COPT Defense Properties Files 2023 10-K

TL;DR

<b>COPT Defense Properties filed its 2023 10-K report on February 22, 2024.</b>

AI Summary

COPT DEFENSE PROPERTIES (CDP) filed a Annual Report (10-K) with the SEC on February 22, 2024. Filed 10-K for the fiscal year ended December 31, 2023. Company is COPT Defense Properties, ticker CDP. Filed on February 22, 2024. Principal business address: 6711 Columbia Gateway Drive, Suite 300, Columbia, MD 21046. Incorporated in Maryland.

Why It Matters

For investors and stakeholders tracking COPT DEFENSE PROPERTIES, this filing contains several important signals. This filing provides a comprehensive overview of the company's financial performance and operations for the fiscal year 2023. Investors and analysts can use this report to assess the company's financial health, strategic direction, and potential risks.

Risk Assessment

Risk Level: — COPT DEFENSE PROPERTIES shows moderate risk based on this filing. The filing is a standard 10-K, which is a routine annual report. Specific risks are detailed within the filing itself, but the filing type itself does not indicate elevated risk.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand COPT Defense Properties' performance and outlook.

Key Numbers

• 2023-12-31 — Fiscal Year End (Report period)
• 2024-02-22 — Filing Date (Date of submission)
• 131 — Public Document Count (Number of documents in the filing)

Key Players & Entities

• COPT Defense Properties (company) — Filer name
• CDP (company) — Ticker symbol
• 2023-12-31 (date) — Fiscal year end
• 2024-02-22 (date) — Filing date
• 6711 Columbia Gateway Drive, Suite 300, Columbia, MD 21046 (address) — Business address
• Maryland (location) — State of incorporation

FAQ

Industry Context

COPT Defense Properties operates as a Real Estate Investment Trust (REIT) within the real estate sector, focusing on properties related to defense and government contractors.

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to submit annual reports detailing their financial condition and operations.

What Investors Should Do

1. Analyze the financial statements for revenue, net income, and asset/liability details.
2. Examine the risk factors section for potential challenges and mitigation strategies.
3. Review management's discussion and analysis (MD&A) for insights into operational performance and future outlook.

Key Dates

• 2023-12-31: Fiscal Year End — Defines the period covered by the annual report.
• 2024-02-22: Filing Date — Date the 10-K was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial 10-K filing provided for analysis. No prior filing data is available for comparison.

Key Financial Figures

• $0.01 — Common Shares of beneficial interest, $0.01 par value CDP New York Stock Exchange

Filing Documents

• ofc-20231231.htm (10-K) — 4055KB
• cdp12312023ex1041.htm (EX-10.4(1)) — 78KB
• cdp12312023ex109.htm (EX-10.9) — 56KB
• cdp12312023ex211.htm (EX-21.1) — 107KB
• cdp12312023ex221.htm (EX-22.1) — 4KB
• cdp12312023ex231.htm (EX-23.1) — 2KB
• cdp12312023ex311.htm (EX-31.1) — 11KB
• cdp12312023ex312.htm (EX-31.2) — 11KB
• cdp12312023ex321.htm (EX-32.1) — 5KB
• cdp12312023ex322.htm (EX-32.2) — 5KB
• cdp12312023ex971.htm (EX-97.1) — 29KB
• newcoptlogohorizontaljpg.jpg (GRAPHIC) — 8KB
• ofc-20231231_g1.jpg (GRAPHIC) — 23KB
• ofc-20231231_g2.jpg (GRAPHIC) — 132KB
• 0000860546-24-000013.txt (&nbsp;) — 22128KB
• ofc-20231231.xsd (EX-101.SCH) — 154KB
• ofc-20231231_cal.xml (EX-101.CAL) — 155KB
• ofc-20231231_def.xml (EX-101.DEF) — 698KB
• ofc-20231231_lab.xml (EX-101.LAB) — 1623KB
• ofc-20231231_pre.xml (EX-101.PRE) — 1029KB
• ofc-20231231_htm.xml (XML) — 4202KB

BUSINESS

BUSINESS 5 ITEM 1A.

RISK FACTORS

RISK FACTORS 9 ITEM 1B. UNRESOLVED STAFF COMMENTS 17 ITEM 1C . CYBERSECURITY 17 ITEM 2.

PROPERTIES

PROPERTIES 19 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 21 ITEM 4. MINE SAFETY DISCLOSURES 21 PART II ITEM 5. MARKET FOR REGISTRANT ' S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 22 ITEM 6. [RESERVED] 23 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 24 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 41 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 41 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 41 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 41 ITEM 9B. OTHER INFORMATION 42 ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 42 PART III ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 42 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 42 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 42 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 42 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 42 PART IV ITEM 15. EXHIBIT AND FINANCIAL STATEMENT SCHEDULES 42 ITEM 16. FORM 10-K SUMMARY 44

Forward-Looking Statements

Forward-Looking Statements This Form 10-K contains "forward-looking" statements, as defined in the Private Securities Litigation Reform Act of 1995, that are based on our current expectations, estimates and projections about future events and financial trends affecting the financial condition and operations of our business. Additionally, documents we subsequently file with the SEC and incorporated by reference will contain forward-looking statements. 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. We caution readers that forward-looking statements reflect our opinion only as of the date on which they were made. You should not place undue reliance on forward-looking statements. The following factors, among others, could cause actual results and future events to differ materially from those set forth or contemplated in the forward-looking statements: > general economic and business conditions, which will, among other things, affect office property and data center demand and rents, tenant creditworthiness, interest rates, financing availability, property operating and construction costs, and property values; > adverse changes in the real estate markets, including, among other things, increased competition with other companies; > our ability to borrow on favorable terms; > risks of p

Business

Item 1. Business General COPT Defense Properties ("COPT Defense") and subsidiaries (collectively, the "Company", "we" or "us") is a fully-integrated and 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. In September 2023, we changed our name from Corporate Office Properties Trust to COPT Defense Properties to better describe our investment strategy's focus on locations serving our country's priority defense activities. As of December 31, 2023, our Defense/IT Portfolio included: > 190 operating properties totaling 21.7 million square feet comprised of 16.0 million square feet in 160 office properties and 5.7 million square feet in 30 single-tenant data center shells. We owned 24 of these data center shells through unconsolidated real estate joint ventures; > five properties under development (two office properties and three data center shells) that will total approximately 817,000 square feet upon completion; and > approximately 660 acres of land controlled that we believe could be developed into approximately 7.9 million square feet. We also owned eight other operating properties totaling 2.1 million square feet and approximately 50 acres of other developable land in the Greater Washington, DC/Baltimore region as of December 31, 2023. We conduct almost all of our operations and own almost all of our assets through our operating partnership, COPT Defense Properties, L.P. ("CDPLP") and subsidiaries (collectively, the "Operating Partnership"), of which COPT Defense is the sole general partner. CDPLP owns real estate directly and

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View this 10-K filing on SEC EDGAR