CDPMEDIUM SIGNALFINANCIAL10-K

CDP's net income declined substantially while the company expanded its debt position and property portfolio during fiscal 2026.

The meaningful reduction in net income alongside increased borrowing suggests potential pressure on profitability despite portfolio expansion. The company added six new operating properties and expanded total square footage, but this growth appears to have come at the cost of near-term earnings performance.

Comparing 2026-02-20 vs 2025-02-21View on EDGAR →
FINANCIAL ANALYSIS

CDP's financial profile reflects a company in expansion mode with mixed results. Total assets grew modestly to $4.7B while debt increased more substantially to $2.8B, indicating increased leverage to fund growth initiatives. However, net income declined meaningfully to $97.4M, suggesting that the company's property portfolio expansion has not yet translated into proportional earnings growth, raising questions about the near-term return on invested capital.

FINANCIAL STATEMENT CHANGES
Net Income
P&L
-49.2%
$191.7M$97.4M

Net income declined 49.2% — review whether driven by operations, interest costs, or non-recurring items.

Share Buybacks
Cash Flow
+21.3%
$1.7M$2.1M

Share repurchases increased 21.3% — management returning capital, signals confidence in intrinsic value.

Total Debt
Balance Sheet
+15.7%
$2.4B$2.8B

Debt rose 15.7% — additional borrowing for investment or operations; monitor coverage ratios.

Total Liabilities
Balance Sheet
+15.6%
$2.7B$3.1B

Liabilities increased 15.6% — monitor debt-to-equity ratio and interest coverage.

Total Assets
Balance Sheet
+10.5%
$4.3B$4.7B

Asset base grew 10.5% — expansion through organic growth, acquisitions, or capital deployment.

LANGUAGE CHANGES
NEW — 2026-02-20
PRIOR — 2025-02-21
ADDED
As of February 4, 2026, 113,207,660 of COPT Defense Properties common shares were outstanding.
Management s Discussion and Analysis of Financial Condition and Results of Operations 23 I tem 7A.
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 40 I tem 9A.
Our property portfolio is predominantly comprised of office properties and single-tenant data center shells.
As of December 31, 2025, our Defense/IT Portfolio included: 201 operating properties totaling 23.2 million square feet.
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REMOVED
At February 5, 2025, 112,699,445 of COPT Defense Properties common shares were outstanding.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 23 ITEM 7A.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 39 ITEM 9A.
As of December 31, 2024, our Defense/IT Portfolio included: 195 operating properties totaling 22.4 million square feet comprised of 16.5 million square feet in 164 office properties and 5.9 million square feet in 31 single-tenant data center shells.
We owned 24 of these data center shells through unconsolidated real estate joint ventures; four properties under development (two office properties and two data center shells) that will total approximately 606,000 square feet upon completion; and approximately 1,020 acres of land controlled that we believe could be developed into approximately 11.0 million square feet.
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