COPT Defense Executes 132,000 Square Foot Build-to-Suit Lease in San Antonio, Bringing New Investments in 2025 to $277 Million
Exceeds Capital Commitment to New Investments Guidance in 2025
COPT Defense Properties (NYSE: CDP) (“COPT Defense” or the “Company”) executed a build-to-suit lease in December 2025 with a Fortune 100 Company in San Antonio, Texas. Construction is expected to commence on this 132,000 square foot, high-security specialized facility in the third quarter of 2026, with rent commencement expected in the fourth quarter of 2027. The anticipated capital commitment to this development project is $88 million, which densifies the Company’s existing campus in San Antonio.
In 2025, the Company committed $277 million of capital to five new investments totaling 640,000 square feet, all in its Defense/IT Portfolio, which exceeded the high end of the Company’s increased guidance range of $225 to $275 million, and was well above the initial guidance range of $200 to $250 million. The new investments consisted of:
|
Qtr |
Project |
Sub-Segment |
% Leased |
$ Commitment |
|
Q1 |
8500 Advanced Gateway |
Redstone Arsenal |
20% |
$52 million |
|
Q3 |
7700 Advanced Gateway |
Redstone Arsenal |
100% |
$27 million |
|
Q4 |
Stonegate I |
NoVA Defense/IT |
100% |
$45 million |
|
Q4 |
4400 River Road |
Fort Meade/BW Corridor |
100% |
$65 million |
|
Q4 |
Project EL 2 |
Lackland Air Force Base |
100% |
$88 million |
|
2025 |
Total Capital Committed to New Investments |
$277 million |
About COPT Defense
COPT Defense, an S&P MidCap 400 Company, is a self-managed REIT focused on owning, operating and developing properties in locations proximate to, or sometimes containing, key U.S. Government (“USG”) defense installations and missions (referred to as its Defense/IT Portfolio). The Company’s tenants include the USG and their defense contractors, who are primarily engaged in priority national security activities, and who generally require mission-critical and high security property enhancements. As of September 30, 2025, the Company’s Defense/IT Portfolio of 198 properties, including 24 owned through unconsolidated joint ventures, encompassed 22.6 million square feet and was 97.0% leased.
Forward-Looking Information
This press release may contain “forward-looking” statements, as defined in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, that are based on the Company’s current expectations, estimates and projections about future events and financial trends affecting the Company. Forward-looking statements can be identified by the use of words such as “may,” “will,” “should,” “could,” “believe,” “anticipate,” “expect,” “estimate,” “plan” or other comparable terminology. Forward-looking statements are inherently subject to risks and uncertainties, many of which the Company cannot predict with accuracy and some of which the Company might not even anticipate. Although the Company believes that the expectations, estimates and projections reflected in such forward-looking statements are based on reasonable assumptions at the time made, the Company can give no assurance that these expectations, estimates and projections will be achieved. Future events and actual results may differ materially from those discussed in the forward-looking statements and the Company undertakes no obligation to update or supplement any forward-looking statements.
The areas of risk that may affect these expectations, estimates and projections include, but are not limited to, those risks described in Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2024.
Source: COPT Defense Properties
IR Contacts:
Venkat Kommineni, CFA
443.285.5587
venkat.kommineni@copt.com
Michelle Layne
443.285.5452
michelle.layne@copt.com
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