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COPT Defense Properties links dividend growth to defense spending outlook
The company says it has kept occupancy above 94% since 2022 and is seeing opportunities as U.S. defense spending rises, after a Moody's investment grade credit upgrade.
COPT Defense Properties CEO Stephen Budorick said at Nareit's REITweek: 2026 Investor Conference that the company’s operating track record and defense-linked demand continue to support its long-term growth outlook. Budorick attributed COPT’s double digit dividend and FFO per share growth since 2022 to strong occupancy, tenant retention, and steady investment activity.
Budorick said COPT kept its portfolio highly occupied, above 94% over the period, and cited tenant retention near 80% versus an industry average above 43%. He added that the company has grown FFO by 15% and AFFO by 30%, while deploying about $270 million annually into acquisitions and development projects.
COPT also discussed its credit profile after Moody’s upgraded the company’s investment grade rating, which Budorick described as recognition of performance through the pandemic, elevated inflation, and higher interest rates. Looking ahead, he said rising U.S. defense spending is expected to create significant opportunities for COPT’s portfolio and for business with the U.S. government and defense contractors.