(CDP) COPT Defense Properties - Ratings and Ratios

COPT Defense Properties (NYSE:CDP), an S&P MidCap 400 constituent, operates as a self-managed REIT specializing in the ownership, operation, and development of properties strategically located near key U.S. Government defense installations and missions. These properties, categorized under the Defense/IT Portfolio, are often mission-critical and require high-security enhancements. As of September 30, 2024, the portfolio comprised 194 properties, including 24 held through unconsolidated joint ventures, totaling 22.2 million square feet with a 96.5% occupancy rate. Tenants primarily include the U.S. Government and its defense contractors engaged in priority national security activities, such as cybersecurity, intelligence, and advanced defense technologies.

The companys focus on proximity to defense installations positions it to benefit from long-term, stable cash flows due to the critical nature of its tenants operations. Properties are often customized to meet stringent security requirements, enhancing their value to tenants. COPTs portfolio is concentrated in regions with high demand for defense-related real estate, ensuring a steady tenant base.