COPT Defense Properties Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>COPT Defense Properties filed its Q1 2024 10-Q, detailing financial performance and corporate structure.</b>

AI Summary

COPT DEFENSE PROPERTIES (CDP) filed a Quarterly Report (10-Q) with the SEC on May 1, 2024. COPT Defense Properties (CDP) filed a 10-Q report for the period ending March 31, 2024. The filing covers the first quarter of 2024. The company's principal business address is 6711 Columbia Gateway Drive, Suite 300, Columbia, MD 21046. The company was formerly known as Corporate Office Properties Trust. The filing includes financial data related to common stock, additional paid-in capital, and accumulated distributions.

Why It Matters

For investors and stakeholders tracking COPT DEFENSE PROPERTIES, this filing contains several important signals. This 10-Q provides investors with an update on the company's financial health and operational status for the first quarter of 2024. Understanding the details within this filing is crucial for assessing CDP's current market position and future prospects in the real estate investment trust sector.

Risk Assessment

Risk Level: medium — COPT DEFENSE PROPERTIES shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q) which typically contains detailed financial information but may not include significant new strategic developments or material changes that would drastically alter the risk profile.

Analyst Insight

Review the detailed financial statements and segment information within the 10-Q to understand revenue trends, asset allocation, and any changes in debt levels.

Key Numbers

• 2024-03-31 — Period of Report (Quarterly report end date)
• 2024-05-01 — Filed As Of Date (Date the report was filed)
• 6798 — Standard Industrial Classification (Industry code for Real Estate Investment Trusts)
• 232947217 — IRS Number (Company's IRS identification number)
• MD — State of Incorporation (State where the company is incorporated)
• 1231 — Fiscal Year End (Month and day the company's fiscal year ends)

Key Players & Entities

• COPT DEFENSE PROPERTIES (company) — Filer name
• CDP (company) — Ticker symbol
• 2024-03-31 (date) — Period of report
• 2024-05-01 (date) — Filed as of date
• 6711 COLUMBIA GATEWAY DRIVE SUITE 300 COLUMBIA MD 21046 (address) — Business address
• Corporate Office Properties Trust (company) — Former company name

FAQ

Industry Context

COPT Defense Properties operates as a Real Estate Investment Trust (REIT) primarily focused on defense and intelligence community tenants.

Regulatory Implications

As a publicly traded company, COPT Defense Properties is subject to SEC regulations and reporting requirements, including the filing of quarterly 10-Q reports.

What Investors Should Do

1. Analyze the balance sheet and income statement for Q1 2024.
2. Review any disclosures regarding property portfolio performance and tenant occupancy.
3. Compare key financial metrics to previous quarters and the same quarter in the prior year, if available in the full filing.

Year-Over-Year Comparison

This filing is a standard 10-Q for the first quarter of 2024, providing an update on the company's financial position and operations.

Key Financial Figures

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

Filing Documents

• ofc-20240331.htm (10-Q) — 1522KB
• cdp03312024ex101.htm (EX-10.1) — 86KB
• cdp03312024ex311.htm (EX-31.1) — 11KB
• cdp03312024ex312.htm (EX-31.2) — 11KB
• cdp03312024ex321.htm (EX-32.1) — 5KB
• cdp03312024ex322.htm (EX-32.2) — 5KB
• ofc-20240331_g1.jpg (GRAPHIC) — 18KB
• 0000860546-24-000039.txt (&nbsp;) — 10359KB
• ofc-20240331.xsd (EX-101.SCH) — 85KB
• ofc-20240331_cal.xml (EX-101.CAL) — 111KB
• ofc-20240331_def.xml (EX-101.DEF) — 392KB
• ofc-20240331_lab.xml (EX-101.LAB) — 900KB
• ofc-20240331_pre.xml (EX-101.PRE) — 637KB
• ofc-20240331_htm.xml (XML) — 1782KB

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION Item 1:

Financial Statements

Financial Statements Consolidated Financial Statements Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023 (unaudited) 3 Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023 (unaudited) 4 Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2024 and 2023 (unaudited) 5 Consolidated Statements of Equity for the Three Months Ended March 31, 2024 and 2023 (unaudited) 6 Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 (unaudited) 7

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 9 Item 2:

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 28 Item 3:

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 37 Item 4:

Controls and Procedures

Controls and Procedures 38

: OTHER INFORMATION

PART II: OTHER INFORMATION Item 1:

Legal Proceedings

Legal Proceedings 38 Item 1A:

Risk Factors

Risk Factors 38 Item 2: Unregistered Sales of Equity Securities and Use of Proceeds 38 Item 3: Defaults Upon Senior Securities 38 Item 4: Mine Safety Disclosures 38 Item 5: Other Information 38 Item 6: Exhibits 39

: FINANCIAL INFORMATION

PART I: FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements COPT Defense Properties and Subsidiaries Consolidated Balance Sheets (in thousands, except share data) (unaudited) March 31, 2024 December 31, 2023 Assets Properties, net: Operating properties, net $ 3,272,452 $ 3,246,806 Projects in development or held for future development 245,426 256,872 Total properties, net 3,517,878 3,503,678 Property - operating right-of-use assets 40,368 41,296 Cash and cash equivalents 123,144 167,820 Investment in unconsolidated real estate joint ventures 40,597 41,052 Accounts receivable, net 50,088 48,946 Deferred rent receivable 153,788 149,237 Lease incentives, net 61,150 61,331 Deferred leasing costs (net of accumulated amortization of $ 41,846 and $ 41,448 , respectively) 70,902 70,057 Investing receivables (net of allowance for credit losses of $ 2,361 and $ 2,377 , respectively) 82,523 81,512 Prepaid expenses and other assets, net 92,457 82,037 Total assets $ 4,232,895 $ 4,246,966 Liabilities and equity Liabilities: Debt, net $ 2,416,873 $ 2,416,287 Accounts payable and accrued expenses 111,981 133,315 Rents received in advance and security deposits 37,557 35,409 Dividends and distributions payable 33,906 32,644 Deferred revenue associated with operating leases 34,019 29,049 Property - operating lease liabilities 33,141 33,931 Other liabilities 16,406 18,996 Total liabilities 2,683,883 2,699,631 Commitments and contingencies (Note 17) Redeemable noncontrolling interests 22,966 23,580 Equity: Shareholders' equity: Common Shares of beneficial interest ($ 0.01 par value; 150,000,000 shares authorized; shares issued and outstanding of 112,640,861 at March 31, 2024 and 112,555,352 at December 31, 2023) 1,126 1,126 Additional paid-in capital 2,487,468 2,489,989 Cumulative distributions in excess of net income ( 1,009,964 ) ( 1,009,318 ) Accumulated other comprehensive income 3,849 2,115 Total shareholders' equity 1,482,479 1,483,912 Noncontrolling interests in

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements (unaudited) 1. Organization 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. As of March 31, 2024, our Defense/IT Portfolio included: 193 operating properties totaling 22.0 million square feet comprised of 16.3 million square feet in 163 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; six properties under development ( three office properties and three data center shells), including one partially-operational property, that will total approximately 959,000 square feet upon completion; and approximately 650 acres of land controlled that we believe could be developed into approximately 7.7 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 March 31, 2024. 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 through subsidiary partnerships and limited liability companies ("LLCs"). In addition to owning real estate, CDPLP also owns subsidiar

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View this 10-Q filing on SEC EDGAR