Defense Properties (COPT) Reports Q3 2026 Growth Driven by Defense/IT Demand and Increased Guidance
Defense Properties (COPT) reported strong third-quarter results for 2026, highlighted by a 2.9% year-over-year increase in FFO per share to $0.71. The company's growth is primarily fueled by its Defense/IT portfolio, which accounts for 93% of total net operating income and maintains high occupancy levels. Management raised its full-year 2026 FFO guidance to a midpoint of $2.80 per share, despite facing headwinds from interest rate fluctuations and stock-price-driven dilution. The company is aggressively expanding its footprint through an active development pipeline of 1.1 million square feet and increased capital commitments for new investments. While rising SOFR rates are expected to increase interest expenses in 2027, COPT's strategic recapture of space from suboptimal tenants for high-growth clients—evidenced by massive rent spreads in the data center segment—positions it to capitalize on record Department of Defense spending.
Tickers: $DLR PRJ
Topics: Data Center occupancy FFO per share Guidance increase Real Estate Investment Trust (REIT) Space recapture