COPT Defense prices $400 million senior notes offering

Published 23/09/2025, 22:02
COPT Defense prices $400 million senior notes offering

COLUMBIA, Md. - COPT Defense Properties (NYSE:CDP), a REIT with a market capitalization of $3.43 billion, announced Monday that its operating partnership has priced a $400 million public offering of 4.500% Senior Notes due 2030. The company, which currently offers an attractive 4.03% dividend yield and has maintained dividend payments for 34 consecutive years according to InvestingPro, will fully guarantee the obligations under these notes.

The offering is expected to close on October 2, 2025, subject to customary closing conditions, according to a press release statement.

Wells Fargo Securities, PNC Capital Markets, TD Securities, and KeyBanc Capital Markets are serving as joint book-running managers for the offering, with M&T Securities acting as co-manager.

COPT Defense indicated that proceeds from the offering will be used for general corporate purposes, including repayment at maturity of its 2.250% Senior Notes due 2026 and reducing outstanding amounts on its unsecured revolving credit facility and an existing term loan. The company maintains strong financial health with a current ratio of 2.71, indicating robust liquidity to meet its short-term obligations.

The 2030 Notes will be issued under a prospectus supplement and accompanying prospectus filed as part of an effective shelf registration statement with the Securities and Exchange Commission.

COPT Defense Properties is a self-managed REIT that specializes in owning, operating and developing properties near key U.S. Government defense installations. As of June 30, 2025, the company’s portfolio consisted of 198 properties encompassing 22.6 million square feet, with 24 properties owned through unconsolidated joint ventures. With last twelve months revenue of $751.46 million and according to InvestingPro’s Fair Value analysis, the stock currently appears to be trading near its Fair Value. Investors can access detailed valuation metrics and 6 additional ProTips about CDP through InvestingPro’s comprehensive research platform.

In other recent news, COPT Defense Properties reported its second-quarter earnings for 2025, surpassing analysts’ expectations. The company achieved an earnings per share (EPS) of $0.34, slightly above the forecast of $0.33. Furthermore, COPT Defense Properties exceeded revenue projections, reporting $189.92 million against an anticipated $175.02 million. These results highlight the company’s strong financial performance in the second quarter. Additionally, COPT Defense Properties announced that its Board of Trustees has declared a regular quarterly dividend of $0.305 per common share for the third quarter ending September 30, 2025. This dividend represents an annualized amount of $1.22 per share and will be payable on October 16, 2025, to shareholders of record on September 30, 2025. These developments indicate ongoing shareholder returns and robust financial health.

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