COPT Defense Properties Files Q2 2024 10-Q

TL;DR

COPT Defense Properties dropped their Q2 2024 10-Q. Financials look steady.

AI Summary

COPT Defense Properties filed a 10-Q for the period ending June 30, 2024. The filing details their financial performance and operational status as a real estate investment trust. Key financial data and business activities for the second quarter of 2024 are presented.

Why It Matters

This filing provides investors and analysts with crucial financial and operational data for COPT Defense Properties, enabling informed investment decisions regarding this real estate investment trust.

Risk Assessment

Risk Level: medium — As a real estate investment trust, COPT Defense Properties is subject to market fluctuations, interest rate changes, and tenant-related risks.

Key Numbers

• 20240630 — Period End Date (Indicates the end of the reporting quarter.)
• 20240801 — Filing Date (Date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• COPT Defense Properties (company) — Filer of the 10-Q
• 0000860546 (company) — Central Index Key for COPT Defense Properties
• 20240630 (date) — Period of report for the 10-Q
• 20240801 (date) — Filing date of the 10-Q

FAQ

Key Financial Figures

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

Filing Documents

• ofc-20240630.htm (10-Q) — 1957KB
• cdp06302024ex311.htm (EX-31.1) — 11KB
• cdp06302024ex312.htm (EX-31.2) — 11KB
• cdp06302024ex321.htm (EX-32.1) — 5KB
• cdp06302024ex322.htm (EX-32.2) — 5KB
• ofc-20240630_g1.jpg (GRAPHIC) — 18KB
• 0000860546-24-000054.txt ( ) — 11396KB
• ofc-20240630.xsd (EX-101.SCH) — 85KB
• ofc-20240630_cal.xml (EX-101.CAL) — 109KB
• ofc-20240630_def.xml (EX-101.DEF) — 380KB
• ofc-20240630_lab.xml (EX-101.LAB) — 909KB
• ofc-20240630_pre.xml (EX-101.PRE) — 637KB
• ofc-20240630_htm.xml (XML) — 2118KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Consolidated Financial Statements Consolidated Balance Sheets as of June 30, 2024 and December 31, 2023 (unaudited) 3 Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2024 and 2023 (unaudited) 4 Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2024 and 2023 (unaudited) 5 Consolidated Statements of Equity for the Three and Six Months Ended June 30, 2024 and 2023 (unaudited) 6 Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2024 and 2023 (unaudited) 8

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 10 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 27 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 38 Item 4.

Controls and Procedures

Controls and Procedures 39

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 39 Item 1A.

Risk Factors

Risk Factors 39 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 39 Item 3. Defaults Upon Senior Securities 40 Item 4. Mine Safety Disclosures 40 Item 5. Other Information 40 Item 6. Exhibits 40

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) June 30, 2024 December 31, 2023 Assets Properties, net: Operating properties, net $ 3,257,822 $ 3,246,806 Projects in development or held for future development 277,771 256,872 Total properties, net 3,535,593 3,503,678 Property - operating right-of-use assets 40,899 41,296 Cash and cash equivalents 100,443 167,820 Investment in unconsolidated real estate joint ventures 40,148 41,052 Accounts receivable, net 46,963 48,946 Deferred rent receivable 156,123 149,237 Lease incentives, net 63,744 61,331 Deferred leasing costs (net of accumulated amortization of $ 43,837 and $ 41,448 , respectively) 72,156 70,057 Investing receivables (net of allowance for credit losses of $ 2,746 and $ 2,377 , respectively) 84,087 81,512 Prepaid expenses and other assets, net 79,182 82,037 Total assets $ 4,219,338 $ 4,246,966 Liabilities and equity Liabilities: Debt, net $ 2,389,925 $ 2,416,287 Accounts payable and accrued expenses 122,202 133,315 Rents received in advance and security deposits 33,485 35,409 Dividends and distributions payable 33,908 32,644 Deferred revenue associated with operating leases 37,199 29,049 Property - operating lease liabilities 33,818 33,931 Other liabilities 15,530 18,996 Total liabilities 2,666,067 2,699,631 Commitments and contingencies (Note 17) Redeemable noncontrolling interests 22,765 23,580 Equity: Shareholders' equity: Common Shares of beneficial interest ($ 0.01 par value; 150,000,000 shares authorized; shares issued and outstanding of 112,650,930 at June 30, 2024 and 112,555,352 at December 31, 2023) 1,127 1,126 Additional paid-in capital 2,489,931 2,489,989 Cumulative distributions in excess of net income ( 1,008,087 ) ( 1,009,318 ) Accumulated other comprehensive income 3,614 2,115 Total shareholders' equity 1,486,585 1,483,912 Noncontrolling interests in s

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 June 30, 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 June 30, 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 subsi

View Full Filing

View this 10-Q filing on SEC EDGAR