CDP

COPT Defense Properties

Fundamental data last updated:October 27, 2026

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company profile

SECTOR

Real Estate

industry

REIT - Office

Exchange

NYSE

County of HQ

US

Next Earnings Date

10/29/2026

Business Summary

COPT is a Real Estate Investment Trust (REIT) that focuses on the ownership, management, leasing, development, and strategic acquisition of office and data center assets. The majority of its portfolio is dedicated to serving the United States Government and its contractors, particularly those engaged in national security, defense, and information technology (IT) operations, which the company identifies as growing, resilient, and high-priority missions. Furthermore, COPT maintains a collection of Class-A office properties located in select urban submarkets across the greater Washington, DC/Baltimore metropolitan area, distinguished by strong market characteristics. As of June 30, 2023, 90% of COPT's core portfolio's annual rental income originated from its Defense/IT locations, while the remaining 10% came from its Regional Office properties. On the same date, COPT's core portfolio, including 24 properties held via unconsolidated joint ventures, comprised 192 properties spanning 22.9 million square feet and maintained a 95% occupancy rate.

 


VALUATION

P/E

23.52

Market Cap ($M USD)

$3.87B

Forward P/E

23.59

PEG

3.17

PRICE TO SALES

4.93

PRICE TO BOOK

2.52

EV / EBITDA

15.26

5-Year Average P/E

Free Cash Flow Yield

6.79%

DCF Value

$49.27

Graham Number

$21.05

Price to FCF

14.73

EV to FCF

24.82

Earnings Yield

4.26%

FCF Yield

6.79%

DIVIDEND

Yield

3.71%

Annual Payout

$1.27

Payout Ratio

106.21%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$1.45

Next Year EPS Growth Estimate

$1.45

Next Year Revenue Growth Estimate

$764.07M

Return on Equity (ROE)

10.82%

FREE CASH FLOW

Operating Margin

30.33%

Debt-to-Equity

1.75

Piotroski F-Score

6

Altman Z-Score

0.93

Return on Invested Capital (ROIC)

5.24%

Current Ratio

6.85

Quick Ratio

6.85

Net Debt to EBITDA

6.21

Interest Coverage

2.54

Gross Profit margin

37.63%

FCF PER SHARE

$2.33

REVENUE PER SHARE

$6.95

Gainseekers Quantitative Analysis

Summary

The market seems to be overlooking COPT Defense Properties’ intrinsic value. With a DCF Value nearly double the recent pricing, the stock appears undervalued. The Graham Number also supports this, indicating a potential mispricing. However, the Altman Z-score of 0.86 raises red flags about financial distress, and the lack of a Forward P/E suggests uncertainty in future earnings. The Earnings Yield of 4.37% is modest, hinting at limited immediate returns.

AI Exposure / Tech Reliance

As a REIT in the office sector, COPT Defense Properties is well-positioned to leverage AI and tech advancements in property management and tenant services. The industry is ripe for integrating smart building technologies, enhancing operational efficiency. This adaptability could provide a competitive edge in attracting tech-savvy tenants.

The Bull Case

For value investors, the appeal lies in the company's robust ROIC of 5.36% and a solid FCF Yield of 8.67%. These metrics highlight efficient capital use and strong cash generation. The Piotroski F-Score of 6 indicates decent financial health, while an operating margin of 30.15% underscores pricing power. Together, these factors suggest a resilient business model capable of weathering economic fluctuations.

The Bear Case

Despite some strengths, COPT Defense Properties faces significant challenges. The Price/Book ratio of 2.36 and Price/Sales of 4.63 suggest a potentially overvalued stock. With a Net Debt to EBITDA ratio of 6.21, the company is heavily leveraged, posing risks in a rising interest rate environment. Additionally, trading close to its 52-week high, the stock may be technically overextended, limiting upside potential.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$40.33

Institutional Ownership %

1-Year Beta

0.79

Insider Buying % (6 Mo)

Distance to 52-Week High

14.08%

Distance to 52-Week Low

20.65%

EARNINGS SURPRISE %

21.62%

50-DAY SMA

$34.79

200-DAY SMA

$33.49

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.