CDP earnings analysis
What we found in CDP's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
COPT Defense delivered Q2 revenue of $197.392 million, up 3.9% year over year, and GAAP diluted EPS of $0.40, up from $0.34; operating margin expanded to 32.03%. Core operating performance was led by $2.985 million of Defense/IT same-property NOI growth and 94.5% average occupancy, while first-half operating cash flow increased $27.5 million. Offsetting considerations are higher interest expense following the $400.0 million refinancing, lower construction-service activity, and substantial remaining 2026 development spending.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue and GAAP EPS grew year over year
- Q2 revenue rose $7.477 million, or 3.9%, year over year to $197.392 million, although it declined $3.245 million, or 1.6%, sequentially from implied Q1 2026 revenue of $200.637 million. GAAP diluted EPS increased to $0.40 from $0.34 a year earlier and $0.34 in Q1 2026.
- Operating margin expanded 63 bps
- Operating income was $63.230 million, producing a 32.03% operating margin, up from 31.40% in Q2 2025. Net income increased $8.393 million to $48.559 million, aided by a $6.442 million gain on real-estate sales.
- Core Defense/IT NOI and occupancy advanced
- Same-property NOI rose $3.060 million to $114.967 million in Q2. Defense/IT same-property NOI contributed $106.661 million, up $2.985 million, while average portfolio occupancy improved 70 bps to 94.5%.
- Leasing activity supports portfolio stability
- The portfolio ended June 30 at 94.1% occupied and 95.6% leased. During the first half, the company leased 2.2 million square feet, including 1.5 million square feet of renewals, for an 84.4% tenant-retention rate.
- Operating cash flow and liquidity improved
- First-half operating cash flow increased $27.5 million year over year, driven largely by higher rental and occupancy rates and operating-portfolio growth. Liquidity included $24.2 million of cash, $528.0 million of revolver availability and $64.0 million of development-facility availability.
- Debt maturity was addressed
- The company repaid $400.0 million of 2.25% notes at maturity in March 2026. It remained compliant with its debt covenants as of June 30, 2026.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Higher refinancing costs pressure earnings
- Interest expense increased $3.506 million year over year in Q2 to $24.444 million after refinancing $400.0 million of 2.25% notes with 4.50% notes due 2030. A 1% increase in applicable variable rates would have increased first-half interest expense by approximately $1.0 million.
- Vacancy persists in select sub-portfolios
- Occupancy remains uneven outside the core portfolio: the Other segment was 83.1% occupied at June 30, 2026, while Navy Support occupancy was 86.2%. Total portfolio occupancy of 94.1% was only 10 bps above the 94.0% level at December 31, 2025.
- Development spending remains capital intensive
- Property additions totaled $120.819 million in the first six months of 2026, including $88.191 million for development or future development. Management expects another $85 million-$105 million of active-development spending in the remainder of 2026.
- No material risk-factor updates
- Item 1A states there were no material changes to risk factors from the 2025 Annual Report on Form 10-K. Accordingly, this filing does not identify a newly changed risk-factor disclosure.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.4
- Operating margin
- 32.03%
- Segment
- Same-property NOI — Defense/IT Portfolio: $106.661 million, up $2.985 million year over year.
- Segment
- Same-property NOI — Other: $8.306 million, up $0.075 million year over year.
What they said about what is next.
The 10-Q does not provide numeric revenue or EPS guidance. Management expects $85 million-$105 million of spending on actively developed properties and approximately $55 million of tenant, capital-improvement and leasing costs during the remainder of 2026.
The filing reads better than the one before it.
What came before.
- 10-Q · May 6, 2026
- COPT Defense (CDP) reported a solid Q1 2026 with total revenue of $200.637M, exceeding consensus estimates of $197.592M, and EPS of $0.69 compared to an estimate of $0.68, reflecting a positive surprise. However,…
- 10-K · February 20, 2026
- COPT Defense (CDP) positions itself as a specialized Defense/IT-focused REIT, with 201 of 207 properties and 90.3% of annualized rental revenue concentrated in its Defense/IT Portfolio and a development pipeline and…
- 10-Q · August 1, 2024
- COPT Defense Properties reported Q2 2024 total revenue of $187,343,000 (three months ended June 30, 2024), up 10.7% versus $169,196,000 in Q2 2023 and down modestly versus Q1 2024 ($193,266,000). Operating margin…
- 10-Q · August 2, 2023
- Quarterly results show underlying portfolio strength in Defense/IT locations with higher occupancy (93.4% at June 30, 2023 vs 92.7% at Dec 31, 2022) and Same Properties NOI growth, but total GAAP revenue was down for…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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