.5%
Percentage change in Defense/IT Portfolio Same Property cash NOI (2) 11.2% 9.4%

(1)Refer to the section entitled "Supplementary Reconciliations of Non-GAAP Measures" for reconciliation.
(2)Represents the change between the current period and the same period in the prior year.

18
2Q 2024 Supplemental Information Package
COPT Defense Properties
Leasing (1)(2)
Three Months Ended 6/30/24
(square feet in thousands)
Defense/IT Portfolio
Ft Meade/BW Corridor NoVA Defense/IT Navy Support Redstone Arsenal Total Defense/IT Portfolio Other Total
Renewed Space
Leased Square Feet 479 271 96 7 854 27 881
Expiring Square Feet 559 273 125 21 977 43 1,021
Vacating Square Feet 79 2 28 13 123 17 140
Retention Rate (% based upon square feet) 85.8 % 99.2 % 77.3 % 35.5 % 87.4 % 61.8 % 86.3 %
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot $ 3.31 $ 2.60 $ 2.07 $ 13.71 $ 3.04 $ 5.87 $ 3.12
Weighted Average Lease Term in Years 4.0 3.8 2.9 3.2 3.8 7.9 3.9
Straight-line Rent Per Square Foot
Renewal Straight-line Rent $ 44.69 $ 42.97 $ 24.71 $ 26.81 $ 41.74 $ 34.44 $ 41.52
Expiring Straight-line Rent $ 40.06 $ 41.68 $ 24.10 $ 21.01 $ 38.61 $ 36.10 $ 38.54
Change in Straight-line Rent 11.6 % 3.1 % 2.5 % 27.6 % 8.1 % (4.6 %) 7.7 %
Cash Rent Per Square Foot
Renewal Cash Rent $ 43.66 $ 43.02 $ 25.37 $ 25.50 $ 41.24 $ 36.32 $ 41.09
Expiring Cash Rent $ 42.70 $ 43.09 $ 26.09 $ 26.21 $ 40.81 $ 41.85 $ 40.84
Change in Cash Rent 2.3 % (0.2 %) (2.8 %) (2.7 %) 1.1 % (13.2 %) 0.6 %
Compound Annual Growth Rate 3.1 % 2.6 % (3.7 %) 3.1 % 2.2 % 1.6 % 2.2 %
Average Escalations Per Year 2.5 % 1.4 % 2.5 % 2.5 % 2.1 % 2.6 % 2.2 %
New Leases
Development and Redevelopment Space
Leased Square Feet - - - - - - -
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot $ - $ - $ - $ - $ - $ - $ -
Weighted Average Lease Term in Years - - - - - - -
Straight-line Rent Per Square Foot $ - $ - $ - $ - $ - $ - $ -
Cash Rent Per Square Foot $ - $ - $ - $ - $ - $ - $ -
Vacant Space
Leased Square Feet 45 26 14 2 87 17 104
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot $ 4.72 $ 12.25 $ 12.22 $ 19.27 $ 8.54 $ 12.02 $ 9.09
Weighted Average Lease Term in Years 6.4 5.1 5.6 7.0 5.9 19.9 8.1
Straight-line Rent Per Square Foot $ 33.63 $ 33.35 $ 30.03 $ 35.71 $ 33.01 $ 85.39 $ 41.37
Cash Rent Per Square Foot $ 32.15 $ 33.08 $ 29.37 $ 34.50 $ 32.03 $ 74.59 $ 38.83
Total Square Feet Leased 524 297 110 9 941 44 985
Average Escalations Per Year 2.6 % 1.5 % 2.5 % 2.7 % 2.2 % 2.5 % 2.3 %
Average Escalations Excl. Data Center Shells 2.3 %
(1)Activity excludes owner occupied space, leases with less than a one-year term and expirations associated with space removed from service. Weighted average lease term is based on the term defined in the lease assuming no exercise of early termination rights. Committed costs for leasing are reported above in the period of lease execution. Actual capital expenditures for leasing are reported on page 10 in the period such costs are incurred.
(2)Refer to the section entitled "Definitions" for definitions of certain terms on this schedule.
19
2Q 2024 Supplemental Information Package
COPT Defense Properties
Leasing (1)(2)
Six Months Ended 6/30/24
(square feet in thousands)
Defense/IT Portfolio
Ft Meade/BW Corridor NoVA Defense/IT Navy Support Redstone Arsenal Total Defense/IT Portfolio Other Total
Renewed Space
Leased Square Feet 707 387 176 92 1,363 69 1,432
Expiring Square Feet 831 400 249 110 1,590 136 1,727
Vacating Square Feet 124 13 73 18 228 67 295
Retention Rate (% based upon square feet) 85.0 % 96.8 % 70.7 % 84.0 % 85.7 % 50.8 % 82.9 %
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot $ 3.18 $ 3.55 $ 1.42 $ 1.27 $ 2.93 $ 4.17 $ 2.99
Weighted Average Lease Term in Years 4.0 4.1 3.0 2.1 3.8 7.9 4.0
Straight-line Rent Per Square Foot
Renewal Straight-line Rent $ 40.80 $ 40.55 $ 26.60 $ 26.09 $ 37.90 $ 32.99 $ 37.66
Expiring Straight-line Rent $ 36.96 $ 40.54 $ 24.41 $ 24.78 $ 35.53 $ 32.58 $ 35.39
Change in Straight-line Rent 10.4 % - % 9.0 % 5.3 % 6.7 % 1.2 % 6.4 %
Cash Rent Per Square Foot
Renewal Cash Rent $ 39.97 $ 41.26 $ 26.88 $ 25.79 $ 37.68 $ 32.96 $ 37.46
Expiring Cash Rent $ 39.45 $ 42.10 $ 26.95 $ 25.51 $ 37.65 $ 37.00 $ 37.61
Change in Cash Rent 1.3 % (2.0 %) (0.2 %) 1.1 % 0.1 % (10.9 %) (0.4 %)
Compound Annual Growth Rate 2.9 % 2.2 % (0.9 %) 1.8 % 2.1 % 2.0 % 2.1 %
Average Escalations Per Year 2.6 % 1.8 % 2.6 % 2.5 % 2.3 % 1.7 % 2.3 %
New Leases
Development and Redevelopment Space
Leased Square Feet - - - 10 10 - 10
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot $ - $ - $ - $ 3.14 $ 3.14 $ - $ 3.14
Weighted Average Lease Term in Years - - - 5.3 5.3 - 5.3
Straight-line Rent Per Square Foot $ - $ - $ - $ 23.81 $ 23.81 $ - $ 23.81
Cash Rent Per Square Foot $ - $ - $ - $ 23.50 $ 23.50 $ - $ 23.50
Vacant Space
Leased Square Feet 125 46 27 2 200 64 264
Statistics for Completed Leasing:
Per Annum Average Committed Cost per Square Foot $ 7.62 $ 10.92 $ 8.60 $ 19.27 $ 8.62 $ 7.67 $ 8.39
Weighted Average Lease Term in Years 8.0 7.0 5.3 7.0 7.4 10.7 8.2
Straight-line Rent Per Square Foot $ 32.64 $ 33.27 $ 27.77 $ 35.71 $ 32.16 $ 42.90 $ 34.76
Cash Rent Per Square Foot $ 31.27 $ 33.64 $ 27.74 $ 34.50 $ 31.36 $ 40.19 $ 33.50
Total Square Feet Leased 832 433 203 104 1,573 133 1,706
Average Escalations Per Year 2.6 % 1.9 % 2.6 % 2.7 % 2.4 % 2.2 % 2.4 %
Average Escalations Excl. Data Center Shells 2.4 %
(1)Activity excludes owner occupied space, leases with less than a one-year term and expirations associated with space removed from service. Weighted average lease term is based on the term defined in the lease assuming no exercise of early termination rights. Committed costs for leasing are reported above in the period of lease execution. Actual capital expenditures for leasing are reported on page 10 in the period such costs are incurred.
(2)Refer to the section entitled "Definitions" for definitions of certain terms on this schedule.
20
2Q 2024 Supplemental Information Package
COPT Defense Properties
Lease Expiration Analysis as of 6/30/24 (1) (continued)
(dollars and square feet in thousands, except per square foot amounts)
Segment of Lease and Year of Expiration (2) Square Footage of Leases Expiring Annualized Rental
Revenue of Expiring Leases (3) 		% of Defense/IT
Annualized
Rental
Revenue
Expiring (3) 		Annualized Rental
Revenue of
Expiring Leases per Occupied Sq. Foot (3)
Defense/IT Portfolio
Ft Meade/BW Corridor 749 $ 30,828 5.2 % $ 41.18
NoVA Defense/IT 45 911 0.2 % 20.12
Navy Support 130 3,511 0.6 % 26.98
Redstone Arsenal 18 469 0.1 % 26.15
Data Center Shells-Unconsolidated JV Properties 310 444 0.1 % 14.31
2024 1,252 36,164 6.1 % 37.17
Ft Meade/BW Corridor 1,811 69,162 11.6 % 38.11
NoVA Defense/IT 104 3,649 0.6 % 35.18
Lackland Air Force Base 703 39,803 6.7 % 56.64
Navy Support 220 5,216 0.9 % 23.71
Redstone Arsenal 288 6,862 1.2 % 23.82
Data Center Shells-Unconsolidated JV Properties 121 175 - % 14.48
2025 3,247 124,867 21.0 % 39.75
Ft Meade/BW Corridor 986 39,111 6.6 % 39.66
NoVA Defense/IT 68 2,321 0.4 % 34.28
Lackland Air Force Base 250 12,793 2.1 % 51.17
Navy Support 193 6,777 1.1 % 35.05
Redstone Arsenal 105 3,067 0.5 % 29.14
Data Center Shells-Unconsolidated JV Properties 446 822 0.1 % 18.44
2026 2,048 64,890 10.9 % 39.40
Ft Meade/BW Corridor 814 30,640 5.1 % 37.64
NoVA Defense/IT 190 6,458 1.1 % 33.94
Navy Support 259 9,450 1.6 % 36.55
Redstone Arsenal 163 4,397 0.7 % 26.96
Data Center Shells-Unconsolidated JV Properties 364 523 0.1 % 14.37
2027 1,790 51,468 8.6 % 35.20
Ft Meade/BW Corridor 1,670 59,589 10.0 % 35.65
NoVA Defense/IT 371 15,373 2.6 % 41.48
Navy Support 82 2,174 0.4 % 26.44
Data Center Shells-Unconsolidated JV Properties 515 872 0.1 % 16.93
2028 2,638 78,008 13.1 % 35.85
Thereafter
Consolidated Properties 7,499 235,761 39.6 % 30.72
Unconsolidated JV Properties 2,539 4,383 0.7 % 17.26
Total Defense/IT Portfolio 21,013 $ 595,541 100.0 % $ 34.41
21
2Q 2024 Supplemental Information Package
COPT Defense Properties
Lease Expiration Analysis as of 6/30/24 (1)
(dollars and square feet in thousands, except per square foot amounts)
Segment of Lease and Year of Expiration (2) Square Footage of Leases Expiring Annualized Rental
Revenue of Expiring Leases (3) 		% of Total
Annualized
Rental
Revenue
Expiring (3) 		Annualized Rental
Revenue of
Expiring Leases per Occupied Sq. Foot (3)
Total Defense/IT Portfolio 21,013 $ 595,541 90.0 % $ 34.41
Other
2024 32 1,090 0.2 % 33.88
2025 156 10,324 1.6 % 27.93
2026 167 6,152 0.9 % 36.75
2027 124 4,638 0.7 % 37.06
2028 247 9,194 1.4 % 37.04
Thereafter 844 35,139 5.3 % 41.38
Total Other 1,570 66,537 10.0 % 38.37
Total Portfolio 22,583 $ 662,078 100.0 % $ 34.74
Consolidated Portfolio 18,288 $ 654,858
Unconsolidated JV Properties 4,295 $ 7,219
Note: As of 6/30/24, the weighted average lease term was 5.2 years for the total portfolio and 5.1 years for the Defense/IT and consolidated portfolio.

(1)This expiration analysis reflects consolidated and unconsolidated properties and includes the effect of early renewals completed on existing leases but excludes the effect of new tenant leases on square feet yet to commence as of 6/30/24. With regard to properties owned through unconsolidated real estate joint ventures, the amounts reported above reflect 100% of the properties' square footage but only reflect the portion of Annualized Rental Revenue that was allocable to COPT Defense's ownership interest.
(2)The year of lease expiration is based on the lease term determined in accordance with GAAP.
(3)Refer to the section entitled "Definitions" for a definition of annualized rental revenue.
22
2Q 2024 Supplemental Information Package
COPT Defense Properties
2024 Defense/IT Portfolio Quarterly Lease Expiration Analysis as of 6/30/24 (1)
(dollars and square feet in thousands, except per square foot amounts)
Segment of Lease and Quarter of Expiration (2) Square Footage of Leases Expiring Annualized Rental
Revenue of Expiring Leases (3) 		% of Defense/IT
Annualized
Rental
Revenue Expiring (3) 		Annualized Rental Revenue of Expiring Leases per Occupied Sq. Foot (3)
Defense IT Portfolio
Ft Meade/BW Corridor 532 $ 19,938 3.3 % $ 37.50
NoVA Defense/IT 35 560 0.1 % 16.05
Navy Support 51 1,385 0.2 % 27.01
Data Center Shells-Unconsolidated JV Properties 310 444 0.1 % 14.31
Q3 2024 928 22,327 3.7 % 34.41
Ft Meade/BW Corridor 217 10,891 1.8 % 50.19
NoVA Defense/IT 10 351 0.1 % 33.78
Navy Support 79 2,126 0.4 % 26.96
Redstone Arsenal 18 469 0.1 % 26.15
Q4 2024 324 13,837 2.4 % 42.68
1,252 $ 36,164 6.1 % $ 37.17
(1)This expiration analysis reflects consolidated and unconsolidated properties and includes the effect of early renewals completed on existing leases but excludes the effect of new tenant leases on square feet yet to commence as of 6/30/24.
(2)The period of lease expiration is based on the lease term determined in accordance with GAAP.
(3)Refer to the section entitled "Definitions" for a definition of annualized rental revenue.

23
2Q 2024 Supplemental Information Package
COPT Defense Properties
Top 20 Tenants as of 6/30/24 (1)
(dollars and square feet in thousands)
Tenant Total
Annualized
Rental Revenue (2) 		%
of Total
Annualized
Rental Revenue (2) 		Occupied Square Feet Weighted Average Remaining Lease Term (3)
United States Government (4) $ 237,598 35.9 % 5,529 3.6
Fortune 100 Company 57,823 8.7 % 6,182 7.6
General Dynamics Corporation 33,268 5.0 % 703 3.3
Northrop Grumman Corporation 15,112 2.3 % 519 5.2
The Boeing Company 14,808 2.2 % 443 2.4
CACI International Inc 13,166 2.0 % 327 4.0
Peraton Corp. 12,654 1.9 % 319 4.8
Booz Allen Hamilton, Inc. 12,224 1.8 % 297 2.1
Fortune 100 Company 11,802 1.8 % 183 10.3
Morrison & Foerster, LLP 9,631 1.5 % 102 12.8
CareFirst, Inc. 9,067 1.4 % 264 10.2
KBR, Inc. 8,034 1.2 % 309 8.9
Yulista Holding, LLC 7,155 1.1 % 368 5.5
AT&T Corporation 6,808 1.0 % 321 5.3
Jacobs Solutions Inc. 6,514 1.0 % 185 5.0
Mantech International Corp. 6,460 1.0 % 200 2.9
Wells Fargo & Company 6,270 0.9 % 145 4.2
The University System of Maryland 6,185 0.9 % 176 5.6
Lockheed Martin Corporation 5,712 0.9 % 194 6.1
The Mitre Corporation 5,406 0.8 % 152 4.2
Subtotal Top 20 Tenants 485,697 73.3 % 16,918 5.6
All remaining tenants 176,381 26.7 % 5,665 4.0
Total / Weighted Average $ 662,078 100.0 % 22,583 5.2

(1)For properties owned through unconsolidated real estate JVs, includes COPT Defense's share of those properties' ARR of $7.2 million (see page 34 for additional information).
(2)Refer to the section entitled "Definitions" for a definition of annualized rental revenue.
(3)Weighted average remaining lease term is based on the lease term determined in accordance with GAAP. The weighting of the lease term was computed based on occupied square feet (excluding leases not associated with square feet, such as ground leases).
(4)Substantially all of our government leases are subject to early termination provisions which are customary in government leases. As of 6/30/24, $5.8 million of our ARR was through the General Services Administration (GSA), representing 2.5% of our ARR from the United States Government and 0.9% of our total ARR.

24
2Q 2024 Supplemental Information Package
COPT Defense Properties
Operating Property Acquisition
(square feet in thousands)
Property Property Segment/Sub-Segment Location # of Properties Operational Square Feet Transaction
Date 		% Occupied on Transaction Date Transaction
Value
(in millions)
6841 Benjamin Franklin Drive Fort Meade/BW Corridor Columbia, Maryland 1 202 3/15/24 55.6% $ 15

25
2Q 2024 Supplemental Information Package
COPT Defense Properties
Summary of Development Projects as of 6/30/24 (1)
(dollars and square feet in thousands)
Total Rentable Square Feet
% Leased as of 6/30/24
as of 6/30/24 (2)
Actual or Anticipated Shell Completion Date Anticipated Operational Date (3)
Anticipated Total Cost Cost to Date Cost to Date Placed in Service
Property and Segment/Sub-Segment Location
Defense/IT Portfolio:
Fort Meade/BW Corridor:
400 National Business Parkway Annapolis Junction, Maryland 138 0% $ 65,100 $ 25,152 $ - 1Q 25 1Q 26
Redstone Arsenal:
8100 Rideout Road (4) Huntsville, Alabama 128 42% 45,967 35,875 11,868 3Q 23 3Q 24
9700 Advanced Gateway Huntsville, Alabama 50 20% 11,000 1,305 - 1Q 25 1Q 26
Subtotal / Average 178 35% 56,967 37,180 11,868
Data Center Shells:
Southpoint Phase 2 Bldg A Northern Virginia 225 100% 82,500 39,716 - 3Q 24 3Q 24
Southpoint Phase 2 Bldg B Northern Virginia 193 100% 65,000 5,980 - 3Q 25 3Q 25
MP 3 Northern Virginia 225 100% 111,800 10,950 - 4Q 25 4Q 25
Data Center Shells Subtotal / Average 643 100% 259,300 56,646 -
Total Defense/IT Portfolio Under Development 959 74% $ 381,367 $ 118,978 $ 11,868
(1)Includes properties under, or contractually committed for, development as of 6/30/24.
(2)Cost includes land, development, leasing costs and allocated portion of structured parking and other shared infrastructure, if applicable.
(3)Anticipated operational date is the earlier of the estimated date when leases have commenced on 100% of a property's space or one year from the cessation of major construction activities.
(4)Although classified as under development, 27,000 square feet were operational as of 6/30/24.

26
2Q 2024 Supplemental Information Package
COPT Defense Properties
Development Placed in Service as of 6/30/24
(square feet in thousands)
Square Feet Placed in Service
Total Space Placed in Service % Leased as of 6/30/24
Total Property
Property Segment/Sub-Segment
% Leased as of 6/30/24
Rentable Square Feet 2024
Property and Location 1st Quarter 2nd Quarter
Total 2024
5300 Redstone Gateway
Huntsville, Alabama
Redstone Arsenal 100% 46 46 - 46 100%
8100 Rideout Road
Huntsville, Alabama
Redstone Arsenal 42% 128 27 - 27 100%
Total Development Placed in Service 57% 174 73 - 73 100%
% Leased as of 6/30/24
100% N/A 100%

27
2Q 2024 Supplemental Information Package
COPT Defense Properties
Summary of Land Owned/Controlled as of 6/30/24 (1)
(dollars and square feet in thousands)
Location Acres Estimated Developable Square Feet Carrying Amount
Defense/IT Portfolio land owned/controlled for future development:
Fort Meade/BW Corridor:
National Business Park 144 1,483
Howard County 19 290
Other 126 1,338
Total Fort Meade/BW Corridor 289 3,111
NoVA Defense/IT 29 1,171
Navy Support 38 64
Redstone Arsenal (2) 295 3,350
Total Defense/IT Portfolio land owned/controlled for future development 651 7,696 $ 161,409
Other land owned/controlled 53 1,538 9,653
Land held, net 704 9,234 $ 171,062

(1)This land inventory schedule includes properties under ground lease to us and excludes all properties listed as development as detailed on page 26. The costs associated with the land included on this summary are reported on our consolidated balance sheet in the line entitled "land held."
(2)This land is controlled under a long-term master lease agreement to LW Redstone Company, LLC, a consolidated JV (see page 33). As this land is developed in the future, the JV will execute site-specific leases under the master lease agreement. Lease payments will commence under the site-specific leases as cash rents under tenant leases commence at the respective properties.
28
2Q 2024 Supplemental Information Package
COPT Defense Properties
Capitalization Overview
(dollars, shares and units in thousands)
Wtd. Avg. Maturity (Years) (1) Stated Rate Effective Rate
(2)(3)
Amount Outstanding at 6/30/24
Debt
Secured debt 1.6 5.27 % 3.18 % $ 70,559
Unsecured debt 5.3 3.26 % 3.34 % 2,345,361
Total Consolidated Debt 5.2 3.32 % 3.33 % $ 2,415,920
Fixed-rate debt (3) 5.4 2.96 % 3.33 % $ 2,415,920
Variable-rate debt (3) 3.2 6.68 % N/A -
Total Consolidated Debt $ 2,415,920
Common Equity
Common Shares 112,651
Common Units (4) 2,161
Total Common Shares and Units 114,812
Closing Common Share Price on 6/28/24
$ 25.03
Equity Market Capitalization (5) $ 2,873,744
Total Market Capitalization (5) $ 5,289,664
(1)Calculated assuming exercise of extension options on our Revolving Credit Facility and term loan.
(2)Excludes the effect of deferred financing cost amortization.
(3)Includes the effect of interest rate swaps with notional amounts totaling $232.8 million that hedge the risk of changes in interest rates on variable-rate debt. We had swaps in place for all of our variable-rate debt balances as of 6/30/24.
(4)Includes certain unvested share-based compensation awards in the form of profit interest units.
(5)Refer to the section entitled "Definitions" for a definition of this measure.

Investment Grade Ratings & Outlook Latest Report
Fitch BBB- Stable 11/22/23
Moody's Baa3 Stable 1/22/24
S&P BBB- Stable 5/9/24
29
2Q 2024 Supplemental Information Package
COPT Defense Properties
Summary of Outstanding Debt as of 6/30/24
(dollars in thousands)
Unsecured Debt Stated Rate Amount Outstanding Maturity Date Secured Debt Stated Rate Amount Outstanding Balloon Payment Due Upon Maturity Maturity Date
Revolving Credit Facility SOFR+
0.10%+1.05% 		$ 75,000 Oct-26 (1)(2) LW Redstone:
4000 & 4100 Market Street and 8800 Redstone Gateway (2)(3) SOFR
+0.10%+1.55% 		$ 22,325 $ 22,100 Mar-25 (5)
Senior Unsecured Notes
2.25% due 2026 2.25% 400,000 Mar-26 M Square:
5.25% due 2028 5.25% 345,000 Sep-28 (4) 5825 & 5850 University Research Court (3) 3.82% 37,714 $ 35,603 Jun-26
2.00% due 2029 2.00% 400,000 Jan-29
2.75% due 2031 2.75% 600,000 Apr-31 5801 University Research Court (2)(3) SOFR
+0.10%+1.45% 		10,520 $ 10,020 Aug-26
2.90% due 2033 2.90% 400,000 Dec-33
Subtotal - Senior Unsecured Notes 2.95% $ 2,145,000 Total Secured Debt 5.27% $ 70,559
Unsecured Bank Term Loans
2026 Maturity SOFR+
0.10%+1.30% 		$ 125,000 Jan-26 (2)(6)
Other Unsecured Debt 0.00% 361 May-26
Total Unsecured Debt 3.26% $ 2,345,361
Debt Summary
Total Unsecured Debt 3.26% $ 2,345,361
Total Secured Debt 5.27% 70,559
Consolidated Debt 3.32% $ 2,415,920
Debt per balance sheet $ 2,389,925
Net discounts and deferred financing costs 25,995
Consolidated Debt 2,415,920
COPT Defense's share of unconsolidated JV gross debt (7) 52,981
Gross debt $ 2,468,901
(1)The Company's $600.0 million Revolving Credit Facility matures in October 2026 and may be extended by two six-month periods at our option.
(2)Pre-payable anytime without penalty.
(3)These properties are owned through consolidated joint ventures.
(4)These notes are due in 2028 unless earlier exchanged, redeemed or repurchased only in the event of certain circumstances and during certain periods defined under the terms of the notes. Upon exchange of the notes, the principal amount of notes exchanged is payable in cash, with the remainder of the exchange obligation, if any, payable in cash, common shares or a combination thereof at our election.
(5)The loan maturity may be extended for two one-year periods, provided certain conditions are met.
(6)The Company's term loan matures in January 2026 and may be extended by two 12-month periods at our option.
(7)See page 34 for additional disclosure regarding our unconsolidated real estate joint ventures.

30
2Q 2024 Supplemental Information Package
COPT Defense Properties
Summary of Outstanding Debt as of 6/30/24 (continued)

(1)Revolving Credit Facility maturity of $75.0 million is included above in 2027 assuming our exercise of two six-month extension options.
(2)Term loan balance of $125.0 million is included in 2028 assuming our exercise of two 12-month extension options. Also includes $345.0 million principal amount of exchangeable senior notes due in 2028 unless earlier exchanged, redeemed or repurchased only in the event of certain circumstances and during certain periods defined under the terms of the notes.
(3)Includes the effect of interest rate swaps with notional amounts totaling $232.8 million that hedge the risk of changes in interest rates on variable-rate debt.
31
2Q 2024 Supplemental Information Package
COPT Defense Properties
Debt Analysis
(dollars and square feet in thousands)
As of and for Three Months Ended
6/30/24
As of and for Three Months Ended
6/30/24
Senior Note Covenants (1) Required Line of Credit & Term Loan Covenants (1)(2) Required
Total Debt / Total Assets < 60% 41.9% Total Debt / Total Assets < 60% 36.7%
Secured Debt / Total Assets < 40% 1.2% Secured Debt / Total Assets < 40% 1.5%
Debt Service Coverage > 1.5x 4.6x Adjusted EBITDA / Fixed Charges > 1.5x 4.8x
Unencumbered Assets / Unsecured Debt > 150% 238.6% Unsecured Debt / Unencumbered Assets < 60% 36.6%
Unencumbered Adjusted NOI / Unsecured Interest Expense > 1.75x 4.9x
Debt Ratios Page Refer. Unencumbered Portfolio Analysis
GAAP # of unencumbered properties 176
Debt per balance sheet 6 $ 2,389,925 % of total portfolio 88 %
Total assets 6 $ 4,219,338 Unencumbered square feet in-service 20,485
Debt to assets 56.6 % % of total portfolio 85 %
Net income 7 $ 36,407 NOI from unencumbered real estate operations $ 102,162
Debt to net income ratio (2) 16.4 x % of total NOI from real estate operations 97 %
Interest expense 7 $ 20,617 Adjusted EBITDA from unencumbered real estate operations $ 95,344
Net income to interest expense ratio (2) 1.8 x % of total adjusted EBITDA from real estate operations 97 %
Unencumbered adjusted book $ 5,650,086
Non-GAAP % of total adjusted book 97 %
Net debt 37 $ 2,367,180
Adjusted book 37 $ 5,850,851
Net debt to adjusted book 40.5 %
Net debt adj. for fully-leased development 37 $ 2,310,534
In-place adjusted EBITDA 11 $ 98,619
Net debt to in-place adjusted EBITDA ratio 6.0 x
Net debt adj. for fully-leased devel. to in-place adj. EBITDA ratio 5.9 x
Denominator for debt service coverage 36 $ 20,383
Denominator for fixed charge coverage 36 $ 21,026
Adjusted EBITDA 11 $ 98,592
Adjusted EBITDA debt service coverage ratio 4.8 x
Adjusted EBITDA fixed charge coverage ratio 4.7 x
(1)The covenants are calculated as defined in the applicable agreements, and the calculations differ between those agreements.
(2)Refer to the section entitled "Definitions" for a definition of this measure.
32
2Q 2024 Supplemental Information Package
COPT Defense Properties
Consolidated Real Estate Joint Ventures as of 6/30/24
(dollars and square feet in thousands)

NOI from Real Estate Operations (1) Venture Level Debt Outstanding (3) COPT Defense Nominal
Ownership %
Operating Properties Operational
Square Feet 		% Occupied % Leased Three Months Ended Six Months Ended Total Assets (2)
Suburban Maryland:
M Square Associates, LLC (4 properties)
414 88.8% 95.5% $ 1,850 $ 3,415 $ 91,865 $ 48,234 50%
Huntsville, Alabama:
LW Redstone Company, LLC (23 properties)
2,237 98.4% 99.3% 10,907 21,567 595,479 22,325 85% (4)
Washington, D.C.:
Stevens Place (1 property)
188 61.9% 92.2% 1,494 2,749 130,441 - 95%
Total / Average 2,839 94.6% 98.3% $ 14,251 $ 27,731 $ 817,785 $ 70,559
Non-Operating Properties Estimated Developable Square Feet Total Assets (2) Venture Level Debt Outstanding COPT Defense Nominal Ownership %
Suburban Maryland:
M Square Research Park 348 $ 5,931 $ - 50%
Huntsville, Alabama:
Redstone Gateway (5) 3,501 137,870 - 85% (3)
Total 3,849 $ 143,801 $ -
(1)Represents NOI from real estate operations of the JV operating properties before allocation to JV partners.
(2)Total assets includes the assets of the consolidated JV plus any outside investment basis.
(3)Excludes debt from us to the JV, which is eliminated in the presentation of our consolidated financial statements.
(4)Our partner receives an annual priority return of 13.5% on its $9.0 million in contributed equity, plus certain fees for leasing and development, and we expect to receive all other distributions from the JV.
(5)Total assets include $80.0 million in notes receivable due from the City of Huntsville (including accrued interest and excluding allowance for credit losses) in connection with infrastructure costs funded by the JV.
33
2Q 2024 Supplemental Information Package
COPT Defense Properties
Unconsolidated Real Estate Joint Ventures as of 6/30/24 (1)
(dollars and square feet in thousands)
Joint venture information
COPT Defense ownership %
10 %
COPT Defense's investment
$ 36,932 (2)
# of Properties 24
Square Feet 4,295
% Occupied 100 %
COPT Defense's share of ARR $ 7,219
Balance sheet information Total COPT Defense's Share (4)
Operating properties, net $ 948,379 $ 94,838
Total assets $ 1,045,463 $ 104,546
Debt (3) $ 527,458 $ 52,746
Total liabilities $ 609,218 $ 60,922
Three Months Ended Six Months Ended
Operating information Total COPT Defense's Share (4) Total COPT Defense's Share (4)
Revenue $ 20,884 $ 2,089 $ 41,775 $ 4,178
Operating expenses (3,537) (354) (7,029) (703)
NOI from real estate operations and EBITDAre (5) 17,347 1,735 34,746 3,475
Interest expense (9,313) (932) (18,246) (1,825)
Depreciation and amortization (8,237) (777) (16,475) (1,555)
Net income $ (203) $ 26 $ 25 $ 95
NOI from real estate operations (per above) (5) $ 17,347 $ 1,735 $ 34,746 $ 3,475
Straight line rent adjustments (552) (55) (1,189) (119)
Amortization of acquired above- and below-market rents (1,989) (199) (3,977) (398)
Cash NOI from real estate operations (5) $ 14,806 $ 1,481 $ 29,580 $ 2,958
(1)Includes equity method investments in five JVs that own and operate data center shell properties.
(2)Includes $40.1 million reported in "Investment in unconsolidated real estate joint ventures" and $3.2 million for investments with deficit balances reported in "other liabilities" on our consolidated balance sheet.
(3)Maturities on JV debt range from 2027 (assuming exercise of three one-year extension options) to 2030.
(4)Represents the portion allocable to our ownership interest.
(5)Refer to the section entitled "Definitions" for definitions of these measures.

34
2Q 2024 Supplemental Information Package
COPT Defense Properties
Supplementary Reconciliations of Non-GAAP Measures
(in thousands)
Three Months Ended Six Months Ended
6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 6/30/24 6/30/23
Net income (loss) $ 36,407 $ 33,671 $ 34,820 $ (221,207) $ 31,642 $ 70,078 $ 112,040
Construction contract and other service revenues (20,258) (26,603) (18,167) (11,949) (14,243) (46,861) (30,063)
Depreciation and other amortization associated with real estate operations 38,161 38,351 36,735 37,620 37,600 76,512 74,595
Construction contract and other service expenses 19,612 26,007 17,167 11,493 13,555 45,619 28,756
Impairment losses - - - 252,797 - - -
General and administrative expenses 8,591 8,378 8,240 7,582 7,287 16,969 15,283
Leasing expenses 2,462 2,187 2,308 2,280 2,345 4,649 4,344
Business development expenses and land carry costs 979 1,182 797 714 726 2,161 1,221
Interest expense 20,617 20,767 20,383 17,798 16,519 41,384 32,961
Interest and other income, net (2,884) (4,122) (5,659) (2,529) (2,143) (7,006) (4,399)
Gain on sales of real estate - - - - (14) - (49,392)
Equity in (income) loss of unconsolidated entities (26) (69) 240 68 (111) (95) (47)
Unconsolidated real estate JVs NOI allocable to COPT Defense included in equity in income (loss) of unconsolidated entities (1) 1,735 1,740 1,671 1,675 1,671 3,475 3,313
Income tax expense 14 168 121 152 190 182 315
NOI from real estate operations 105,410 101,657 98,656 96,494 95,024 207,067 188,927
Straight line rent adjustments and lease incentive amortization 4,213 3,632 703 13,262 (2,916) 7,845 (6,734)
Amortization of acquired above- and below-market rents 64 (24) (121) (120) (129) 40 (295)
Amortization of intangibles and other assets to property operating expenses 146 147 146 147 146 293 293
Lease termination fees, net (880) (775) (716) (748) (1,059) (1,655) (2,280)
Tenant funded landlord assets and lease incentives (7,318) (10,439) (7,548) (19,383) (2,221) (17,757) (3,451)
Cash NOI adjustments in unconsolidated real estate JVs (254) (263) (271) (279) (286) (517) (577)
Cash NOI from real estate operations $ 101,381 $ 93,935 $ 90,849 $ 89,373 $ 88,559 $ 195,316 $ 175,883
NOI from real estate operations (from above) $ 105,410 $ 101,657 $ 98,656 $ 96,494 $ 95,024 $ 207,067 $ 188,927
Non-Same Property NOI from real estate operations (6,738) (6,254) (3,802) (1,455) (801) (12,992) (1,981)
Same Property NOI from real estate operations 98,672 95,403 94,854 95,039 94,223 194,075 186,946
Straight line rent adjustments and lease incentive amortization 2,501 5,367 3,142 10,154 (2,696) 7,868 (6,266)
Amortization of acquired above- and below-market rents (69) (69) (121) (120) (129) (138) (295)
Lease termination fees, net (881) (775) (717) (748) (1,059) (1,656) (2,280)
Tenant funded landlord assets and lease incentives (2,498) (8,190) (7,541) (15,402) (2,213) (10,688) (3,435)
Cash NOI adjustments in unconsolidated real estate JVs (111) (117) (124) (130) (137) (228) (290)
Same Property Cash NOI from real estate operations $ 97,614 $ 91,619 $ 89,493 $ 88,793 $ 87,989 $ 189,233 $ 174,380
(1)See page 34 for additional disclosure regarding our unconsolidated real estate JVs.
35
2Q 2024 Supplemental Information Package
COPT Defense Properties
Supplementary Reconciliations of Non-GAAP Measures (continued)
(in thousands)
Three Months Ended Six Months Ended
6/30/24 3/31/24 12/31/23 9/30/23 6/30/23 6/30/24 6/30/23
Real estate revenues
Lease revenue
Fixed contractual payments $ 127,363 $ 126,198 $ 123,677 $ 120,408 $ 118,461 $ 253,561 $ 234,500
Variable lease payments (1) 38,256 39,235 36,660 34,860 35,221 77,491 69,742
Lease revenue 165,619 165,433 160,337 155,268 153,682 331,052 304,242
Other property revenue 1,466 1,230 1,225 1,339 1,271 2,696 2,392
Real estate revenues $ 167,085 $ 166,663 $ 161,562 $ 156,607 $ 154,953 $ 333,748 $ 306,634
Provision for credit (recoveries) losses on billed lease revenue $ (24) $ (109) $ 498 $ 13 $ (196) $ (133) $ 73
Total revenues $ 187,343 $ 193,266 $ 179,729 $ 168,556 $ 169,196 $ 380,609 $ 336,697
Construction contract and other service revenues (20,258) (26,603) (18,167) (11,949) (14,243) (46,861) (30,063)
Real estate revenues $ 167,085 $ 166,663 $ 161,562 $ 156,607 $ 154,953 $ 333,748 $ 306,634
Total interest expense $ 20,617 $ 20,767 $ 20,383 $ 17,798 $ 16,519 $ 41,384 $ 32,961
Less: Amortization of deferred financing costs (681) (685) (681) (639) (628) (1,366) (1,260)
Less: Amortization of net debt discounts, net of amounts capitalized (1,023) (1,014) (1,004) (750) (622) (2,037) (1,240)
COPT Defense's share of interest expense of unconsolidated real estate JVs, excluding amortization of deferred financing costs and net debt premium and gain or loss on interest rate derivatives 808 804 819 805 791 1,612 1,564
Denominator for interest coverage 19,721 19,872 19,517 17,214 16,060 39,593 32,025
Scheduled principal amortization 662 769 763 753 746 1,431 1,536
Denominator for debt service coverage 20,383 20,641 20,280 17,967 16,806 41,024 33,561
Capitalized interest 643 589 1,028 1,487 1,194 1,232 1,964
Denominator for fixed charge coverage $ 21,026 $ 21,230 $ 21,308 $ 19,454 $ 18,000 $ 42,256 $ 35,525
Dividends on unrestricted common and deferred shares $ 33,153 $ 33,143 $ 31,998 $ 31,996 $ 31,995 $ 66,296 $ 63,984
Distributions on unrestricted common units 505 500 430 432 433 1,005 863
Dividends and distributions on restricted shares and units 238 267 209 200 204 505 419
Total dividends and distributions for GAAP payout ratio 33,896 33,910 32,637 32,628 32,632 67,806 65,266
Dividends and distributions on antidilutive shares and units (241) (266) (212) (202) (205) (507) (421)
Dividends and distributions for non-GAAP payout ratios $ 33,655 $ 33,644 $ 32,425 $ 32,426 $ 32,427 $ 67,299 $ 64,845
(1)Represents primarily lease revenue associated with property operating expense reimbursements from tenants.
36
2Q 2024 Supplemental Information Package
COPT Defense Properties
Supplementary Reconciliations of Non-GAAP Measures (continued)
(in thousands)
6/30/24 3/31/24 12/31/23 9/30/23 6/30/23
Total assets $ 4,219,338 $ 4,232,895 $ 4,246,966 $ 4,239,257 $ 4,246,346
Accumulated depreciation 1,468,595 1,434,621 1,400,162 1,367,473 1,334,066
Accumulated amortization of intangibles on property acquisitions and deferred leasing costs 226,739 225,443 228,484 228,334 226,555
COPT Defense's share of liabilities of unconsolidated real estate JVs 60,922 60,904 60,583 60,762 60,724
COPT Defense's share of accumulated depreciation and amortization of unconsolidated real estate JVs 11,199 10,364 9,528 8,664 7,800
Less: Property - operating lease liabilities (33,818) (33,141) (33,931) (32,940) (33,923)
Less: Property - finance lease liabilities (403) (409) (415) (420) (426)
Less: Cash and cash equivalents (100,443) (123,144) (167,820) (204,238) (14,273)
Less: COPT Defense's share of cash of unconsolidated real estate JVs (1,278) (1,159) (852) (1,031) (974)
Adjusted book $ 5,850,851 $ 5,806,374 $ 5,742,705 $ 5,665,861 $ 5,825,895
Gross debt (page 30)
$ 2,468,901 $ 2,497,050 $ 2,497,613 $ 2,498,274 $ 2,249,880
Less: Cash and cash equivalents (100,443) (123,144) (167,820) (204,238) (14,273)
Less: COPT Defense's share of cash of unconsolidated real estate JVs (1,278) (1,159) (852) (1,031) (974)
Net debt 2,367,180 2,372,747 2,328,941 2,293,005 2,234,633
Costs incurred on fully-leased development properties (56,646) (43,034) (53,914) (124,038) (189,407)
Net debt adjusted for fully-leased development $ 2,310,534 $ 2,329,713 $ 2,275,027 $ 2,168,967 $ 2,045,226

37
2Q 2024 Supplemental Information Package
COPT Defense Properties
Definitions
Non-GAAP Measures

We believe that the measures defined below that are not determined in accordance with generally accepted accounting principles ("GAAP") are helpful to investors in measuring our performance and comparing it to that of other real estate investment trusts ("REITs"). Since these measures exclude certain items includable in their respective most comparable GAAP measures, reliance on the measures has limitations; management compensates for these limitations by using the measures simply as supplemental measures that are weighed in balance with other GAAP and non-GAAP measures. These measures should not be used as an alternative to the respective most comparable GAAP measures when evaluating our financial performance or to cash flow from operating, investing and financing activities when evaluating our liquidity or ability to make cash distributions or pay debt service.
Adjusted book
Defined as total assets presented on our consolidated balance sheet, net of lease liabilities associated with property right-of-use assets, and excluding the effect of cash and cash equivalents, accumulated depreciation on real estate properties, accumulated amortization of intangible assets on real estate acquisitions, accumulated amortization of deferred leasing costs and unconsolidated real estate joint ventures ("JVs") cash and cash equivalents, liabilities and accumulated depreciation and amortization (of intangibles on property acquisitions and deferred leasing costs) allocable to our ownership interest in the JVs. We use adjusted book for purposes of calculating our net debt to adjusted book, which we believe is a useful supplemental measure for investors to use in further understanding the relationship of our outstanding debt to our assets available to service such debt. We believe that total assets is the most directly comparable GAAP measure to this non-GAAP measure.

Adjusted earnings before interest, income taxes, depreciation and amortization ("Adjusted EBITDA")
Adjusted EBITDA is net income or loss adjusted for the effects of interest expense, depreciation and amortization, gain on sales and impairment losses of real estate and investments in unconsolidated real estate JVs, gain or loss on early extinguishment of debt, loss on interest rate derivatives, net gain or loss on other investments, credit loss expense or recoveries, operating property acquisition costs, income taxes, business development expenses, demolition costs on redevelopment and nonrecurring improvements, executive transition costs and certain other expenses that we believe are not relevant to an investor's evaluation of our ability to repay debt. Adjusted EBITDA also includes adjustments to net income or loss for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. While EBITDA (earnings before interest, taxes, depreciation and amortization) is a universally-defined supplemental measure, Adjusted EBITDA incorporates additional adjustments for gains and losses from investing and financing activities and certain other items that we believe represent costs that are not closely correlated to (or associated with) our operating performance and are not relevant to an
investor's evaluation of our ability to repay debt. We believe that adjusted EBITDA is a useful supplemental measure for assessing our un-levered performance and ability to repay outstanding debt from operations. We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.
Adjusted EBITDA debt service coverage ratio
This measure divides Adjusted EBITDA by the sum of interest expense (excluding amortization of deferred financing costs and amortization of debt discounts and premiums, net of amounts capitalized, and gains or losses on interest rate derivatives) and scheduled principal amortization on mortgage loans.

Amortization of acquisition intangibles included in NOI
Represents the amortization of intangible asset and liability categories that is included in net operating income, including amortization of above- or below-market leases and above- or below-market cost arrangements.

Basic FFO available to common share and common unit holders ("Basic FFO")
This measure is FFO adjusted to subtract (1) preferred share dividends, (2) income or loss attributable to noncontrolling interests through ownership of preferred units in COPT Defense Properties, L.P. (the "Operating Partnership") or interests in other consolidated entities not owned by us, (3) depreciation and amortization allocable to noncontrolling interests in other consolidated entities, (4) Basic FFO allocable to share-based compensation awards and (5) issuance costs associated with redeemed preferred shares. With these adjustments, Basic FFO represents FFO available to common shareholders and holders of common units in the Operating Partnership ("common units"). Common units are substantially similar to our common shares of beneficial interest ("common shares") and are exchangeable into common shares, subject to certain conditions. We believe that Basic FFO is useful to investors due to the close correlation of common units to common shares. We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

Cash net operating income ("Cash NOI")
Defined as NOI from real estate operations adjusted to eliminate the effects of: straight-line rental adjustments, amortization of tenant incentives, amortization of intangibles and other assets included in FFO and NOI, lease termination fees from tenants to terminate their lease obligations prior to the end of the agreed upon lease terms and rental revenue recognized under GAAP resulting from landlord assets and lease incentives funded by tenants. Cash NOI also includes adjustments to NOI from real estate operations for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. Under GAAP, rental revenue is recognized evenly over the term of tenant leases (through straight-line rental adjustments and amortization of tenant incentives), which, given the long term nature of our leases, does not align with the economics of when tenant payments are due to us under the arrangements. Also under GAAP, when a property is acquired, we allocate the
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COPT Defense Properties
Definitions
acquisition to certain intangible components, which are then amortized into NOI over their estimated lives, even though the resulting revenue adjustments are not reflective of our lease economics. In addition, revenue from lease termination fees and tenant-funded landlord improvements, absent an adjustment from us, would result in large one-time lump sum amounts in Cash NOI that we do not believe are reflective of a property's long-term value. We believe that Cash NOI is a useful supplemental measure of operating performance for a REIT's operating real estate because it makes adjustments to NOI for the above stated items to be more reflective of the economics of when tenant payments are due to us under our leases and the value of our properties. As is the case with NOI, the measure is useful in our opinion in evaluating and comparing the performance of reportable segments, Same Property groupings and individual properties. We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

COPT Defense's share of NOI from unconsolidated real estate JVs
Represents the net of revenues and property operating expenses of real estate operations owned through unconsolidated JVs that are allocable to COPT Defense's ownership interest. This measure is included in the computation of NOI, our segment performance measure, as discussed below.

Diluted adjusted funds from operations available to common share and common unit holders ("Diluted AFFO")
Defined as Diluted FFO, as adjusted for comparability, adjusted for the following: (1) the elimination of the effect of (a) noncash rental revenues and property operating expenses (comprised of straight-line rental adjustments, which includes the amortization of recurring tenant incentives, and amortization of acquisition intangibles included in FFO and NOI, both of which are described under "Cash NOI" above), (b) share-based compensation, net of amounts capitalized, (c) amortization of deferred financing costs, (d) amortization of debt discounts and premiums and (e) amortization of settlements of debt hedges; and (2) replacement capital expenditures (defined below). Diluted AFFO also includes adjustments to Diluted FFO, as adjusted for comparability for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We believe that Diluted AFFO is a useful supplemental measure of operating performance for a REIT because it incorporates adjustments for: certain revenue and expenses that are not associated with cash to or from us during the period; and certain capital expenditures for operating properties incurred during the period that do require cash outlays. We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

Diluted FFO available to common share and common unit holders ("Diluted FFO")
Diluted FFO is Basic FFO adjusted to add back any changes in Basic FFO that would result from the assumed conversion of securities that are convertible or exchangeable into common shares. The computation of Diluted FFO assumes the conversion of common units but does not assume the conversion of other securities that are
convertible into common shares if the conversion of those securities would increase Diluted FFO per share in a given period. We believe that Diluted FFO (which includes discontinued operations, if any) is useful to investors because it is the numerator used to compute Diluted FFO per share, discussed below. We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

Diluted FFO available to common share and common unit holders, as adjusted for comparability ("Diluted FFO, as adjusted for comparability")
Defined as Diluted FFO or FFO adjusted to exclude: operating property acquisition costs; gain or loss on early extinguishment of debt; FFO associated with properties that secured non-recourse debt on which we defaulted and, subsequently, extinguished via conveyance of such properties (including property NOI, interest expense and gains on debt extinguishment); loss on interest rate derivatives; executive transition costs associated with named executive officers; and, for periods prior to 10/1/22, demolition costs on redevelopment and nonrecurring improvements and executive transition costs associated with other senior management team members. Diluted FFO, as adjusted for comparability also includes adjustments to Diluted FFO for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We believe this to be a useful supplemental measure alongside Diluted FFO as it excludes gains and losses from certain investing and financing activities and certain other items that we believe are not closely correlated to (or associated with) our operating performance. We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

Diluted FFO per share
Diluted FFO per share is (1) Diluted FFO divided by (2) the sum of the (a) weighted average common shares outstanding during a period, (b) weighted average common units outstanding during a period and (c) weighted average number of potential additional common shares that would have been outstanding during a period if other securities that are convertible or exchangeable into common shares were converted or exchanged. The computation of Diluted FFO per share assumes the conversion of common units but does not assume the conversion of other securities that are convertible into common shares if the conversion of those securities would increase Diluted FFO per share in a given period. We believe that Diluted FFO per share is useful to investors because it provides investors with a further context for evaluating our FFO results in the same manner that investors use earnings per share ("EPS") in evaluating net income or loss available to common shareholders. We believe that diluted EPS is the most directly comparable GAAP measure to this non-GAAP measure.

Diluted FFO per share, as adjusted for comparability
Defined as (1) Diluted FFO available to common share and common unit holders, as adjusted for comparability divided by (2) the sum of the (a) weighted average common shares outstanding during a period, (b) weighted average common units outstanding during a period and (c) weighted average number of potential additional common shares that would have been outstanding during a period if other securities that are convertible
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2Q 2024 Supplemental Information Package
COPT Defense Properties
Definitions
or exchangeable into common shares were converted or exchanged. The computation of this measure assumes the conversion of common units but does not assume the conversion of other securities that are convertible into common shares if the conversion of those securities would increase the per share measure in a given period. We believe this to be a useful supplemental measure alongside Diluted FFO per share as it excludes gains and losses from investing and financing activities and certain other items that we believe are not closely correlated to (or associated with) our operating performance. We believe that diluted EPS is the most directly comparable GAAP measure to this non-GAAP measure.
Earnings before interest, income taxes, depreciation and amortization for real estate ("EBITDAre")
Defined as net income or loss adjusted for the effects of interest expense, depreciation and amortization, gains on sales and impairment losses of real estate and investments in unconsolidated real estate JVs, and income taxes. EBITDAre also includes adjustments to net income or loss for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. While EBITDA (earnings before interest, taxes, depreciation and amortization) is a universally-defined supplemental measure, EBITDAre incorporates additional adjustments for gains and losses from investing activities related to our investments in operating properties. We believe that EBITDAre is a useful supplemental measure for assessing our un-levered performance. We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

Funds from operations ("FFO" or "FFO per Nareit")
Defined as net income or loss computed using GAAP, excluding gains on sales and impairment losses of real estate and investments in unconsolidated real estate JVs (net of associated income tax) and real estate-related depreciation and amortization. FFO also includes adjustments to net income or loss for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We believe that we use the National Association of Real Estate Investment Trust's ("Nareit") definition of FFO, although others may interpret the definition differently and, accordingly, our presentation of FFO may differ from those of other REITs. We believe that FFO is useful to management and investors as a supplemental measure of operating performance because, by excluding gains on sales and impairment losses of real estate (net of associated income tax) and real estate-related depreciation and amortization, FFO can help one compare our operating performance between periods. We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

Gross debt
Defined as debt reported on our consolidated balance sheet adjusted to exclude net discounts and premiums and deferred financing costs, as further adjusted to include outstanding debt of unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We believe that this measure is useful to investors as it represents
our total outstanding debt, including our share of unconsolidated joint venture debt. We believe that debt reported on our consolidated balance sheet is the most directly comparable GAAP measure to this non-GAAP measure.

In-place adjusted EBITDA
Defined as Adjusted EBITDA, as further adjusted for: (1) certain events occurring in a three month period to reflect Adjusted EBITDA as if the events occurred at the beginning of such period, including: (a) properties acquired, placed in service or expanded upon subsequent to the commencement of a period made in order to reflect a full period of ownership/operations; (b) properties removed from service or in which we disposed of interests; (c) significant mid-period occupancy changes associated with properties recently placed in service as if such occupancy changes occurred at the beginning of such period; and (2) adjustments to deferred rental revenue associated with changes in our assessment of collectability. The measure also includes adjustments for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We believe that the pro forma adjustments described above are consistent with the requirements for preparation of amounts presented on a pro forma basis in accordance with Article 11 of Regulation S-X. We believe that in-place adjusted EBITDA is a useful supplemental measure of performance for assessing our un-levered performance and ability to repay outstanding debt from operations, as further adjusted for changes in operating properties subsequent to the commencement of a quarter and for the other items noted above that we believe are not closely correlated with our operating performance and are not relevant to an investor's evaluation of our ability to repay debt. We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

Net debt
Defined as Gross debt (total outstanding debt reported per our balance sheet as adjusted to exclude net discounts and premiums and deferred financing costs), as adjusted to subtract cash and cash equivalents as of the end of the period. The measure also includes adjustments to Gross debt for the effects of the items noted above pertaining to unconsolidated real estate JVs that were allocable to our ownership interest in the JVs. We use net debt for purposes of calculating our net debt to adjusted book, which we believe is a useful supplemental measure for investors to use in further understanding the relationship of our outstanding debt to our assets available to service such debt. We believe that debt reported on our consolidated balance sheet is the most directly comparable GAAP measure to this non-GAAP measure.

Net debt adjusted for fully-leased development
Defined as Net debt less costs incurred on properties under development that were 100% leased. We believe that this supplemental measure is useful in providing investors the impact to our debt of fully leased properties under development that are not yet contributing to our adjusted EBITDA. We believe that debt reported on our consolidated
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2Q 2024 Supplemental Information Package
COPT Defense Properties
Definitions
balance sheet is the most directly comparable GAAP measure to this non-GAAP measure.
Net debt to Adjusted book
Defined as Net debt divided by Adjusted book (defined above).

Net debt to in-place adjusted EBITDA ratio and Net debt adjusted for fully-leased development to in-place adjusted EBITDA ratio
Defined as Net debt or Net debt adjusted for fully-leased development divided by in-place adjusted EBITDA (defined above) for the three month period that is annualized by multiplying by four.

Net operating income from real estate operations ("NOI")
NOI, which is our segment performance measure, includes: consolidated real estate revenues; consolidated property operating expenses; and the net of revenues and property operating expenses of real estate operations owned through unconsolidated real estate JVs that are allocable to COPT Defense's ownership interest in the JVs. We believe that NOI is an important supplemental measure of operating performance for a REIT's operating real estate because it provides a measure of the core real estate operations that is unaffected by depreciation, amortization, financing and general, administrative and leasing expenses; we believe this measure is particularly useful in evaluating the performance of reportable segments, Same Property groupings and individual properties. We believe that net income or loss is the most directly comparable GAAP measure to this non-GAAP measure.

NOI fixed charge coverage ratio and Adjusted EBITDA fixed charge coverage ratio
These measures divide either NOI from real estate operations or Adjusted EBITDA by the sum of (1) interest expense (excluding amortization of deferred financing costs and amortization of debt discounts and premiums, net of amounts capitalized, and gains or losses on interest rate derivatives), (2) scheduled principal amortization on mortgage loans, (3) capitalized interest, (4) dividends on preferred shares and (5) distributions on preferred units in the Operating Partnership not owned by us.
NOI interest coverage ratio and Adjusted EBITDA interest coverage ratio
These measures divide either NOI from real estate operations or Adjusted EBITDA by interest expense (excluding amortization of deferred financing costs and amortization of debt discounts and premiums, net of amounts capitalized, gains on losses on interest rate derivatives and interest expense on debt in default to be extinguished via conveyance of properties).

Payout ratios based on: Diluted FFO; Diluted FFO, as adjusted for comparability; and Diluted AFFO
These payout ratios are defined as (1) the sum of dividends on common and deferred shares and distributions to holders of interests in the Operating Partnership to the extent they are dilutive in the respective FFO per share numerators divided by (2) the respective non-GAAP measures.

Replacement capital expenditures
Replacement capital expenditures are defined as tenant improvements and incentives, building improvements and leasing costs incurred during the period for operating properties that are not (1) items contemplated prior to the acquisition of a property, (2) improvements associated with the expansion of a building or its improvements, (3) renovations to a building which change the underlying classification of the building (for example, from industrial to office or Class C office to Class B office), (4) capital improvements that represent the addition of something new to the property rather than the replacement of something (for example, the addition of a new heating and air conditioning unit that is not replacing one that was previously there) or (5) replacements of significant components of a building after the building has reached the end of its original useful life. Replacement capital expenditures excludes expenditures of operating properties included in disposition plans during the period that were already sold or are held for future disposition. For cash tenant incentives not due to the tenant for a period exceeding three months past the date on which such incentives were incurred, we recognize such incentives as replacement capital expenditures in the periods such incentives are due to the tenant. Replacement capital expenditures, which is included in the computation of Diluted AFFO, is intended to represent non-transformative capital expenditures of existing properties held for long-term investment. We believe that the excluded expenditures are more closely associated with our investing activities than the performance of our operating portfolio.

Same Property NOI from real estate operations and Same Property cash NOI from real estate operations
Defined as NOI, or Cash NOI, from real estate operations of Same Property groupings. We believe that these are important supplemental measures of Same Property operating performance for the same reasons discussed above for NOI from real estate operations and Cash NOI from real estate operations.
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2Q 2024 Supplemental Information Package
COPT Defense Properties
Definitions
Other Definitions
Acquisition Costs - Transaction costs expensed in connection with executed or anticipated acquisitions of operating properties.
Annualized Rental Revenue ("ARR") - The monthly contractual base rent as of the reporting date (ignoring free rent then in effect and rent associated with tenant funded landlord assets) multiplied by 12, plus the estimated annualized expense reimbursements under existing leases for occupied space. With regard to properties owned through unconsolidated real estate JVs, we include the portion of ARR allocable to COPT Defense's ownership interest. 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.
Average Escalations - Leasing statistic used to report average increase in rental rates over lease terms for leases with a term of greater than one-year.
Cash Rent - Includes monthly contractual base rent (ignoring rent abatements and rent associated with tenant funded landlord assets) multiplied by 12, plus estimated annualized expense reimbursements (average for first 12 months of term for new or renewed leases or as of lease expiration for expiring leases). We believe that cash rent is a useful measure for evaluating the rental rates at the time rent payments commence for our leasing activity, including changes in such rates relative to rates that may have been previously in place.
Committed Cost per Square Foot - Includes tenant improvement allowance (excluding tenant funded landlord assets), leasing commissions and estimated turn key costs and excludes lease incentives. We believe this is a useful measure for evaluating our costs associated with obtaining new leases.
Compound Annual Growth Rate - For renewed space, represents the compound annual growth rate between the first year cash rent of the expired lease and the first year cash rent of the renewal lease.
Debt to Net Income Ratio - Represents debt reported on our consolidated balance sheet divided by net income for the three month period that is annualized by multiplying by four. We do not present this ratio for periods with a net loss.
Defense/IT Portfolio - Represents properties in locations proximate to, or sometimes containing, key U.S. Government ("USG") defense installations and missions.
Development Properties - Properties under, or contractually committed for, development.
Equity Market Capitalization - Defined as the sum of: (1) the product of the closing price of our common shares on the NYSE and the sum of (a) common shares outstanding and (b) common units outstanding; and (2) the liquidation value of preferred shares and preferred units in our operating partnership.
First Generation Space - Newly-developed or redeveloped space that has never been occupied.
Net Income to Interest Expense Ratio - Represents net income reported on our consolidated statements of operations divided by interest expense. We do not present this ratio for periods with a net loss.
Net Income Payout Ratio - Defined as (1) the sum of dividends on common and deferred shares and distributions to holders of interests in the Operating Partnership divided by (2) net income. We do not present this ratio for periods with a net loss.
Operational Space - The portion of a property in operations (excludes portion under development or redevelopment).
Redevelopment Properties - Properties previously in operations on which activities to substantially renovate such properties were underway or approved.
Same Property - Operating properties stably owned and 100% operational since at least 1/1/23.
Second Generation Space - Space leased that has been previously occupied.
Straight-line Rent - Includes annual minimum base rents, net of abatements and lease incentives and excluding rent associated with tenant funded landlord assets, on a straight-line basis over the term of the lease, and estimated annual expense reimbursements (as of lease commencement for new or renewed leases or as of lease expiration for expiring leases). We believe that straight-line rent is a useful measures for evaluating the rental rates over the related lease terms for our leasing activity, including changes in such rates relative to rates that may have been previously in place.
Total Market Capitalization - Defined as the sum of: (1) consolidated outstanding debt, excluding discounts, premiums and deferred financing costs; (2) the product of the closing price of our common shares on the NYSE and the sum of (a) common shares outstanding and (b) common units outstanding; and (3) the liquidation value of preferred shares and preferred units in our operating partnership.
Total Portfolio - Operating properties, including ones owned through unconsolidated real estate JVs.
Vacancy Leasing Activity Ratio - Square footage associated with prospective tenants for vacant square feet in service divided by total vacant square feet in service.
Vacant Space Leased - Includes acquired first generation space, vacated second generation space and leases executed on developed and redeveloped space previously placed in service.
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2Q 2024 Supplemental Information Package
NEWS RELEASE
IR Contacts:
Venkat Kommineni, CFA Michelle Layne
443.285.5587 443.285.5452
[email protected] [email protected]

COPT Defense Reports Strong Second Quarter 2024 Results
_______________________________________________________________

EPS of $0.31
FFO per Share, as Adjusted for Comparability, of $0.64
1-cent above the Midpoint of Guidance

Increased Midpoint of 2024 FFO per Share Guidance by 2-cents to $2.56
Implies 5.8% FFO per Share Growth for the Year

Defense/IT Portfolio 95.5% Occupied and 96.7% Leased

Same Property Cash NOI Increased 10.9% in 2Q24 and 8.5% Year-to-Date
Raised Midpoint of Same Property Cash NOI Guidance for the Year by 150 Basis Points to 8.0%
Raised Midpoint of Same Property Year-End 2024 Occupancy Guidance by 25 Basis Points to 93.75%

959,000 SF of Active Developments are 74% Leased
_______________________________________________________________

Strong Leasing in 1H24; Well Positioned to Achieve 2024 Goals
Total Leasing of 1.0 million SF in 2Q24 and 1.7 million SF Year-to-Date

104,000 SF in 2Q24 and 264,000 SF Year-to-Date of Vacancy Leasing
On Track to Achieve or Exceed Annual Target of 400,000SF

Tenant Retention of 86% in 2Q24 and 83% Year-to-Date
Raised Midpoint of Guidance for the Year by 250 Basis Points to 82.5%

_______________________________________________________________

COLUMBIA, MD (BUSINESS WIRE) July 29, 2024 - COPT Defense Properties ("COPT Defense" or the "Company") (NYSE: CDP) announced results for the second quarter ended June 30, 2024.


i
Management Comments

Stephen E. Budorick, COPT Defense's President & Chief Executive Officer, commented, "Our Defense/IT investment strategy, which concentrates our portfolio near priority U.S. defense installations, continued to generate strong results during the second quarter, with FFO per share exceeding the midpoint of our guidance range. Based on this outperformance, and our forecast for the remainder of the year, we increased the midpoint of 2024 FFO per share guidance by $0.02 to $2.56, which implies nearly 6% year-over-year growth. This marks our second increase for the year and a total of $0.05 of outperformance compared to our initial guidance. The growth off the midpoint of our 2024 FFO per share guidance is one of the highest growth rates in the Nareit-defined Office REIT sector, and ranks in the 75th percentile for the entire REIT sector.

We are exceeding our plan in several areas and raised 2024 guidance on a group of key metrics. We increased the midpoint of 2024 guidance for same property cash NOI growth by 150 basis points to 8%, increased same property year-end occupancy by 25 basis points to 93.75%, and increased tenant retention by 250 basis points to 82.5%.

During the quarter, the year-over-year increase in same property cash NOI for our Total Portfolio was the highest level in over a decade, while the increase in our Defense/IT Portfolio was the highest level since we began reporting the segment.

Taken together, our solid performance during the first half of 2024, coupled with our strong full year outlook, illustrates the strength of demand we are seeing in our portfolio for tenants serving priority defense missions. Looking forward, we continue to anticipate compound annual FFO per share growth of at least 4% between 2023 and 2026."

Financial Highlights

2nd Quarter Financial Results:
>Diluted earnings per share ("EPS") was $0.31 for the quarter ended June 30, 2024, compared to $0.27 for the quarter ended June 30, 2023.

>Diluted funds from operations per share ("FFOPS"), as calculated in accordance with Nareit's definition and as adjusted for comparability, was $0.64 for the quarter ended June 30, 2024, compared to $0.60 for the quarter ended June 30, 2023.

Operating Performance Highlights

Operating Portfolio Summary:
>At June 30, 2024, the Company's 24.1 million square foot Total Portfolio was 93.6% occupied and 94.9% leased, which includes the 22.0 million square foot Defense/IT Portfolio that was 95.5% occupied and 96.7% leased.

Same Property Performance:
>At June 30, 2024, the Company's 22.2 million square foot same property portfolio was 93.5% occupied and 95.0% leased.

>The Company's same property cash NOI increased 10.9% for the three months ended June 30, 2024 compared to the same period in 2023.

Leasing:
>Total Square Feet Leased: For the quarter ended June 30, 2024, the Company leased 985,000 square feet, including 881,000 square feet of renewals and 104,000 square feet of vacancy leasing. For the six months

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ended June 30, 2024, the Company executed 1.7 million square feet of total leasing, including 1.4 million square feet of renewals, 264,000 square feet of vacancy leasing, and 10,000 square feet in development projects.

>Tenant Retention Rates: During the quarter ended June 30, 2024, the Company renewed 86.3% of expiring square feet in its Total Portfolio and 87.4% in its Defense/IT Portfolio. During the six months ended June 30, 2024, the Company renewed 82.9% of expiring square feet in its Total Portfolio and 85.7% in its Defense/IT Portfolio.

>Rent Spreads & Average Escalations on Renewing Leases: For the quarter and six months ended June 30, 2024, straight-line rents on renewals increased 7.7% and 6.4%, respectively, and cash rents on renewed space increased 0.6% and decreased 0.4%, respectively, while annual escalations on renewing leases averaged 2.2% and 2.3%, respectively.

>Lease Terms: In the quarter ended June 30, 2024, lease terms averaged 3.9 years on renewing leases and 8.1 years on vacancy leasing. For the six months ended June 30, 2024, lease terms averaged 4.0 years on renewing leases, 8.2 years on vacancy leasing, and 5.3 years on development leasing.

Investment Activity Highlights
>Development Pipeline: The Company's development pipeline consists of six properties totaling 959,000 square feet that were 74% leased as of June 30, 2024. These projects represent a total estimated investment of $381.4 million, of which $119.0 million has been spent.

Balance Sheet and Capital Transaction Highlights
>For the quarter ended June 30, 2024, the Company's adjusted EBITDA fixed charge coverage ratio was 4.7x.

>At June 30, 2024, the Company's net debt to in-place adjusted EBITDA ratio was 6.0x and its net debt adjusted for fully-leased development to in-place adjusted EBITDA ratio was 5.9x.

>At June 30, 2024, and including the effect of interest rate swaps, the Company's weighted average effective interest rate on its consolidated debt portfolio was 3.3% with a weighted average maturity of 5.2 years, and 100% of the Company's debt was subject to fixed interest rates.

Associated Supplemental Presentation
Prior to the call, the Company will post a slide presentation to accompany management's prepared remarks for its second quarter 2024 conference call; the presentation can be viewed and downloaded from the 'Financial Info - Financial Results' section of COPT Defense's Investors website: https://investors.copt.com/financial-information/financial-results


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2024 Guidance
Management is revising its full-year guidance for diluted EPS and diluted FFOPS, per Nareit and as adjusted for comparability, from the prior range of $1.19-$1.25, and $2.51-$2.57, respectively, to new ranges of $1.22-$1.26, and $2.54-$2.58, respectively. Management is establishing third quarter guidance for diluted EPS and diluted FFOPS per Nareit and as adjusted for comparability at $0.30-$0.32 and $0.63-$0.65, respectively. Reconciliations of projected diluted EPS to projected diluted FFOPS, in accordance with Nareit and as adjusted for comparability are as follows:

Reconciliation of Diluted EPS to FFOPS, per Nareit,
and As Adjusted for Comparability
Quarter Ending September 30, 2024
Year Ending December 31, 2024
Low High Low High
Diluted EPS $ 0.30 $ 0.32 $ 1.22 $ 1.26
Real estate-related depreciation and amortization 0.33 0.33 1.32 1.32
Diluted FFOPS, Nareit definition and as adjusted for comparability $ 0.63 $ 0.65 $ 2.54 $ 2.58

Conference Call Information
Management will discuss second quarter 2024 results on its conference call tomorrow at 12:00 p.m. Eastern Time, details of which are listed below:

Conference Call Date: Tuesday, July 30, 2024
Time: 12:00 p.m. Eastern Time

Participants must register for the conference call at the link below to receive the dial-in number and personal pin. Registering only takes a few moments and provides direct access to the conference call without waiting for an operator. You may register at any time, including up to and after the call start time:
https://register.vevent.com/register/BI51bd912e5a264e098e9d8c72a60cdb2c

The conference call will also be available via live webcast in the 'News & Events - IR Calendar' section of COPT Defense's Investors website: https://investors.copt.com/news-events/ir-calendar

Replay Information
A replay of the conference call will be immediately available via webcast only on COPT Defense's Investors website and will be maintained on the website for approximately 90 days after the conference call.

Definitions
For definitions of certain terms used in this press release, please refer to the information furnished in the Company's Supplemental Information Package furnished on a Form 8-K which can be found on its website (www.copt.com). Reconciliations of non-GAAP measures to the most directly comparable GAAP measures are included in the attached tables.

About COPT Defense
COPT Defense, an S&P MidCap 400 Company, is a self-managed REIT focused on owning, operating and developing properties in locations proximate to, or sometimes containing, key U.S. Government ("USG") defense installations and missions (referred to as its Defense/IT Portfolio). The Company's tenants include the USG and their defense contractors, who are primarily engaged in priority national security activities, and who generally require mission-critical and high security property enhancements. As of June 30, 2024, the Company's Defense/IT Portfolio of 193 properties, including 24 owned through unconsolidated joint ventures, encompassed 22.0 million square feet and was 96.7% leased.


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Forward-Looking Information
This press release may contain "forward-looking" statements, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that are based on the Company's current expectations, estimates and projections about future events and financial trends affecting the Company. 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 the Company cannot predict with accuracy and some of which the Company might not even anticipate. Although the Company believes that the expectations, estimates and projections reflected in such forward-looking statements are based on reasonable assumptions at the time made, the Company 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 and the Company undertakes no obligation to update or supplement any forward-looking statements.

The areas of risk that may affect these expectations, estimates and projections include, but are not limited to, those risks described in Item 1A of the Company's Annual Report on Form 10-K for the year ended December 31, 2023.

v

COPT Defense Properties
Summary Financial Data
(unaudited)
(dollars and shares in thousands, except per share data)
For the Three Months Ended June 30, For the Six Months Ended June 30,
2024 2023 2024 2023
Revenues
Lease revenue $ 165,619 $ 153,682 $ 331,052 $ 304,242
Other property revenue 1,466 1,271 2,696 2,392
Construction contract and other service revenues 20,258 14,243 46,861 30,063
Total revenues 187,343 169,196 380,609 336,697
Operating expenses
Property operating expenses 63,410 61,600 130,156 121,020
Depreciation and amortization associated with real estate operations 38,161 37,600 76,512 74,595
Construction contract and other service expenses 19,612 13,555 45,619 28,756
General and administrative expenses 8,591 7,287 16,969 15,283
Leasing expenses 2,462 2,345 4,649 4,344
Business development expenses and land carry costs 979 726 2,161 1,221
Total operating expenses 133,215 123,113 276,066 245,219
Interest expense (20,617) (16,519) (41,384) (32,961)
Interest and other income, net 2,884 2,143 7,006 4,399
Gain on sales of real estate - 14 - 49,392
Income before equity in income of unconsolidated entities and income taxes 36,395 31,721 70,165 112,308
Equity in income of unconsolidated entities 26 111 95 47
Income tax expense (14) (190) (182) (315)
Net income 36,407 31,642 70,078 112,040
Net income attributable to noncontrolling interests:
Common units in the Operating Partnership ("OP") (694) (516) (1,302) (1,809)
Other consolidated entities (599) (839) (1,053) (1,165)
Net income attributable to common shareholders $ 35,114 $ 30,287 $ 67,723 $ 109,066
Earnings per share ("EPS") computation:
Numerator for diluted EPS:
Net income attributable to common shareholders $ 35,114 $ 30,287 $ 67,723 $ 109,066
Amount allocable to share-based compensation awards (92) (98) (215) (349)
Redeemable noncontrolling interests - (51) - (115)
Numerator for diluted EPS $ 35,022 $ 30,138 $ 67,508 $ 108,602
Denominator:
Weighted average common shares - basic 112,293 112,188 112,261 112,157
Dilutive effect of share-based compensation awards 492 426 501 418
Dilutive effect of redeemable noncontrolling interests - 62 - 77
Weighted average common shares - diluted 112,785 112,676 112,762 112,652
Diluted EPS $ 0.31 $ 0.27 $ 0.60 $ 0.96
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COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands, except per share data)
For the Three Months Ended June 30, For the Six Months Ended June 30,
2024 2023 2024 2023
Net income $ 36,407 $ 31,642 $ 70,078 $ 112,040
Real estate-related depreciation and amortization 38,161 37,600 76,512 74,595
Gain on sales of real estate - (14) - (49,392)
Depreciation and amortization on unconsolidated real estate JVs 778 805 1,555 1,606
Funds from operations ("FFO") 75,346 70,033 148,145 138,849
FFO allocable to other noncontrolling interests (984) (1,239) (1,820) (1,947)
Basic FFO allocable to share-based compensation awards (599) (480) (1,186) (946)
Basic FFO available to common share and common unit holders ("Basic FFO") 73,763 68,314 145,139 135,956
Redeemable noncontrolling interests 471 (28) 940 (58)
Diluted FFO adjustments allocable to share-based compensation awards 46 37 94 76
Diluted FFO available to common share and common unit holders ("Diluted FFO") 74,280 68,323 146,173 135,974
Executive transition costs 81 248 158 248
Diluted FFO comparability adjustments allocable to share-based compensation awards (1) (2) (1) (2)
Diluted FFO available to common share and common unit holders, as adjusted for comparability 74,360 68,569 146,330 136,220
Straight line rent adjustments and lease incentive amortization 3,788 (3,161) 7,261 (6,677)
Amortization of intangibles and other assets included in net operating income ("NOI") 211 17 333 (2)
Share-based compensation, net of amounts capitalized 2,564 2,213 5,209 3,946
Amortization of deferred financing costs 681 628 1,366 1,260
Amortization of net debt discounts, net of amounts capitalized 1,023 622 2,037 1,240
Replacement capital expenditures (21,250) (22,664) (42,026) (50,874)
Other 58 (221) 195 (494)
Diluted adjusted funds from operations available to common share and common unit holders ("Diluted AFFO") $ 61,435 $ 46,003 $ 120,705 $ 84,619
Diluted FFO per share $ 0.64 $ 0.60 $ 1.27 $ 1.19
Diluted FFO per share, as adjusted for comparability $ 0.64 $ 0.60 $ 1.27 $ 1.19
Dividends/distributions per common share/unit $ 0.295 $ 0.285 $ 0.59 $ 0.57

vii

COPT Defense Properties
Summary Financial Data
(unaudited)
(Dollars and shares in thousands, except per share data)
June 30,
2024 		December 31,
2023
Balance Sheet Data
Properties, net of accumulated depreciation $ 3,535,593 $ 3,503,678
Total assets $ 4,219,338 $ 4,246,966
Debt per balance sheet $ 2,389,925 $ 2,416,287
Total liabilities $ 2,666,067 $ 2,699,631
Redeemable noncontrolling interests $ 22,765 $ 23,580
Total equity $ 1,530,506 $ 1,523,755
Debt to assets 56.6 % 56.9 %
Net debt to adjusted book 40.5 % 40.6 %
Defense/IT Portfolio Data (as of period end)
Number of operating properties 193 190
Total operational square feet (in thousands) 21,993 21,719
% Occupied 95.5 % 96.2 %
% Leased 96.7 % 97.2 %
For the Three Months Ended June 30, For the Six Months Ended June 30,
2024 2023 2024 2023
GAAP
Payout ratio:
Net income 93.1 % 103.1 % 96.8 % 58.3 %
Debt ratios:
Net income to interest expense ratio 1.8 x 1.9 x 1.7 x 3.4 x
Debt to net income ratio 16.4 x 17.2 x N/A N/A
Non-GAAP
Payout ratios:
Diluted FFO 45.3 % 47.5 % 46.0 % 47.7 %
Diluted FFO, as adjusted for comparability 45.3 % 47.3 % 46.0 % 47.6 %
Diluted AFFO 54.8 % 70.5 % 55.8 % 76.6 %
Debt ratios:
Adjusted EBITDA fixed charge coverage ratio 4.7 x 4.9 x 4.6 x 5.0 x
Net debt to in-place adjusted EBITDA ratio 6.0 x 6.3 x N/A N/A
Net debt adj. for fully-leased development to in-place adj. EBITDA ratio 5.9 x 5.7 x N/A N/A
Reconciliation of denominators for per share measures
Denominator for diluted EPS 112,785 112,676 112,762 112,652
Weighted average common units 1,703 1,514 1,664 1,502
Redeemable noncontrolling interests 926 - 937 -
Denominator for diluted FFO per share and as adjusted for comparability 115,414 114,190 115,363 114,154

viii

COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)
For the Three Months Ended June 30, For the Six Months Ended June 30,
2024 2023 2024 2023
Numerators for Payout Ratios
Dividends on unrestricted common and deferred shares $ 33,153 $ 31,995 $ 66,296 $ 63,984
Distributions on unrestricted common units 505 433 1,005 863
Dividends and distributions on restricted shares and units 238 204 505 419
Total dividends and distributions for GAAP payout ratio 33,896 32,632 67,806 65,266
Dividends and distributions on antidilutive shares and units (241) (205) (507) (421)
Dividends and distributions for non-GAAP payout ratios $ 33,655 $ 32,427 $ 67,299 $ 64,845
Reconciliation of net income to earnings before interest, income taxes, depreciation and amortization for real estate ("EBITDAre"), adjusted EBITDA and in-place adjusted EBITDA
Net income $ 36,407 $ 31,642 $ 70,078 $ 112,040
Interest expense 20,617 16,519 41,384 32,961
Income tax expense 14 190 182 315
Real estate-related depreciation and amortization 38,161 37,600 76,512 74,595
Other depreciation and amortization 564 609 1,172 1,211
Gain on sales of real estate - (14) - (49,392)
Adjustments from unconsolidated real estate JVs 1,709 1,559 3,380 3,263
EBITDAre 97,472 88,105 192,708 174,993
Credit loss expense 436 238 458 305
Business development expenses 603 394 1,233 635
Executive transition costs 81 307 511 554
Net gain on other investments - - (477) -
Adjusted EBITDA 98,592 89,044 $ 194,433 $ 176,487
Pro forma NOI adjustment for property changes within period - 56
Change in collectability of deferred rental revenue 27 28
In-place adjusted EBITDA $ 98,619 $ 89,128
Reconciliations of tenant improvements and incentives, building improvements and leasing costs for operating properties to replacement capital expenditures
Tenant improvements and incentives $ 15,045 $ 32,619 $ 27,821 $ 52,605
Building improvements 5,705 2,766 10,658 4,907
Leasing costs 3,110 3,542 6,700 5,292
Net exclusions from tenant improvements and incentives (1,040) (16,007) (724) (11,168)
Excluded building improvements and leasing costs (1,570) (256) (2,429) (762)
Replacement capital expenditures $ 21,250 $ 22,664 $ 42,026 $ 50,874
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COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)
For the Three Months Ended June 30, For the Six Months Ended June 30,
2024 2023 2024 2023
Reconciliation of interest expense to the denominator for fixed charge coverage-Adjusted EBITDA
Interest expense $ 20,617 $ 16,519 $ 41,384 $ 32,961
Less: Amortization of deferred financing costs (681) (628) (1,366) (1,260)
Less: Amortization of net debt discounts, net of amounts capitalized (1,023) (622) (2,037) (1,240)
COPT Defense's share of interest expense of unconsolidated real estate JVs, excluding amortization of deferred financing costs and net debt premium and gain or loss on interest rate derivatives 808 791 1,612 1,564
Scheduled principal amortization 662 746 1,431 1,536
Capitalized interest 643 1,194 1,232 1,964
Denominator for fixed charge coverage-Adjusted EBITDA $ 21,026 $ 18,000 $ 42,256 $ 35,525
Reconciliation of net income to NOI from real estate operations, same property NOI from real estate operations and same property cash NOI from real estate operations
Net income $ 36,407 $ 31,642 $ 70,078 $ 112,040
Construction contract and other service revenues (20,258) (14,243) (46,861) (30,063)
Depreciation and other amortization associated with real estate operations 38,161 37,600 76,512 74,595
Construction contract and other service expenses 19,612 13,555 45,619 28,756
General and administrative expenses 8,591 7,287 16,969 15,283
Leasing expenses 2,462 2,345 4,649 4,344
Business development expenses and land carry costs 979 726 2,161 1,221
Interest expense 20,617 16,519 41,384 32,961
Interest and other income, net (2,884) (2,143) (7,006) (4,399)
Gain on sales of real estate - (14) - (49,392)
Equity in income of unconsolidated entities (26) (111) (95) (47)
Unconsolidated real estate JVs NOI allocable to COPT Defense included in equity in income of unconsolidated entities 1,735 1,671 3,475 3,313
Income tax expense 14 190 182 315
NOI from real estate operations 105,410 95,024 207,067 188,927
Non-Same Property NOI from real estate operations (6,738) (801) (12,992) (1,981)
Same Property NOI from real estate operations 98,672 94,223 194,075 186,946
Straight line rent adjustments and lease incentive amortization 2,501 (2,696) 7,868 (6,266)
Amortization of acquired above- and below-market rents (69) (129) (138) (295)
Lease termination fees, net (881) (1,059) (1,656) (2,280)
Tenant funded landlord assets and lease incentives (2,498) (2,213) (10,688) (3,435)
Cash NOI adjustments in unconsolidated real estate JVs (111) (137) (228) (290)
Same Property Cash NOI from real estate operations $ 97,614 $ 87,989 $ 189,233 $ 174,380

x

COPT Defense Properties
Summary Financial Data
(unaudited)
(in thousands)
June 30,
2024 		December 31,
2023
Reconciliation of total assets to adjusted book
Total assets $ 4,219,338 $ 4,246,966
Accumulated depreciation 1,468,595 1,400,162
Accumulated amortization of intangibles on property acquisitions and deferred leasing costs 226,739 228,484
COPT Defense's share of liabilities of unconsolidated real estate JVs 60,922 60,583
COPT Defense's share of accumulated depreciation and amortization of unconsolidated real estate JVs 11,199 9,528
Less: Property - operating lease liabilities (33,818) (33,931)
Less: Property - finance lease liabilities (403) (415)
Less: Cash and cash equivalents (100,443) (167,820)
Less: COPT Defense's share of cash of unconsolidated real estate JVs (1,278) (852)
Adjusted book $ 5,850,851 $ 5,742,705

June 30,
2024 		December 31,
2023 		June 30,
2023
Reconciliation of debt to net debt and net debt adjusted for fully-leased development
Debt per balance sheet $ 2,389,925 $ 2,416,287 $ 2,176,174
Net discounts and deferred financing costs 25,995 28,713 21,342
COPT Defense's share of unconsolidated JV gross debt 52,981 52,613 52,364
Gross debt 2,468,901 2,497,613 2,249,880
Less: Cash and cash equivalents (100,443) (167,820) (14,273)
Less: COPT Defense's share of cash of unconsolidated real estate JVs (1,278) (852) (974)
Net debt 2,367,180 2,328,941 2,234,633
Costs incurred on fully-leased development properties (56,646) (53,914) (189,407)
Net debt adjusted for fully-leased development $ 2,310,534 $ 2,275,027 $ 2,045,226
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